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2024 Arizona General Contractor License Requirements

Find the Arizona general contractor licensing requirements for 2024 and let Houzz Pro help you navigate the confusing waters of becoming a general contractor.

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Are you wondering how to get a general contractor license in Arizona? If so, you'll need to know the latest licensing requirements for 2024. Getting a general contractor license in Arizona can be a bit of a challenge, but it's also an incredibly rewarding endeavor. With the right preparation, you can be well on your way to a successful career in the construction industry. In this blog post, we'll explain the Arizona general contractor license requirements.We'll also cover the different types of licenses available, the education and experience requirements, and how to submit your application. By the end of this blog post, you'll have all the information you need on how to become a general contractor in Arizona.

Does Arizona Require A Contractor's License?

The answer is yes. In Arizona a contractor's license is mandatory for individuals or businesses engaging in activities related to the construction, alteration, repair, expansion, reduction, enhancement, relocation, demolition, or any work on buildings, highways, roads, railroads, excavations, structures, developments, or improvements, whether through contracting or offering to contract.

Who Issues An Arizona General Contractor License?

The Arizona Registrar of Contractors is responsible for issuing general contractor licenses in Arizona. They are the governing body that sets and enforces the general contractor license requirements

Types of Arizona Contractor Licenses

Arizona offers three main classifications of contractor licenses, each with its own scope of work:

  1. General Commercial Contractors (B-1):
    Suitable for projects of any size, ranging from substantial commercial undertakings to small home remodeling assignments.
  2. General Small Contractors (B-2):
    Allows work on a wide range of projects, excluding those exceeding $750,000 in combined labor and costs.
  3. General Residential Contractors:
    Designed exclusively for residential projects, encompassing construction, remodeling, and repair work. This category also includes specialized licenses:
  • General Remodeling/Repair: Focused on residential remodeling and repair projects.
  • Residential Engineering: Covers engineering work related to residential structures.
  • General Swimming Pool: For professionals dealing with swimming pool installations and maintenance.

In addition to these three main classifications, there are other contractor license categories available. To get a comprehensive understanding of these classifications, we recommend referring to the Arizona Registrar of Contractors' (AROC) informative breakdown of license categories.

How To Become a General Contractor In Arizona - A Step by Step Guide

Obtaining a contractor license in Arizona involves meeting specific requirements. Below are the fundamental prerequisites you need to fulfill:

  1. Age Requirement: You must be at least 18 years old to be eligible for a contractor license in Arizona.
  2. Work Experience: To qualify, you need a minimum of four years of practical work experience in the relevant field.
  3. Examination Scores: Successful licensure hinges on achieving scores of 70% or higher in two crucial exams:
  4. Business & Management Exam: This exam evaluates your understanding of business and project management aspects associated with contracting.
  5. Trade Exam: The trade exam assesses your competence in the specific trade or specialty you intend to work in.

By meeting these core requirements and performing well on the required exams, you'll be on the path to securing your contractor license in Arizona.

Tips for Passing the Exam

There are two key exams to pass, both requiring a score of 70% or higher: the Business Management exam and the Trade exam. To help you succeed, we've gathered some tips to guide you through the process.

1. Study the exam content: Familiarize yourself with the topics that will be covered in the exam. Focus on areas such as building codes, construction law, safety regulations, and project management.

2. Utilize study resources: Take advantage of study resources such as textbooks, online courses, and study guides. These materials can provide additional information and reinforce key concepts.

3. Manage your time: Time management is essential during the exam. Practice answering questions within the allocated time limit to improve your pacing skills and reduce the risk of leaving questions unanswered.

How Much Does Licensing Cost?

The fees for a license in Arizona differ based on the type and class of license that you need.

Each examination fee is $54. Additionally, if you are applying for a trade-specific license, such as electrical or plumbing, you will be required to pay a separate exam fee of $66 to demonstrate your expertise in your field.

In some cases, such as for the B-1 General Commercial Contractor and B-2 General Small Commercial Contractor classifications, you may have the option of taking the National Association of State Licensing Agency Commercial General Building Exam instead of the AZ ROC trade exam. This alternative exam requires a fee of $106 and an application fee of $25.

It's important to note that residential and dual contractors face additional costs and requirements. They must provide an additional $200,000 for consumer protection, which can be done through a surety bond, cash deposit, or by paying the necessary assessment to participate in the Recovery Fund.

Penalties for Unlicensed Contractors in Arizona

Failure to adhere to Arizona general contractor license requirements can result in severe repercussions. It's essential to note that unlicensed contractors face significant limitations:

  1. Ineligibility for Mechanics Liens:
    Unlicensed contractors are unable to file mechanics liens, restricting their ability to claim payment for work done.
  2. Inability to Collect Compensation:
    Furthermore, unlicensed contractors are barred from pursuing legal action to collect payment for services that necessitated a license.

Non-compliance with licensing regulations may also lead to criminal penalties in Arizona. Acting in the capacity of a contractor, including submitting bids for projects, and advertising services for compensation when unlicensed, are considered class 1 misdemeanors under Arizona law.

Leveraging your license on Houzz

Now that you know how to get a general contractor license in Arizona it’s time to start thinking about how you can promote your license to potential clients. Everyone who’s anyone knows the value of a blue checkmark on social media. That’s what the green Verified License Badge is for businesses on Houzz Pro. With one glance, this Badge helps you:

  • Let homeowners know that your business is licensed by state industry experts.
  • Stand out from the competition while homeowners consider who to hire
  • Add credibility to your company name, providing peace of mind to future clients

Here are the steps you can take to add a verified license to your Houzz profile. If you haven’t created a free profile on Houzz, sign up today and get ready to make a bigger impact with your business’ online presence.

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