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General Requirements To Obtain A Contractor’s License In Arizona

Licensing plays a huge role in the construction and concrete surfacing business. You can’t get any work done or make any money if you don’t have a license. Every state enacts a unique set of requirements, and Arizona likewise has a process that is different from the rest of the country. Meeting every requirement can be difficult, but we want to help make the process a little easier. Here’s what you need to know if you plan on obtaining a license as a general contractor in Arizona:

Who Needs A

Contractor’s License?

Proper licensing in the state of Arizona will require you to go through the Arizona Registrar of Contractors. On the Registrar’s website, they state that you must obtain a license if you “contract or offer to contract to build, alter, repair, add to, subtract from, improve, move, wreck or demolish any building, highway, road, railroad, excavation or other structure, development or improvement.” If the labor and material costs of any construction project exceed $1,000, then you must have a license to perform the work. This particular criterion tends to vary in every state.

Types of Contractor

Licenses In Arizona

Arizona has three primary classifications of contractor licenses, and they include:

General Commercial Contractors (B-1) – This allows you to take on any job despite the size and scope of the project. This includes large commercial construction as well as minor residential remodeling projects.
General Small Contractors (B-2) – This allows you to perform any residential or commercial construction job that does not exceed $750,000 for labor and material costs.
General Residential Contractors – This particular license is limited to residential contracting jobs, including construction, remodeling, and repair. This also covers specialized licenses for general remodeling/repair and residential engineering.

Some additional licensing requirements include that you are over 18 years old and that have at least 4 years of experience. You will also need to take your licensing exam after you submit your application. To pass the exam, you must score at least 70% on both the Business & Management exam and the Trade exam.

Handyman

Exemption

The state of Arizona doesn’t require licensing for anyone providing repair and maintenance services that do not exceed $1,000. The state deems this to fall under the “minor work” exemption. However, the exemption doesn’t cover any job that requires local building permits.

Penalties

In many states, it’s a crime to provide services as a contractor without the proper licensing, and Arizona is no exception. These penalties are pretty harsh and violating the law can prevent you from filing any action for collecting compensation for work performed. The state of Arizona will impose criminal punishments (including Class A MIsdemeanors) on anyone who is not licensed to do the following:

Provide service in the capacity of a contractor (this includes bidding on projects)
Advertise that they can perform contracting services for compensation

With your first offense, you will likely have to pay a $1,000 fine and possibly spend six months in jail. Any subsequent violations will result in a much more expensive fine of $2,500. Let’s also not forget the civil penalties. You could end up paying $10,000 each time you provide illegal contracting services.

You should also keep in mind that the Arizona Registrar of Contractors has a database of every licensed contractor in the state. They have made this information available to the general public. Also, the Registrar sets aside a special fund that you pay into in case something goes wrong with the work you perform. This provides a helpful safety net for both you and your clients.

Conclusion

Getting your contractor’s license doesn’t have to be a struggle. The task itself is relatively easy, and once you obtain it, then your business will thrive. It’s always important to maintain the proper licensing, and it is going to benefit you in the long run.

Having your license is all about establishing your credibility. This will allow you to build trust with your customers and grow your influence throughout the community. Your earning potential is also going to improve significantly. Having a license in the first place will enable you to take on bigger projects and establish corporate partnerships. Furthermore, your clients are a lot more willing to pay a contractor who possesses all the proper licensing as opposed to a handyman.