Arizona Contractors License Bond Requirements
Four types of contractors in Arizona are required to post a contractor license bond to the Arizona Registrar of Contractors as part of the licensing process.
Bonds for these contractors vary in their amount depending on the contemplated gross volume of work per year. These are:
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Residential general contractors in the state must post a bond in the amount of $9,000 or $15,000.
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Residential specialty contractors are required to post a bond in the amount of $4,250 or $7,500.
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Commercial general contractors in Arizona must post a bond in a range between $5,000 and $100,000.
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Commercial specialty contractors are required to post a bond in a range between $2,500 and $50,000.
Contractors in Arizona are required to obtain one of these bonds when applying for a license. For a detailed breakdown of the specific bond amounts required of contractors in Arizona, see the table in the section below.
Bryant Surety Bonds can provide contractors with some of the lowest rates available in the state. To get a free quote on your bond, complete the online application form, and we will shortly get in contact with you.
Are you looking to obtain a contract bond in Arizona? See our contract bonds page for more information about the contract bonds offered by Bryant Surety Bonds!
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Get a free exact quote Get another estimateHow Much Does an Arizona Contractors License Bond Cost?
To get bonded, you must pay a bond premium. The premium is equal to a percentage of the total bond amount and is determined by the personal credit score.
Applicants with a high credit score (700+ FICO) can usually get bonded at a rate of 1% of the total bond amount. To get a $15,000 bond at this rate, you would need to pay a $150 premium.
Want to know how much your bond might cost? See the table below for an estimate!
| Arizona Contractor License Bond Cost | ||||||
| License Type | Expected annual gross volume of work | Surety Bond Amount | Surety Bond Cost by Credit Score | |||
| Above 700 | 650-699 | 600-649 | Below 599 | |||
| Residential General Contractor | Less than $750,000 | $9,000 | $100 - $135 | $100 - $225 | $225 - $450 | $450 - $900 |
| Over $750,000 | $15,000 | $112,5 - $225 | $150 - $375 | $375 - $750 | $750 - $1,500 | |
| Residential Specialty Contractors | Over $375,000 | $4,250 | $100 | $100 | $106 - $212,5 | $212,5 - $425 |
| Over $375,000 | $7,500 | $100 - $112,5 | $100 - $187,5 | $187,5-$375 | $375-$750 | |
| Commercial General Contractors & General Engineering Contractors | $150,000 or less | $5,000 | $100 | $100 - $125 | $125-$250 | $250-$500 |
| Over $150,000 but less than $500,000 | $15,000 | $112,5 - $225 | $150 - $375 | $375-$750 | $750-$1,500 | |
| Over $500,000 but less than $1 million | $25,000 | $187,5 - $375 | $250 - $626 | $625-$1,250 | $1,250-$25,00 | |
| Over $1 million but less than $5 million | $50,000 | $375 - $750 | $500 - $1,250 | $1,250-$2,500 | $2,500-$5,00 | |
| Over $5 million but less than $10 million | $75,000 | $562,5 - $1,125 | $750 - $1,875 | $1,875-$3,750 | $3,750-$75,00 | |
| $10 million or more | $100,000 | $750 - $1,500 | $1,000 - $2,500 | $2500-$5000 | $5000-$10,000 | |
| Commercial Specialty Contractors | $150,000 or less | $2,500 | $100 | $100 | $100-$125 | $125-$250 |
| Over $150,000 but less than $500,000 | $7,000 | $100 | $100 - $175 | $175-$350 | $350-$700 | |
| Over $500,000 but less than $1 million | $17,500 | $130 - $262,5 | $175 - $437,5 | $437,5-$875 | $870-$1,750 | |
| Over $1 million but less than $5 million | $25,000 | $187,5 - $375 | $250 - $626 | $625-$1,250 | $1,250-$25,00 | |
| Over $5 million but less than $10 million | $37,500 | $281 - $562,5 | $375 - $937,5 | $937,5-$1,875 | $1,875-$3,750 | |
| $10 million or more | $50,000 | $375 - $750 | $500 - $1,250 | $1,250-$2,500 | $2,500-$5,000 | |
Several other financial factors also influence the cost of your bond. These include your:
- Personal and business financial statements
- Fixed and liquid assets
- Work experience and record
To improve your bond cost, you should focus on increasing your credit score as well as improving these additional financial indicators.
Want to know more about how bond rates are determined by sureties? See our detailed surety bond cost guide!
Residential and Commercial Contractors
Regardless of the type of license applied for, all contractors in Arizona are required to obtain a bond under Arizona Revised Statutes (A.R.S.) §32-1152.
The purpose of this bond is to guarantee that licensed contractors will pay any sum required pursuant to this chapter. Payments may be required on claims against the contractor for:
- Failure to build or improve a structure in compliance with the applicable construction code
- Failure to pay for labor, materials, or equipment provided
- Causing injury as described in §32-1131
Licenses and bonds for contractors are issued for a period of two years. Renewal must be completed before the renewal date of the license to avoid its expiration.
Arizona Contractor Licensing Requirements
To get licensed as a commercial or residential contractor in Arizona, you must comply with the licensing requirements of the Registrar of Contractors. These include the following:
- Form a legal entity with the Arizona Secretary of State
- Identify a qualifying party for your license that meets the license classification experience and examination requirements
- Submit background checks for the applicant and the qualifying party
- Obtain an Arizona contractor license bond in the right amount
- Provide Workers’ Compensation Insurance (if applicable)
- Pay a licensing fee
- Complete and submit a contractor license application form
If you have any questions about the licensing process for contractors in the state, contact your local ROC representative.
