What is Arizona Contractor License Bond?
Mandated by the Arizona Registrar of Contractors, the Contractor License Bond is a type of surety bond that gives financial security and assurance to residential project owners that the service provider/contractor they have chosen will provide the service they are expected to give, will complete the projects in a timely manner, and will appropriately compensate all workers involved in the project such as material suppliers, laborers, and subcontractors.
This bond will likewise serve as a guarantee that the contractor will comply with every commercial code set forth by the State of Arizona and will religiously carry out all provisions stipulated in the project agreement.
Why do you need a Contractor License Bond?
Having a contractor’s license bond will render you as a business person of integrity and competence. You are fundamentally showing your clients that you are capable of providing services in a principled and proficient manner. This is exceedingly vital in enhancing your reputation as a business owner and can automatically boost your image within the industry. In response, clients are confident of availing of your services. Your clients will be protected if a substantiated claim is made against you.
More details about Contractor License Bond
As a supplement to a license bond, you are likewise mandated to pay an appraisal fee to the Registrar’s Residential Recovery Fund or post a cash bond of $200,000.
The bond has no expiry date. However, you are obligated to pay a certain amount to the bonding company to keep the bond enforceable. Likewise, it is within the rights of the bond company to revoke the effectivity of the bond. Whenever there is a need for this, the bond company will send out a formal notification to you and the Arizona Registrar of Contractors for the revocation of your bond thirty (30) days before the actual date of invalidation. There is a need for you to replace the bond or else your license will be on the back burner.
The amount of every contractor’s license bond is determined by the anticipated volume of work as prescribed by the State of Arizona and upon the classification intended by the licensee:
Be always reminded that a surety bond of this nature cannot take effect until filed with the Registrar’s office. If the effectivity date indicated on the bond is after the filing date with the Registrar, then that particular date displayed on the bond will be the governing date as to when the bond becomes operational.
What is the cost of an Arizona Contractor License Bond?
A Contractor License Bond vastly reliant on your financial credit report and standing as an entrepreneur. Qualified candidates with robust financial documentation and excellent entrepreneurial performance are expected to pay lesser than those who have a dubious credit history.
How do I get an Arizona Contractor License Bond?
You can get your bond fast and easy through Surety Bond Authority specialists. Give us a call, and we’ll get back to you quickly to provide you the answers you need and resolve whatever concerns you have.