Who issues a concrete contractor license in Arizona
Concrete work in Arizona is licensed by the Arizona Registrar of Contractors, written on paperwork and trucks as the ROC. The agency classifies and qualifies every applicant, issues the license, and keeps the power to suspend or revoke it. A.R.S. 32-1122 hands the Registrar the job of classifying applicants, conducting investigations and establishing written examinations. A.R.S. 32-1151 then makes it unlawful to engage in the business of contracting, to act or offer to act as a contractor, or to submit a bid or respond to a request for qualification or request for proposals for construction services, without a contractor's license in good standing. Read that again if you run a flatwork crew. Bidding a footing or slab package is regulated conduct on its own, before a single yard is placed. The same statute says that securing a permit from a governmental agency, or employing a person on a construction project, is accepted in any Arizona court as prima facie evidence that a contract exists. Arizona cities do not run competing concrete licensing boards. They check the state card instead. The City of Tucson tells permit applicants that all work improvements to commercial properties and all residential rental properties require a licensed contractor under A.R.S. 32-1121. The City of Mesa collects an ROC license number and license class on its own Contractor Licensure Verification Form before it will move a permit forward. For a concrete, foundation or masonry company bidding from Phoenix down to Tucson, that means one ROC file in good standing, rechecked at every permit counter, rather than a wallet of municipal trade cards.
Sourcesroc.az.gov 1azleg.gov 2azleg.gov 3azleg.gov 4tucsonaz.gov 5mesaaz.gov 6
Concrete and masonry classifications at the ROC
There is no single Arizona concrete license. The ROC publishes a classification list, and concrete appears on it several times. The published scope for R-9 is install and repair of concrete, concrete products, and accessories common to the industry. C-9 carries nearly the same wording: install and repair concrete, concrete products, and accessories common to the industry. R-9 is the residential specialty version, C-9 the commercial specialty version, and CR-9 the dual specialty license that reaches both markets. Masonry is a different classification, not a subset of concrete. R-31, C-31 and CR-31 are the Masonry licenses, and the published scope for R-31 covers grout, caulk, sand blast, tuckpoint, mortar wash, parge, clean and weld reinforcing steel. A company that pours slabs on Monday and lays block on Tuesday is looking at two classifications on one ROC file. Reinforcing steel has its own trio as well: R-70, C-70 and CR-70 Reinforcing Bar and Wire Mesh. Read the scope statements before you file, because A.R.S. 32-1154 lists knowingly contracting beyond the scope of the license as grounds for suspension or revocation, and it lists failure in any material respect to comply with the chapter alongside it. The decision in front of a concrete business is narrow and it is commercial, not legal. Do you want residential driveways, patios and house foundations, commercial site concrete and tilt-up, or both? The prefix you choose sets your fee, your bond and whether you pay into the residential contractors' recovery fund.
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Residential, commercial and dual: picking the track
The R, C and CR prefixes are not cosmetic. They are three different regulatory packages wrapped around the same trade. A residential specialty license such as R-9 Concrete is the cheapest to open and the cheapest to renew, but it is also the one that drags the residential contractors' recovery fund assessment with it. A commercial specialty license such as C-9 Concrete costs more up front and pays no recovery fund assessment, because the fund exists for owner-occupants rather than commercial property. The dual specialty license, CR-9, sits between them and pays the fund assessment too. The ROC fee page prices a new specialty residential license at an $80 application fee plus a $270 license fee plus a $370 recovery fund assessment. A new specialty commercial license is a $100 application fee plus a $480 license fee. A new specialty dual license is a $100 application fee, a $380 license fee and the same $370 assessment. Bonding splits the same way under A.R.S. 32-1152. Specialty residential contractors post a bond or cash deposit of not more than $7,500 and not less than $1,000, a flat band. Specialty commercial contractors sit on a sliding schedule keyed to estimated annual volume of construction work. Specialty dual contractors furnish a single bond carrying an amount for each side. Pick the track by where you actually intend to bid over the next two years. Adding a classification later is a separate filing, and the Registrar may change a classification only in defined circumstances.
