Arizona Contractor's License Bond
The State Registrar of Contractors imposes special surety bond requirements from four distinct classes of licensee. An Arizona contractor's license bond must be filed by general contractors (commercial and residential) and specialty contractors (commercial and residential). Futher, a residential contractor is also required to pay an assessment into the Registrar's Residential Recovery Fund or post a surety bond in the amount of $200,000. The same bond form is used for all license classes. The surety bond penalty (bond amount) may be itemized on the form, allocating the appropriate amount of financial assurance to multiple contracting activities based on the volume of each. The state provides samples of the form which may be viewed at the links below.
- Bond Example for a Sole Proprietor
- Bond Example for an Entity With DBA
- Bond Example for an Entity Without DBA
Per the Registrar, "it is the license candidate's or active licensee's responsibility to file an Arizona contractor's bond in the amount required for the respective license classification(s) and anticipated annual gross volume. A license does not become effective until the surety bond is filed with the Registrar and continues to guarantee the obligations of the contractor for a specific period after the bond is canceled/non-renewed and/or the license is surrendered. The Registrar may also increase the bond at any time at its discretion. The following table contains the bond amounts required from specific licensees and anticipated volumes of business.
| 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 |
The Registrar advises, "The Arizona contractor's bond must be continuous, i.e., no termination date on the bond. An insurer has the right to cancel the surety bond but must send a notice to the principal and the Arizona Registrar of Contractors thirty (30) days prior to the cancellation date. If canceled the licensee must replace the bond or the license will be suspended.
Arizona surety bond leader, Surety One, Inc. is a specialist in providing for the bonding needs of mechanical contractors. We offer this class of surety bond and performance bonds to all applicants in every state where contractors must be bonded. Although personal credit is a factor in surety bond underwriting, we have programs to fit EVERY credit condition. Call (800) 373-2804, email Underwriting@SuretyOne.com or click here for a live chat regarding a California contractor's license bond application or to discuss other surety need.
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