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Arizona Commercial Contract for Contractor

Arizona Commercial Contract for Contractor

Name: Arizona Commercial Contract for Contractor
Brand: US Legal Forms
Price: 59.00 USD
Rating: 4.64 (292 reviews)

Category:

Arizona Construction - Contractors - Commercial

State:

Arizona

Control #:

AZ-00462-14

Format:

Instant download

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Description

This form is designed for use between Commercial Contractors and Property Owners and may be executed with either a cost plus or fixed fee payment arrangement. This contract addresses such matters as change orders, work site information, warranty and insurance. This form was specifically drafted to comply with the laws of the State of Arizona.

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FAQ

In Arizona, and in four other states, sales of building materials to contractors are exempt from the sales tax, with the tax being imposed upon a prime contractor's gross receipts from the contracting project. Subcontractors that work for a taxable prime contractor that is liable for the sales tax are exempt.

A: It's not uncommon for contractors to ask for a down payment up front to secure your spot on their schedule or purchase some of the job materials in advance. Asking for more than half of the project cost up front, though, is a big red flag.I recommend tying payments to progress made during the job.

The state of Arizona does not generally collect sales taxes on the vast majority of services performed. An example of taxed services would be one which manufactures or creates a product.

Arizona law allows unlicensed contractors to perform certain jobs as long as they cost less than $1,000, including labor, materials and other items. This is commonly referred to as Arizona's "handyman" exemption for a limited range of services.

Payment Schedule In Your Contract Before any work begins, a contractor will ask a homeowner to secure the job with a down payment. It shouldn't be more than 10-20 percent of the total cost of the job. Homeowners should never pay a contractor more than 10-20% before they've even stepped foot in their home.

Many contractors won't ask for any more than 10 percent, but if you're uncomfortable with even that amount, Palmer says shop around. Get at least three bids for a job. A down payment may not be needed at all.

WHAT IS TAXABLE? A construction contractor is taxable on the gross income derived from construction contracting performed within the City of Phoenix. A contractor who furnishes labor only (such as a handyman) is subject to the same provisions as a contractor who furnishes both labor and materials.

You shouldn't pay more than 10 percent of the estimated contract price upfront, according to the Contractors State License Board.

Arizona Commercial Contract for Contractor

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