Sourcesroc.az.gov 1azleg.gov 2azleg.gov 3azleg.gov 4
When concrete falls under a general classification
Plenty of Arizona concrete gets placed under a general license rather than a concrete specialty one. The ROC classification list includes B General Residential Contractor, scoped to construct and repair all or any part of a residential structure or appurtenance, and B-1 General Commercial Contractor, scoped to construct, alter, and repair in connection with any structure built, being built, or to be built. The list also carries B-2 General Small Commercial Contractor with a project size ceiling, B-3 General Remodeling and Repair Contractor, and B-4 General Residential Engineering Contractor. A General Engineering and KA Dual Engineering cover engineering work, and KB-1 Dual Building and KB-2 Dual Residential and Small Commercial cover both markets at the general level. Related remodel classifications include R-61, C-61 and CR-61 Carpentry, Remodeling and Repairs, and R-62 Minor Home Improvements. The practical effect for a concrete subcontractor is that the general contractor above you holds a general license, and your scope has to be covered by your own classification. A.R.S. 32-1154 makes it a ground for discipline to knowingly enter into a contract with a contractor for work requiring a license when that person is not duly licensed in the required classification, so the general above you has a direct interest in your ROC number being correct. A.R.S. 32-1121 adds one useful allowance: a person licensed to perform work in a particular trade is not required to obtain a separate license for mechanical or structural service work performed within the scope of that trade.
Sourcesroc.az.gov 1azleg.gov 2azleg.gov 3
Who needs a license, and where the $1,000 line sits
Arizona's exemption list is in A.R.S. 32-1121, and the paragraph every concrete contractor gets asked about is paragraph 14. It exempts a person other than a licensed contractor working on one undertaking or project, by one or more contracts, where the aggregate contract price including labor, materials and all other items is less than $1,000. The statute adds that the work must be of a casual or minor nature. Then it closes three doors. The exemption does not apply in any case where performance of the work requires a local building permit. It does not apply where the work is only part of a larger or major operation, or where the operation has been divided into contracts of less than $1,000 to evade the chapter. And it does not apply to a person who uses any form of advertising to the public without disclosing unlicensed status by including the words not a licensed contractor in the advertisement. A person without that paragraph 14 exemption is also subject to prosecution under A.R.S. 44-1522, and the attorney general may investigate. For concrete that combination is close to fatal to the exemption. A driveway replacement, a footing, a retaining wall or a structural slab generally pulls a permit, which removes the exemption regardless of price. Separate exemptions cover owners improving property intended solely for their own occupancy and not for sale or rent, and materialmen or retailers whose installation value stays under the same $1,000 ceiling. Neither helps a company bidding work for other people.
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Experience and the qualifying party
Arizona licenses the company, then requires a human being to stand behind the trade knowledge. A.R.S. 32-1122 calls that person the qualifying party, and the name and address of the qualifying party goes on the application. Before a license is issued, the qualifying party must have a minimum of four years of practical or management trade experience, at least two of which must have been within the last ten years, dealing specifically with the type of construction, or its equivalent, for which the applicant is applying. Technical training at an accredited college or university, or in a manufacturer's accredited training program, may substitute for part of that, but credited technical training may never exceed two years of the required four. The Registrar may reduce the four-year requirement where custom and usage in the particular craft show that four years is excessive, and must waive the work experience documentation and verification where records show the qualifying party currently holds or previously held the same classification in Arizona and meets the other qualifications. Other gates sit alongside the experience test. Nobody named on the license may have engaged in contracting without a license or committed an act that would be grounds for suspension or revocation. A license may not be issued to a minor, or to a partnership or corporation with a minor as partner or officer. The Registrar may require a full set of fingerprints for a state and federal criminal records check. A.R.S. 32-1154 gives you fifteen days to notify the Registrar in writing if your qualifying party disassociates, and sixty days to qualify through someone else.
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The examinations a concrete license requires
The ROC application page splits testing into two pieces. Every applicant takes the Arizona Statutes and Rules Training Course and Exam, shortened to SRE, which the agency says is only offered online through Gmetrix. On top of that, an applicant takes the specific trade exam for the classification sought unless eligible for a waiver. Trade exams run through PSI, either online or at a testing center. The page sets the bar at passing the required examinations by at least 70 percent. For two classifications on the general commercial side, the agency accepts the NASCLA Commercial General Building Exam, and the NASCLA Electrical Examination Program covers the electrical classifications. The SRE itself cannot be waived. Statute backs the testing requirement up. A.R.S. 32-1122 requires the qualifying party to show by written examination, taken not more than two years before application, qualification in the kind of work the applicant proposes to contract, general knowledge of the building, safety, health and lien laws of the state, administrative principles of the contracting business, and the rules adopted by the Registrar. It also asks for demonstrated understanding of construction plans and specifications applicable to the particular craft, the standards and techniques of that craft, and a general understanding of other related construction trades. The Registrar maintains multiple versions of the examination for each license type. The statute requires the examination requirement to be waived where records reflect that the qualifying party currently holds or has held the same classification in Arizona within the preceding five years, which is the clause most repeat applicants rely on.
