Who needs Arizona Contractor License Bonds?
Arizona groups contractor bonds into four main categories: residential general, residential specialty, commercial general, and commercial specialty. Arizona also has many license classifications within those categories. If you hold both a residential and commercial license, the required bond amount is calculated by combining the amount required for both license types.
How much do Arizona Contractor License Bonds bond cost?
The cost of an Arizona contractor license bond is based on two things: the bond amount required for your license and your premium rate. The bond amount varies by license classification and your projected volume of work, so pricing can vary widely.
Your premium is the amount you pay for the bond, and it’s usually a percentage of the required bond amount. For applicants with standard credit, premium rates commonly start around 1–3%. For bad credit, rates may start around 6% or higher. Arizona provides a bond amount chart through the Registrar of Contractors to help determine the bond amount required for your license type and volume of work.
How do I get an Arizona Contractor License Bond?
To get the bond, you’ll first need to know the bond amount required for your specific license classification and contemplated volume of work. Once the bond amount is confirmed, you apply for a quote, and if approved, you purchase the bond and file it as part of your licensing requirements.
Can I get an Arizona Contractor License Bond with bad credit?
Yes, it may still be possible to get an Arizona contractor license bond with bad credit, but the cost is typically higher. Bond pricing is largely credit-based, so applicants with lower credit scores often start at higher premium rates than applicants with standard credit. A quote will confirm the rate you qualify for.
How fast can I get Arizona Contractor License Bonds?
Once you know the required bond amount and complete the bond application, the bond can often be issued quickly, depending on the information needed and the underwriting review. If additional review is required (which can happen more often with credit challenges), it may take longer.
Are there any local requirements?
Arizona’s contractor licensing and bonding requirements are handled at the state level through the Arizona Registrar of Contractors. The bond amount is tied to your license classification and contemplated volume of work, and contractors with dual residential and commercial licenses must combine the required bond amounts for both license types.
If you’re unsure which bond you need, BOSS Bonds can review your licensing paperwork and help identify the correct bond at no cost.
