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Arizona Contractor License Center specializes in providing bonding services for the Arizona Contractor. Our bonding specialists will help guide you through the bonding process, work with you in completing your bond applications and assist you with the filing process. We have been responsible for filing thousands of bond applications each year helping the contractor secure the proper bonding coverage's at the most cost effective premiums.

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What is a Contractor License Bond?

The License Bond provides the financial security and construction assurance on building and construction projects by assuring residential project owners the contractor will perform the work and pay subcontractors, laborers, and material suppliers and commercial contractors will comply with all commercial codes set forth by the state.  Essentially, a surety bond is a guarantee between the contractor, the party who they are providing the work for and the bonding company who ensures the contractor's obligations will be performed.

Are there any bond requirements for a contractor's license?

Yes. It is the applicant or licensee's responsibility to file a Contractor's Bond in the amount required for the respective license classification and anticipated annual gross volume. The bond may be in the form of a surety bond or a cash bond. You may also provide a bond in the form of cash or a certificate of deposit from any bank which operates in Arizona.

How long is a bond valid?

The bond must be continuous. This means that there is no termination date on the bond. You may be required to pay premiums to the bonding company periodically to keep the bond in force. The bonding company has the right to cancel the bond but must send a notice to you and the Arizona Registrar of Contractors thirty days prior to the cancellation date. If this occurs, you will need to replace the bond or your license will be suspended. If your bond is in cash, the agency will retain the bond until two years after the license terminates. If no claims are made against the bond in that time, you may apply to have the bond released to you.

What will the bond amount be?

Please check the chart below. Determine the bond amount by considering the volume of work and classification contemplated by the applicant.

Can the bond amount be increased?

The amount of the contractor's license bond may be increased at any time. However, a surety bond or cash deposit in lieu of bond cannot be decreased except at the time of renewal for the ensuing fiscal year.

How are bond amounts determined?

Contractor's license bonds are established in the following amounts as based upon the volume of work within the State of Arizona and the classification contemplated by the licensee:

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





This is not what you pay when you use a bonding company, call 1-866-332-8453 for pricing

Residential General Contractors

(B, B-03, B-04, B-05, B-06, B-10)

Less than $750,000 9,000
$750,000 or more 15,000

Residential Specialty Contractors

(R-01, R-02, R-03, R-04, R-05, R-06, R-07, R-08, R-09, R-10, R-11, R-12, R-13, R-14, R-15, R-16, R-17, R-21, R-22, R-24, R-31, R-34, R-36, R-37, R-37R, R-38, R-39, R-39R, R-40, R-41, R-42, R-45, R-48, R-53, R-54, R-56, R-57, R-60, R-61, R-62, R-63, R-65, R-67, R-70)

Less than $375,000 4,250
$375,000 or more 7,500

Commercial General Contractors (Includes General Engineering Contractors)

(A, A-04, A-05, A-07, A-09, A-11, A-12, A-14, A-15, A-16, A-17, A-19, B-01, B-02, 

$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

(C-01, C-03, C-04, C-05, C-06, C-08, C-09, C-10, C-11, C-12, C-14, C-15, C-16, C-21, C-24, C-31, C-34, C-36, C-37, C-38, C-39, C-40, C-41, C-42, C-45, C-48, C-49, C-53, C-54, C-56, C-57, C-58, C-60, C-61, C-63, C-65, C-67, C-70, C-74, C-77, C-78, C-79)

$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

Arizona Taxpayer Bond

Who May Have to Post a Taxpayer Bond?

Note: The bonds referred to in this publication should not be confused with a Performance Bond.
  • Certain transaction privilege tax license applicants who will engage in contracting.
  • Certain prime contractors who have construction contracts valued at $50,000 or more.
  • Persons who are delinquent in paying Arizona taxes or have a history of delinquency

What amount of bond must a new applicant post?

The primary type of contracting being performed determines what amount of bond to post.
Required Bond Amount Type of Contracting Being Performed
$2,000 General contractors of residential buildings, other than single family housing; operative builders; plumbing, air conditioning, and heating; painting, paper hanging, decorating; electrical work, masonry stonework and other stonework; plastering, drywall, acoustical and insulation work, terrazzo, tile, marble and mosaic work; carpentry; floor laying and other floor work; roofing and sheet metal work; concrete work, water well drilling, structural steel erection; glass and glazing work; excavating and foundation work; wrecking and demolition work; installation and erection of building equipment; special trade contractors; and manufactures of mobile homes.
$7,000 General contractors of single family housing, water, sewer, pipeline, communication and power-line construction.
$17,000 General contractors of industrial building and warehouses; of non-residential buildings; and highways and street construction except elevated highways.
$22,000 Heavy construction not elsewhere classified (e.g. dams, golf courses, land drainage, etc.).
$102,000 Bridge, tunnel and elevated highway construction.

source R15-5-601(B)

How long must a new applicant maintain a taxpayer bond?

An applicant in the contracting business must maintain a bond for a minimum of 2 years. The department will not require the applicant to obtain a new bond if the taxpayer timely pays all taxes due for that 2 year period. If the taxpayer has deposited cash, a certificate of deposit, or a U.S. Treasury bond with the department, the taxpayer must submit a request for refund of the bond in writing. The taxpayer may use Arizona Department of Revenue’s Bond Release Request for Contractors. 

More Information on Tax Bonds from Publication 539

Commercial Insurance

Liability Insurance - Call Contractors Insurance Agency 877-404-0707

Provides coverage for the Named Insured (your business entity) for Bodily Injury and Property Damage (not your employee) and caused by you (or your employee’s negligence). This coverage is at your premises, your work place, or even after you have completed your work and months later someone claims to have suffered a bodily injury or some property damage due to you not doing your job correctly.  Get a Quote

Contract Bonds - Call 877-404-0707

Contract Surety Bonds are surety bonds that guarantee the faithful performance of the contract agreement's terms and conditions. For the construction industry, performance, bid and payment bonds are three of the most popular type of bonds used.
Apply For a Contract Bond

Performance Bond - Call Today 877-404-0707

Protects the owner from financial loss should the contractor fail to perform the contract in accordance with its terms and conditions.
Apply For a Performance Bond

Bid Bond - Call Today 877-404-0707

Residential contractors are also required to provide a consumer protection bond. This may be in the form of a Surety Bond or cash deposit in the amount of $200,000.00, or payment into the Residential Contractors' Recovery Fund. The application instructions provide detailed information on this requirement.
Apply For a Bid Bond

Notary Bond - Apply Online Today

Arizona law requires all Notaries to purchase and maintain a $5,000 Notary surety bond for the duration of their 4-year commission. The Notary bond protects the public of Arizona against any financial loss due to improper conduct by an Arizona Notary. The bond is NOT insurance protection for Arizona Notaries.  Apply for a Notary Bond