BOND LICENSE LIMITS & REGULATIONS

Contractor's license bonds are established in the following amounts based upon the volume of work within the State of Arizona and the classification contemplated by the licensee:

License Type Contemplated Gross Value (per license) Bond Amount
Residential General Contractors Less than $750,000 $9,000
$750,000 or more $15,000
Residential Specialty Contractors Less than $375,000 $4,250
$375,000 or more $7,500
Commercial General Contractors (Includes General Engineering Contractors) $150,000 or less $5,000
In excess of $150,000 but not more than $500,000 $15,000
In excess of $500,000 but not more than one million $25,000
In excess of one million but not more than five million $50,000
In excess of five million but not more than ten million $75,000
Over ten million $100,000
Commercial Specialty Contractors $150,000 or less $2,500
In excess of $150,000 but not more than $500,000 $7,000
In excess of $500,000 but not more than one million $17,500
In excess of one million but not more than five million $25,000
In excess of five million but not more than ten million $37,500
Over ten million $50,000

Dual license bond amounts are calculated by combining the amount required for residential and commercial.

FAQ

  • 1. Are there any bond requirements for a contractor's license?

    Yes. Your responsibility is to file a Contractor's Bond in the amount required for your license classification and anticipated annual gross volume. The bond may be in the form of a surety bond or a cash bond.

  • 2. Where can I get a bond?

    You may obtain a Surety Bond from your insurance agent or from another insurance company which the Arizona Department of Insurance authorizes to operate in Arizona and issue contractors license bonds.

  • 3. How long is a bond valid?

    The surety bond must be continuous. This means that there is no termination date on the bond. You may be required to pay premiums to an insurance company periodically to keep the bond in force. The bonding company has the right to cancel the bond but must send a notice to you and the Arizona Registrar of Contractors thirty days before the cancellation date. You will have to replace the bond, or your license will be suspended.

  • 4. New applicant bonding requirements: What will the bond amount be?

    On all new applications for any license classification, the applicant shall estimate his anticipated gross volume of work within the State of Arizona for the remainder of the fiscal year and shall be governed by the bond requirements herein set forth as they apply to his particular classification of license.

  • 5. Renewal bond requirements: What happens when it's time to renew?

    The filing or continuation of a bond or deposit in a specified amount shall be deemed to be the equivalent of submitting a volume estimate (within applicable limitations) for such bond amount. The Registrar of Contractors is not responsible for over or under estimates of volume of work made by the licensee or for the sufficiency of any bond or deposit. Gross underestimates knowingly made by a licensee may be construed as a material misrepresentation and could subject the licensee to suspension or revocation of his license.

  • 6. Can the bond amount be increased?

    The amount of the contractor's license bond may be increased at any time during the fiscal year. However, a surety bond or cash deposit in lieu of bond cannot be decreased except at the time of renewal for the ensuing fiscal year.

  • 7. When will the bond be effective?

    Surety bonds or cash deposits shall not become effective until filed with the Registrar's office. If the effective date as shown upon the bond is after the date of filing with the Registrar, then the effective date shown upon the bond shall be the controlling date on which the bond becomes effective.

If you have any questions, call us at (928) 639-1751!