Arizona Contractors: Does Your Residential Contract Meet Legal Requirements?
Arizona statutory law, enforced by the Arizona Registrar of Contractors, requires specific information in every residential construction contract with a property owner where the amount of the contract exceeds $1,000. Every such contract requires:
- The name of the contractor, the contractor’s business address and license number.
- The name and mailing address of the owner and the jobsite address or legal description.
- The date the parties entered into the contract.
- The estimated date of completion of all work to be performed under the contract.
- A description of the work to be performed under the contract.
- The total dollar amount to be paid to the contractor by the owner for all work to be performed under the contract, including all applicable taxes.
- The dollar amount of any advance deposit paid or scheduled to be paid to the contractor by the owner.
- The dollar amount of any progress payment and the stage of construction at which the contractor will be entitled to collect progress payments under the contract.
- That the property owner has the right to file a written complaint with the registrar for an alleged violation of section 32-1154, subsection A. The contract shall contain the registrar’s telephone number and website address and shall state that complaints must be made within the applicable time period as set forth in section 32-1155, subsection A. The information in this paragraph must be prominently displayed in the contract in at least ten-point bold type, and the contract shall be signed by the property owner and the contractor or the contractor’s designated representative.
Furthermore, when a contractor and an owner sign a contract, the contractor must provide the owner with a legible copy of all documents signed and a written and signed receipt for, and in the true amount of, any cash paid to the contractor by the owner.
A residential construction contract that omits any of the above information violates the law and can subject the contractor to discipline by the Arizona Registrar of Contractors, including possible suspension or revocation of the contractor’s license. For swimming pool contractors and contractors performing residential repair or replacement of damage resulting directly from a catastrophic storm in a specific area that is designated by an insurer, additional contract terms are required.
If you are a residential contractor unsure if your residential contract satisfies legal requirements, the construction lawyers at MCR are here to review your contracts and help you avoid discipline from the Registrar of Contractors.