Arizona Contractor License Bonds
Contractors in the state of Arizona are required by the Registrar of Contractors to post a surety bond to complete the licensing process.
How to determine AZ contractor bond amount and cost
The bond amount of an AZ contractor bond will vary from a range of $2,500 to $100,000, with all bond amounts being determined by the AZ Registrar. Bond requirements are listed by the registrar for the following license types:
Residential General Contractors
Contemplated Gross Volume (CGV) (per license (pl)) of less than $750,000: $9,000 bond
CGVpl of $750,000 or more: $15,000 bond
Residential Specialty Contractors
CGVpl of less than $375,000: $7,500 bond
CGVpl of $375,000 or more: $5,000 bond
Commercial General Contractors (Including General Engineering Contractors)
CGVpl of $150,000 or less: $5,000 bond
CGVpl in excess of $150,000, but not more than $500,000: $15,000 bond
CGVpl in excess of $500,000, but not more than $1 million: $25,000 bond
CGVpl in excess of $1 million, but not more than $5 million: $50,000 bond
CGVpl in excess of $5 million, but not more than $10 million: $75,000 bond
CGVpl of more than $10 million: $100,000 bond
Commercial Specialty Contractors
CGVpl of $150,000 or less: $2,500 bond
CGVpl in excess of $150,000, but not more than $500,000: $7,000 bond
CGVpl in excess of $500,000, but not more than $1 million: $17,500 bond
CGVpl in excess of $500,000, but not more than $1 million: $25,000 bond
CGVpl in excess of $5 million, but not more than $10 million: $37,500 bond
CGVpl of more than $10 million: $50,000 bond
Dual license bond amounts can be calculated by combining the amount required for both residential and commercial.
The cost of all AZ contractor license bonds is subject to underwriting consideration, meaning an underwriter will look at the bond amount, the applicant’s financial and personal history, and the history of claims against this specific bond before determining whether and at what price a bond can be issued.
When applying for your bond online through ContractorBonds.com, you must provide us with the residential bond amount and commercial bond amount (if and when applicable), license type, and license number.
How to become licensed as an Arizona contractor
Contractors must complete certain license classification requirements before submitting a license application:
General engineering contractors:
Have a minimum of four years of trade experience, depending on your classification type
A minimum of two years experience is required only for seal coating
Pass the Statutes and Rules Exam (SRE) and the trade exam (required for all general engineering contractors)
Swimming pool contractors who include solar must also pass the solar exam
Obtain a solar warranty
This is required for swimming pool contractors who include solar
This is only required for general engineering and electrical/transmission lines if solar work will be performed
General commercial contractors:
Have a minimum of four years of experience
Pass the Statutes and Rules Exam (SRE) and the trade exam
Solar warranties are not required of general commercial contractors
Specialty commercial contractors:
Have a minimum of zero through four years of experience, depending on the classification and whether the trade exam was completed or not
A full list of experience requirements can be found on page 2 of the AZ License Classification Requirements
Pass the Statutes and Rules Exam (SRE)
Pass the trade exam if required for your classification (may be optional)
Obtain a solar warranty if doing any work that includes solar
General residential contractors:
Have a minimum of four years of experience
The Pre-Manufactured Spas and Hot Tubs classification must have a minimum of two years, but it can be shortened to one year by passing the trade exam
Pass the Statutes and Rules Exam (SRE) and the trade exam
Trade exam is optional for the Pre-Manufactured Spas and Hot Tubs classification
General Swimming Pool Contractor classification including Solar must pass the solar exam and obtain a solar warranty
Specialty residential contracting:
Have a minimum of zero through four years of experience, depending on the classification and whether the trade exam was completed or not
A full list of experience requirements can be found on the bottom of page 3, all of page 4, and the top of page 5 of the AZ License Classification Requirements
Pass the Statutes and Rules Exam (SRE)
Passing the trade exam and solar exam will vary by classification
Obtain a solar warranty if solar work is being performed
General dual engineering contracting:
Have four years of experience
Pass the Statutes and Rules Exam (SRE) and the trade exam
Dual Swimming Pool Contractor classification including Solar must pass the solar exam as well and obtain a solar warranty
General dual license contracting:
Have four years of experience
Pass the Statutes and Rules Exam (SRE) and the trade exam
Specialty dual license contracting:
Have a minimum of zero through four years of experience, depending on the classification and whether the trade exam was completed or not
A full list of experience requirements can be found on the bottom of page 5 and 6 of the AZ License Classification Requirements
Pass the Statutes and Rules Exam (SRE)
Passing the trade exam and solar exam will vary by classification
Obtain a solar warranty if solar work is being performed
Once all requirements have been completed, applicants can access all license application forms, along with a detailed set of application instructions, on the AZ Licensing Forms and Instructions Page.
Arizona Taxpayer Bond for Contractors
Arizona taxpayer bonds are required of all contractors performing Maintenance, Repair, Replacement and Alteration construction (MRRA). MRRA work is a separate classifications from prime contractors. More information on what MRRA work entails can be found here.
The required taxpayer bond amounts for various classifications of contractors are as follows:
Type 1: General contractors of residential buildings, other than single family housing: $2,000 bond
Type 2: General contractors of single family housing, water, sewer, pipeline, communication, and power line construction: $7,000 bond
Type 3: General contractors of industrial building and warehouses; of non-residential buildings; and highways and street construction, except elevated highways: $17,000 bond
Type 4: Heavy construction not elsewhere classified (e.g., dams, golf courses, land drainage, etc.): $22,000 bond
Type 5: Bridge, tunnel, and elevated highway construction: $102,000 bond
How much do Arizona taxpayer bonds for contractors cost?
The $17,000, $22,000, and $102,000 taxpayer contractor bonds are all subject to underwriting consideration, meaning a surety underwriter must examine the applicant’s personal history and financials, in addition to the bond’s unique history, to determine whether and at what cost a bond can be issued.
The $2,000 and $7,000 taxpayer contractor bonds can be issued online for a set premium to all applicants. A $2,000 bond can be issued for $175, and a $7,000 bond can be issued for $245. Purchase your bonds online today through ContractorBonds.com!
NOTE: Arizona prime contractor bonds are required of new contractors and out-of-state contractors who are engaging in taxable construction projects or activities in which they are only performing modification work and are required to obtain a Transaction Privilege Tax (TPT) license. This license cannot be applied for via an online application. The bond amount for a prime contractor bond will range from $1,000 to $200,000.
Search all contractor bonds in Arizona
Over the years, our bonding experts have put together the most comprehensive surety bond library. Most of our contractor bonds can be purchased instantly online in only a few minutes.
Use the list on the right below to browse all of our available contractor bonds in Arizona You can also try searching by bond amount, obligee, or bond name.