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What is a Contractor License Bond?

You may not be aware of it, but there are many types of surety bonds that construction contractors can take out. One type is the contractor license bond which guarantees that a contractor will fulfill his contracts with their clients and pay all applicable taxes as well as fees to the state if they fail to do so. A contract becomes part of this agreement between three parties: principal (the contractor), obligee (state authority requiring bonding) and give or sureties (providers).

Do you need a contractor license bond?

If you're looking for the best contractor license bond in Arizona, look no further. We've got all your needs covered with our residential or commercial bonds. You can get bonded quickly and easily online, so there's no need to wait around at the office!

Get bonded today and start working on your project as soon as possible! It's easy to apply for a contractor license bond – just fill out an application form and we'll take care of everything else. And if you have any questions about how it works, don't hesitate to contact us! We're here to help answer any questions that might come up.

Apply for a contractor license bond now by filling out this form!

Applying for an Arizona contractor license bond

To become an Arizona contractor, you need to apply for your license bond online today! The state determines the amount of bond based on specific licenses and annual volume. If separate residential and commercial work is completed in a year, dual licensing might be needed with combined amounts calculated by multiplying that number together.

Are contractor license bonds the same as contract bonds?

Contractors are usually required to post a bond, which is an agreement that they will comply with their obligations under the law. This includes general compliance with statutory requirements as well as contractual obligations for specific projects like finishing work or paying subcontractors and suppliers in accordance to what was agreed upon in the contract.

Why do I need this bond?

As a contractor, posting this bond agrees to follow all laws and regulations in Arizona Revised Statutes. If you commit any of the following acts: abandoning contracts after submitting bids, failing to pay taxes or act fraudulently resulting in injury then your license can be revoked/suspended by claiming from this bond. It is also important that contractors abide with safety and labor laws as well as advertising truthfully–any false advertisement will result in legal action against them! Have your Arizona Manufactured Home Dealer Bond.

Does Arizona require a contractor's license?

According to the AROC website, licenses are required for any person or business who “contracts or offers to contract”. This applies statewide in AZ where labor and material costs exceed $1,000 on construction jobs that involve alterations of buildings and other structures like highways, roads etc.

How much does it cost to get a contractors license in Arizona?

Well, that all depends on what you want in terms of classification. Some licenses are more expensive than others and some require a bonding fee as well. In Arizona for instance the application fees range from $80-$200 while the license costs vary between $270-580 depending on how long they last and whether or not there is a bond requirement.  Read bout Arizona Contractor’s License (Commercial General or General Engineering Contractor) Bond.

What percentage do I need to pay?

If you have a high credit score, around or above 700 FICO, the cost for your contractor license bond is usually between 1%-2% of the total amount. Looking for  Arizona Managing General Agent Bond.

Do I need a contractor’s license if I personally build my own house?

In general NO for your own home but you need to check with your local inspectional services department to ask their guidance on it. You'll be held to the same standards as the professionals meet and workmanship, so prepare yourself for an extra thorough inspection- some states have very loose regulations while others are strict or somewhere in between both. Your utility companies might require a licensed contractor to make certain connections depending on where you live.

Can I use my California Contractors License in Arizona?

Yes, depending on the state. Arizona, Utah, Louisiana and Nevada all have reciprocity agreements with California. Contractor license reciprocity is an agreement between the contractor licensing boards of two different states.” Here's Arizona Debt Management Bond.

How long does a contractor have to warranty his work in Arizona?

The lifespan of a contractor's workmanship warranty is now governed by Arizona law.

Arizona has brought forward new legislation to overhaul its contractors' warranties, giving them more protection than ever before. This penalizes builders who offer less-than two year warranties on their work from getting licenses in the future and extends that time period for any project completions as well.[22] For qualified contractors this means they are guaranteed at least two years after completion of the specific project or job.”

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