What do you need to become a Licensed Contractor in Arizona?
To get a contractors license in Arizona you will need to:
- Qualifying Person – This person can either be a licensed contractor, employer, fellow employee, supervisor, journeyman, foreman or someone that has the required level of experience and can personally vouch for your level of experience
- Required Level of Experience – In Arizona each license classification requires a different level of experience. Most licenses require at least 4 years experience at the journeyman level. You will need to be able to prove this experience with documentation at the AROC’s request.
- Pass an Exam – You will need to pass a two-part exam (Business Management/Trade) with a score of 70% or higher. . Some classifications only require that you to take the business management license. To see whether or not your trade requires both exams, see below. You can apply for these exams through PSI’s website. See Below
- Criminal Background Check – All applicants in Arizona have to pass a criminal background check. It is not impossible to get a contractor license in Arizona if you have a criminal record, just be hones ton the application. However, charges associated with: Fraud, Embezzlement and Forgery are big red flags
- Form a Legal Entity – Arizona only issues licenses to legal entities. This includes: Sole Proprietorships, Limited Liability Companies, S-Corp, C-corporations and partnerships. To learn how to set up a business click here.
- Contractor Bond – All Contractors in Arizona are required to have an active construction bond in place for a license can be activated. The amount for your contractor bond depends on the classification you are applying for. To learn more about construction bond requirements in Arizona, read below
- Pay License Fees – Contractor license fees are paid every two years. The amount you have to pay depends on the classification you apply for, however they typically range between $580 and $1050. To see a the full breakdown of Arizona license fees click here.
- Identification – You must have a USA issued form of identification along with a social security. You must be at-least 18 years of age and you cannot currently be on probation or parole.
- Complete Application – You can find the license application form here. It can be either sent to:
- Registrar of ContractorsP.O. Box 6748Phoenix, AZ 85005-6748or delivered to:1700 W. Washington StreetSuite 105Phoenix, AZ 85007-2812
Application Costs
The license fees in Arizona are as follows:
| NEW LICENSE APPLICATION | ||||
|---|---|---|---|---|
| CLASSIFICATION | APPLICATION FEE | LICENSE FEE | RECOVERY FUND ASSESSMENT* | TOTAL** |
| General Commercial | $200 | $580 | $0 | $780 |
| Specialty Commercial | $100 | $480 | $0 | $580 |
| General Residential | $180 | $320 | $370 | $870 |
| Specialty Residential | $80 | $270 | $370 | $720 |
| General Dual | $200 | $480 | $370 | $1,050 |
| Specialty Dual | $100 | $380 | $370 | $850 |
Data from Arizona Registrar of Contractors Website
| RENEWAL LICENSE APPLICATION | |||
|---|---|---|---|
| CLASSIFICATION | LICENSE FEE | RECOVERY FUND ASSESSMENT* | TOTAL** |
| General Commercial | $580 | $0 | $580 |
| Specialty Commercial | $480 | $0 | $480 |
| General Residential | $320 | $270 | $590 |
| Specialty Residential | $270 | $270 | $540 |
| General Dual | $480 | $270 | $750 |
| Specialty Dual | $380 | $270 | $650 |
Data from Arizona Registrar of Contractors Website
Who Needs A Contractor License In Arizona?
- Anyone offering services over $1,000 in labor or materials
- Anyone offering services that require pulling a building permit
This includes:
- Building
- Altering
- Repairing
- Wrecking
- Adding to
- Subtracting from
- Moving
- Demolishing
According to the AROC website: Any Building, Highway, Road, Railroad or Structure must hold a Contractor License in Arizona.
This also applies to anyone contracting for services involving erection of scaffolding, utility services, metering devices, sewer lines, and mechanical or structural service.
Arizona Contractor License Classifications
In the state of Arizona, construction work is separated into six categories:
- Specialty Residential
- Specialty Commercial
- Specialty Dual License
- General Residential
- General Commercial
- General Dual License
Commercial License
- Allows you to bid on all Commercial Construction Projects
- Work related to electrical, plumbing, air conditioning systems, boilers, swimming pools, spas and water wells must be subcontracted to an appropriately licensed contractor.
Residential License
- Allows you to bid on all Residential Construction Projects
- Work related to electrical, plumbing, air conditioning systems, boilers, swimming pools, spas and water wells must be subcontracted to an appropriately licensed contractor.
Dual License
- Allows you to bid on all Residential and Commercial Construction Projects
- Work related to electrical, plumbing, air conditioning systems, boilers, swimming pools, spas and water wells must be subcontracted to an appropriately licensed contractor.
Specialty Licenses
The following licenses only require you to pass the Arizona business management exam:
- Swimming Pool Services
- Acoustical Systems
- Awnings, Carports, Patio Covers
- Drywall
- Ornamental Metals
- Lightweight Partitions
- Plastering
- Insulation
- Finish Carpentry
- Appliances
- Fencing
- Excavating, Grading, and Oil Surfacing
- Sheet Metal
- Water Well Drilling
- Water Conditioning
- Welding
- Finish Carpentry
- Appliances
- Fencing
- Signs
- Wrecking
- Asphalt Paving
The Following Classifications require you to pass a Business Management and Trade Exam:
- General Contractor
- General Engineering Contractor
- Boiler, Steam Fitting and Process Piping
- Carpentry
- Floor Covering
- Concrete
- Electrical
- Elevators
- Fire Protection
- Blasting
- Steel and Aluminum Erection
- Hardscaping and Irrigation
- Masonry
- Painting
- Septic Tanks
- Roofing
- Ceramic, Plastic and Metal Tile
- Comfort Heating, Ventilating and Cooling
- Sewers, Drains and Pipe Laying
- Carpentry, Remodeling and Repairs
- Glazing
- Low Voltage
- Reinforcing Bar and Wire Mesh
Arizona Contractor Exam
Depending on your trade you may only need to take the Arizona Business Management exam.
