How to Become a Licensed Contractor in Arizona
Published on June 9, 2020 by Alicia Eckert
Here are some answers to frequently asked questions regarding contractor licensing in Arizona.
Who needs an Arizona contractor license?
Any business which contracts or offers 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, or to do any part of the work must be a licensed contractor.
Also included in work requiring a license is the erection of scaffolding, connections to utility service lines, metering devices and sewer lines, mechanical or structural service to a structure or improvement and any other work in connection with the project.
“Contractor” includes subcontractors, floor covering contractors, landscape contractors and consultants representing themselves as having the ability to supervise or manage a construction project for the benefit of the property owner.
Supervision or management includes hiring and firing of specialty contractors, scheduling of work on the project, and selection and purchasing of construction material.
Contractors must be properly licensed before submitting bids.
Who can apply for an Arizona contractor’s license?
A sole proprietorship (individual), a partnership, limited liability company, or a corporation may apply for a contractor’s license if they have a regularly employed person with the necessary experience, knowledge and skills who serves as the qualifying party. All persons listed on the application must be 18 years of age or older.
A corporation or limited liability company must be registered with the Arizona Corporation Commission and in good standing with that agency before submitting an application for a contractor’s license. The corporation or limited liability company must remain in good standing in order to renew their contractor’s license.
To whom is the license issued?
A license may be issued to a sole proprietorship (individual), a partnership, limited liability company or a corporation. The license belongs to the business and not to the qualifying party.
What are the steps to getting a contractor license in Arizona?
- Identify a Qualifying Party who meets minimum requirements
- Pass examinations
- Submit to background checks
- Form a legal entity
- Obtain a bond
- Pay required fees
- Provide Government issued identification
- Complete and submit application
Further descriptions of these steps can be found on the AZROC Licensing Information page.
What do I need to submit with my application?
- Original examination score (See PSI Candidate Information Bulletin for instructions to register for exams and answers to commonly asked questions
- Experience Record Form
- All license fees and Recovery Fund fees (if applicable).
- A license bond must be provided with the license application. The amount of the bond required depends upon the classification of license and your anticipated gross volume of business.
- Your Arizona Transaction Privilege Tax Number must be included with the license application.
- Financial Statement
- Proof of Workers Compensation Insurance
Information on License Classification Requirements, License fees, Experience Record form, obtaining a surety bond and Arizona Transaction Privilege Tax Number, instructions, links and answers to many questions can be found on the application which can be downloaded from the Arizona website at: www.azroc.gov
Is there an exam requirement to get licensed?
All candidates are required to take and pass a Business Management Examination which contains questions on state and federal laws and the management of construction projects, business, and financial management. Some license classifications also require passing a trade exam. All testing requirements must be completed before submitting your application. Information on individual trade exams may be found at www.psiexams.com (800) 733-9267. The PSI Candidate Information Bulletin (PFD) contains instructions to register for exams and answers to commonly asked questions. Your original examination score report must be submitted with the License Application.
Is experience required to become licensed?
Credit is given for experience as a journeyman, foreman, supervising employee or contractor. Contracting experience will also be considered from currently licensed Arizona Contractors, formerly licensed contractors and official personnel. Refer to form: License Classification Requirements RC-L-206B to determine License Classification experience requirements.
Is the NASCLA Accredited Commercial Contractor license accepted in Arizona?
No, the NASCLA license is not accepted in Arizona.
However, as of August 1, 2017, Arizona began accepting this examination in lieu trade examinations for the B-1 and B-2 General Commercial Contracting Classifications. If you are interested in becoming a licensed contractor in 13 other states as well, the NASCLA exam may be a good fit for you. Check out our NASCLA Exam Prep page for further details.
Who do I contact at the state with other questions?
Arizona Registrar of Contractors
1700 West Washington St. Suite 105
Phoenix, AZ 85007-2812