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: Estimated Annual Volume (Per License Category) Bond Amount 1. General Commercial Contracting and Engineering Contracting License Category 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.