Arizona contractors

How big your ROC bond has to be

This is general information, not legal advice. This is a plain-language summary of A.R.S. § 32-1152 and §§ 32-1131 to 32-1139 and the Registrar's bond and Recovery Fund pages. It is not a form from the Arizona Registrar of Contractors. Your surety and ROC set the final amount.

Every license needs a bond or cash

§ 32-1152(A) says ROC requires a surety bond or cash deposit before it grants a license, and will not renew a license unless the bond or deposit is in full force and effect. The surety must be a corporation authorized to do surety business in Arizona. (§ 32-1152(D))

Instead of a cash deposit you can assign certificates of deposit from FDIC-insured banks doing business in Arizona, or investment certificates or share accounts from savings and loan associations doing business in Arizona. (§ 32-1152.01)

ROC's bond information page says the bond must be continuous, with no termination date, and that you may owe the surety premiums to keep it in force. § 32-1152(E) says the bond is continuous in form. A bond is effective once it is filed with ROC, or on the later effective date shown on the bond. ROC does not set the premium. Ask a surety what the bond will cost.

Bond amounts by license type

ROC's bond page says the amount depends on the volume of work in Arizona and the classification, and that the classification on the bond must match the license. These are the amounts ROC publishes. Confirm the current figure with ROC and your surety before you buy or renew a bond.

For a dual license, ROC adds the residential and commercial amounts and the bond must split those penal sums. (§ 32-1152(B)(4), (6)) More than one license means the total is the sum for each, and you may post one combined bond. (§ 32-1152(B)(3))

What the statute allows

§ 32-1152(B) sets ranges, and ROC fixes amounts inside them. General residential is $5,000 to $15,000. Specialty residential is $1,000 to $7,500. Commercial ranges run by volume. For example, general commercial at $10 million or more is $50,000 to $100,000. The table above is what ROC says it will ask for. Residential-only bonds in that table top out at $15,000.

ROC says amounts can be increased any time, but a bond can be decreased only at renewal. A volume increase at renewal needs a bond rider. Dual-licensed swimming pool contractors and residential swimming pool general contractors use the general commercial volume schedule. (§ 32-1152(B)(8))

Who can claim on the bond

Commercial bonds under § 32-1152(B)(1)–(3) can be claimed by another licensee, or by a lessee or owner of nonresidential property with a direct contract, damaged by work that did not meet the applicable building code or ROC-approved standards. (§ 32-1152(E))

Residential bonds under § 32-1152(B)(4)–(8) can be claimed by anyone furnishing labor, materials, or rented construction equipment used directly on a residential construction contract, and by Recovery Fund–type claimants under § 32-1132. (§ 32-1152(E))

A supplier or sub who was required to give a preliminary twenty day notice can recover from the bond only if they gave it and have proof of service. See the 20-day notice page. Suits on the bond must start within two years after the act, delivery of goods, or services, with fraud measured under § 12-543. The bond's total liability is capped at its face amount, no matter how many claims or years. (§ 32-1152(E))

If the surety cancels, or a claim is paid

§ 32-1152(F) says a surety that cancels must give you and ROC written notice at least 30 days before the cancellation takes effect. The license is suspended by operation of law on the cancellation date unless a replacement is on file. If a cash deposit is reduced or depleted, ROC notifies you, and the license is suspended on the 30th day unless you replenish it or file a surety bond.

ROC's Recovery Fund page says that after a payment from a license bond, the license is suspended until the full bond amount is replaced, citing § 32-1152(E) and (F). Cash deposits can be withdrawn, if there are no outstanding claims, two years after the license terminates, or two years after a surety bond replaces the cash. (§ 32-1152(D)) After disciplinary findings, ROC may require a bond up to ten times the normal amount. (§ 32-1152(H))

The Residential Contractors' Recovery Fund

§ 32-1152(C) says residential and dual contractors must, in addition to the license bond, either participate in the Recovery Fund and pay the assessment, or post an additional $200,000 surety bond or cash deposit for Recovery Fund–type claims. ROC says the vast majority choose the Fund.

ROC's fee page lists a $370 assessment with a new residential or dual license and $270 at renewal. § 32-1126(G) caps the assessment at $600 per biennial license period. ROC says the assessment is required even with a license fee waiver. Commercial classes on that fee table show a $0 assessment.

§ 32-1132(B) describes who the Fund protects. In general that includes a person who lives in the damaged home, or intends to, as a primary residence. § 32-1132.01(A) limits it to residential property. ROC says it does not take claims from suppliers, subcontractors, laborers, or other commercial entities. Read § 32-1132 for the other categories the statute names. The contractor must have been appropriately licensed when the contract was signed, when the first payment was made, or when work started. (§ 32-1132(C)–(D))

§ 32-1132.01(D) sets a maximum individual award of $30,000. Deposit-only cases get the deposit plus 10 percent a year, up to $30,000. (§ 32-1132.01(C)) § 32-1139(A) caps the total at $200,000 per residential contractor's license. The statute does not award attorney fees except in contested cases appealed to superior court. (§ 32-1132.01(E))

If the Fund pays a claim on your license, § 32-1139(B) says the license is automatically suspended until the Fund is repaid in full plus 10 percent a year interest. Others named on that license cannot get or keep another license until it is repaid. Civil actions are within two years of the act or occupancy. (§ 32-1133(A)) ROC says claimants must first pursue the license bond.

Your bond tier follows contemplated annual volume, and ROC's renewal checklist asks you to confirm the bond still covers it. The Job & Lead Tracker totals jobs and paid revenue by month. That is a quick look, not a bond calculation.

Common questions

How much is the bond for a residential specialty contractor?

$4,250 under $375,000 contemplated volume, and $7,500 at $375,000 or more, on ROC's bond page.

How much for a residential general contractor?

$9,000 under $750,000, and $15,000 at $750,000 or more.

What does a dual license post?

One bond with the residential and commercial amounts combined and split on the bond.

Can I use cash instead of a surety bond?

Yes. A cash deposit, assigned certificates of deposit, or savings-and-loan investment certificates or share accounts. (§ 32-1152(D); § 32-1152.01)

What if the bond company cancels?

You get at least 30 days' written notice. The license is suspended on the cancellation date unless a replacement bond is on file. (§ 32-1152(F))

Do commercial-only contractors pay into the Recovery Fund?

ROC's fee table shows a $0 assessment for commercial classes. The Fund covers residential property only. (§ 32-1132.01(A))

What does a Recovery Fund payout mean for the license?

Automatic suspension until you repay the Fund plus 10 percent a year interest. (§ 32-1139(B))

How much does a bond cost per year?

ROC does not set the premium. Ask a surety.

Last checked: October 11, 2026

Sources: the statutes linked above, ROC bond information, the Recovery Fund page, the fee page, and the Registrar of Contractors. Phone (602) 542-1525, toll-free (877) 692-9762.

Next step

Bond and license sorted? Put the ROC number in front of customers with the job packet or a free website preview. Also see contract requirements, license renewal, the preliminary 20-day notice.