Licensing Guides
State Contractor License: How to Become a General Contractor in Arizona
Contractor, AZ
Table of Contents
Why Do You Need a Contractor License in Arizona?
How Can You Get a Contractor License in Arizona?
Types of Contractor Licenses in Arizona
What Are the Requirements of an Arizona Contractor License?
How Long Does It Take to Get a Contractor License in Arizona?
How Much Does It Cost to Get a Contractor License in Arizona?
Arizona Contractor License Training Programs and Schools
Does Arizona Reciprocate Contractor Licenses?
Do I Need to Renew my Contractor License in Arizona?
Are There Any Penalties for Contracting Without a License in Arizona?
We all need a place to live and work, and those buildings require upkeep and repair. They’re often the biggest investments we make in our lives and keeping them in good condition is essential. We count on professionals to know how to fix damage to or wear and tear on our homes and businesses. General contractors are typically the experts we rely on to help us with these repairs, and we need these men and women to know what they’re doing.
Many states require contractors to be licensed. Others simply require solid insurance to back up the essential work they perform. There are 520,900 construction managers and 1,599,800 construction laborers and helpers nationwide, according to the Bureau of Labor Statistics (BLS). Arizona employs 8,040 managers and 28,780 laborers and helpers. The national number for managers is projected to grow 9% from 2023 to 2033; and 8% for laborers and helpers. In Arizona, according to CareerOneStop, the U.S. Department of Labor’s job search website, the projected growth rate for laborers is higher than the national number at 13% and 12% for managers. If you’re thinking about starting a contracting business or you want a job in the field, you need to know the requirements in your state or local jurisdiction. This guide will help you determine what you need before you get started.
Why Do You Need a Contractor License in Arizona?
A contractor license is necessary to perform most work legally in the state of Arizona. Arizona offers several license classifications — General Commercial Contractor and General Residential Contractor. Candidates can also pursue a Dual license if they perform both types of work (any kind of initial residential or commercial construction, repair, or maintenance) or a Specialty Contractor license for specific trades. The Arizona Registrar of Contractors (ROC) issues all contractor licenses in the state.
According to the ROC, “Any business which contracts or offers to contract to build, alter, repair, add to, subtract from, improve, move, wreck or demolish any building, highway, road, railroad, excavation or other structure, development or improvement, or to do any part of the work must be a licensed contractor.”
How Can You Get a Contractor License in Arizona?
There is a process for getting your license. It is all spelled out on the state website. The process for each classification is roughly the same.
You must be at least 18 years of age. You must have either a Social Security number or an individual taxpayer identification number.
You need to demonstrate at least four years of on-the-job experience or management experience in a related field to qualify for the General Commercial Contractor and General Residential Contractor license classifications.
One way to get the experience you need is through an apprenticeship program. Both the Arizona Apprenticeship Program and Arizona@Work offer registered apprenticeship programs to help you gain the necessary experience to apply for licensure.
You need to form a legal entity. LLCs and corporations are required to register with the Arizona Corporation Commission. Partnerships are required to register with the Arizona Secretary of State.
The qualifying party must pass the Statutes and Rules Exam (SRE) through GMetrix and the relevant Trade Exam via PSI Exams.
You also need to purchase a Contractor's License Bond, submit the license application via the ROC Online Customer Portal, pay the license fee, and complete a criminal background check.
Types of Contractor Licenses in Arizona
There are four classifications for General Contractors in Arizona as well as multiple specialty classifications.
General Commercial Contractor
General Residential Contractor
General Dual Contractor
Specialty Contractor
The General Commercial Contractor license allows the licensee to construct, alter, and repair in connection with any structure built, being built, or to be built for the support, shelter, and enclosure of persons, animals, or movable property of any kind. This scope includes the supervision of all or any part of the above and includes the management, or direct or indirect supervision of any work performed.
The General Residential Contractor license allows the licensee to construct and repair all or any part of a residential structure or appurtenance. Work related to electrical, plumbing, air conditioning systems, boilers, swimming pools, spas and water wells must be subcontracted to an appropriately licensed contractor.
The General Dual Contractor license allows the licensee to perform the scope of work permitted by both the Residential and Commercial licenses.
The Specialty Contractor licenses cover multiple trades including drywall, fencing, electrical, and other construction work requiring special skills.
