#1 LICENSE BOND PROVIDER IN ARIZONA
Arizona Contractor License Center specializes in providing bonding services for Arizona contractors. Our bonding specialists help guide you through the bonding process, assist with bond applications, and help with the filing process. We have helped file thousands of bond applications each year, helping contractors secure the proper bonding coverage at cost-effective premiums.
What is a Contractor License Bond?
A contractor license bond provides financial security and construction assurance on building and construction projects. It helps assure residential project owners that the contractor will perform the work and pay subcontractors, laborers, and material suppliers. For commercial contractors, it helps ensure compliance with commercial codes set by the state.
Are there bond requirements for a contractor license?
Yes. It is the applicant or licensee’s responsibility to file a contractor bond in the amount required for the license classification and anticipated annual gross volume. The bond may be in the form of a surety bond, cash bond, or certificate of deposit from a bank that operates in Arizona.
How long is a bond valid?
The bond must be continuous, which means there is no termination date on the bond. You may be required to pay premiums periodically to keep the bond active. If the bonding company cancels the bond, they must provide notice to you and the Arizona Registrar of Contractors before cancellation. If this occurs, you will need to replace the bond or your license may be suspended.
Can the bond amount be increased?
Yes. The contractor license bond amount may be increased at any time. However, a surety bond or cash deposit in lieu of bond generally cannot be decreased except at renewal for the next fiscal year.
How Are Arizona Contractor License Bond Amounts Determined?
Contractor license bonds are established based on the volume of work within Arizona and the license classification contemplated by the licensee.
Important: Dual license bond amounts are calculated by combining the required residential and commercial bond amounts.
Bond amount is not the same as your premium. The bond amount listed below is the required bond coverage amount, not necessarily what you pay when using a surety company.
Call 1-866-332-8453 to get a quote or click here to purchase a bond.
| License Type | Yearly Contemplated Gross Volume | Bond Amount |
|---|---|---|
| Residential General Contractors | Less than $750,000 * | $9,000* |
| $750,000 or more | $15,000 | |
| Residential Specialty Contractors | Less than $375,000 * | $4,250* |
| $375,000 or more | $7,500 | |
| Commercial General Contractors Includes General Engineering Contractors |
$150,000 or less * | $5,000* |
| More than $150,000 but not more than $500,000 | $15,000 | |
| More than $500,000 but not more than $1,000,000 | $25,000 | |
| More than $1,000,000 but not more than $5,000,000 | $50,000 | |
| More than $5,000,000 but not more than $10,000,000 | $75,000 | |
| Over $10,000,000 | $100,000 | |
| Commercial Specialty Contractors | $150,000 or less * | $2,500* |
| More than $150,000 but not more than $500,000 | $7,000 | |
| More than $500,000 but not more than $1,000,000 | $17,500 | |
| More than $1,000,000 but not more than $5,000,000 | $25,000 | |
| More than $5,000,000 but not more than $10,000,000 | $37,500 | |
| Over $10,000,000 | $50,000 |
* If your contemplated gross volume of business is unknown, use the minimum required bond amount for the first year of a newly issued license.
Need an Arizona Contractor License Bond?
Our bonding team can help you determine the required bond amount, complete the bond process, and get your bond filed for your Arizona contractor license.
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