The examination is facilitated by a third party company named: PSI
The exam covers:
- Arizona Registrar of Contractors Statutes
- Arizona Registrar of Contractors Rules
- Workmanship Standards
- Business Management
- Business Mathematics
- Contracts and Agreements
- Insurance and Bonding
- Safety, Record Keeping and Employment Regulations
- Financial Management
- Tax Laws
- Liens
- Environmental Regulations
Arizona Business Management Exam
- Multiple Choice / On Computer
- 80 questions
- 70% score is required to pass
- 180 minutes
- On test day you must bring two forms of identification
- You will be given a piece of scratch paper and pencil
- Non programmable calculators are permitted
- No electronic devices are allowed inside the testing area
- You get 3 attempts to pass the exam
- PSI charges $66 to take one exam and $116 to take two exams
- If you do not pass after 3 attempts you have to wait 180 days to take the exam again
- The exam is multiple choice and taken on a computer
Where do you take the Contractor License exam in Arizona?
YUMA
Yuma – Arizona Western College
2020 SE Avenue 8E
Yuma, AZ 85365
TUCSON
2601 N. Campbell Avenue,
Suite 201-3
Tucson, AZ 85719
TEMPE
Mill Avenue Business Center
40 W. Baseline Road, Suite 221
Tempe, AZ 85283
PHOENIX – MIDTOWN
5727 N. 7th Street,
Suite 301
Phoenix, AZ 85014
GLENDALE
Glendale-Arizona Flight Training Center –
Glendale Airport
6799 N Glen Harbor Blvd
Glendale, AZ 85307
FLAGSTAFF
Northern Arizona University
Du Bois Building 64, Room 140306
E. Pine Knoll Drive
Flagstaff, AZ 86011
Arizona Contractor Bond
- All licensed contractors in the state of Arizona must hold a Construction Bond
- All Construction Bonds must be continuous with no termination date
What Is a Contractor Bond?
- A construction bond is a security deposit issued by a surety company.
- Bonds are designed to protect the consumer public against contractor default.
- Construction bonds act as protection mechanisms for clients from unethical or illegal actions performed by contractors.
- Construction bonds also ensure that subcontractors get paid for their work. They also ensure or that a contractor performs his duties as stated in a contract.
- Construction bonds protect employees, suppliers, sub-contractors or clients against a contractor’s failure to abide by an agreement.
Learn more about Construction Bonds!
Forming an Entity
In Arizona the following entities must hold a contractor license in order to place bids on construction projects:
- Sole Proprietor (individual)
- Partnerships
- Corporations
- LLC (Limited Liability Companies)
To apply for a contractor license in Arizona through a Corporation or LLC you must first be registered with the Arizona Corporation Commission
Construction Businesses must be licensed in Arizona
Similar to California Contractor Law, In Arizona, a Corporation may apply for a license as long as they have a regularly employed person that has the experience and skills necessary.
This person is known as a Responsible Managing Officer.
Anyone listed as a part of the business or who owns 25% or more of the Construction Business is legally responsible for the activities of the business.
Recap: Steps To Getting Licensed in Arizona
- Determine Which Exam You Must Pass
- Apply for an Exam Date
- Complete a Background Check
- Form a Legal Entity
- Submit Application with your passing score (at least 70%), Contractor Bond Number, and Background Check
- Application Processing typically takes between 20-30 days
Applications can be mailed to:
Registrar of Contractors, P.O. Box 6748, Phoenix, AZ 85005-6748
Or hand-delivered to:
1700 W. Washington Street, Suite 105, Phoenix, AZ 85007-2812
You can check your application status here at the AROC Website
What Is The Arizona Registrar of Contractors?
Arizona Registrar of Contractors
The Arizona Registrar of Contractors is the governing agency that regulates construction activity in the state of Arizona.
The agency was established in 1931 to regulate the construction industry of Arizona.
Its mission is to protect the health and safety of the public by ensuring that construction contractors are qualified, licensed, and bonded.
The Agency is responsible for:
- Processing Contractor License Applications in Arizona
- Resolving Disputes and Complaints
- Enforcing Contractor License LAW in Arizona
- Regulation of the Industry
Arizona Contractor License Reciprocity
In the context of licensing, it means that a contractor who is licensed in one state, may not need to retake an exam to get licensed in another state.
Learn more about California’s Contractor License reciprocity agreement with Arizona!
Conclusion
This article will continue to be updated as time goes on.
Getting licensed in Arizona is relatively easy compared to other states like California. Making sure that you complete your contractor license packet and study consistently for your exam!
Getting a contractor license can be a huge asset for you if you are RMO
Getting licensed in Arizona can also help you expand your business and take on larger clients!