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Arizona makes it unlawful to act as a contractor without a contractor's license in good standing, unless exempt; the Arizona Registrar of Contractors issues it. Casual or minor work on one project under $1,000 is exempt, with exceptions. Applicants show four years' practical or management trade experience, or its equivalent. As of July 26, 2026, the trade-specific exam, paid to PSI, is $66 per exam.
Arizona · Contractor licenseVerified 2026-10-04
State license
Contractor's license (residential and commercial)
Arizona law makes it unlawful to engage in the business of, bid as, or act or offer to act as a contractor without a contractor's license in good standing, unless exempt. The statutes define general commercial, general dual licensed (residential or commercial) and general residential contracting.
A written examination, if required, taken not more than two years before application, on qualification in the kind of work applied for, the state's building, safety, health and lien laws, the administrative principles of the contracting business and the registrar's rules
Contractor's license (residential and commercial). Arizona law makes it unlawful to engage in the business of, bid as, or act or offer to act as a contractor without a contractor's license in good standing, unless exempt. The statutes define general commercial, general dual licensed (residential or commercial) and general residential contracting.
Threshold. The statute exempts work by a person other than a licensed contractor on one project, under one or more contracts, when the aggregate contract price, including labor, materials and all other items but excluding certain plug-in or battery electrical fixtures and appliances, is less than $1,000 and the work is of a casual or minor nature. The exemption does not apply where the work requires a local building permit, where it is part of a larger or major operation or divided into contracts of less than $1,000, or to a person whose advertising does not include the words "not a licensed contractor".
It is unlawful for any person, firm, partnership, corporation, association or other organization, or a combination of any of them, to engage in the business of, submit a bid or respond to a request for qualification or a request for proposals for construction services as, act or offer to act in the capacity of or purport to have the capacity of a contractor without having a contractor's license in good standing in the name of the person, firm, partnership, corporation, association or other organization as provided in this chapter, unless the person, firm, partnership, corporation, association or other organization is exempt as provided in this chapter.
A.R.S. § 32-1151 · Official text · retrieved 2026-10-04
1. General commercial building contracting, which is engaging in the contracting business in connection with any structure built, being built or to be built on commercial property for the support, shelter and enclosure of persons, animals, chattels or movable property of any kind,
A.R.S. § 32-1102(1) · Official text · retrieved 2026-10-03
2. General dual licensed contracting, which is engaging in the contracting business in connection with any structure built, being built or to be built on residential or commercial property
A.R.S. § 32-1102(2) · Official text · retrieved 2026-10-03
4. General residential contracting, which is engaging in the contracting business by any general contractor or subcontractor who undertakes to construct, alter, repair, add to, subtract from, improve, move, wreck or demolish any residential structure or appurtenances including swimming pools on or within residential property lines.
A.R.S. § 32-1102(4) · Official text · retrieved 2026-10-03
14. Any person other than a licensed contractor engaging in any work or operation on one undertaking or project by one or more contracts, for which the aggregate contract price, including labor, materials and all other items,
A.R.S. § 32-1121(A)(14) · Official text · retrieved 2026-10-04
attached by a nail, screw or other fastening device to the frame or foundation of any residential structure, is less than $1,000. The work or operations that are exempt under this paragraph shall be of a casual or minor nature.
A.R.S. § 32-1121(A)(14) · Official text · retrieved 2026-10-03
(a) In any case in which the performance of the work requires a local building permit.
A.R.S. § 32-1121(A)(14)(a) · Official text · retrieved 2026-10-03
(b) In any case in which the work or construction is only a part of a larger or major operation, whether undertaken by the same or a different contractor, or in which a division of the operation is made in contracts of amounts less than $1,000,
A.R.S. § 32-1121(A)(14)(b) · Official text · retrieved 2026-10-04
(c) To a person who uses any form of advertising to the public in which the person's unlicensed status is not disclosed by including the words "not a licensed contractor" in the advertisement.
