Contractor License Bonds

The Arizona Registrar of Contractors (ROC) provides that contractor’s license bonds are required in specific amounts as based upon the volume of work within the State of Arizona and the classification contemplated by the licensee. Contractor license bonds are required for residential general contractors, residential specialty contractors, commercial general contractors (includes general engineering contractors), and commercial specialty contractors. It is their responsibility to file a contractor’s bond in the amount required for license classification and anticipated annual gross volume.

Only specific businesses are licensed to offer surety products in the state by the Arizona Department of Insurance. A construction professional should check with the Department of Insurance to be certain that both the agent and the underwriting insurance company are permitted to sell in the state as a licensed insurer or as a qualified surplus lines carrier.

Bond Claim Defense

As a contractor, you have an obligation not to commit any violation of Arizona’s laws or of your contractor license. A violation is grounds for disciplinary action against the license by the Registrar of Contractors. In addition, if the contractor fails to comply with the state laws and regulations, a claim may be brought against the contractor’s license bond with the surety company.

These claims against a contractor’s surety company are often filed by homeowners, individuals damaged by willful and deliberate violations of a construction contract, and employees who are not paid wages.

The surety attorneys at Murphy Cordier Casale Axel PLC are skilled at dealing with issues concerning performance, payment, bid, and release bonds in construction projects, as well as with surety indemnity matters. Our attorneys also follow through in the pursuit of all indemnity claims against those who contributed to the underlying loss.