AZ Contractor License Bond – Price Reduction

AZ Contractor License Bond Price Reduction

The cost of an AZ Contractor License Bond just got a whole lot cheaper recently.  Due to increased competition and a soft surety market, prices for these bonds have decreased dramatically.  This is great news if you’re a construction company who needs this bond.  Especially if you’ve been paying a high price due to your personal credit score.

AZ Contractor License Bond Cost

The old bond cost for contractors ranged from 1-2% of the bond amount needed.  For example: Let’s say your license requires a $15,000 surety bond.  You could have been paying between $150 and $300 until now.  The new cost of your new bond will most likely fall between $50 and $150 if your credit score qualifies.  However, your cost also depends on your license type in some cases.  The best way to get a firm quote is to apply for your bond online.

Is there a difference in price if I’m a residential contractor?

In some cases, yes, your bond might be more expensive depending on your license type.  Residential construction license bonds are still very inexpensive but cost more than commercial construction license bonds on average.  However, bond cost is almost always determine by your personal credit score.  So, a residential contractor with a great score could still qualify for a $50 bond premium.

How do I know if I qualify for a lower AZ contractor license bond cost?

In most cases, you will qualify for a price reduction.  This is the same for new bonds and those which are up for renewal.  Surety companies generally charge what’s known as a minimum premium.  This minimum premium usually ranges from $100-$150.  However, the minimum premium requirement for the AZ contractor license bond has been reduced to $50 for commercial and residential licenses.  Meaning, if you were paying $100 for a $2500 license bond, you may have been paying the minimum premium for that surety.  It’s possible that you could see your bond cost cut in half just by applying with a different surety company.  That being said, you’ll most likely still see a reduction even if your current bond cost is not subject to a surety company’s minimum premium requirements.

Where can I learn more about becoming a licensed Arizona contractor?

You can learn more about becoming a licensed Arizona contractor by clicking here.  We’ve provided a detailed description of the process so you don’t have search the internet for more information.  We can even assist you with your license if you don’t have the time.  Contact us today to learn more about how we can help!