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Arizona Contractor License Bond

Arizona Contractor License Bond

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Who Requires the Contractor License Bond and Why Is It Needed?

Builder. Contractor License Bond for licensed contractors to ensure compliance with state or local regulations and statutes.

Contractor license bonds are required by the Arizona Registrar of Contractors (AZROC). The amount of the surety bond varies from $2,500 to $100,000 based on annual dollar volume of work and the contractor classification (type of business performed). The specific bond amount required for your license type and business are shown in the table below. A Taxpayer Bonds for Contractors must also be posted by certain contractors. Please see the links below for more information on requirements and exemptions.

Contractor's license bonds are set in the following amounts based upon the gross volume of work contemplated by the licensee within the State of Arizona for the ensuing fiscal year:

License Type Contemplated Gross Volume (Per License) Bond Amount 
Residential General Contractors Less than $750,000 $9,000
$750,000 or more $15,000 
Residential Specialty Contractors Less than $375,000 $4,250 
$375,000 or more $7,500 
Commercial General Contractors (Includes General Engineering Contractors) $150,000 or less $5,000
In excess of $150,000 but not more than $500,000  $15,000
In excess of $500,000 but not more than one million $25,000
In excess of one million but not more than five million $50,000
In excess of five million but not more than ten million $75,000
Over ten million $100,000
Commercial Specialty Contractors $150,000 or less $2,500
In excess of $150,000 but not more than $500,000 $7,000
In excess of $500,000 but not more than one million $17,500
In excess of one million but not more than five million $25,000
In excess of five million but not more than ten million $37,500
Over ten million $50,000


Dual license bond amounts are calculated by combining the amount required for residential and commercial.

Table above courtesy of the Arizona Registrar of Contractors.

 

How Much Will My Surety Bond Cost?

Take 2 minutes to provide the basic information required to get the best rates for your Arizona Contractor License Bond. The quote request is free and there is no obligation to you. If you prefer, please call 1‐800‐608‐9950 to speak with one of our friendly bond experts. We can help guide you through the bonding process and identify the lowest cost in the market for your situation.

If you are interested in spreading out the cost of your bond over time, we can offer convenient financing plans for many types of surety bonds. More information will be provided with your quote.

What Does the Bond Protect Against?

The surety bond is furnished for the benefit of and subject to claims by the registrar of contractors for failure to pay any sum prescribed by Arizona Revised Statutes ARS section 32-1152. The bond is also for the benefit of claims by a licensee or a lessee, owner or co-owner of nonresidential real property, who has a direct contract with the licensee whose bond the claim is made and who is damaged by the failure of the licensee to build or improve a structure or other appurtenance on the real property at the time the work was performed in a manner complying with all applicable building or construction codes and in accordance with the standards of construction work approved by the state registrar.

The residential bond is for the benefit of and subject to claims by any person providing labor, materials or construction equipment on a rental basis used in the direct performance of a construction contract involving a residential structure or by persons injured as defined in ARS section 32-1131. 

What is Needed to Obtain My License?

Arizona contractors must file a Contractor's Bond in the amount required for the license classification and expected annual gross volume as outlined in the table above. The bond may be in the form of a surety bond or a cash bond. New applications for any license classification require the applicant to estimate his anticipated gross volume of work within the State of Arizona for the remainder of the present fiscal year.

The filing of a bond or deposit in a specified amount shall be deemed to be the equivalent of submitting a volume estimate within the dollar limitations applicable for such bond amount. The amount of the contractor's license bond may be increased at any time during the fiscal year. Additional information on licensing and bonding requirements can be found in the license application packet.




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