In Arizona, contractors must be licensed at the state level. Furnishing the licensing authority with a contractor license bond is a prerequisite for obtaining a license.
Arizona’s Little Miller Act requires contractors to furnish both performance bonds and payment bonds in order to work on government-funded construction projects. The contracting authority may also require contractors bidding on public works jobs to purchase bid bonds. It’s becoming more common for private project owners to require these bonds as well.
Performance, payment, and bond bonds are the most commonly required Arizona construction surety bonds. But both public and private project owners may also require one or more of the following:
- Maintenance bonds
- Subdivision/site improvement bonds
- Supply bonds
- Solar decommissioning bonds
- Right of Way bonds
- Contractor license bond