A.R.S. § 32-1121(A)(14)(c) · Official text · retrieved 2026-10-04
License classes
Class
Scope
Source
General commercial building contracting
Structures built, being built or to be built on commercial property
3. General engineering contracting, which is engaging in the contracting business other than residential contracting in connection with fixed works requiring specialized engineering knowledge and skills
A.R.S. § 32-1102(3) · Official text · retrieved 2026-10-03
Requirements
Experience. A minimum of four years' practical or management trade experience, at least two of them within the last ten years, dealing specifically with the type of construction applied for, or its equivalent. Source: A.R.S. § 32-1122
Exam. A written examination, if required, taken not more than two years before application, on qualification in the kind of work applied for, the state's building, safety, health and lien laws, the administrative principles of the contracting business and the registrar's rules. Source: A.R.S. § 32-1122
Bond. A surety bond or cash deposit in an amount set by classification and estimated annual volume of construction work: for general commercial building contractors, from five thousand dollars (annual volume less than one hundred fifty thousand dollars) up to not less than $50,000 or more than $100,000 (annual volume $10,000,000 or more); for general residential contractors, not more than $15,000 and not less than $5,000; for general dual licensed contractors, a single bond based on the commercial and residential volume. License bond in Arizona. Source: A.R.S. § 32-1152(B)(1); A.R.S. § 32-1152(B)(1)(f); A.R.S. § 32-1152(B)(1)(a); A.R.S. § 32-1152(B)(5); A.R.S. § 32-1152(B)(4)
Other. Dual licensed and residential contractors also either furnish an additional $200,000 surety bond or cash deposit for actual damages suffered by claimants under section 32-1132, or participate in the residential contractors' recovery fund and pay its assessment. Source: A.R.S. § 32-1152(C); A.R.S. § 32-1152(C)(1); A.R.S. § 32-1152(C)(2)
1. Have a minimum of four years' practical or management trade experience, at least two of which must have been within the last ten years, dealing specifically with the type of construction, or its equivalent, for which the applicant is applying for a license.
A.R.S. § 32-1122 · Official text · retrieved 2026-10-03
2. Successfully show, by written examination taken not more than two years before application, if required, qualification in the kind of work for which the applicant proposes to contract, the applicant's general knowledge of the building, safety, health and lien laws of the state, administrative principles of the contracting business and the rules adopted by the registrar of contractors
A.R.S. § 32-1122 · Official text · retrieved 2026-10-03
1. General commercial building contractors and subclassifications of general commercial contractors shall furnish a surety bond or cash deposit in an amount that is determined as follows:
A.R.S. § 32-1152(B)(1) · Official text · retrieved 2026-10-04
(f) If the estimated annual volume of construction work of the applicant is less than one hundred fifty thousand dollars, the applicant shall furnish a surety bond or cash deposit of five thousand dollars.
A.R.S. § 32-1152(B)(1)(f) · Official text · retrieved 2026-10-03
(a) If the estimated annual volume of construction work of the applicant is $10,000,000 or more, the applicant must furnish a surety bond or cash deposit of not less than $50,000 or more than $100,000.
A.R.S. § 32-1152(B)(1)(a) · Official text · retrieved 2026-10-03
5. General residential contractors and subclassifications of general residential contractors shall furnish a surety bond or cash deposit in an amount of not more than $15,000 and not less than $5,000.
A.R.S. § 32-1152(B)(5) · Official text · retrieved 2026-10-03
4. General dual licensed contractors and subclassifications of general dual licensed contractors shall furnish a single surety bond or cash deposit with amounts for each classification of license that are determined based on the volume of commercial work as determined under paragraph 1 of this subsection and the volume of residential work as determined under paragraph 5 of this subsection.
A.R.S. § 32-1152(B)(4) · Official text · retrieved 2026-10-04
C. Dual licensed contractors and residential contractors shall also either:
A.R.S. § 32-1152(C) · Official text · retrieved 2026-10-04
1. Furnish an additional surety bond or cash deposit in the amount of $200,000 solely for actual damages suffered by claimants as described in section 32-1132.
A.R.S. § 32-1152(C)(1) · Official text · retrieved 2026-10-03
2. Participate in the residential contractors' recovery fund and pay the assessment prescribed by section 32-1126, subsection G.
A.R.S. § 32-1152(C)(2) · Official text · retrieved 2026-10-03
Fees
Fee
Amount
As of
Source
New license, general commercial (A, B-1, B-2): application fee $200, license fee $580, recovery fund assessment $0, total $780, for a two-year license
New license, general residential (B, B-3, B-4, B-5, B-6, B-10): application fee $180, license fee $320, recovery fund assessment $370, total $870, for a two-year license
New license, general dual (KA, KB-1, KB-2): application fee $200, license fee $480, recovery fund assessment $370, total $1,050, for a two-year license
Term and renewal. The statutes provide for a biennial license renewal, and for an annual renewal under section 32-1123.01 at one-half of the biennial renewal fee. A license is suspended by operation of law on the next business day following its renewal date unless renewed, and a license suspended for failure to renew may be reactivated and renewed within one year of its suspension with an added $50 fee.
2. Biennial license renewal fee:
A.R.S. § 32-1126(A) · Official text · retrieved 2026-10-04
B. The fee for an annual license renewal granted pursuant to section 32-1123.01 is one-half of the biennial license renewal fee.