Getting a general contractor license
There are two classifications that would suffice for a general contractor in Arizona. They are the General Commercial Contractor license, which allows the holder to legally perform commercial contracting work, whether that be initial construction, service, or replacement to properties, and the General Residential Contractor license, which allows the holder to legally perform residential contracting work. You can also pursue a Dual license if you perform both types of work or a Specialty Contractor license for certain trades like carpentry, swimming pool construction, plumbing, and roofing.
APPLY FOR LICENSE: Once you’ve fulfilled the work experience requirements, you may apply for a Contractor’s License. You’re essentially applying to sit for the contractor exam. There are currently two ways to complete this form:
Online: Use the Online Customer Portal to fill out and submit the application.
Mail: Send your application to the Registrar of Contractors, P.O. Box 6748, Phoenix, AZ 85005-6748.
According to the ROC, “You will receive a receipt with a pending number on it. This number is used to keep track of your application. If you have questions on the status of your application, you may use the pending number when calling in so that your application can be located more quickly.”
PAY APPLICATION AND LICENSE FEE: The application fee is $200 and the license fee is $580 for the General Commercial license. The application fee is $180 and the license fee is $320 for the General Residential license.
Additionally, General Residential license holders must also pay $370 to the Recovery Fund Assessment during the application process. According to the ROC, “This fund provides financial protection to homeowners who are damaged by a licensed Arizona contractor's failure to build or improve their residential property.”
You must submit payment and all required documents along with your license application, mailed to the ROC headquarters in Phoenix. You can find the step-by-step guide here along with the mailing address for where to send all of the forms.
TAKE LICENSING EXAM: The qualifying party must pass the Statutes and Rules Exam through GMetrix and the relevant Trade Exam via PSI Exams. The fee for the Statues and Rules Exam and exam prep is $54. The Trade exam fee is $66. For both exams, make payment directly to the testing center.
COMPLETE CRIMINAL BACKGROUND CHECK: All persons mentioned on the license application must complete a criminal background check and disclose any criminal pleas or convictions. You can obtain your background check online through the AccusourceHR portal. After completing the background check, you’ll receive an email from AccusourceHR with your completed report, and the results will automatically be provided to the ROC.
PROVIDE PROOF OF INSURANCE: Arizona contractors who have full-time employees must obtain workers’ compensation insurance.
PROVIDE PROOF OF CONTRACTOR BOND: A contractor license bond of $9,000 is required for Residential General Contractors who complete less than $750,000 in project costs or $15,000 for contractors who surpass $750,000. Commercial General Contractors must obtain a surety bond between $5,000 and $100,000, depending on total project costs. View more on bond amounts here.
Getting a specialty license
Arizona offers a Specialty Contractor license for both Residential and Commercial licenses. You can choose from dozens of specialties, including electrical, fire protection systems, masonry, plumbing, roofing, HVAC, welding, and more. These Specialty licenses supplement a general contractor’s knowledge and allow him/her to bid on projects that require those license classifications without having to hire an appropriately licensed specialty contractor as a subcontractor.
To get one of these specialty licenses, follow the same process as above. All types of licenses require you to pass the Statutes and Rules Exam, but some classifications don’t require the Trade Exam, depending on the scope of work. According to the ROC, “For certain classifications, the trade exam is optional and may be submitted in order to satisfy a portion or all of that classification’s experience requirement.”
There is a complete guide online that answers all of the questions about this process.
You can also consult our guides to getting your HVAC license, plumbing license, or electrical license in Arizona.
What Are the Requirements of an Arizona Contractor License?
The requirements for licensure as a contractor in Arizona are all intended to demonstrate that an individual who will be serving the public is properly prepared to do the job right. To that end, there are age, knowledge/experience, and financial prerequisites.
You must be at least 18 years of age.
You must have either a Social Security number or an individual taxpayer identification number.
Complete the Contractor license application form.
Pay the application fee: $200 for Commercial, $180 for Residential.
Identify a qualifying party.
Undergo a background check.
Form a legal entity: LLCs and corporations are required to register with the Arizona Corporation Commission. Partnerships are required to register with the Arizona Secretary of State.
Submit proof of a license bond and surety bond.
Submit proof of workers’ compensation insurance.
Demonstrate four years of experience or managerial experience.
Pass the Statutes and Rules Exam via GMetrix and pay the $54 exam fee.
Pass the Trade Exam via PSI Exams and pay the $66 exam fee.
Pay the license fee: $580 for Commercial, $320 for Residential.
