Obtaining a Contractors License in Arizona

If you’re wondering how to get a contractors license in the state of Arizona, there's a lot you must do. You must fulfill multiple licensing and education requirements. You then must complete an application, pay all fees, and send everything to the Arizona Registrar of Contractors.

It’s important to note that additional licenses may be necessary for residential and commercial contractor work. Any applicants must also consider the different classes of licensure within their chosen kind of construction.

Candidates must pass their PSI exam with a rate of at least 70 percent. Then, submit their application form. But there are additional qualifications that you must meet. Applicants must identify any qualifying parties and submit all for a background check.

You must ensure you are a legally recognized entity by the state’s Corporation Commission (as something like an LLC, partnership, or sole proprietorship). This is in order to get issued an Arizona contractor license after completing the whole process.

To be sure you’ll meet all requirements, Contractor Training Center offers prep classes and books. These will ensure passing of the exams. The exam is only one portion of the licensing process. B it’s a big one that can make or break your completion.

What You Can Expect From Us

There are 3 main steps in almost every state:

  • Submit an application
  • Pass a Business Law exam
  • Pass a Technical exam

The purpose of the application is to register you in the state you're in. This is so they can tax you and confirm that you have verifiable experience. If you need help with this step of the process, we offer application assistance services.

The purpose of the Business Law exam is to make sure you understand the laws of operating a business in the state of Arizona. We offer exam prep courses for the Business Law exam.

The purpose of the Technical exam is to make sure you have the skills and knowledge to do the types of work that you want to perform.

We supply the prep classes, books and the tabs necessary to pass the OPEN BOOK EXAMS. Tabbing and Highlighting the books is allowed and part of our Curriculum. We have an extremely high first-time pass rate on our exams. If you do not pass, we will give you the class again for free until you do.

For Arizona we teach 2 different courses:

  • The Contractor Business Management Exam
  • The NASCLA exam. This is a commercial license in your state and is transferable to 14 other states. This is the most popular license for General contractors because it is so flexible. You can build a Sky-Scraper with this license.

We have taught over 30,000 people how to get a contractors license in Arizona. We look forward to helping you reach your goals as a contractor.

Ready to learn more? Don’t hesitate to call us today! You can reach us at 804-556-5518.

HERE IS A LIST OF THE STATES THAT ACCEPT THE NASCLA LICENSE

Alabama - Commercial only

Arizona - Commercial only

Arkansas - Commercial and Residential  - No Business Law exam required

Florida - Commercial and Residential

Georgia - Commercial and Residential

Louisiana - Commercial and Residential

Mississippi - Commercial and Residential

Nevada - Commercial only

North Carolina - Commercial and Residential. No Business Law exam required

Oregon - Commercial and Residential. Exemption from 16 hour BCL Pre-license

South Carolina - Commercial and Residential

Tennessee - Commercial only

US Virgin Islands - Commercial and Residential

Utah - Commercial and Residential

Virginia - Commercial only

West Virginia - Commercial and Residential

Benefits of Having a General Contractors License in Arizona

Construction laws are different in every state. But you must have a general contractor license in Arizona to perform any work values over $1,000. With a contractor’s license, you are able to work in many fields. This includes HVAC, plumbing, electric or construction.

The main benefit that a contractor’s license offers is credibility. You have a higher earning potential.

Without a license, you are only able to take on “handyman” tasks. These are trivial in nature and don’t cost more than $1,000. With a license, you can perform much larger projects and increase your profit. People are often willing to pay more on the same project to a licensed contractor versus an unlicensed entity.

It also helps gain credibility by earning your client’s trust. A contractor’s license means you passed many hurdles to get there. Clients know that. They’ll have greater trust in your capabilities and will be more likely to hire you.

How to Get an Arizona Contractor’s License

You can complete receiving a contractors license in Arizona in just about 11 easy steps. Follow below to go from a handyman to a licensed contractor:

1. Pick up necessary materials

First, you’ll need to pick up a license application and exam application. You get this from the Arizona Registrar of Contractors, a local office. You can also download and print these online.

2. Identify a qualifying party

For the sake of this application, a qualifying party is someone with the necessary knowledge, experience, and skills (as defined under A.R.S. § 32-1122(E)).

This can be a sole proprietorship, a member of a partnership, a member of an LLC, a corporate officer or an employee of a contracting business.

3. Meet minimum requirements for examination with experience

Next, you must have four years or more of contracting experience to be eligible for a license. You also must pass the Business Management Exam and the Trade Exam. This is true unless you are eligible for a waiver of this portion.

You may be eligible for credit here if you are a foreman, supervisor, journeyman, or contractor. You can check to see if you meet these qualifications by viewing Arizona’s License Classification Requirements (RC-L-206B).

4. Pass the exam

Once you meet the minimum requirements for the exam, you must take and pass both with a 70 percent or higher rate. Registration for these exams is available at all times through the online portal of PSI.

5. Pass a background check

Then, the applicant and the qualifying party must both complete and pass a criminal background check. This can be done on the Registrar of Contractor’s website. See the Licensing Background Check page.

