Arizona Contractor License Bonds: What You Need to Know


If you’re working as a contractor in Arizona, obtaining your contractor license bond is a crucial aspect of operating a safe and legal business. Contractor license bond requirements vary from state to state, and Arizona requires that contractors hold an Arizona Contractor License Bond.

These bonds ensure that customers are protected in the case of damages during construction due to the contractor failing to follow state regulations. If you’re a contractor or subcontractor performing work on a property in the state of Arizona, read on for more information about applying for and receiving a contractor license bond.

What Is a Contractor License Bond, and Who in Arizona Needs One?

A Contractor License Bond is a surety bond made between the Arizona Registrar of Contractors (the AZ ROC), the contractor, and surety company responsible for paying the bond in the event of a claim. Arizona requires that contractors post these bonds as a way to ensure they follow legal business practices — if they fail to comply with state law, customers can hold contractors financially accountable.

There are several types of commercial contractor bonds available in Arizona, depending on the contractors’ license. A Residential General Contractor License Bond is for contractors who construct, alter, and repair any residential property or supervise subcontractors performing work on a property, whereas a  Commercial General Contractor License Bond is for contractors doing the same work on commercial property.

Meanwhile, a Residential Specialty Contractor License Bond or a Commercial Specialty Contractor License Bond covers contractors who engage in contract work corresponding to their specialty classification(s) on a residential property or a commercial property.

The Cost of an Arizona Contractor License Bond

The cost of an Arizona Contractor License Bond varies depending on the type of bond. The amount is determined by the Arizona Registrar of Contractors, which looks at the contractor’s license type and financial history. Credit score plays a role, as does the contractor’s yearly revenue.

Generally, bonds range from $2,500 to over $100,000, depending on the contractor’s personal finances and the scope of the project. The bonds are broken into monthly payments. Contractors looking for a better monthly rate can extend their bond payments into 2-year or 3-year terms.

How to Get an Arizona Contractor License Bond

To apply for an Arizona Contractor License Bond, you’ll first need your license or application number. Go Bonds can help you find the right insurance carrier, or even apply for your Arizona license if you don’t yet have one.

By working with top-rated carriers to provide affordable bonds, you can focus on growing your business. Plus, Go Bonds uses a soft credit check for all license bond applications, which doesn’t affect your credit score or show up on any credit reports.