In Arizona, a General Building (B) Residential Contractor is authorized to construct and repair single-family and multi-family residential structures (including structures designed for human habitation). The Arizona Registrar of Contractors (ROC) administers the state’s contractor licensing system. A General B licensee must subcontract electrical, plumbing, air conditioning/HVAC, boilers, swimming pools, spas, and water wells to appropriately licensed specialty contractors.

Understanding the General B licensing requirements helps you know what you can do and how to obtain the license, which can help position your business for long-term success.

What Work Can a General B Residential Contractor Do in Arizona?

  • New Construction & Remodeling: Build, add to, or repair residential houses, townhouses, and apartment complexes (typically up to four units or within specific residential limits).
  •  Project Management: Act as the prime or primary contractor to oversee entire building projects and coordinate overall construction.
  •  General Carpentry & Framing: Perform structural framing, carpentry, and general building tasks directly.

What Work Can’t a General B Residential Contractor Do in Arizona?

  • Specialty Subcontracting Required: As mentioned, a Residential B licensee cannot self-perform specialized trade work. Tasks involving electrical, plumbing, air conditioning/HVAC, boilers, swimming pools, spas, and water wells must be subcontracted out to appropriately licensed specialty contractors.
  • Scope Boundaries: This classification does not cover general engineering (A-scale) or commercial (B-1/B-2 scale) projects unless held as a dual license.

General B Residential Contractor Licensing Requirements in Arizona

All persons listed on the application must be at least 18 years old, according to the ROC. This includes the qualifying party, owners, partners, LLC members, or corporate officers/25% shareholders.

  • Designate the qualifying party: The ROC will ask for a “qualifying party.” If you’re the general contractor applying for a license, you are the qualifying party. 
  • Obtain at least four years of experience as a contractor at the journeyman level.
  • Pass the trade exams: Several exams cover topics such as business management and your trade. You must pass the license exams with a score of at least 70%.
  • Submit to a background check: As part of your application, you’ll need to submit to a contractor’s background check and include a copy of the payment transaction receipt with your application.
  • Form a legal entity: If you're forming an LLC or corporation, you'll need to register with the Arizona Corporation Commission. Sole proprietors don't need to register a separate legal entity; you can apply and operate under your own name. General partnerships aren't required to register with any state agency to exist, though partners should consider registering a trade name with the Arizona Secretary of State if operating under a name other than the partners’ own surnames — this isn't a legal requirement, but it protects your business name from being used by others.
  • Submit proof of a license bond: Residential contractors must post a surety bond of $9,000 or $15,000, depending on your declared estimated annual gross volume of work. In addition, residential contractors must satisfy a separate requirement: either pay an assessment into the ROC's Residential Recovery Fund (approximately $370 for new applicants) or post an additional $200,000 surety bond or cash deposit. This Recovery Fund contribution is required in addition to your license bond, not instead of it.
  • Obtain Workers’ Compensation: If you have one or more employees, state law requires you to carry Workers’ Comp insurance.
  • Pay license fees: The fee depends on your license classification and can range from $200 to over $1,000. Fee waivers are also available for some qualified applicants.
  • Submit identification: Send in a copy of your government-issued identification, such as a driver’s license or a passport, with your application.
  • Send your application to the registrar: Make sure your application is approved, be sure to include all relevant and up-to-date documentation, including:
    • Your business ID number
    • Your financial statement
    • A background disclosure statement
    • Documentation-related experience requirements

You’ll also need to fulfill the exam requirements.

While General Liability (GL) insurance is not a licensing requirement, general contractors, project owners, and developers will require proof of coverage before work can begin. If you operate vehicles as part of your business, you should carry Commercial Auto insurance.

GET AN INSTANT GL QUOTE

How to Prepare for the Licensing Exam

The Arizona Registrar of Contractors contracts with PSI to administer both required exams — the Statutes & Rules exam and your trade-specific exam. A few things worth knowing before you schedule:

  • Start with the PSI Candidate Information Bulletin. Available on ROC's website, this is the authoritative source for exam scheduling, fees, and — most importantly — the exact content outline and approved reference list for your specific classification.
  • The trade exam is open-book, with restrictions. You may bring approved reference materials into the testing center, but they must be bound (spiral, stapled, or similar), and any tabs must be permanent. Post-it notes, other removable tabs, and loose or unbound papers aren’t permitted.
  • Attend a free Applicant Education Seminar. ROC offers a live monthly seminar (with recordings available) that walks through the entire licensing process from application to exam. You can access it through ROC's Applying for a License page.
  • Know your retake policy going in. You get 3 attempts before facing a longer wait: a 30-day wait applies after your first couple of failed attempts, extending to 90 days after a 4th attempt. Exam fees are non-refundable and non-transferable, so it pays to walk in prepared.
  • Confirm your required exam(s) first. Not every classification requires the same combination of exams; use ROC's License Classification Requirements form to confirm exactly what you need to pass before you register.

How Can I Obtain the Contractor Bond and Insurance Required for the General B Residential License?

CCIS can provide the required Residential Contractor License Bond, typically the same day. We can also provide you with Workers’ Compensation insurance and issue a Certificate of Insurance (COI) as proof of coverage.

Additionally, CCIS can provide you with General Liability, Excess Liability, Contractors Tools & Equipment, and other critical insurance to safeguard your business against potential losses.

Frequently Asked Questions About a General B Residential Contractor in Arizona

Q. Can a General B Residential Contractor do all types of residential work?

A. No. Specific work such as electrical, plumbing, air conditioning/HVAC, boilers, swimming pools, spas, and water wells must be subcontracted to appropriately licensed specialty contractors.

Q. If I only have one employee, do I have to buy Workers’ Comp?

A. Yes, Arizona requires that businesses with one or more employees purchase Workers’ Compensation insurance. CCIS can provide you with coverage.

Note: This content is for informational purposes only and is not legal, licensing, or professional advice. Licensing requirements, fees, and bond amounts may change and can vary by applicant. Always verify requirements directly with the Arizona Registrar of Contractors (ROC) and any applicable local jurisdictions. Consult with your legal professional concerning your compliance as to your business operations.