A.R.S. § 32-1126(B) · Official text · retrieved 2026-10-04
A. Except as provided in section 32-4301, a license issued under this chapter is suspended on the next business day following its renewal date by operation of law.
A.R.S. § 32-1125(A) · Official text · retrieved 2026-10-03
B. A license that has been suspended by operation of law for failure to renew may be reactivated and renewed within one year of its suspension by filing the required application and paying the application fee in the amount provided for renewal in this chapter in addition to a $50 fee.
A.R.S. § 32-1125(B) · Official text · retrieved 2026-10-04
Contracting without a license
Acting in the capacity of a contractor without a license is a class 1 misdemeanor. The fine is not less than one thousand dollars for a first offense and not less than two thousand dollars for a second or subsequent offense.
A. Commission by a contractor of any of the following acts is a class 1 misdemeanor:
A.R.S. § 32-1164(A) · Official text · retrieved 2026-10-03
2. Acting in the capacity of a contractor within the meaning of this chapter without a license.
A.R.S. § 32-1164(A)(2) · Official text · retrieved 2026-10-03
B. For the first offense under subsection A of this section, a contractor shall be fined not less than one thousand dollars. For the second or any subsequent offense under subsection A of this section, a contractor shall be fined not less than two thousand dollars.
A.R.S. § 32-1164(B) · Official text · retrieved 2026-10-03
How Arizona licenses contractors
Arizona law makes it unlawful to engage in the business of, bid as, or act or offer to act as a contractor without a contractor's license in good standing, unless exempt [1]. The credential covers both residential and commercial work, and the Arizona Registrar of Contractors issues it.
The statutes set out a narrow exemption for small jobs. The statute exempts work by a person other than a licensed contractor on one project when the aggregate contract price, counting labor, materials and all other items, is less than $1,000 and the work is of a casual or minor nature [3]. That exemption falls away in three situations: the work needs a local building permit, the job is one piece of a larger or major operation or has been split into contracts under $1,000, or the person advertises to the public without the words "not a licensed contractor" [3].
General contracting classes
Arizona's statutes define several kinds of general contracting [2]. General commercial building contracting reaches structures on commercial property, while general residential contracting reaches residential structures and appurtenances, swimming pools included, within residential property lines. General dual licensed contracting spans both kinds of property. General engineering contracting is a separate category for fixed works that call for specialized engineering knowledge and skills, outside residential contracting.
What an applicant shows
Experience comes first. The statute calls for a minimum of four years' practical or management trade experience in the type of construction applied for, or its equivalent, with at least two of those years within the last ten [4]. Where a written examination is required, it has to have been taken not more than two years before application, and it covers the kind of work applied for along with the state's building, safety, health and lien laws, the administrative side of the contracting business and the registrar's rules [4].
A surety bond or cash deposit is also part of licensing, and its size depends on the classification and the estimated annual volume of construction work. For general commercial building contractors, the amount runs from five thousand dollars, where annual volume is less than one hundred fifty thousand dollars, up to not less than $50,000 or more than $100,000 where volume is $10,000,000 or more [5]. General residential contractors post not less than $5,000 and not more than $15,000 [5]. Dual licensed contractors furnish a single bond based on both their commercial and residential volume.
Residential and dual licensed contractors carry one more obligation. They either furnish an additional $200,000 surety bond or cash deposit, held solely for actual damages suffered by claimants under section 32-1132, or take part in the residential contractors' recovery fund and pay its assessment [5].
Cost and renewal
The Registrar of Contractors publishes separate new license and renewal fee schedules for the general commercial, general residential and general dual groups, each dated 2014-07-01 and each for a two-year license [6]; the fee table on this page lists them. Exam fees are paid to outside providers. As of 2026-07-26, the Statutes and Rules Training Course and Exam (SRE), paid to Gmetrix, is $61 per exam [6]. As of 2026-07-26, the trade-specific exam, paid to PSI, is $66 per exam [6].
Renewal is biennial under the statutes, and an annual renewal under section 32-1123.01 costs one-half of the biennial renewal fee [7]. A license that is not renewed is suspended by operation of law on the next business day after its renewal date. It can be reactivated and renewed within one year of that suspension by filing the application and paying the renewal fee plus a $50 fee [8].
Penalties for acting without the license
Under Arizona law, acting in the capacity of a contractor without a license is a class 1 misdemeanor [9]. The statute sets a fine of not less than one thousand dollars for a first offense and not less than two thousand dollars for a second or later offense [9].
