A Contractors Bond is a type of surety bond that protects your clients should you perform shoddy work or not follow through with your obligations. The Arizona Registrar of Contractors requires all license applicants to secure a Contractors Bond before they can be issued a license.
It is your responsibility to file a Contractor’s Bond in the amount required for your license classification. The bond amount for commercial contractors is based on your contemplated gross volume and is as follows:
$150,000 or less: $5,000 bond
$150,001 - $500,000: $15,000 bond
$500,001 - $1,000,000: $25,000 bond
$1,000,001 - $5,000,000: $50,000 bond
$5,000,001 - $10,000,000: $75,000 bond
$10,000,000 or more: $100,000 bond
How Much Will My Arizona Contractor Surety Bond Cost?
The price you pay for your Contractor Bond is dependent on the size of the bond you need and your personal credit score. A $75,000 bond will always cost more than a $5,000 bond. With that said, your personal credit score does play a big part in determining the price you pay for your bond.
If you are looking to get licensed and bonded, Surety Solutions can help. Our online quote generator provides free online quotes for your bond so you can compare prices before you buy. Worried about your credit? It’s okay; we have bad credit options. Your free quotes for your AZ Contractors Bond are just one click away.
Once you have your bond, you are ready to submit your application. Once submitted, you will receive a receipt with a pending number on it. This number is used to keep track of your application. When your application is approved, you will receive a notice telling you so.