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Construction Work Regulated?

Who Regulates Construction?

Requirements?

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Construction Work Regulated?

Arizona requires contractor licensing for commercial, residential, and public works projects that exceed $1,000 in value, require a building permit, involve fire protection systems, or include work related to natural gas, propane, or other petroleum- or gas-fueled systems.

Certain individuals and projects may be exempt from licensing requirements. For a complete list of exemptions, refer to Arizona Revised Statutes (ARS) § 32-1121.

Who Regulates Construction?

Highway prequalification applications and information may be obtained from:

Arizona Department of Transportation
Contracts and Specifications Section
205 S. 17th Avenue, Room 121-F
Phoenix, AZ 85007
(602) 712-7221
https://azdot.gov/business/contracts-and-specifications

Applications and licensing information for all types of contractor licenses may be obtained from:

Arizona Registrar of Contractors
Arizona State Capitol, Executive Tower
1700 West Washington Street, Suite 105
Phoenix, AZ 85007-2812
(602) 542-1525
Email: licensing@roc,az.gov
https://roc.az.gov/

Requirements?

Highway Contractor Prequalification

Contractors seeking to bid on Arizona highway projects must submit a prequalification application to the Department of Transportation at least 15 calendar days before the bid opening date. The application must include financial statements prepared in accordance with generally accepted accounting principles (GAAP).

The maximum prequalification amount is determined by the type of financial statement submitted:

Compiled financial statement: up to $300,000
Reviewed financial statement: up to $1,500,000
Examined (audited) financial statement: required for amounts exceeding $1,500,000

Prequalification limits are based on factors such as net worth, experience, and other criteria established by state regulations. Prequalification remains valid for 15 months following the end of the contractor's fiscal year as reflected in the submitted financial statement. Most applications are processed within 30 days or less.

Arizona Contractor Licensing Requirements

To obtain a contractor license in Arizona, applicants must:

1 .Register their business entity with the Arizona Corporation Commission and disclose all officers, members, managers, or directors.
2. Designate a Qualifying Party who meets the required experience level, which varies by license classification from zero to four years.
3. Pass the applicable business management examination covering statutes and rules.
4. Pass the required trade examination with a minimum score of 70%, or qualify for an out-of-state trade examination waiver if the same Qualifying Party previously passed a comparable examination in another state.
5. Disclose all individuals or entities with 25% or greater ownership interest, including tiered ownership structures.
6. Submit criminal background checks and identification for all required individuals.
7. Provide proof of workers' compensation insurance.
8. Obtain the required contractor license bond based on estimated annual revenue.
9. For residential licenses, establish $200,000 in consumer protection through participation in the recovery fund, a surety bond, or a cash deposit.
10. Complete and submit the appropriate license application through the Arizona Registrar of Contractors online portal.
11. Pay all required licensing fees.

Reciprocal Agreements

Arizona does not maintain formal contractor licensing reciprocity agreements with other states. However, the state may waive certain trade examination and experience requirements for applicants who hold qualifying licenses from another state. Eligibility is determined through a review of the applicant's out-of-state credentials and must meet the requirements outlined in Arizona Revised Statutes (A.R.S.) §§ 32-1122(A)(4), 32-1122(E)(1), and 32-4302.


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