Arizona keeps a Residential Contractors' Recovery Fund, run by the Registrar of Contractors "for the benefit of claimants" (A.R.S. 32-1132). The most one claimant can receive is $30,000. To get there, the contractor must have been licensed, and you usually start with a written complaint to the ROC within two years.

Who can claim

Eligible claimants include homeowners who own and live in the property as their primary residence, and some LLCs, trusts, homeowners associations and lessees. The contractor must have been licensed on the contract date, the first payment date or the date work started (A.R.S. 32-1132).

An unlicensed contractor leaves you outside the fund. Check the license first, as covered in Arizona contractor license classes.

How much

"The maximum individual award from the residential contractors' recovery fund is $30,000" (A.R.S. 32-1132.01).

Complaints to the ROC

A complaint is a written complaint filed with the Registrar. The ROC can cite the licensee and suspend or revoke the license (A.R.S. 32-1155).

The deadline depends on the job (A.R.S. 32-1162):

• A new home: "within two years after the earlier of the close of escrow or actual occupancy."
• Other work: "within two years after the completion of the specific project."

Keep your contract, payments and photos, and file before the two years run out. The Registrar of Contractors website has the complaint process.

FAQ

How much can the Arizona recovery fund pay? Up to $30,000 per claimant, under A.R.S. 32-1132.01.

Does the recovery fund cover unlicensed contractors? The contractor must have been licensed on the contract date, the first payment date or the start of work, under A.R.S. 32-1132.

How long do I have to file an ROC complaint? Generally two years after the project is completed, or for a new home, two years after the earlier of close of escrow or occupancy.

Sources: A.R.S. 32-1132, A.R.S. 32-1132.01, A.R.S. 32-1155, A.R.S. 32-1162.

Arizona licenses contractors through the Registrar of Contractors (ROC). The license class tells you whether the contractor can work on homes, on commercial property, or both. A handyman can work without a license only when the whole job is under $1,000 and needs no local building permit.

Residential, commercial or dual

Arizona law (A.R.S. 32-1102) sets out the general classes:

• General residential contracting covers work within residential property lines.
• General commercial building contracting covers structures on commercial property.
• General dual licensed contracting covers both.

The same section has specialty residential, specialty commercial and specialty dual classes for trades. For work on your home, look for a residential or dual license that fits the job.

The handyman exemption

Under A.R.S. 32-1121, no license is needed when the total price, labor and materials included, "is less than $1,000." The exemption does not apply "In any case in which the performance of the work requires a local building permit." A person using it must say "not a licensed contractor" in their ads.

So a small job that needs a permit still needs a licensed contractor, whatever the price.

How to check

Search the contractor on the Registrar of Contractors website and match the license class to your job. A licensed residential contractor also matters for the recovery fund, explained in the Arizona recovery fund and ROC complaints.

FAQ

Who licenses contractors in Arizona? The Arizona Registrar of Contractors (ROC).

Can a handyman work without a license in Arizona? Only if the total job is under $1,000, needs no local building permit, and the handyman's ads say not a licensed contractor, under A.R.S. 32-1121.

What is a dual license? General dual licensed contracting covers both residential and commercial property, under A.R.S. 32-1102.

Sources: A.R.S. 32-1102, A.R.S. 32-1121.