Sourcesroc.az.gov 1azleg.gov 2
What a concrete license costs at the ROC
The ROC publishes its fee schedule and states that the license fees shown buy a two-year license and do not include examination fees. For a concrete contractor the relevant rows are the specialty ones. A new specialty commercial license, the C classifications including C-9 Concrete, is a $100 application fee plus a $480 license fee, totalling $580, with no recovery fund assessment. A new specialty residential license, the R classifications including R-9, is an $80 application fee plus a $270 license fee plus a $370 recovery fund assessment, totalling $720. A new specialty dual license, the CR classifications including CR-9, is a $100 application fee plus a $380 license fee plus the $370 assessment, totalling $850. Renewals drop the application fee. Specialty commercial renews at $480. Specialty residential renews at $270 plus a $270 recovery fund assessment, $540 in total. Specialty dual renews at $380 plus $270, or $650. By comparison, general classifications cost more: a new general commercial license runs $200 plus $580, and a new general residential license $180 plus $320 plus the $370 assessment. Those published figures sit under statutory ceilings. A.R.S. 32-1126 caps the original biennial application and license fee at not more than $350 for specialty residential contracting, not more than $1,000 for specialty commercial, and not more than $1,350 for specialty dual. It caps the biennial renewal at not more than $270, $900 and $1,170 respectively, and caps the recovery fund assessment at not more than $600 per biennial period. The penalty for failing to apply for renewal on time is $50.
Sourcesroc.az.gov 1azleg.gov 2
Bond amounts for concrete contractors
Arizona requires a bond before the first license is issued and requires it to stay alive for every renewal. A.R.S. 32-1152 says the Registrar shall require a surety bond in an acceptable form, or a cash deposit, before granting an original contractor's license, and that no contractor's license may be renewed unless the surety bond or cash deposit is in full force and effect. Amounts are fixed by the Registrar within statutory schedules, after giving due consideration to the volume of work and the classification the applicant contemplates. Specialty residential contractors furnish a bond or cash deposit of not more than $7,500 and not less than $1,000. Specialty commercial contractors sit on a volume ladder. An applicant estimating annual construction volume under $150,000 posts $2,500. Between $150,000 and $500,000 the band is $2,500 to $7,500. Between $500,000 and $1,000,000 it is $5,000 to $17,500. Between $1,000,000 and $5,000,000 it is $7,500 to $25,000. Between $5,000,000 and $10,000,000 it is $17,500 to $37,500. At $10,000,000 or more it is $37,500 to $50,000. Specialty dual contractors furnish a single bond carrying an amount for each side, with liability limited to the amount established for each commercial or residential license. Hold more than one license and the total is the sum of what each one requires. The cash deposit alternative goes to the state treasurer and may be withdrawn two years after the license terminates if no claims are outstanding, or two years after a commercial surety bond replaces it.
Sourcesazleg.gov
Workers compensation, the recovery fund and insurance
Arizona does not police concrete contractors through a published general liability minimum at the ROC. It polices them through the bond, workers compensation and, on the residential side, a recovery fund. A.R.S. 32-1122 requires the application to carry an attestation that the applicant has complied with the statutes and rules governing workers compensation insurance, and where the applicant is required to secure that coverage, the attestation must contain the workers compensation policy number or be accompanied by proof of self-insurance. That is a condition of obtaining, renewing and maintaining the license, not a one-time box. The residential side carries a second layer. A.R.S. 32-1152 gives dual licensed and residential contractors a choice: furnish an additional surety bond or cash deposit of $200,000 solely for actual damages suffered by claimants described in A.R.S. 32-1132, or participate in the residential contractors' recovery fund and pay the assessment set by A.R.S. 32-1126. Almost everyone takes the fund, which is why an R-9 or CR-9 applicant sees a $370 assessment on a new license and $270 on renewal. The fund exists for a defined set of claimants under A.R.S. 32-1132: an individual who owns residential real property damaged by a residential contractor's failure to adequately build or improve a residential structure or appurtenance and who occupies or intends to occupy it as a primary residence, certain limited liability companies whose members occupy the property, revocable living trusts on the same terms, and planned communities or unit owners' associations after the builder transferred control. Commercial concrete work sits outside it.
