A.R.S. 32-1158: What a Contractor's Written Contract Must Include

A.R.S. 32-1158 sets a dollar trigger. It applies to "any contract in an amount of more than $1,000" between a contractor and a property owner. For any job above that line, the contract must be in writing. It must contain a specific list of information, spelled out in the statute.

The statute lists the required terms. Your written contract must contain all of these:

• The contractor's name, business address, and license number. The statute requires "the name of the contractor and the contractor's business address and license number." That license number lets you verify the contractor with the state.
• The owner's name and mailing address, plus the jobsite address or legal description.
• The date you and the contractor entered into the contract.
• The estimated completion date for all the work.
• A description of the work to be performed.
• The total dollar amount you will pay for all the work.
• The dollar amount of any advance deposit.
• The dollar amount of any progress payment and the stage of construction it is tied to.

The statute adds one more required item, and it is a consumer protection. The contract must tell you that you can complain to the state if the contractor breaks the rules. It must state that the property owner has the right to file a written complaint with the Registrar of Contractors for an alleged violation. It must also give the registrar's phone number and website address.

This notice cannot hide in fine print. The statute requires it to appear "in at least ten-point bold type." The contract must then be signed by both the property owner and the contractor.

You are entitled to keep the paperwork. Once you both sign, the statute says "the contractor shall provide the owner with a legible copy of all documents signed." If you pay cash, you also get a written, signed receipt for the exact amount. Never accept a promise to send the contract later. Get your signed copy before work starts.

Before you sign, run down the list. Confirm the license number is on the contract. Then check that number with the state Registrar of Contractors. Make sure the total price, deposit, and payment schedule are written out in dollars. Look for the bold complaint-rights notice. If it is missing, the contractor may not be following the rules that protect you.

A solid written contract also supports your other rights. If the work goes wrong, you can file a complaint against the contractor. These consumer protections apply to licensed contractors. That is one more reason to confirm the difference between a licensed contractor and a handyman before you hire. For serious losses caused by a licensed contractor, you may also reach the Residential Contractors' Recovery Fund.

A.R.S. 32-1158 is Arizona's official statute and a public-domain government work. The short phrases quoted above are reproduced from the current published text. Read the complete statute, including every required contract term, on the Arizona Legislature's site: azleg.gov/ars/32/01158.htm.

This page explains a general Arizona statute and is not legal advice. Contract rules can change and can turn on the facts of a specific job, so confirm the current requirements with the Arizona Registrar of Contractors or a qualified attorney before you rely on it.