General Requirements To Obtain A Contractor’s License In Arizona
Who Needs A
Types of Contractor
Licenses In Arizona
- 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.
- 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.
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.