AZ REGISTRAR OF CONTRACTORS RECOVERY FUND
Everyone Loves to Save Money, But…
Lets face it everyone wants to save money. But do not be a penny wise and a dollar foolish – in other words saving a little can wind up costing you a lot in the long run. Some projects are fine to do by yourself, or by using a good handyman, but sometimes you really should uses a Arizona licensed contractor.
*The State of Arizona requires all licensed residential contractors to provide financial protection to their customers. The protections apply whether you buy a new home, remodel, build a swimming pool or have a new roof put on your home.
In order to obtain a license, a residential contractor must post a cash deposit or surety bond of $4,250.00 to $15,000.00. In addition, a residential contractor must either pay into the recovery fund or post a second bond of $200,000.00. The vast majority of residential contractors have chosen to participate in the fund. Therefore, there are actually two programs offering financial protection. We will explain in some detail how to collect from either one. Recovery fund.
* above paragraph from roc.az.gov website