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Ongoing Obligations for Your AZ Contractor's License
Posted on May 27th, 2022

It's no secret that having an Arizona contractor's license is a must to work in the construction industry. But did you know that there are also several ongoing obligations you must meet in order to keep your license active? Everything you need to know about getting and maintaining your AZ contractor's license is outlined below.

What are the Requirements to Get a Contractor's License in Arizona?

If you're new to the contracting business or just looking to get licensed in Arizona, you'll need to follow the guidelines as set forth by the Arizona Registrar of Contractors , which includes:

  • Identifying a Qualifying Party - A qualifying party is essentially someone who has been in the business for a while and can attest to your experience and expertise. The qualifying party must also meet or exceed the license classification requirements and pass the required examinations by at least 70% and submit the exam results.
  • Passing required background checks - All applicants must pass a fingerprint-based background check through the Arizona Department of Public Safety in order to obtain a license.
  • Submitting the required documents and fees - In addition to the completed application, you'll need to submit proof of financial responsibility, fingerprint results, government identification, and the applicable fees .
  • Form a legal entity - This can be either an LLC, Corporation, or Partnership, but each will have its own specific requirements.
  • Become bonded - All contractors in Arizona must obtain a surety or cash bond in the amount of $200,000. The bond must be issued by an authorized surety company and filed with the Registrar of Contractors.
  • And, finally, submit the licensing application .

While this may sound like a lot of hurdles to jump through, the process is actually pretty straightforward and as long as you have all the required documentation, it shouldn't take more than a few weeks to get your license.

What are the Ongoing Obligations of an Arizona Contractor?

Once you've obtained your contractor's license, there are still some ongoing obligations you'll need to adhere to in order to keep your license active. These include:

  • Maintaining financial responsibility - All contractors are required to maintain financial responsibility in the form of a surety bond, cash deposit, or letter of credit. The amount required is based on the classification of your license and the type of work you'll be doing.
  • Continuing education - Currently, Arizona does not have any continuing education requirements for licensed contractors. However, it's always a good idea to stay up-to-date on the latest industry news and changes in the law.
  • Reporting changes - If there are any changes to your contact information, legal status, or financial responsibility, you'll need to notify the Registrar of Contractors within 10 days.
  • Pay renewal fees - Your AZ contractor's license is valid for two years, and in order to renew it, you'll need to submit the required renewal application and fee .

Failure to meet any of these obligations can result in disciplinary action from the Registrar of Contractors, up to and including revocation of your license.

So, there you have it - everything you need to know about getting and maintaining your AZ contractor's license. Just remember to stay up-to-date on your obligations and renew your license on time, and you'll be good to go. Need help navigating your way through the AZ contractor's license process? Contact us today to find out how we can help!

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