The state of Arizona requires licensed contractors to maintain license bonds to engage in the business of contracting. The Registrar of Contractors in the state of Arizona regulates contractors and oversees that these requirements are met.
The license bond functions as a guarantee from a Surety to the government and its constituents (the Obligee) that a contractor (Principal) will comply with an underlying statute, state law, municipal ordinance or regulation. It assures that the contractor will comply with all state and municipal codes, ordinance and regulation and perform the work, pay subcontractors, laborers and suppliers.
The Arizona Registrar of Contractors has specific requirements for the bond limit (Penalty.) The amount is based on license class and the expected gross reciepts. Visit the Arizona Registrar of Contractors’ website for more details.