Are there any Bond Requirements for a Contractor's License in Arizona?

Arizona law requires all Notaries to purchase and maintain a $5,000 Notary surety bond for the duration of their 4-year commission. The Notary bond protects the public of Arizona against any financial loss due to improper conduct by an Arizona Notary. The bond is NOT insurance protection for Arizona Notaries.

Contractor’s License Bond

A Contractor’s License Bond is a License and Permit Bond required by the Contractor's state or municipality he is operating in. Each trade of Contractor is required by the state in which they operate to carry a Contractor License bond in order to be a Licensed Contractor, whether it is a Plumber, Electrician, General Contractor or any other Contractor. Contractor bonds will assure that the Contractor will operate in compliance with all of the local laws and statutes within the state that they are operating.

The Arizona Registrar of Contractors determines bond amounts based on the specific License type needed and the annual volume of work completed. If the Contractor estimates a higher volume of work for the year, the bond amount will increase

If you work within both the Residential and Commercial sectors, the state might request that you provide a dual License bond to cover both Licenses. The bond amount would be calculated by combining the amount required for separate License types.

By posting the Contractor License bond, Contractors agree to follow all laws and regulations stated within the Arizona Revised Statutes. If any of the following acts are committed, a claim can be made on the bond and the Contractor’s License can be revoked or suspended:

  • Abandoning a contract after submitting a bid
  • Failing to pay taxes
  • Acting in a fraudulent way resulting in injury of another
  • Aiding someone else to evade/violate specific regulations
  • Failing to abide by all safety and labor laws
  • Advertising in a false or misleading way

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