Sourcesazleg.gov 1azleg.gov 2azleg.gov 3azleg.gov 4roc.az.gov 5
Renewal, lapses and getting a suspended license back
Arizona contractor licenses run on a two-year cycle. A.R.S. 32-1126 prices application and license fees for an original biennial license and prices a biennial license renewal fee, and the ROC fee page states plainly that the license fees it lists are for a two-year license. Timing is unforgiving. A.R.S. 32-1125 says a license is suspended on the next business day following its renewal date by operation of law. An application for renewal, with a valid bond or cash deposit already on file with the Registrar, accompanied by the required fee, and either received by the Registrar or deposited in the mail postage prepaid on or before the renewal date, authorizes the licensee to keep operating until the renewal license is actually issued. Miss the date and there is a path back. A license suspended by operation of law for failure to renew may be reactivated and renewed within one year of suspension by filing the application and paying the renewal amount plus a $50 fee. Once it has been suspended more than one year for failure to renew, the reinstatement path closes and a new application and a new license are required. The Registrar may also refuse to renew where a licensee or person named on the license has committed any act listed in A.R.S. 32-1154. One more renewal detail helps established concrete companies: a licensee may apply for exemption from a qualifying party by showing five years of valid and active licensure with no transfer of fifty percent or more of its stock or beneficial interest and no unremedied violation.
Sourcesazleg.gov 1azleg.gov 2azleg.gov 3roc.az.gov 4
Reciprocity and out-of-state concrete contractors
Arizona does not hand out a blanket pass to a concrete contractor licensed elsewhere, but it does have a waiver route. The ROC application page says a trade exam waiver is available where the qualifying party held the same classification in good standing within the preceding five years, in this state or a classification the Registrar deems comparable in another state. That is discretionary comparability rather than a named reciprocity treaty, and the same page is explicit that the Arizona Statutes and Rules exam cannot be waived. So an established California or Nevada concrete company can often skip the trade test, but still has to sit the Arizona statutes and rules course and exam, still files a full application, still names a qualifying party with four years of experience under A.R.S. 32-1122, and still posts an Arizona bond under A.R.S. 32-1152. Statute mirrors the five-year clause: the Registrar shall waive the examination requirement where records reflect that the qualifying party is currently or has previously been a qualifying party for an Arizona licensee in the same classification within the preceding five years. Two disqualifiers catch out-of-state applicants. Under A.R.S. 32-1122, no person named on the license may have been named on a license that was suspended or revoked in this state or another state, and a person who has had a license denied, refused or revoked within the prior year cannot obtain one, though the Registrar may excuse the circumstances. A conviction for contracting without a license carries a one-year wait.
Sourcesroc.az.gov 1azleg.gov 2azleg.gov 3
The penalty for unlicensed concrete work
Arizona treats unlicensed contracting as a crime, not a paperwork problem. A.R.S. 32-1164 makes acting in the capacity of a contractor without a license a class 1 misdemeanor. For a first offense the statute requires a fine of not less than $1,000. For a second or any subsequent offense the minimum fine doubles to $2,000. If the court imposes probation, it must order the person to pay in full the state transaction privilege or use tax, the county tax, and the local municipal, city or town tax that arise from the acts constituting the offense. The Registrar has a faster tool as well. A.R.S. 32-1166 lets the Registrar issue a cease and desist order to any person who is required to be licensed, is not licensed, and engaged in an act of contracting that violates the chapter, with service effected personally or by certified mail to the last known business or residential address. The civil consequence is the one that hurts a concrete business most. A.R.S. 32-1153 bars any contractor from commencing or maintaining an action in any Arizona court to collect compensation for work requiring a license without alleging and proving that the contracting party was duly licensed when the contract was entered into and when the cause of action arose. Pour the slab unlicensed and you may have no way to sue for the money. A.R.S. 32-1154 adds civil penalties of up to $500 per violation for ignoring a written corrective directive, and up to $1,000 per violation for contracting or bidding while suspended or inactive.
