Need a Home Services / Remodeling Contract in Arizona? AroundWire Can Help

In Arizona, contracts for home services and remodeling are governed by both state statutes and local ordinances, with the Arizona Registrar of Contractors (ROC) serving as the primary regulatory authority. Contractors performing remodeling work valued at $1,000 or more—including labor and materials—must hold an appropriate ROC-issued license. Contracts must be in writing for projects exceeding $1,000 and should clearly define the scope of work, project timeline, total cost, payment schedule, and warranty terms. Arizona law prohibits contractors from requiring down payments exceeding 10% of the total contract price or $1,000, whichever is less, before work commences. Contractors are required to carry general liability insurance and, if employing workers, must maintain workers’ compensation coverage. Risk factors include exposure to mechanic’s liens if payments are not managed properly; Arizona statute allows subcontractors and suppliers to file liens for unpaid work or materials. Dispute resolution clauses commonly favor mediation or arbitration before litigation, reflecting a preference for cost-effective resolution. Additionally, contracts must include a three-day right of rescission for homeowners, as mandated by federal and state law. Failure to adhere to these requirements can result in administrative penalties, contract unenforceability, or loss of licensure. Local city or county permitting and inspection requirements may also apply, influencing project timelines and compliance obligations.