A.R.S. 32-1152: Arizona Contractor License Bonds

The rule comes first in subsection A. A new license needs a bond or a cash deposit:

Before granting an original contractor's license, the registrar shall require of the applicant a surety bond in a form acceptable to the registrar or a cash deposit as provided in this section.

The amount is not one flat number. The registrar sets it within a schedule. The statute says the bond or deposit shall be:

in amounts fixed by the registrar with the following schedules after giving due consideration to the volume of work and the classification contemplated by the applicant

So two things drive the size. Your **classification** and your volume of work. A bigger, higher-volume contractor posts a larger bond. The statute lists ranges by class. For residential work, the text sets these ranges:

• General residential contractors: "not more than $15,000 and not less than $5,000"
• Specialty residential contractors: "not more than $7,500 and not less than $1,000"

Commercial classes carry higher ranges. Within each range, the exact figure is fixed by the registrar based on your volume and class. The statute also lists who may claim against the bond, such as customers and suppliers harmed by the contractor. Read the section itself for that full list.

People mix up two different protections. They are not the same.

• A license bond is posted by the contractor. Its size is set by class and volume. It can protect customers and, for residential bonds, certain suppliers. It exists because of A.R.S. 32-1152.
• The Residential Contractors' Recovery Fund is a separate, state-run fund. It is paid for by license fees. It is a backup for residential customers who cannot collect on a valid judgment. It has its own rules and its own claim path.

See our page on the Residential Contractors' Recovery Fund for that separate route. A single bad job may involve one, the other, or both.

Picture a Phoenix homeowner who hires a licensed plumber. The plumber takes a deposit, then abandons the job or leaves code violations. The homeowner may be able to file a claim against the plumber's license bond. A supplier who was never paid on a residential job may also have a claim.

But a bond is not unlimited. A large loss can be bigger than the bond amount. If the bond runs short, a residential customer may then look to the Recovery Fund. That is why the two tools matter together.

Before you hire, confirm the contractor is licensed and bonded. Our guide on how to verify a plumber's ROC license shows how to check the ROC record. To understand why this matters, see why a licensed, bonded, and insured plumber matters.

Two cautions. First, a bond is a limited pool, not a blank check. Know that a big claim may exceed it. Second, keep your contract, receipts, and photos, since a bond claim needs proof.

Confirm the current amounts before you rely on them. The residential ranges above reflect A.R.S. 32-1152 as published on the Arizona Legislature's site as of this writing, and the exact bond figure is fixed by the registrar within those ranges. Amounts and rules change, so check the current statute and the ROC before you assume a bond will cover a loss.

The quoted phrases above come from the official Arizona Revised Statutes, a public-domain government work. Read the full section, including the complete bond schedule and the list of protected parties, on the Arizona Legislature's site: A.R.S. 32-1152 on azleg.gov. For the separate state fund, see A.R.S. 32-1132.

This page explains a general Arizona statute and is not legal advice. Whether a bond claim fits your situation depends on the facts, the contractor's classification, and the bond amount in force, so confirm with the Arizona Registrar of Contractors or a qualified attorney before relying on it.