Sourcesazleg.gov 1azleg.gov 2azleg.gov 3azleg.gov 4
Advertising and license display rules
This is the part of Arizona law that bites working contractors rather than applicants. A.R.S. 32-1124 says the license number appearing on any license held by the licensee must be preceded by the acronym ROC, and then lists where it has to appear. In a conspicuous place on premises where any work is being performed. On all written bids and estimates submitted by the licensee. On all published advertising, letterheads and other documents used to correspond with customers or potential customers in the conduct of regulated business. And on all broadcast, internet or billboard advertising, unless that advertising includes a website address that directly links to a website prominently displaying the licensee's name and license number. For a concrete company that means the number belongs on the job sign at the driveway pour, on every estimate, and on the website itself if the ads point there. The consequence is defined. A.R.S. 32-1124 states that a violation of the posting and placement rules is, at the Registrar's discretion, grounds for disciplinary action under A.R.S. 32-1154, subsection A, paragraph 12, but not grounds for preventing the award of a contract, voiding an awarded contract, or any other claim or defense against the licensee. A trade association directory listing distributed solely to members is not advertising for this purpose. Two related grounds sit in A.R.S. 32-1154: false, misleading or deceptive advertising whereby a member of the public was misled and injured, and acting in the capacity of a contractor under a name other than the name set forth on the license. Advertise under the licensed entity name, not a nickname.
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Phoenix, Tucson, Mesa and the tax layer
Arizona cities do not issue concrete trade licenses, but they do add requirements at the permit and tax counters. The City of Phoenix taxes construction contracting under sections 14-415, 14-416 and 14-417 of its code, using state business codes 015, 016 and 037, and says the classification covers developers, general contractors, contractors, subcontractors, construction managers, speculative builders and owner-builders. Phoenix states directly that a business may not meet the qualifications to be licensed as a contractor by the Arizona Registrar of Contractors and would still be subject to the tax under the contracting business classification. Being unlicensed does not make the tax go away. The City of Tucson requires a licensed contractor for all work improvements to commercial properties and all residential rental properties, citing A.R.S. 32-1121, and requires the contractor to provide the permit counter with a City of Tucson Business license. Grading plans in Tucson require an engineer, which matters on site concrete. The City of Mesa uses a Contractor Licensure Verification Form that collects the ROC license number and license class, and its own form states that the handyman exemption does not apply to any construction project which requires a building permit or where the total cost of materials and labor is $1,000 or more. Statewide, the Arizona Department of Revenue taxes prime contracting on a base of sixty-five percent of gross receipts, and separates prime contracting modification work from maintenance, repair, replacement or alteration work, where the receipts are generally not taxable for prime contracting purposes but the materials are.
Sourcesphoenix.gov 1tucsonaz.gov 2mesaaz.gov 3azdor.gov 4azleg.gov 5
How a customer verifies your concrete license
Arizona gives homeowners and general contractors a public way to check you, and smart concrete companies point people at it instead of waiting to be asked. The ROC operates a Contractor Search portal where anyone can look up a licensee. A.R.S. 32-1124 adds the in-person version: the license is nontransferable, and satisfactory evidence of possession must be exhibited by the licensee on demand. The same statute lets you make verification easier. On issuance or renewal, the Registrar shall, at the licensee's request, issue a single license certificate showing all contracting licenses the licensee holds that are currently in good standing, together with their expiration dates. The Registrar may also establish procedures allowing a licensee to set a common expiration or renewal date for all its licenses and may prorate fees for that purpose. A concrete company holding R-9, R-31 and R-70 can therefore hand a customer one certificate instead of three. Status can change without a hearing, which is worth knowing before a bid walk. A.R.S. 32-1124 allows the Registrar to suspend a license by operation of law when the licensed entity is dissolved, including the death of a sole owner, the addition or removal of a partner, or dissolution of a limited liability company. A.R.S. 32-1125 suspends a license by operation of law the business day after a missed renewal date. Either way, the public record a customer reads will show it, so keep the ROC file current before the search gets run on you.
Sourcesazroc.my.site.com 1azleg.gov 2azleg.gov 3