What is an Arizona Commercial General Contractor – License B Bond?
The State of Arizona Commercial General Contractor License B Bond is a surety bond required for applicants of the Arizona Commercial General Contractor License. This bond, required by the Arizona Registrar of Contractors (ROC), ensures injured parties can receive compensation for financial harm if the contractor violates Arizona building codes and licensing regulations.
If a contractor fails to uphold the laws and regulations of their trade, they may cause injury to a consumer. In that case, the injured party can file a claim against the contractor’s bond. If the claim is valid, the surety will compensate the injured party up to the bond amount, which will vary depending on the projected amount of work the contractor will complete in a year. The principal, aka the contractor, is responsible for reimbursing the surety for all valid claims.
Please note this bond is only for commercial general contractors. If you are a contractor under a different classification in Arizona, find your bond here. License B Residential General Contractors can apply for their bond here.
Who has to get this bond?
General contractors in Arizona who wish to supervise a building project for a business or other commercial entity must obtain a B-1 Commercial General Contractor license from the Arizona Registrar of Contractors. To get that license, however, you will also need to get your Arizona Commercial General Contractor License B Bond.
Contractors operating under this specific license type may construct, alter, and repair any structure built, under construction, or to be constructed to support, shelter, or enclose persons, animals, or movable property. Contractors with this license may also manage and supervise (directly or indirectly) the work performed.
Arizona has a variety of contractor licenses, so make sure to know which license applies to the work you do before trying to get your bond. The specific license you need will determine the type of bond you need.
How much does this bond cost?
The cost of an Arizona Commercial General Contractor License B Bond varies depending on the bond amount and the applicant’s credit (using a soft credit check). The bond amounts for each contractor will vary because it depends on the contemplated gross volume of work (per license). The Arizona ROC lists the different bond amounts here.
Your credit will be the primary factor when the surety company calculates your premium rate. Your premium rate is a percentage that, when multiplied by the bond amount, will determine how much you will pay for your bond. Applicants with excellent credit may see quotes for as little as 1-2% of the bond amount.
If you have poor or nonstandard credit, we still encourage you to apply for your free quote. Even though your premium may be a bit higher, EZ Surety Bonds works with several surety companies to try and find you the best possible quote available. Simply fill out the quick form on our website to get started.
Obligee information
The obligee is the entity that requires you to obtain a surety bond. In this case, the obligee is the Arizona Registrar of Contractors. Their contact information is below:
Arizona Registrar of Contractors
State Capitol Executive Tower, West Wing
1700 W Washington St #105,
Phoenix, AZ 85007
Phone: 602-542-1525
Fax: 602-542-1599
How to get your Arizona Commercial General Contractor – License B Bond?
Applying for surety bonds with us is simple, quick, and easy. After you submit your application, one of our surety experts will contact you within 24 hours regarding your free quote. If you still have questions, please contact us at info@ezsuretybonds.com or 1-866-546-4605.
Frequently asked questions
How to get an Arizona General Contractor license
Complete the following steps to obtain an Arizona General Contractor License:
- Identify a qualifying party
- Establish a business entity
- Employ a qualifying agent
- Have the minimum required experience
- Pass the necessary knowledge and trade exams depending on your license type. Applicants of the B-1 General Commercial Contractors may substitute the NASLA Commercial General Building Exam for the AZ ROC trade exam. The exam costs $106 plus $25 in application fees (as of 2022).
- Submit to a background check
- Obtain your Arizona Contractor License Bond
- Complete your Arizona General Residential Contractor License application form and submit all applicable fees. All Arizona license forms are available here
How much is a License B Commercial General Contractor Bond in Arizona?
The cost of this Arizona Contractor Bond will vary depending on the bond amount and the applicant’s credit (using a soft credit check). Individuals with optimal financials may see quotes starting as low as 1-2% of the bond amount. To get your free quote, fill out the short application on our site today.
After I purchase my bond, what do I do?
After purchasing your Arizona Contractor License Bond, we will mail the original document to you. Every obligee has different requirements for how to file a bond. Some allow electronic versions, and others require the original bond, signed by you and mailed to them. Before doing anything with your bond, check your obligee’s filing requirements, as they often vary by state depending on the type of bond.
