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Arizona Contractor License Bond (Residential Only)

How much does an Arizona contractor license bond cost?

The cost of an Arizona contractor license bond can range from $100 to $1,000, depending on your license classification (Commercial General, Commercial Specialty, Residential General, or Residential Specialty) and estimated volume of work. With NNA Surety, you can get any of the contractor license bonds listed below today.

Cost of an Arizona Contractor License Surety Bond

License Type Contemplated Gross Volume (per license) Bond Amount Cost (Premium)
General < $750,000 $9,000 $100
≥ $750,000 $15,000 $150
Specialty < $375,000 $4,250 $100
≥ $375,000 $7,500 $100

The annual anticipated gross volume levels and required bond amounts for commercial general contractors and commercial specialty contractors have multiple levels and applicable premiums. Please review the chart above for all applicable breakpoints, requirements, and annual premiums.

What is an Arizona contractor license bond?

An Arizona contractor license bond is required of individuals seeking to become licensed as commercial or residential contractors in the state. The bond must be filed with the Arizona Registrar of Contractors (ROC). The bond amount, detailed below, and requirements is determined by the contractor’s license classification and contemplated gross volume of work.

Who needs an Arizona contractor license bond?

All commercial and residential, general and specialty contractors, must hold a surety bond to maintain licensure to work in Arizona. The bond amount, premium, and requirements vary based on the license type.

  • Commercial General Contractors: Licensed to construct, alter as needed, or repair any existing structure or structure under construction for use as shelter by any persons, animals, or movable equipment.
  • Commercial Specialty Contractors: Licensed to install acoustical systems, awnings and other patio structures, boilers, steam fitting and process piping, swimming pool service and repair, carpentry, floor coverings, concrete, drywall, electrical, elevators, and other additional specialized services.
  • Residential General Contractors: Licensed to provide general remodeling and repair, residential engineering, swimming pool contracting (including solar), and prefabricated spas and hot tubs.
  • Residential Specialty Contractors: Licensed to provide services like the commercial specialty contractor licensing guidelines but on a residential level.

A full detail of construction license definitions can be found on the ROC website.

How can I get an Arizona contractor license bond?

NNA Surety can offer commercial contractor bonds, both general and specialty, with a required value of $15,000 or less with no credit check and instant access. If you are a commercial contractor seeking a bond in excess of $15,000, the issuance of the bond will be subject to credit approval. Upon approval, the bond will also be available for immediate download. To get your commercial contractor license bond, complete this application.

For residential contractors, both general and specialty, NNA Surety can offer the bond with no credit check and the ability to download proof of bond instantly. Complete this application to purchase your Arizona residential contractor license bond today.

What else should I know about Arizona contractor license bonds?

The purpose of a contractor license bond is to assure any necessary payments as determined by Arizona Revised Statues ARS Section 32-1152 if a contractor fails to meet their contractual obligations. The residential bond is for the benefit and protection of any person providing labor, materials, or construction equipment on a rental basis used in the direct performance of a construction contract based on details described in the referenced statute.

The Arizona ROC requires the contractor surety bond to be continuous, meaning it must not have a designated termination date. The contractor may be required to pay premiums to the surety company on a scheduled basis to keep the bond within the required parameters.

A bonding company has the right to cancel a bond but would be required to notify the Arizona ROC 30 days prior to the termination of the bond. If this occurs, the contractor would be required to replace the bond or have their license suspended.

Surety bonds do not become effective until filed with the Registrar of Contractors; however, if the bond's effective date is after the license is filed with the ROC, that file date would serve as the effective date.

You can find more information about becoming a licensed Arizona contractor on the Arizona Registrar of Contractors website.

The Simple Bonding Process

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