General Contractor License Az Requirements

However, effective August 1, 2017, Arizona began accepting this exam instead of the commercial exams for the general classifications of B-1 and B-2 commercial contracts. If you want to become a licensed contractor in 13 other states, the NASCLA exam may be right for you. For more information, visit our NASCLA exam preparation page. Any company that enters into or offers contracts to construct, modify, repair, supplement, subtract, improve, move, destroy or demolish buildings, highways, roads, railways, excavations or other structures, developments or improvements must be a licensed contractor. Work subject to approval also includes the construction of scaffolding, connections to utility lines, measuring equipment and sewer lines, mechanical or structural services on a structure or improvement, and any other work related to the project. “Contractor” includes subcontractors, flooring contractors, landscaping contractors and consultants who present themselves as capable of supervising or managing a construction project for the benefit of the owner. Oversight or management includes hiring and firing specialized contractors, planning work on the project, and selecting and purchasing building materials. Contractors must hold an appropriate licence before they can submit bids. Applying for a licensed contractor through the Arizona Registrar of Contractors requires several steps.

Requirements include appropriate training, gaining experience, passing an exam and applying for a licence. For many small businesses, this is a large and significant expense that must be completed on time before work on a project can begin. [1] X Research Source Our guide will walk you through all the steps so you can get to work! It is important that those who want to become general contractors in Arizona understand everything that is required of them. This includes understanding exactly who needs a contractor`s license, minimum requirements for testing and experience, and more. See below for these details and more. In summary, if you don`t have a contractor`s license, you could cut yourself off from some fairly well-paid projects. Also, without the license, you could expose yourself to legal risk if a client sues you for your work. The Licence Classification Requirements form contains the minimum number of years of experience and the types of verifications required for an eligible party to be eligible for a particular licence classification. In addition to these listed requirements, in the state of Arizona, you are also required by the Arizona Industrial Commission to purchase workers` compensation insurance for employees, provided you have one. Under Arizona law, workers` compensation must cover at least two-thirds of the employee`s average monthly salary. According to the official Arizona ROC website, “Any company that enters into or offers contracts to construct, modify, repair, supplement, subtract, improve, move, destroy, or demolish buildings, highways, railroads, excavations, or other structures, developments, or improvements must be a licensed contractor.” Artisans are licensed in Arizona like any other type of contractor.

In general, if the work and materials exceed $1,000 OR a permit is required (regardless of the price of the work and material), a license is required. Please read Arizona`s revised laws on “People who do not need to be licensed; penalties; Applicability » ARS § 32-1121 Certain Arizona contractor industries may be required by law to have a minimum level of commercial insurance in order to be licensed for a license. One of the most common requirements is general liability insurance, which provides financial coverage in case your job causes an accident or damages property. Once you have met the minimum requirements for the exam, you will need to pass and pass both at a rate of 70% or more. Registration for these exams is possible at any time via the psi online portal. Other requirements, including the SRE (Statutes and Rules Course) in the state of Arizona, must be met. You must always apply for a license in one of the accepting states to own a license. However, you do not need to take the professional exam and can instead present your NASCLA exam certificates. A license also requires you to purchase general liability insurance and commercial insurance, such as workers` compensation. These policies protect you, your company`s assets (such as tools, equipment and vehicles) and your employees in the event of a problem.

You will also need to send proof of a license warranty. This obligation may be a guarantee or a cash obligation. You can also present your deposit in cash or in the form of a certificate of deposit from any bank in Arizona. The Arizona Registrar of Contractors issues separate licenses for commercial and residential work, as well as dual licenses that cover both commercial and personal licenses. It is important to understand these license classifications, as the cost of licensing a contractor in Arizona is based on the type of classification the contractor is applying for. You will work on any project that requires a permit or license. You`ll experience this often as Arizona is experiencing a construction boom thanks to a growing population. The link must be continuous, which means that it does not have a call date. The amount depends on your license type and the estimated gross volume of work. To learn more about how construction bonds work, click here. Next, you must have four years or more of contractual experience to be eligible for a license. You must also pass the Arizona Contractor Statutes and Rules course and the professional exam.

This applies unless you are entitled to a waiver of that part. R4-9-106(E): “. The Registrar may decide that a trade audit is not necessary if, within the last five years, the Qualified Party has been the Party eligible to obtain a good repute licence in the same classification in that State or a classification that the Registrar considers comparable in another State. A corporation or limited liability company must be registered with the Arizona Corporation Commission and have a good reputation with that agency before it can apply for a contractor`s license. The company or limited liability company must remain in good condition to renew its contractor`s license. There are a few steps you need to follow before submitting an application for a contractor`s license in Arizona. Follow below to switch from a handyman to a licensed contractor: Does getting a license seem like a breeze? We think so. Well, here`s how to do it. All persons listed in the license are responsible for the contractual activities of the company. “Person” means an authorized party, an owner, a partner in a partnership, all members of a limited liability company and any officer, director or owner of 25% or more of the shares of a corporation. If you have a criminal record, this may affect your ability to obtain a state license. It is best to read the state`s licensing background check guidelines and call 877-692-9762 with any questions.

In addition, licensed contractors are regulated by the state/local government, allowing clients to take less financial risk when hiring a contractor. Unlicensed contractors are not supported by state or local restoration funds, so the owner cannot receive this type of financial support if the work is not completed. “contractor” means subcontractors, flooring contractors, landscaping contractors and consultants who present themselves as being capable of supervising or managing a construction project for the benefit of the landowner. .