If you are performing work over $1,000 or that requires pulling building permits then you will need a contractor license.
Anything under $1,000 that can be considered casual or minor in nature does not require a Contractor License in Arizona.
R-62MINOR HOME IMPROVEMENTS description:
For projects of $5,000 or less including labor and materials, this classification allows the licensee to perform remodeling, repairs, and improvements to existing structures or appurtenances.
The minor home improvement contractor shall not perform structural work to any existing structures or appurtenances, including load bearing masonry or concrete work (with the exception of on-grade flat work), and load bearing carpentry work (with the exception of patio or porch covers).
Any work related to electrical, plumbing, air conditioning systems, and boilers must be subcontracted to an appropriately licensed contractor.
- To get the R-62 License you will only need to pass a business management exam. To learn more about this exam continue reading
How Do You Get Your Contractor License in Arizona?
To get a contractor license you must meet the following basic requirements:
- Be at least 18 years of Age
- Form of USA Issued Identification
- Social Security Number
- Not Currently On Probation or Parole
You Must also have
- 4 Years of Journeyman Level Experience
- Be able to verify work experience in at least 7 recent construction projects
- Be able to document your experience at the request of the ROC
- A Business Entity
Step #1: Make sure you have acceptable experience
- Arizona requires journeyman level experience before you can apply for a license.
- The definition of a journeyman can vary based on your region.
- The universal expectation of a journeyman is that they can perform all of the duties associated with their trade un-supervised.
A Journeyman is someone who has demonstrated a level of mastery in their trade.
When you apply to the the Arizona Registrar of Contractors, they may request to see the documentation of your experience.
It is important that you have some way to prove your claim of being a journeyman.
Acceptable construction experience documentation includes:
- Tax Returns
- Check Stubs
- Letter from a licensed contractor
Step #2 Pass the test
To get a license in Arizona you will need to pass a two-part exam.
- You must pass with a minimum score of 70%.
- Half of the test will cover business management and the other half will cover a trade of your choice.
- As a contractor, you must have a basic knowledge of proper business practices and accounting.
- 60 Questions
- Passing Score: 70%
- Time Allowed: 150 Minutes
- $66 per exam
Arizona Business Management
- 80 Questions
- Passing Score 70%
- Time Allowed: 180 minutes
- $66 per exam
You can apply for a test date here
Some contractor licenses in Arizona do not require that you pass a trade exam.
The following licenses only require you to pass the Arizona business management exam:
- Swimming Pool Services
- Acoustical Systems
- Awnings, Carports, Patio Covers
- Ornamental Metals
- Lightweight Partitions
- Finish Carpentry
- Excavating, Grading, and Oil Surfacing
- Sheet Metal
- Water Well Drilling
- Water Conditioning
- Finish Carpentry
- Asphalt Paving
To see the full list of contractor license classifications in Arizona click here
Step #3 Complete ROC Application and Pay Fees
After you receive your passing scores. Fill out one of theses applications
and send it to:
The State of Arizona Registrar of Contractors
1700 West Washington Street, Suite 105
Phoenix, AZ 85007
|NEW LICENSE APPLICATION|
|CLASSIFICATION||APPLICATION FEE||LICENSE FEE||RECOVERY FUND ASSESSMENT*||TOTAL**|
|General Commercial (A,B)||$200||$580||$0||$780|
|Specialty Commercial (C)||$100||$480||$0||$580|
|General Residential (B)||$180||$320||$370||$870|
|Specialty Residential (R)||$80||$270||$370||$720|
Step #6: Form a Business Entity
You will notice on the applications that they ask you to choose a business entity.
Arizona LAW requires all contractors to have a business entity set up before applying for a license.
You must first choose a name and then you can choose the type of entity you want.
Typically, construction companies choose either:
- Sole Proprietor
For a complete explanation of the difference between these types of entities and which one makes the most sense for someone applying for the Arizona license, check out this free guide!
Once you have chosen an entity, simply follow these steps:
- Check Name Availability with the Arizona Registrar of Contractors
- Apply with the Arizona Corporation Commission
- Apply for an EIN #
Step #7: Pass a 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.
- Charges associated with: Fraud, Embezzlement and Forgery are big red flags
Step #8 Get Bonded
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.
|LICENSE TYPE||CONTEMPLATED GROSS VOLUME (PER LICENSE)||BOND AMOUNT|
|Residential General Contractors||Less than $750,000||$9,000|
|$750,000 or more||$15,000|
|Residential Specialty Contractors||Less than $375,000||$4,250|
|$375,000 or more||$7,500|
|Commercial General Contractors (Includes General Engineering Contractors)||$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||$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|
Helpful skills all Handymen should know
The following are some skills all contractors and handymen should know.
Accounting is a process used to record and measure financial information.
- For most businesses, accounting is one of the most important factors there is as it is used to track profitability and ensure transparency.
- Businesses are valued and regulated based on their financial reporting, so in most industries it is critical to have accurate accounting methods in place to ensure the long-term health of the business.
Continue reading about Construction Accounting!
Taking a Blueprint Reading Course is the first step in developing an essential skill for any construction professional.
- Construction blueprints are 2-dimensional design drawings created by architects that indicate to builders the size of planned structures.
- They also indicate placement of features, details for its construction, and what materials are to be used.
- Blueprints provide builders with critical information on foundations, structural components, plumbing, electrical, HVAC systems and in some cases landscaping.
Learn more about Construction Blueprints Reading!
Arizona OSHA Certification
Statistically, 21% of all work-related fatalities are in construction.
That equals about 1 and 5 worker deaths on average. In the construction industry, the leading cause of worker deaths is reported as:
- Struck by an object
Continue reading about OSHA Safety Certifications!
California Handyman License Laws
- In the State of California, individuals that perform handyman services cant charge more than $500 for labor and materials
- This also means that you are not allowed to split up the project into smaller stages or parts to stay under the $500 limit
- This law in some cases prohibits you from even being involved in a project where the cost of labor and materials exceeds $500
Click the link to continue reading about California Handyman License LAW!
Can I use my Arizona Contractor License in different States?
Yes, depending on the state. Arizona, Utah and Nevada all have reciprocity agreements with California.
Contractor License reciprocity is an agreement between the Contractor licensing boards of two different states.
It can mean that they have similar building standards, allowing contractors to work freely between states.
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 contractor license reciprocity!
Be sure to check back in the future for updates!