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Contractor Bonds

Arizona Contractor Bonds

Arizona Contractor License Bonds

Contractors in the state of Arizona are required by the Registrar of Contractors to post a surety bond to complete the licensing process.

How to determine AZ contractor bond amount and cost

The bond amount of an AZ contractor bond will vary from a range of $2,500 to $100,000, with all bond amounts being determined by the AZ Registrar. Bond requirements are listed by the registrar for the following license types:

Residential General Contractors

  • Contemplated Gross Volume (CGV) (per license (pl)) of less than $750,000: $9,000 bond

  • CGVpl of $750,000 or more: $15,000 bond

Residential Specialty Contractors

  • CGVpl of less than $375,000: $7,500 bond

  • CGVpl of $375,000 or more: $5,000 bond

Commercial General Contractors (Including General Engineering Contractors)

  • CGVpl of $150,000 or less: $5,000 bond

  • CGVpl in excess of $150,000, but not more than $500,000: $15,000 bond

  • CGVpl in excess of $500,000, but not more than $1 million: $25,000 bond

  • CGVpl in excess of $1 million, but not more than $5 million: $50,000 bond

  • CGVpl in excess of $5 million, but not more than $10 million: $75,000 bond

  • CGVpl of more than $10 million: $100,000 bond

Commercial Specialty Contractors

  • CGVpl of $150,000 or less: $2,500 bond

  • CGVpl in excess of $150,000, but not more than $500,000: $7,000 bond

  • CGVpl in excess of $500,000, but not more than $1 million: $17,500 bond

  • CGVpl in excess of $500,000, but not more than $1 million: $25,000 bond

  • CGVpl in excess of $5 million, but not more than $10 million: $37,500 bond

  • CGVpl of more than $10 million: $50,000 bond

Dual license bond amounts can be calculated by combining the amount required for both residential and commercial.

The cost of all AZ contractor license bonds is subject to underwriting consideration, meaning an underwriter will look at the bond amount, the applicant’s financial and personal history, and the history of claims against this specific bond before determining whether and at what price a bond can be issued.

When applying for your bond online through ContractorBonds.com, you must provide us with the residential bond amount and commercial bond amount (if and when applicable), license type, and license number.

How to become licensed as an Arizona contractor

Contractors must complete certain license classification requirements before submitting a license application:

General engineering contractors:

  • Have a minimum of four years of trade experience, depending on your classification type

    • A minimum of two years experience is required only for seal coating

  • Pass the Statutes and Rules Exam (SRE) and the trade exam (required for all general engineering contractors)

    • Swimming pool contractors who include solar must also pass the solar exam

  • Obtain a solar warranty

    • This is required for swimming pool contractors who include solar

    • This is only required for general engineering and electrical/transmission lines if solar work will be performed

General commercial contractors:

Specialty commercial contractors:

General residential contractors:

  • Have a minimum of four years of experience

    • The Pre-Manufactured Spas and Hot Tubs classification must have a minimum of two years, but it can be shortened to one year by passing the trade exam

  • Pass the Statutes and Rules Exam (SRE) and the trade exam

    • Trade exam is optional for the Pre-Manufactured Spas and Hot Tubs classification

  • General Swimming Pool Contractor classification including Solar must pass the solar exam and obtain a solar warranty

Specialty residential contracting:

General dual engineering contracting:

General dual license contracting:

Specialty dual license contracting:

Once all requirements have been completed, applicants can access all license application forms, along with a detailed set of application instructions, on the AZ Licensing Forms and Instructions Page.

Arizona Taxpayer Bond for Contractors

Arizona taxpayer bonds are required of all contractors performing Maintenance, Repair, Replacement and Alteration construction (MRRA). MRRA work is a separate classifications from prime contractors. More information on what MRRA work entails can be found here.

The required taxpayer bond amounts for various classifications of contractors are as follows:

  • Type 1: General contractors of residential buildings, other than single family housing: $2,000 bond

  • Type 2: General contractors of single family housing, water, sewer, pipeline, communication, and power line construction: $7,000 bond

  • Type 3: General contractors of industrial building and warehouses; of non-residential buildings; and highways and street construction, except elevated highways: $17,000 bond

  • Type 4: Heavy construction not elsewhere classified (e.g., dams, golf courses, land drainage, etc.): $22,000 bond

  • Type 5: Bridge, tunnel, and elevated highway construction: $102,000 bond

How much do Arizona taxpayer bonds for contractors cost?

The $17,000, $22,000, and $102,000 taxpayer contractor bonds are all subject to underwriting consideration, meaning a surety underwriter must examine the applicant’s personal history and financials, in addition to the bond’s unique history, to determine whether and at what cost a bond can be issued.

The $2,000 and $7,000 taxpayer contractor bonds can be issued online for a set premium to all applicants. A $2,000 bond can be issued for $175, and a $7,000 bond can be issued for $245. Purchase your bonds online today through ContractorBonds.com!

NOTE: Arizona prime contractor bonds are required of new contractors and out-of-state contractors who are engaging in taxable construction projects or activities in which they are only performing modification work and are required to obtain a Transaction Privilege Tax (TPT) license. This license cannot be applied for via an online application. The bond amount for a prime contractor bond will range from $1,000 to $200,000.

Search all contractor bonds in Arizona

Over the years, our bonding experts have put together the most comprehensive surety bond library. Most of our contractor bonds can be purchased instantly online in only a few minutes.

Use the list below to browse all of our available contractor bonds in Arizona You can also try searching by bond amount, obligee, or bond name.