What is an Arizona Residential General Contractor – License B Bond?
The State of Arizona Residential General Contractor License B Bond is a surety bond required as part of the application process for a contractor license within the state. The bond ensures compensation for financial harm if the contractor fails to comply with Arizona building codes and licensing regulations.
If the contractor commits a fraudulent or unethical act, causing injury to someone (usually a customer), that injured party can file a claim against the contractor’s bond. The surety will investigate the claim to determine its validity. If the claim is valid, the surety will compensate the injured party up to the bond amount. The contractor is ultimately responsible for reimbursing the surety for any claims paid out, plus additional fees and expenses incurred by the surety throughout the investigation of the claim.
Please note this bond is only for residential general contractors. If you are a different classification of contractor in Arizona, you will need a different bond. License B Commercial General Contractors can apply for their bond here.
Who has to get this bond?
General residential contractors working in Arizona need a License B Surety Bond to obtain their B General Residential Contractor License. This license is required for contractors working on any or all parts of a residential structure or accessory. A licensed B General Residential Contractor must subcontract work to an appropriately licensed contractor for work on electrical, plumbing, air conditioning systems, boilers, swimming pools, spas, or water wells.
Note that this bond is separate from any bonds required for other Arizona contractor license classifications, including residential specialty contractors, commercial general contractors, and commercial specialty contractors. Each contractor must obtain a contractor’s license specific to their work as mandated by Arizona Revised Statutes 32-1103. So make sure to know which license applies to you and, therefore, which surety bond you need.
How much does this bond cost?
The Arizona Residential General Contractor License B Bond has a required bond amount of either $9,000 for those with a contemplated gross volume of work of less than $750,000 (per license) or $15,000 for a contemplated gross volume of $750,000 or more. As a note, contractors with multiple license classifications can acquire a dual-license bond. In that case, your bond amount would be a combination of the amounts required for Commercial and Residential licenses.
Thankfully, the bond amount is not how much the bond costs. Your premium will only be a percentage of your required bond amount. The surety company will determine your premium based on several factors, most importantly your credit.
At EZ Surety Bonds, we work with several markets to find you the best quotes possible, even if you have nonstandard credit. We encourage you to apply for your free quote, regardless of your credit score. Simply fill out our short application to get started.
The obligee for this bond, or the entity that requires you to get a surety bond, is the Arizona Registrar of Contractors. You can reach them through the following contact information:
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 B License Residential General Contractor Bond
EZ Surety Bonds makes it easier than ever to get your Arizona Residential General Contractor – License B Bond. Simply fill out the short application, and you’ll hear from one of our surety experts regarding your free quote within 24 hours.
If, at any point, you still have questions, please contact our surety experts at firstname.lastname@example.org or 1-866-546-4605. We’re happy to help!
Frequently asked questions
To become a Residential General Contractor in Arizona, you must:
• Identify your license type
• Have the minimum required experience
• Establish a business entity
• Employ a qualifying agent
• Pass the necessary knowledge and trade exams depending on your license type
• Submit to a background check
• Purchase and maintain a surety bond with the bond amount of either $9,000 or $15,000
Complete your Arizona General Residential Contractor License application form, with an application fee of $870 and a renewal fee of $590 (as of 2022). All Arizona license forms are available here.
The Arizona B License Residential General Contractor Bond has a required bond amount of either $9,000 or $15,000. However, you only need to pay a percentage of that amount, determined by your credit (using a soft credit check). At EZ Surety Bonds, we have seen quotes for as low as 1-2% of the bond amount for applicants with optimal credit. Even if you have nonstandard credit, we encourage you to apply. At EZ Surety Bonds, we work with a variety of surety companies to find you the best quote possible. Complete the quick form on our website to get started today.
After purchasing your Arizona Contractor License Bond with EZ Surety Bonds, we will mail the original bond document to you. Most obligees require you to file the original bond with them directly. However, some may accept an electronic version. Since every obligee has its own bond filing requirements, be sure to check your obligee’s bond filing requirements before doing anything with your bond.