What Are Arizona Construction & Contractor License
Bonds?
Arizona requires several construction‑related surety bonds to protect project owners, suppliers, and the public from financial loss. These bonds ensure contractors follow Arizona laws, honor contracts, and complete work properly.
This page covers:
- Arizona Bid Bonds
- Arizona Performance & Payment Bonds
- Arizona Contractor License Bonds
- Arizona Pre‑Qualification Bonds
Each bond type serves a different purpose in the construction process.
Arizona Bid Bond
An Arizona Bid Bond guarantees that a contractor will honor their bid and sign the contract if awarded the project. It protects project owners from:
- Bid withdrawal
- Failure to sign the contract
- Failure to provide required performance & payment bonds
Typical Pricing: Most bid bonds are issued at no cost for qualified contractors.
Arizona Performance & Payment Bond
Arizona Performance & Payment Bonds guarantee:
- The project will be completed according to contract
- Subcontractors and suppliers will be paid
These bonds are required for:
- Public works projects
- Many private commercial projects
- General contractors and specialty trades
Typical Pricing: Rates typically range from 1%–3% of the contract amount for qualified applicants.
Arizona Contractor License Bond
Arizona requires a Contractor License Bond for all licensed contractors. Bond amounts depend on:
- License type (residential, commercial, dual)
- Annual volume
- Business classification
Typical Pricing: Most contractor license bonds cost $70–$500 annually, depending on credit and bond amount.
Arizona Pre‑Qualification Bond
Some public agencies require a Pre‑Qualification Bond to verify a contractor’s:
- Financial strength
- Experience
- Ability to complete future projects
This bond strengthens a contractor’s eligibility for bidding.
Typical Pricing: Most pre‑qualification bonds cost 1%–3% of the bond amount.
Arizona Construction Bond Cost
Your premium depends on:
- Bond type
- Bond amount
- Credit score
- Financial history
- Project size (for contract bonds)
General Pricing Ranges:
- Bid Bonds: Often free
- Performance & Payment Bonds: 1%–3% of contract
- Contractor License Bonds: $70–$500 annually
- Pre‑Qualification Bonds: 1%–3% of bond amount
Who Needs an Arizona Construction Bond?
You need a construction bond in Arizona if you are:
- A general contractor
- A subcontractor
- A specialty trade contractor
- A construction company bidding public or private work
- A contractor applying for or renewing a license
Any contractor performing regulated work must maintain the appropriate bond.
Arizona Construction Bond Requirements
Arizona requires:
- Completed bond application
- Credit review
- Financial statements (for larger contract bonds)
- Bond amount based on license or project size
- Filing with the Arizona Registrar of Contractors or project owner
How to Get a Construction Bond
1
Complete the Application
Submit contractor information, financials, and project details.
2
Secure the Lowest Rate
Matched with the best pricing from A‑rated sureties.
3
Receive your bond
Issued digitally for immediate filing; larger performance bonds may require deeper underwriting.
Why Choose Us for Your Construction Bonds
- Lowest rates from A‑rated sureties
- Fast approvals
- Digital delivery for immediate filing
- Dedicated construction bond specialists
- 100% compliance guaranteed
Top Construction Bond Questions Answered
Our most common questions answered efficiently.
Bid bonds are often free; other bonds range from 1%–3% of the bond or contract amount.
Yes. Programs exist for new and growing contractors.
Only for larger contract bonds (typically $500k+)
The surety may complete the project or compensate the owner.
Sureties review credit, but bonds do not appear as debt.
