Ariz. Admin. Code § R4-9-112 - Bond Limits; Applications; Renewals; Increases and Decreases of Bond Amounts; Effective Date of Bond and Deposits
A. Bond limits. In accordance with the
provisions of A.R.S. §
32-1152, license
bonds are established in the following amounts, based upon the estimated annual
volume of work anticipated by the contractor within the State of Arizona for
the ensuing fiscal year:
| License Category | Estimated Annual Volume (Per License Category) | Bond Amount |
| 1. General Commercial Contracting and Engineering Contracting | Less than $150,000 | $5,000 |
| $150,000 or more, but less than $500,000 | $15,000 | |
| $500,000 or more, but less than $1,000,000 | $25,000 | |
| $1,000,000 or more, but less than $5,000,000 | $50,000 | |
| $5,000,000 or more, but less than $10,000,000 | $75,000 | |
| $10,000,000 or more | $100,000 | |
| 2. Specialty Commercial Contracting | Less than $150,000 | $2,500 |
| $150,000 or more, but less than $500,000 | $7,000 | |
| $500,000 or more, but less than $1,000,000 | $17,500 | |
| $1,000,000 or more, but less than $5,000,000 | $25,000 | |
| $5,000,000 or more, but less than $10,000,000 | $37,500 | |
| $10,000,000 or more | $50,000 | |
| 3. General Residential Contracting | ||
| Less than $750,000 | $9,000 | |
| $750,000 or more | $15,000 | |
| 4. Specialty Residential Contracting | ||
| Less than $375,000 | $4,250 | |
| $375,000 or more | $7,500 |
5. General Dual
License Contracting. The amount of a General Dual License Contracting bond is
determined under subsection (A)(3), based on the contractor's estimated volume
of general residential contracting, and subsection (A)(1), based on the
contractor's estimated volume of general commercial contracting. The contractor
shall ensure that the bond issuer separately specifies on the bond the bond
amounts applicable to general residential contracting and general commercial
contracting.
6. Specialty Dual
License Contracting. The amount of a Specialty Dual license Contracting bond is
determined under subsection (A)(4), based on the contractor's estimated volume
of specialty residential contracting, and subsection (A)(2), based on the
contractor's estimated volume of specialty commercial contracting. The
contractor shall ensure that the bond issuer separately specifies on the bond
the bond amounts applicable to specialty residential contracting and specialty
commercial contracting.
B. New licenses. On an application for a new
license for any license category listed above, an applicant shall estimate the
applicant's annual volume of work within the state of Arizona and comply with
the bond requirements of this Section for the relevant category of license. The
Registrar considers the filing of a bond or deposit in a specified amount to be
the equivalent of submitting a volume estimate within the dollar limitations
applicable for the bond amount.
C.
Renewal. To renew a license an applicant shall complete a form provided by the
Registrar of Contractors. If the contractor files a new bond or continues a
bond or deposit in a specified amount, the Registrar considers these actions to
be the equivalent of submitting a volume estimate within the dollar limitations
applicable for the bond amount. The Registrar of Contractors is not responsible
for over or under estimates of volume of work made by the licensee or for the
sufficiency of any bond or deposit. The Registrar considers a gross
underestimate knowingly made by a licensee to be a material misrepresentation,
which can subject the licensee to suspension or revocation of
license.
D. Increases and decreases
of bond amounts. Based on the actual amount of the contractor's gross volume of
work, a contractor may increase the bond amount at any time. A surety bond or
cash deposit in lieu of a bond cannot be decreased except at the time of
license renewal.
E. Effective date
of bonds and deposits. A license bond or cash deposit is not effective until
the licensee files it at a Registrar of Contractors office. If a license bond
is filed before the effective date indicated on the bond, the bond becomes
effective on the indicated date.
F.The changes to bond amounts made in this
Section become enforceable on the next license renewal after June 30,
2014.
Notes
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No prior version found.