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How Much Does an Arizona Contractor License Bond Cost?
The cost of an Arizona contractor license bond ranges from $100 to $10,000. There are four categories of contractor surety bonds available based on the contractor’s business activities. The required bond amounts range from $2,500 to $100,000.
Rather than pay the full bond amount, license applicants can purchase a bond through an Arizona surety company. The premium amount for a contractor license ranges between 1% and 10% of the bond amount.
The premium amount is determined by the applicant’s business financials and experience, personal assets and credit scores.
The premium rate for applicants with a 700 credit score or higher ranges from 1% to 3%. The rate for applicants with a credit score between 600 to 699 is 3% to 5%. A 5% to 10% premium rate applies to applicants with a credit score below 599.
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Surety Bond Cost Based on Credit Score |
||||
|
Surety Bond Name |
Surety Bond Amount |
Over 700 |
Between 600 - 699 |
Below 599 |
|
Arizona Residential General Contractor Bond (gross volume less than $750,000) |
$9,000 |
$100 - $270 |
$270 - $450 |
$450 - $900 |
|
Arizona Residential General Contractor Bond (gross volume more than $750,000) |
$15,000 |
$150 - $450 |
$450 - $750 |
$750 - $1,500 |
|
Arizona Residential Specialty Contractor Bond (gross volume less than $375,000) |
$4,250 |
$100 - $128 |
$128 - $213 |
$213 - $425 |
|
Arizona Residential Specialty Contractor Bond (gross volume more than $375,000) |
$7,500 |
$100 - $225 |
$225 - $375 |
$375 - $750 |
|
Arizona Commercial General Contractor Bond (gross volume $150,000 or less) |
$5,000 |
$100 - $150 |
$150 - $250 |
$250 - $500 |
|
Arizona Commercial General Contractor Bond (gross volume more than $10 million) |
$100,000 |
$1,000 - $3,000 |
$3,000 - $5,000 |
$5,000 - $10,000 |
|
Arizona Commercial Specialty Contractor Bond (gross volume $150,000 or less) |
$2,500 |
$100 |
$100 - $125 |
$125 - $250 |
|
Arizona Commercial Specialty Contractor Bond (gross volume more than $10 million) |
$50,000 |
$500 - $1,500 |
$1,500 - $2,500 |
$2,500 - $5,000 |
How to Get an Arizona Contractor License Bond
1. Determine the Surety Bond You Need
The Arizona Registrar of Contractors and your local authority can provide you with additional information about the surety bond requirements for your professional activities.
2. Apply for Your Bond
Complete the online application to begin the easy process of buying your bond. With numerous bond programs available, we provide bonds to more than 99% of applicants.
When Henry contacted us, he needed to buy a commercial specialty contractor bond right away to finish applying for his license. After submitting his application, he received an immediate quote from us. After paying the premium, Henry received his bond quickly by email.
3. Get a Quote
Most of our customers receive an immediate quote from us. If your application is more complex, you will receive a quote within 48 hours of submitting your application.
4. Purchase Your Bond
Pay your premium online, and your bond will be available immediately. We’ll send your bond directly to your email account. Upon request, we can mail your bond to you as well.
Contractor License Bond Requirements in Arizona
When applying for a contractor license in Arizona, a completed surety bond form is required to ensure compliance with Arizona Revised Statutes 32-1152. This form must be notarized and signed by the applicant and the attorney-in-fact. The obligee is the Arizona Registrar of Contractors. A surety bond must remain active throughout the life of the license.
A contractor license bond in Arizona must be continuous. However, the surety bond company may require premium payments to maintain the bond.
If the surety bond company cancels the bond, it must provide a 30-day notice to you and the Registrar of Contractors. A new bond will be required to avoid the suspension of your license.
Contractor's license bonds in Arizona are set according to the volume of work and the specific license classification held by the licensee:
|
Residential General Contractors |
|
|
Loan Amount |
Surety Bond Amount |
|
Less than $750,000 |
$9,000 |
|
$750,000 or more |
$15,000 |
|
Residential Specialty Contractors |
|
|
Loan Amount |
Surety Bond Amount |
|
Less than $375,000 |
$4,250 |
|
$375,000 or more |
$7,500 |
|
Commercial General Contractors |
|
|
Loan Amount |
Surety Bond Amount |
|
$150,000 or less |
$5,000 |
|
In excess of $150,000 but not more than $500,000 |
$15,000 |
|
In excess of $500,000 but not more than one million |
$25,000 |
|
In excess of one million but not more than five million |
$50,000 |
|
In excess of five million but not more than ten million |
$75,000 |
|
Over ten million |
$100,000 |
|
Commercial Specialty Contractors |
|
|
Loan Amount |
Surety Bond Amount |
|
$150,000 or less |
$2,500 |
|
In excess of $150,000 but not more than $500,000 |
$7,000 |
|
In excess of $500,000 but not more than one million |
$17,500 |
|
In excess of one million but not more than five million |
$25,000 |
|
In excess of five million but not more than ten million |
$37,500 |
|
Over ten million |
$50,000 |
How to Get Your Arizona Contractor License
The contractor license requirements in Arizona vary by trade. Generally, the requirement for experience ranges from zero to four years. All trades require the applicant to pass between one and three exams. Select trades also require a solar warranty.
Under Arizona Revised Statutes, Section 32-4302, applicants who have been properly licensed in another state for at least 12 months may be granted a license. These individuals must have been certified for at least 12 months and be applying for a license in the same field and level.
In addition to passing the required exams and providing proof of professional experience, contractor licensing requirements are:
- Application form
- Corporation or other business entity documents, the applicable
- Government-issued identification
- A satisfactory background check
- Surety Bond Form
- Fees
Submit your licensing documents online or mail them to:
Arizona Registrar of Contractors
P.O. Box 6748
Phoenix, AZ 85005-6748
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What Our Clients Have To Say?
Quick response times and turn around for issuing bonds. Great customer service and very knowledgeable. We have used Lance Surety multiple times and have never been disappointed. Highly recommend them and Collette!
Long story short, these guys cut through the B.S. and get the job done. Responsiveness, excellent! Communication, excellent! Respect for their industry partners, excellent! John, Collette, Ryan, you're all-stars! Thank you!
We decided for Lance Surety Bond's quote for 2 reasons; Price and Customer Service. Our Representative Ryan was just SUPERB!! [...] I highly recommend Lance Surety Bond for all your Bonding needs! I'll definitely come back for all of mine. :-) Thanks Ryan!
Quick response times and turn around for issuing bonds. Great customer service and very knowledgeable. We have used Lance Surety multiple times and have never been disappointed. Highly recommend them and Collette!
Long story short, these guys cut through the B.S. and get the job done. Responsiveness, excellent! Communication, excellent! Respect for their industry partners, excellent! John, Collette, Ryan, you're all-stars! Thank you!
We decided for Lance Surety Bond's quote for 2 reasons; Price and Customer Service. Our Representative Ryan was just SUPERB!! [...] I highly recommend Lance Surety Bond for all your Bonding needs! I'll definitely come back for all of mine. :-) Thanks Ryan!
