Contractor License Bond in Arizona

What this bond requires in Arizona

Arizona is one of the more complicated contractor bond states because the amount you owe changes based on two things: what classification you're licensed in AND how much work you're doing each year. Volume tier matters on commercial. A commercial specialty contractor doing $800K/year pays a $5K–$15K bond. The same contractor doing $6M/year pays $17,500–$37,500. If your volume grows, your bond amount grows with it. Residential contractors have the Recovery Fund on top. The $200,000 Residential Contractors' Recovery Fund isn't a separate bond per se — it's a state-run consumer protection fund that residential contractors fund through their annual fees. But if you want to skip the fund contribution, you can post a $200,000 bond instead. Almost nobody does that. Dual license = combined bonds. If you hold both a residential and commercial license, you post the bond for each classification separately and the totals are combined.

Who requires it

The contractor license bond is required by the Arizona Registrar of Contractors under A.R.S. §32-1152.

How to file in Arizona

Arizona's ROC sets your bond amount based on your license classification and estimated annual volume of Arizona work. Residential bonds are tiered by license class (general vs specialty). Commercial bonds are tiered by annual project volume in addition to classification. Dual licenses (residential + commercial) combine both amounts. In addition, residential contractors must either post a $200,000 bond or contribute to the Arizona Residential Contractors' Recovery Fund.

Common questions

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