1.2 The Arizona Contractor Licensing Path

The Six-Step Licensing Path

Earning an Arizona general contractor license is a sequential process. Each step builds on the previous one, and skipping a step — or doing them out of order — is the most common cause of application delays. The path below reflects the current AZ ROC process under A.R.S. Title 32, Chapter 10 and AAC Title 4, Chapter 9.

Step 1 — Meet the Experience Requirement

Before anything else, confirm you satisfy the 4-year experience requirement in the type of construction you are applying for, with at least 2 years within the last 10 years. Up to 2 years of accredited technical training or college may substitute for experience. You must be 18 or older and prepared to designate a qualifying party — the individual regularly employed and actively engaged in the licensed work.

Step 2 — Form a Legal Entity and Secure a Bond

If you are applying as a business (most applicants do), form the legal entity before applying:

• LLC or corporation — register with the Arizona Corporation Commission
• Partnership — register with the Arizona Secretary of State
• Sole proprietorship — no entity formation required, but you must still meet all other requirements

Obtain a license bond (proof required with the application). Secure general liability insurance, and workers' compensation if you have employees. These are conditions of licensure and are typically required by project owners and general contractors as well.

Step 3 — Background Check and Submit Application

Every person named on the application must complete a background check through AccusourceHR — the report is valid for 90 days, so time it close to your application submission. Each named person also needs a government-issued photo ID.

Submit the application to AZ ROC with:

• The background check results
• Proof of license bond
• All required fees and assessments (e.g., $780 for A/B-1/B-2; $1,050 for KB-1/KB-2, which includes the Recovery Fund assessment)
• Entity formation documentation

Step 4 — Pass the Statutes & Rules Exam (SRE)

Once the application is accepted, complete the SRE through GMetrix. It is an online, open-book training course followed by a scored test ($61, 70% passing; AZ ROC does not publish the item count, and the course includes a single exam attempt). The SRE cannot be waived. References are A.R.S. Title 32 Ch 10, AAC Title 4 Ch 9, and the AZ ROC SRE Glossary.

Step 5 — Pass the Trade Exam (or NASCLA)

After passing the SRE, schedule the trade-specific exam with PSI Services — either remote-proctored online or at a PSI test center. The trade exam is 100 questions, $66, 4 hours, 70% passing, open-book with 29 CFR Part 1926 (OSHA) plus the 2018 IRC (allowed on both trade exams) plus, on the commercial exam only, the 2018 IBC.

For KB-1, KB-2, B-1, and B-2, you may instead take the NASCLA Commercial General Building exam — 115 questions, 330 minutes, 81 correct to pass, $106 to PSI plus a $25 application fee to NASCLA — in lieu of the PSI trade exam. The SRE is still required.

The trade exam may be waived if you were a qualifying party in Arizona or another state in the same or comparable classification within the preceding 5 years.

Step 6 — License Issued

After both exams are passed (or waived where allowed) and the application is complete, AZ ROC issues the license. Keep your bond and insurance current — lapses can trigger discipline.

The flowchart below summarizes the six-step path, including the trade-exam branch point.

License Classifications Overview

Arizona's classification system separates engineering, residential, commercial, and dual-scope work. Knowing which classification you need determines which trade exam you take.

Combined Trade Exams (Effective 6/20/2024)

Arizona consolidated trade exams to reduce redundant testing:

• B / B-3 / CR-61 share one trade exam (residential content outline)
• B-1 / B-2 / KB-1 / KB-2 share one trade exam (commercial content outline)

This means a single trade-exam pass can satisfy multiple classifications within the same combined group, but the SRE is always separate and always required.

Why Classification Choice Matters Early

Your target classification drives three decisions you should make before submitting your application:

1. Which references to buy and tab — 2018 IRC for B, 2018 IBC for B-1/B-2, both for KB-1/KB-2.
2. Whether NASCLA is an option — only for KB-1/KB-2/B-1/B-2.
3. Which trade-exam content outline to study — residential (Sitework 17, Concrete 17, Masonry 9, Metal Framing 6, Carpentry 17, Thermal & Moisture Protection 12, Doors & Windows 7, Finishes 9, Safety 6) versus commercial (which adds General Building Code 9, raises Metals to 13, and adds the 2018 IBC to the reference set).

Choosing early lets you prepare the right references and focus your study time on the correct content outline.