All contractors are required to be licensed through the State of Arizona, unless work falls under the Handyman Exemption A.R.S. Sec. 32-1121A.14. More information on licensed contractors can be found at https://roc.az.gov/ . Any work being done on a Manufactured Home or Factory Built Building will also need to be licensed through the State of Arizona. Information can be found at https://housing.az.gov/general-public/manufactured-housing.
*Any person(s) working without a license will be subject to fines and fees established by the State of Arizona Registrar of Contractors.
If building under the owner-builder exemption you do not have to have a contractor license.
An owner-builder is defined by: any individual or group of individuals who own the property on which they plan to construct, alter, repair, improve, or remodel a building or structure is considered an owner-builder.
Arizona Revised Statues (A.R.S.) § 32-11214.5 is an exemption in the state licensing law that allows residential property owners to:
- Do the work themselves, OR
- Do the work jointly with their own employees, OR
- Do the work with duly licensed contractors
This exemption does not apply if the structure or group of structures, including improvements, is intended for sale or rent.
The offering of such structures for sale or for rent within one (1) year after completion or issuance of a certificate of occupancy is considered by law to be prima facie evidence of contracting without a license and that the construction project was not intended for the occupancy solely by the owner. The exemption in the statute in such cases are not applicable.
If an Owner/Builder elects to undertake a residential construction project on his/her own property, and hires his/her own employee, should be aware of possible requirements of other government agencies.
- Most employers have federal and state employer identification numbers and pay unemployment compensation insurance.
- Most employers deduct social security and federal income taxes from an employee's paycheck and file quarterly or annual reports.
- Owner/Builders should determine if their homeowner's insurance policy offers sufficient liability coverage, should the worker or workers be injured.
Handyman Exemption § 32-1121(A)(14). A person who does not hold a contractor’s license may bid for and accept work when the aggregate contract price, including labor and materials, amounts to less than $1,000 or in any case in which the performance of the work does not require a local building permit.