Surety bond required by the Arizona Registrar of Contractors (ROC) of every licensed contractor, with the amount set by license class and reported gross volume.
Under A.R.S. §32-1152, every Arizona contractor license applicant must post a surety bond before the ROC issues the license. The bond amount is determined by:
The bond protects the homeowner or contracting party from financial loss caused by the contractor's failure to perform, defective work, or violation of contracting law. ROC enforces a strong claim process via the Residential Contractors' Recovery Fund.
| License Class | Volume | Bond |
|---|---|---|
| Commercial General (B-1, B-2) | Up to $150K | $5,000 |
| Commercial General | $150K – $500K | $15,000 |
| Commercial General | Over $500K | $25,000 |
| Residential (C-, R-) | Up to $150K | $5,000 – $9,000 |
| Residential | $150K – $500K | $15,000 |
| Residential | Over $500K | $28,000 |
| Dual (C-/B-) | Various | Varies, up to $28,000 |
Premiums are credit-based. Small-class bonds typically cost $100–$200 annually:
| Credit Profile | Annual Premium | Approx. Rate |
|---|---|---|
| $5,000 bond, good credit | $100 – $150 | 2% – 3% |
| $9,000 bond, good credit | $150 – $250 | 2% – 3% |
| $15,000 bond, good credit | $250 – $450 | 1.5% – 3% |
| $25,000 bond, good credit | $300 – $750 | 1.2% – 3% |
| $28,000 bond, good credit | $350 – $850 | 1.25% – 3% |
| Any tier, challenged credit | Up to 5% of bond | 3% – 5%+ |
Arizona contractor bonds run on 2-year terms aligned with the ROC license cycle. Renewal is automatic if premium is paid; the surety files the renewal certification with ROC. Crossing into a higher gross-volume bracket requires posting a higher bond at renewal — ROC verifies via reported financials.
The bond is a private surety obligation; the Residential Contractors' Recovery Fund is a state-administered fund that homeowners can claim against in addition to the bond. Both can apply to the same job.
Generally one bond covers all classifications under a single ROC license number. Separate license entities (e.g., separate corporations) require separate bonds.
Yes — at renewal you can post a lower bond if your gross receipts dropped into a lower bracket. ROC will accept the lower amount based on your reported financials.
The surety investigates. If valid, they pay up to the bond limit, and you reimburse the surety. Multiple residential claims can also trigger Recovery Fund liability.
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Start Your ApplicationRelated: All Arizona surety bonds · What is a surety bond? · How surety bond costs are calculated