If you are looking to do work that requires a contractor’s license in Arizona, there are several requirements you must complete. Contractor applicants are required to submit a license application in addition to passing the Registrar of Contractors statutes and rules course as well as a trade exam specific to the type of work they perform.

We offer exam prep courses and reference materials for several trade exams, including the Nationally Accredited NASCLA Commercial Contractor Exam and the Arizona Asphalt Paving Exams.

The application process can be tedious and is where many contractors lose time and get frustrated. Let us help you apply for a contractor’s license! We offer Application Fulfillment Services to help you keep on task and reach your goal of becoming a licensed contractor. Contractor Training Center is here to help you reach your goal of becoming a licensed contractor.

Benefits of having a Contractor's license in Arizona

Construction laws are different in every state, but in Arizona, you must hold a contractor's license to perform any work valued over $1,000. 

If you perform work without a license, you risk subjecting yourself to fines and even criminal charges. Working without a license can be a class 1 misdemeanor, which can carry a maximum term of six months in the county jail and a maximum fine of $2,500 plus an 83% surcharge. 

The main benefit that a contractor’s license offers is credibility: licensed contractors are regulated by the state and are held liable for their work, so consumers assume less risk when hiring a contractor that holds a license. You have a higher earning potential, as you can legally take on projects on a larger scale.

Increases Your Earning Potential

Without a license, you are only able to take on “handyman” type tasks under $1,000. These can be trivial in nature. 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.

Gives You Credibility

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.

Additionally, licensed contractors are regulated by the state/local government, allowing clients to assume less financial risk when hiring a contractor. Unlicensed contractors are not backed by state or local recovery funds, so the homeowner cannot receive this type of financial assistance if the job is not completed.

Without a license, you are only able to take on small tasks. Don't limit yourself to working odd jobs as you can get them. With an Arizona Contractor's License, you can work on large-scale projects and grow your business to a larger scale.

There are 3 main steps in almost every state:

1. Submit an application
2. Complete the Statutes and Rules online course from Arizona Registrar of Contractors
3. Pass a Technical exam

License Applications are required to register your ensure you and your business are properly registered, insured, and hold adequate experience for the type of work you intend to perform. If you need help with this step of the process, we offer application assistance services.

Arizona's Registrar of Contractors also required applicants to complete an online Statutes and Rules course that overviews the laws and rules regulating contracting in the state.

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 several different courses, including the following:

• NASCLA exam, a commercial trade exam accepted in Arizona and is currently accepted as a trade exam in 15 other states
• Arizona Asphalt Paving Exams, including the CR-69, A-14, and R-13 exams

Ready to learn more? Don’t hesitate to call us today! You can reach us at 888-585-7350 or at support@contractortrainingcenter.com any time!

There are a few steps to follow before submitting a contractor license application in Arizona. Our blog explains the requirements to get a contractor's license in Arizona in detail!

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. Picking the proper application in Arizona is a bit of an art form and must mirror how your business is registered with the state. (Sole Proprietor, Partnership, LLC, or Corporation)

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 Arizona Contractor Statutes and Rules Course 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 PSI's online portal.

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 contractor's 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 eligible entities on their website.

7. File a bond

Next, the applicant needs to file a Contractor’s Bond for the amount required by the Board. The amount required will vary based on the kind of license the individual is applying for and the total gross volume of projects the applicant has completed. This bond can be a surety bond or cash bond. Alternatively, it can be in the form of a CD from any Arizona-operating bank.

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 $500 and $1100.

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.

How To Get A Handyman License In Arizona

Handymen are licensed in Arizona similarly to any other type of contractor. Generally, if labor and materials exceed $1,000 OR a permit is required (regardless of the price of labor and materials), then a license is required. Please read the Arizona Revised Statutes on "Persons not required to be licensed; penalties; applicability" ARS §32-1121