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Arizona Contractors License

Sunday, March 27, 2011 Filed Under Contractors License

You need a contractors license to bid on any project over $750 in Arizona. Arizona issues separate licenses for commercial and residential work for each particular trade or construction field. You'll have to pass an exam before you can apply for a license in Arizona. Most trades require passing both Law & Business Management and a Trade exam.

Freedom Business School offers home study program that covers all relevant state laws and regulations as well as business management topics required to pass AZ Contractors License exam. This course includes Arizona Law manual, Business Management manual and a practice test manual, and covers complete range of topics for both Business and Law portions of the exam, including state-specific regulations. We also offer various Trade courses, that will help students prepare for the trade exams. For summary of the construction trades you can be licensed in, years of experience required and whether you have to pass a Trade exam for the license please go to

Commercial and residential exam fees:

All exam questions are multiple choice. The cost for the exam is $63 for the Business Management exam or one trade exam. If you apply for the business law and one trade exam, the cost is $120. The Business Management exam is two and one-half hours.

After you pass the exam, you can complete your license application. You'll need a financial statement, proof of Workers' Compensation Insurance if you have employees, and a bond. The amount of the bond depends on the type of license you're getting and the gross amount of business you expect to do in Arizona. For commercial contractor licenses, bonds can be from $5,000 to $90,000 for each license. For residential contractor licenses, they're from $1,000 to $15,000 each. Residential contractors also need to pay into the Arizona Recovery Fund. The amount of the payment may vary from year to year depending on how much the Fund has accumulated over the year.

License fees are:

$890 for each commercial construction general or engineering classification
$645 for each commercial specialty construction trade
$445 for each residential construction general or engineering classification
$320 for most residential specialty construction trades
$1,105 for each dual general classification
$815 for each specialty duel classification

All residential and dual licenses require participation in the recovery fund. You can either participate by paying $450 or post a consumer bond for $200,000.

Arizona has reciprocity agreements with California, Nevada, and Utah which will let you skip any trade exam you already have a license for. To qualify for this you must:

  • have been licensed in good standing for five years or more
  • have passed an equivalent trade exam (except for electrical and plumbing trade exams from Nevada)
  • send a license verification with your application
  • pass the Arizona business management exam

Your experience and licensing in another state may help you qualify for a license but you still must be issued a license by the Arizona Registrar of Contractors.

About Us -

Freedom Business School is a distance education learning school. We specialize in Contractors and Real Estate License courses for California. The school has been in business since 1991. Our courses are written by the professionals in contracting and real estate. The teaching staff includes attorneys specializing in contractors' license law, mechanics' lien law, and labor law.