How Long Does It Take to Get a Contractor License in Arizona?
It will take a minimum of four years to qualify for a contractor license in Arizona. However, you’ll be working and accumulating the necessary experience—and earning money—the whole time.
What Business Owners Need to Know
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To learn more, schedule a demo with a product expert today.
How Much Does It Cost to Get a Contractor License in Arizona?
The application fee for the General Commercial Contractor license is $200. Once you’ve passed the exam, you’ll need to pay an additional $580 for the license fee. The application fee for the General Residential Contractor is $180, and the license fee is $320. The Residential license also requires a $370 payment to the Recovery Fund.
The fee for the Statutes and Rules Exam is $54, while the fee for the Trade Exam is $66.
Total cost for a General Commercial Contractor license: $900
Total cost for a General Residential Contractor license: $990
You can review all licensing and renewal fees here.
Arizona Contractor License Training Programs and Schools
There are no specific educational or course requirements to get an Arizona contractor license. Instead, you must earn four years of experience by working for a licensed contractor or completing an apprenticeship. The good news is you’ll earn income while learning new skills, rather than accumulating debt.
Arizona offers training programs throughout the state that can help you prepare for a career in construction. The Arizona Apprenticeship Program and Arizona@Work both offer registered apprenticeship programs to help you gain the necessary experience to fulfill your licensing requirements. You can also gain experience by attending a community college or trade school.
If you choose to start your career path at a college or university, you can pursue a degree in construction management, construction engineering, or similar field. There are many higher education options throughout the Grand Canyon State that offer these types of programs. Each of the following schools offers a Construction Management Bachelor of Science or Associate of Applied Science degree.
Does Arizona Reciprocate Contractor Licenses?
Yes. Arizona allows reciprocity for contractor licenses with California, Utah, Nevada, and potentially other states depending on your credentials. To qualify, you must have been licensed for at least five years in your state and you still need to take the Statutes and Rules Exam through GMetrix.
According to the ROC, “The Registrar may decide a Trade Exam is not required where the qualifying party has been the qualifying party within the preceding five years for a license in good standing in the same classification in this state, or a classification the Registrar deems comparable in another state.”
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Do I Need to Renew my Contractor License in Arizona?
To keep your state-issued active license current, you must renew your license every two years and provide supporting documents showing proof of workers’ compensation insurance and an “active” contractor’s bond. If you don’t have employees, you can apply for an exemption to waive the requirement for workers’ compensation insurance.
Renewal fees include:
Commercial: $580
Residential: $320 + $270 Recovery Fund payment
Late Fee: $50
Your renewal application will be approved immediately if you meet all licensing requirements.
Are There Any Penalties for Contracting Without a License in Arizona?
Yes. There are fines, criminal charges, and even possible jail time for contracting on a construction project without a license. Performing contracting work without a license is a Class 1 misdemeanor and multiple violations can result in felony charges. State law under A.R.S. § 32-1151 states that contractors who are convicted face a maximum of six months in jail and a fine of no less than $1,000 for the first offense.
National Certifications
Other certifications can help you demonstrate your proficiency to potential employers and clients. There are many professional organizations that offer certification. These certifications are not required but can add to your marketability and therefore increase your opportunity to make more money.
Some of the top construction certifications are:
Occupational Safety and Health Administration (OSHA) Safety Certificate
Construction Management Association of America Certified Construction Manager (CCM)
National Association of Safety Professionals (NASP) Certified Safety Manager (CSM) certification
National Center for Construction Education & Research (NCCER)
Continuing Education
Though Arizona doesn’t require continuing education to renew your license, you’ll want to stay informed about emerging technology in the industry. There are many ways to keep yourself current in regard to the technology put to use in construction, roofing, energy and environmental designs, efficiency standards and more. For example, distributors want you to know about their company’s latest offerings and will often hold training sessions about new and changing equipment and parts. Another option is the Associated General Contractors of America (AGC), which provides continuing education courses.
Resources
You can stay up to date on contracting industry news several ways:
Check top blogs, including ServiceTitan’s blog.
Read about the latest industry trends, and discover ideas on how to grow your business.
Listen to top podcasts like ServiceTitan’s “Toolbox for the Trades” podcast.
ServiceTitan is a comprehensive business software solution built specifically to help service companies streamline their operations, boost revenue, and achieve growth. Our award-winning, cloud-based platform is trusted by more than 100,000 contractors across the country.
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