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What is the cost of an Arizona contractor license bond?
Arizona contractor bond costs start as low as $50 annually and depend on factors such as the contractor's license type, volume of work, and financial history. Exact rates vary, so the best way to determine your premium is to complete an online application to get your free bond quote or call 1 (800) 308-4358 to speak with a friendly expert about your exact bonding needs.
How do I get an Arizona contractor license surety bond?
Since these bonds require underwriting, you'll start by submitting your Arizona contractors license bond application online 24/7. You'll need to indicate your exact license type and the amount of coverage needed for your residential contractor license and/or commercial contractor license as required by the state. Once your application is approved, you'll receive an invoice.
How fast can I get a contractor bond in Arizona?
Our industry-leading technology and responsive customer service team allow us to offer free quotes and deliver official Arizona contractor bonds faster than any other surety provider. Quote approvals and invoices are often provided same-day during business hours. After your payment is received, your official contractors bond will be delivered to your email.
What is an Arizona contractor license surety bond?
According to Arizona law, these bonds are required as part of the residential and commercial contractor licensing process to ensure compliance with Arizona Revised Statutes §32-115. As such, the contractor's license classification number(s) and correct bond amount(s) must be accurately listed on the bond form.
Arizona contractor license bonds are continuous until canceled. If the surety cancels the bond, the obligee must be given at least 30 days' notice.
Watch the video below to learn more about how Arizona contractor license bonds are calculated along with how to apply, buy, and renew them!
What is the purpose of the Arizona contractor license bond?
By posting a contractor license bond, contractors agree to follow all laws and regulations within the Arizona Revised Statutes. If any of the following acts are committed, a claim can be made on the bond and the contractor's license can be revoked or suspended:
- abandoning a contract after submitting a bid
- failing to pay taxes
- acting in a fraudulent way resulting in injury of another
- aiding someone else to evade/violate specific regulations
- failing to abide by all safety and labor laws
- advertising in a false or misleading way
Note: The Arizona Department of Revenue enforces a separate Arizona Taxpayer Bond for Contractors requirement to ensure tax payments are made to the state.
Who regulates licensing for contractors in Arizona?
The Arizona Registrar of Contractors manages and enforces licensing and bonding requirements according to Arizona contractor statutes.
How is the Arizona contractor license surety bond amount calculated?
The Arizona Registrar of Contractors determines bond amounts based on the specific license type needed and the annual volume of work completed. If the contractor estimates a higher volume of work for the year, the bond amount will increase. To learn more about calculating your bond limit, visit the Arizona Registrar of Contractors Bond Limits & Regulations page.
Who should get an Arizona contractor license bond?
If you are a residential contractor, a commercial specialty contractor, or both a dual residential and commercial contractor, Arizona law requires you be licensed and bonded.
If you work in both the residential and commercial sectors, the state might request that you provide a dual license bond to cover both licenses. The required bond amount would be calculated by combining the amount required for separate license types.
How are contractor license bonds filed in Arizona?
After you receive your official contractor license bond delivered to your email, you will print it, sign it, and file it with the AZ ROC along with the rest of your bonded contractor license application packet as explained in the licensing section below.
How do I update or change my Arizona contractor bond form?
If the Arizona Registrar of Contractors requires your surety bond documentation to be updated for any reason, contact your surety provider. If you purchased your bond from SuretyBonds.com, email [email protected] to explain the needed change.
The most common changes for these bonds include:
- the contractor or construction company's legal name
- the contractors license type
- the bond amount, which could include changes to either a residential amount, a commercial amount, or both
How do I renew my contractor bond in Arizona?
The Arizona surety bond for contractors is issued for a 1-year term, so it must be renewed whenever the current term expires. Once you pay your SuretyBonds.com renewal invoice, you'll receive specific renewal instructions based on AZ ROC requirements.
Where can you find the Arizona contractor license application?
To become a licensed contractor in Arizona follow these steps:
- Download your license application packet from the Arizona Registrar of Contractors
- Identify who the qualifying party will be, who must be a regularly employed person with the necessary experience
- Pass a Business Management Exam and specific trade exam
- Complete a background check
- Register your legal entity with the Arizona Corporation Commission
- Complete Project Verification forms & Experience Verification forms
- Purchase and file a surety bond
- Complete & submit the application
- Pay application & license fees (vary depending on specialty)
Mail your application to:
Registrar of Contractors
P.O. Box 6748
Phoenix, AZ 85005-6748
If you're ready to take the first step in the application process, our team of bonding experts is ready to help you. Apply online 24/7 to get your free surety bond quote or call 1 (800)308-4358 to speak with a friendly expert about your bonding needs.