Securing a general contractor's license is the fastest way to break into Arizona's multibillion-dollar construction industry. According to the U. S Bureau of Economic Analysis, Arizona's construction industry grew from $17.5 billion in 2018 to a record-breaking $27.3 billion to 2022, marking a 58% market growth.
Here's what you need to know about obtaining an Arizona GC license—the key to getting a bigger slice of the state's multibillion-dollar-a-year construction pie.
Understanding the Arizona General Contractor License
Arizona requires anyone who wishes to undertake a residential or commercial construction project exceeding $1,000 in value to hold a general contractor license. The license attests that you have the necessary knowledge, skills, and experience to safely complete the project.
The Arizona Registrar of Contractors (ROC) oversees and regulates the process of licensing contractors in the state. The regulatory body sets the eligibility criteria for aspiring contractors. The licensing process requires you to undergo mandatory training, gain the necessary experience, get the ROC approval, and pass the licensing exam.
Securing an Arizona general contractor license pays off in droves. For starters, it allows you to operate freely without legal constraints. You can legally bid on construction projects and gain an edge over lesser contractors.
A license lends credibility by demonstrating your abilities and capabilities, a key ingredient in earning client trust. It legitimizes your business while allowing you to make more money because you can charge what you're worth.
More importantly, having a license helps you avoid legal trouble. Operating without a contractor's license in Arizona is a Class 1 Misdemeanor with a 6-month jail sentence and a $2,500 fine. You'd also have to refund the money you earned from the project.
Anyone older than 18 with more than four years of contracting experience can apply for a contractor's license in Arizona.
You may also apply for licensure as a business entity—sole proprietor, a business partnership, an LLC, or a corporation. All businesses applying for a license must have a qualifying party—a regularly employed individual who meets the state's experience, knowledge, and skills requirements.
Additionally, all corporations and LLCs must be registered and in good standing with the Arizona Corporation Commission.
Steps to Obtaining an Arizona Contractor's License
Obtaining an Arizona contractor's license is a simple 3-step process:
Education and Experience
The qualifying party must possess at least four years of contracting experience and sit for two major trade examinations when applying for a general contractor license in Arizona. The state requires contractors to ace the AZ Statutes and Rules Training Course and Exam (SRE) and Trade exam in their specialty areas.
Applying to the Board for Approval
Qualifying parties must also submit an application to the Arizona Registrar of Contractors. The certification application packet must contain your government ID, exam results, background check, a copy of your legal entity's paper, a completed bond form, and the mandatory application and licensing fee.
Taking the Exam
Qualifying parties must score 70% or higher on both required tests (SRE and trade exams) to qualify for a license. The SRE is an online program, and it is only available through Gmetrix after paying the $54 exam fee. You may take Trade and solar exams at a PSI exam center after receiving approval to test and paying the applicable fees.
Secure Your Future Today
Securing a general contractor's license in Arizona paves the way to a highly rewarding career. It allows you to differentiate your services, build credibility, and earn the trust of your customers while legally bidding on lucrative construction projects.
At Contractor Training Center, we specialize in helping Arizona contractors ace their tests and secure state licensing on the first try. We offer Arizona contractor exam prep and license application assistance to help you breeze through the application process.
Need help getting a general contractor license in Arizona? Get Started Today by booking a call with a license specialist to get started on the licensing process.