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Arizona Site Work Contract for Contractor

Contract Forms For Contractors

Name: Arizona Site Work Contract for Contractor
Brand: US Legal Forms
Price: 59.00 USD
Rating: 4.85 (294 reviews)

Category:

Arizona Construction - Contractors - Site Work

State:

Arizona

Control #:

AZ-00462-23

Format:

Instant download

Upgrade to a Package! Site Work Contractor Value Pack. Essential Forms. Go to Package

Description

This form is designed for use between Site Work 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

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

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.

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.

Payments to contractors are liable for payroll tax unless an exemption applies. To determine if an exemption applies, first check: if the contractor is an employee, even if they have an ABN or call themselves a contractor or.

Contracting without a license in violation of A.R.S. § 32-1151 is a class 1 misdemeanor (A.R.S. A§ 32-1164).In most cases, an unlicensed contractor will simply face a fine, but jail time is not out of the question if the perpetrator is a repeat offender or the facts are egregious.

Professional services: These are considered the least-taxed services due to powerful lobbying presences. Accountants fall into this area, as well as the work performed by attorneys and healthcare professionals, among other licensed professionals.

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.

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.

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.

Contract Forms For Contractors

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FAQ

How much money should you give a contractor up front?

Do contractors charge sales tax in Arizona?

Is construction labor taxable in Arizona?

Are contractor services taxable?

Is it illegal to hire an unlicensed contractor in Arizona?

Who is exempt from sales tax in Arizona?

Does Arizona charge sales tax on services?

How much can a contractor ask for up front in Arizona?

Is it normal for contractor to ask for half up front?

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