Arizona Subcontract to Perform Work and Furnish Materials, Equipment and Labor for its Portion of Work, Together with all Plant, Tools, Machinery, Appliances, Winter Protection and all other Necessary Protection
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FAQ
In Arizona, contractors can obtain various types of licenses, including general commercial and residential, as well as specialty licenses for specific trades. Each license type aligns with the necessary skills and requirements tied to an Arizona Subcontract to Perform Work and Furnish Materials, Equipment and Labor for its Portion of Work, Together with all Plant, Tools, Machinery, Appliances, Winter Protection and all other Necessary Protection. Understanding the right license for your project is critical for compliance and successful execution.
Contracting without a license in violation of A.R.S. § 32-1151 is a class 1 misdemeanor (A.R.S. A§ 32-1164). All class 1 misdemeanors carry a maximum term of six months in the county jail and a maximum fine of $2,500 plus an 83% surcharge.
What are the steps to getting a contractor license in Arizona?Identify a Qualifying Party who meets minimum requirements.Pass examinations.Submit to background checks.Form a legal entity.Obtain a bond.Pay required fees.Provide Government issued identification.Complete and submit application.
An unlicensed entity may be a company or individual. To be a contractor in Arizona, an entity must be licensed. To be licensed, an entity must possess a bond; among other requirements. With the exception of workman's compensation insurance, the ROC does not require an entity to possess insurance to be licensed.
Handyman Exemption As stated above, Arizona requires a license for any project over $1,000. If the labor and costs are less than $1,000, you may fall under the minor work exception.
Most Construction contractors (both primes and subs) must be licensed with the Arizona Registrar of Contractors; some exemptions apply. To become a licensed contractor, you must submit an application showing you have passed one or more written exams, met appropriate experience requirements, and have sufficient bonding.
Minor work includes repairs and small alterations that don't require building permits. Unlicensed handyman in Arizona can do work, such as putting up drywall, assembling furniture, fixing windows, installing doors, and replacing fixtures. A handyman is typically paid around $25 an hour in Arizona.
Any business which contracts or offers to contract to build, alter, repair, add to, subtract from, improve, move, wreck or demolish any building, highway, road, railroad, excavation or other structure, development or improvement, or to do any part of the work must be a licensed contractor.
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.
The sale of tangible personal property is subject to tax but the installation labor is exempt if it is separately stated on the invoice and in the company's books and records.