FOR IMMEDIATE RELEASE
Wed., Jan. 6, 2021
CONTACT:
Breanna Bang, Public Information Liaison
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The State of Arizona requires all licensed residential contractors to provide financial protection to their customers. The protections apply whether you buy a new home, remodel, build a swimming pool or have a new roof put on your home.
In order to obtain a license, a residential contractor must post a cash deposit or surety bond of $4,250.00 to $15,000.00. In addition, a residential contractor must either pay into the recovery fund or post a second bond of $200,000.00. The vast majority of residential contractors have chosen to participate in the fund. Therefore, there are actually two programs offering financial protection. We will explain in some detail how to collect from either one.
Administrative Procedure for Recovery
An administrative claim must be filed on forms prescribed by the Registrar and submitted to our office along with all supporting documentation. A claim may only be filed after the required discipline is obtained by you as the result of a complaint filed against the contractor, and after a claim on the contractor’s bond has been fully processed by the surety pursuant to A.R.S. § 32-1133.01. The claim must be filed within the relevant two-year statute of limitations, which is within two years after all proceedings, reviews and appeals connected with the Registrar's final order terminate per A.R.S. § 32-1133.01(G).Civil Procedure for Recovery
A civil action against the contractor must be brought in a civil court of competent jurisdiction. The lawsuit must be filed with the court within two years from the date of the commission of the act by the contractor that is the cause of the injury or two years from the date of occupancy. A.R.S. § 32-1133(A).If work has not begun to correct or complete the project:
If work to repair or complete the project is in progress or has been completed: