Licensed Arizona Contractor Requirements
Any individual who contracts or offers to contract to alter, build, repair, remove from, add to, move, improve, demolish, or wreck any structure, excavation, or building, or do any part of the work has to be a licensed AZ contractor. Included in work requiring a license is the creation of connections to utility service lines, sewer lines, or metering devices, scaffolding, mechanical or structural service to a structure or improvement, and any other work in connection with the said project must be licensed.
The term contractor includes subcontractors, landscape contractors, consultants, and floor cover contractors. Anyone representing themselves as having the capability to manage or supervise a construction project for the benefit of a property owner. Management or supervision includes firing and hiring specialty contractors, scheduling work for projects, and selecting and purchasing construction materials.
Why is this Contractor Information on our Home Inspection Website?
It’s simple after a property is inspected, there is a list of items that need repair. Sometimes these are items you can do by yourself, sometimes taken care of by a handyman, but sometimes you need to use a licensed professional. It will usually cost more, but there are benefits.
Who Can Apply for an Arizona Contractor License?
An individual, partnership, corporation, or limited liability company may apply for a license. This is if they are regularly employing individuals with the necessary experience, knowledge, and skills to serve as the qualifying party. Everyone listed on the application has to be eighteen years or older.
Corporations and limited liability companies need to be registered with the Arizona Corporation Commission and in good standing before applying. The corporation or limited liability company has to retain good standing with the commission to renew the license.
Requirements for Licensure as an Arizona Contractor
Different types of contractors are required to take different tests to obtain a license. As an example, residential and commercial contractors must have a license that corresponds with their career choice. However, all parties must pass the business management exam with a score of at least 70%. This along with a specific trade exam. Some might be eligible for a waiver, but this is on a case-by-case basis. In most cases, a waiver is accepted and issued if the applicant has been licensed in another state with requirements similar to Arizona’s requirements. However, the business management examination cannot be waived due to it having reference to Arizona-specific statutes and regulations.
In addition to passing an exam, the applicant must pass a background check and submit a copy of the payment transaction receipt from the background check.
Once an application has been submitted and a background check has been completed, then the individual or company must form a legal entity by registering with the Arizona Corporation Commission. Then a license bond must be obtained, fees must be paid, and a government-issued identification must be submitted. For a General Commercial (A, B) license, the application fee is $200 and the license fee is $580 for a total of $780. For a Specialty Commercial (C) license, the application fee is $100 and the license fee is $480 for a total of $580. For a General Residential (B) license, the application fee is $180, the license fee is $320, and a recovery fund assessment fee of $370 is included for a total of $870. There are a few other types of licenses, but these are the most common.
Search for AZ licensed contractors, at the Arizona Registrar of Contractors