Who this applies to
Every licensee of the Arizona Registrar of Contractors, commercial or residential, needs a surety bond or cash deposit, first to receive an original license and then at each renewal [1]. The amount is not one number. The registrar sets it inside ranges written into § 32-1152, according to the license classification and the contractor's estimated annual volume [1].
General commercial building contractors, by estimated annual volume:
- under $150,000: $5,000 [1]
- $150,000–$500,000: $5,000–$15,000 [1]
- $500,000–$1 million: $10,000–$25,000 [1]
- $1 million–$5 million: $15,000–$50,000 [1]
- $5 million–$10 million: $35,000–$75,000 [1]
- $10 million or more: $50,000–$100,000 [1]
Specialty commercial contractors, on the same volume bands:
- under $150,000: $2,500 [1]
- $150,000–$500,000: $2,500–$7,500 [1]
- $500,000–$1 million: $5,000–$17,500 [1]
- $1 million–$5 million: $7,500–$25,000 [1]
- $5 million–$10 million: $17,500–$37,500 [1]
- $10 million or more: $37,500–$50,000 [1]
Residential contractors have one range per class: $5,000–$15,000 for general residential contractors and $1,000–$7,500 for specialty residential contractors [1].
A dual-licensed contractor furnishes a single bond that combines its commercial and residential amounts. Dual licensed swimming pool contractors and residential swimming pool general contractors are placed on the general commercial schedule.
What the rule says
Section 32-1152 ties the bond to two moments: the registrar may not grant an original license without it, and no license may be renewed unless the bond or cash deposit is in full force and effect [1]. The security answers to more than the registrar. Under subsection (E), damaged owners and lessees can claim against a commercial contractor's bond, while a residential bond is open to suppliers of labor, materials and rented equipment and to claimants described in § 32-1132 [1]. The schedule is also not a hard ceiling: after a hearing, the registrar may require an applicant with prior discipline to post up to ten times the subsection (B) amount [1].
How to comply
License and bond filings go to the Arizona Registrar of Contractors, the ROC (roc.az.gov).
- Place yourself on the schedule. Your classification decides which list applies and your estimated annual volume decides the band; within a band, the registrar fixes the figure.
- Choose the form of security. The statute accepts a surety bond in a form acceptable to the registrar, or a cash deposit.
- Residential and dual licenses: settle the second requirement. These licensees must also either furnish an additional $200,000 surety bond or cash deposit, held solely for actual damages suffered by § 32-1132 claimants, or take part in the Residential Contractors' Recovery Fund and pay the assessment prescribed by § 32-1126(G) [1]. The $200,000 bond applies only to a licensee who elects it instead of the fund assessment [1].
- Keep it in force. A renewal goes through only while the bond or deposit is in full force and effect.
Ask the ROC to confirm the band and the amount it assigns to your license before relying on the schedule above.
Related
- contractor license bond cost calculator: enter the amount the registrar assigns to your license.
- all states' bond requirements: Arizona's volume-based schedule next to other states' rules.