- License Bond (Required with License Application): Provides the financial security and construction assurance on building and construction projects by assuring residential project owners that contractors will perform the work and pay subcontractors, laborers, and material suppliers and that commercial contractors will comply with all commercial codes set forth by the state.
- Tax Bond: Guarantees the required taxes will be paid to the Arizona Department of Revenue.
Other Types of Bonds
- The first step requires you to complete a lengthy questionnaire.
- Anticipate a couple of weeks for final approval, after you’ve answered all the questions.
- Approval is based on your credit history, equity you have in improved real estate in California, especially your home.
- The closer the first bid bond amount is to the sum of your assets, the more likely the bond will be issued for you.
- After the first bond has been satisfactorily completed, the next bond will be easier and, usually the company will be willing to cover a higher amount.
The amount of bond required can often be negotiated. EXAMPLE: Even though a contract may be for $200,000, contractors are paid as certain stages are completed. Sometimes they might accept a $50,000 bond instead of the full $200,000.
If a claim against your bond is paid, it will be both expensive and difficult for you to obtain future coverage for at least three years, whether you repay the bond company or not.
Interested in other States?
Additional State Services are available for all states and municipalities in the U.S. whether you are a sole owner, small business or a corporation, you will benefit from our expertise. We communicate daily with the state board offices throughout the country. Your Contractors License is an important tool in today's competitive market place. Let us make sure you have the licensing tools to work with.