6. Create a legal business entity

You will only receive an Arizona contractors license if you are a legal entity. You must have registered through the state’s Corporation Commission. If you need resources, the Arizona Corporation Commission provides resources for starting these kinds of eligible entities on their website here.

7. File a bond

Next, the applicant needs to file a Contractor’s Bond for the amount needed. This amount will vary based on the kind of license you get and the total gross volume you’ve completed. This bond can be a surety or cash one. Or it can be in the form of a CD from any Arizona-operating bank. For more information about Arizona bonds, check here.

8. Pay your fees

You will now have to pay the fees necessary to cover a 2-year time period. The amount will vary based on your license classification. But you should expect to spend anywhere between $580 and $1050.

9. Submit an ID

The applicant and qualifying party will both need to submit a copy of their ID (government-issued only) along with their application. You may use either a passport or a valid driver’s license.

10. Send in the application

Once you complete all of the above steps, you should submit all components to the below address via mail:

Registrar of Contractors
P.O. Box 6748
Phoenix, AZ 85005-6748

You can also submit the application in person at the below address:

1700 W. Washington Street
Suite 105
Phoenix, AZ 85007-2812

11. Worker’s compensation

The last thing that the State of Arizona requires is that you purchase workers’ compensation insurance. This is for any employees that you may have, considering the dangerous nature of the work.

Preparing for the Contractor’s Exam

In general, most contractors will take either the AZ-B1 (KB-1)

General Commercial Contractor exam or the AZ B/B-2 (KB-2) General Residential Contractor/General Small Commercial Contractor exam in addition to the AZ BME (Business Management Exam).

Here’s what you need to know in preparing for the exams:

  • The contracting trade exam can take up to 4 hours
  • The Business Management Exam can take up to 3 hours
  • You must pass both with a score above 70 percent
  • You can take these exams online and open-book
  • You must reschedule or cancel your online exam at least 2 days in advance
  • You must schedule it at least one day in advance

Preparing for the exam should be something you take seriously. But it also shouldn’t consume your life. We offer the study resources you need to pass the exam on the first time.

Our priority is getting you set up with the proper materials you need to study. This includes things like tabs for your exam books to keep things straight. We give practice tests so you get a feel for the real thing.

You should expect to spend about 8 hours preparing for the exam. This includes class and independent study time. You might feel less prepared and not familiar with the material we provide. Then we recommend you take about 16 hours to study instead.

Contractor Exam Prep from Contractor Training Center

We have a few different offerings for those looking to get the proper training to pass an Arizona Contractor’s exam on the first try. These include:

  • Arizona Contractor Business Management Exam Prep Online - Pre-Recorded, $249.00
  • Arizona Contractor Business Management Exam Prep - In Class or Webinar, $349.00

In addition to these Arizona-only exams, we also offer prep courses to become NASCLA accredited. The National Association of State Contractors Licensing Agencies (NASCLA) offers an exam that certifies those who pass it with a license in multiple states, including Arizona.

If you are interested in getting certified in multiple different states or foresee a move to a new state in the future, this might help streamline the process. As far as the NASCLA Accreditation process goes, we offer:

  • NASCLA Accredited Exam Prep Seminar - Live In-Class or Live Webinar, $349.00   
  • NASCLA Accredited Exam Prep Seminar and Practice Test - Online, Pre-Recorded, $249.00

FAQs

How long is my license valid?

Once you are granted an Arizona contractor’s license, it will be valid for 2 years. This is until you will need to pay a renewal fee and get your information updated to stay accurate.


Is an Arizona contractor’s license accepted in other states?

Yes! An Arizona general contractor license has reciprocity. But only in the neighboring states of Utah, California, and Nevada. Arizona can accept these states’ license qualifications.

Anyone coming to Arizona under this reciprocity agreement will still need to pass the Business Management exam and fulfill other requirements, however.

Arizona does not accept licenses from any other states. Trade experience or another state’s contractors license may qualify as necessary experience needed to waive the license exam. This will be determined on a case by case basis.

What is the benefit of having a NASCLA license?

The NASCLA license only eliminates the need to pass the trade exam. Other requirements, including the BME in the state of Arizona, must be met. The benefit is that the NASCLA certification is accepted in many other states.

These include: Alabama, Arkansas, Georgia, Mississippi, Louisiana, North Carolina, South Carolina, Oregon, Nevada, Tennessee, Utah, Virginia, and West Virginia.

If you want to get certified in any of these other states as well, taking and passing the NASCLA exam can help to simplify the process.

Contact Contractor Training Center Today

Getting an Arizona Contractor’s License separates you from the rest. You up your credibility just by having it. Clients know the hurdles you had to jump through just to get it. You open up the possibilities of your learning potential. You’re not capped at just $1,000 per job, as unlicensed entities are.

While the Arizona general contractor license process may seem complicated and long, we’re here to make it easier. With the prep courses from Contractor Training Center, you can have access to the materials you need to pass your contractors exams the first time.


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