2.2 License Classifications

Arizona License Classifications

Arizona organizes contractor licenses into classifications that define the scope of work a contractor may legally perform. Choosing the correct classification is critical because the qualifying party experience, trade exam content, and license fees all depend on it.

Quick Answer: Arizona's main classifications are A (General Engineering), B (General Residential), B-1/B-2 (General Commercial), B-3 (Remodeling & Repair), and KB-1/KB-2 (Dual residential + commercial). Since June 20, 2024, B/B-3/CR-61 share one trade exam and B-1/B-2/KB-1/KB-2 share another.

The General Classifications

• A — General Engineering. Large-scale commercial, industrial, and public works projects. This is the broadest classification, covering infrastructure-heavy construction such as roads, grading, utilities, and major public projects requiring engineering expertise.
• B — General Residential. Single-family homes, two-family dwellings, and townhouse construction. This is the standard "general contractor" residential license and is what most home builders hold. The trade exam references the 2018 International Residential Code (IRC).
• B-1 and B-2 — General Commercial. Commercial building construction. The trade exam adds the 2018 International Building Code (IBC) to the reference set.
• B-3 — Remodeling & Repair. Residential and small commercial remodeling, alteration, and repair work. A narrower scope than B, focused on existing structures rather than new construction.
• KB-1 and KB-2 — Dual. Combined residential and commercial building contractor license. Dual licensees can perform both residential (B-equivalent) and commercial (B-1/B-2-equivalent) work under a single license.

Specialty License Prefixes

Arizona uses prefix codes to distinguish specialty contractor licenses by scope:

• CR- — Residential specialty (e.g., CR-61 for residential specialty trades). Work limited to residential projects within the specialty.
• C- — Commercial specialty. Work limited to commercial projects within the specialty.
• R- — Residential specialty. Another residential specialty designation used for specific trade scopes.

Specialty licenses allow contractors to focus on a single trade (plumbing, electrical, roofing, etc.) rather than general contracting, but the work is confined to the prefix's scope — a CR- specialty cannot perform commercial work, and a C- specialty cannot perform residential work.

Combined Trade Exams (Effective June 20, 2024)

Arizona consolidated its trade exams effective June 20, 2024. Rather than a separate exam for every classification, two combined trade exams now cover multiple license classes:

1. Combined Residential/Remodeling Exam: Covers B, B-3, and CR-61 in a single 100-question exam. Content outline: Sitework 17, Concrete 17, Masonry 9, Metal Framing 6, Carpentry 17, Thermal & Moisture Protection 12, Doors & Windows 7, Finishes 9, Safety 6. References 29 CFR Part 1926 (OSHA) and the 2018 IRC.
2. Combined Commercial Exam: Covers B-1, B-2, KB-1, and KB-2 in a single 100-question exam. Includes General Building Code (9) and Metals (13) content areas. References 29 CFR Part 1926 (OSHA), the 2018 IBC, and the 2018 IRC.

Both combined trade exams are administered by PSI Services, cost $66 for a single exam ($116 for two exams), allow 240 minutes (4 hours), and require a 70% passing score. Open-book references may be highlighted, underlined, and indexed with permanent tabs; no writing is allowed during the exam, and downloaded references must be bound.

NASCLA Alternative for Commercial Classifications

The National Association of State Contractors Licensing Agencies (NASCLA) Commercial General Building Exam is accepted in lieu of the AZ ROC trade exam for KB-1, KB-2, B-1, and B-2 — the commercial general building classifications. It is not accepted for the residential B classification.

Key NASCLA facts:

• Format: 115 questions, 330 minutes, 81 correct answers to pass
• Fee: $106 exam fee (paid to PSI Exams Online) + $25 application fee (paid directly to NASCLA)
• Scores valid: 2 years
• SRE still required even when NASCLA is used in place of the trade exam
• Designed for contractors licensed in multiple states who want portability

Classification Comparison Table

Choosing the Right Classification

When deciding which classification to pursue, consider:

• Type of work — New home construction points to B; commercial buildings point to B-1/B-2 or KB-1/KB-2; remodeling points to B-3.
• Residential vs. commercial vs. both — If you plan to work in both markets, a Dual (KB) license avoids needing separate residential and commercial licenses.
• Experience match — Your qualifying party's 4 years of experience must be in the type of construction applied for, so your classification should align with your documented work history.
• Exam references — Residential exams reference the 2018 IRC; commercial exams reference the 2018 IBC. Study the code book that matches your target classification.
• License fees — General Commercial (A, B-1, B-2) fees total $780; General Dual (KA, KB-1, KB-2) fees total $1,050, which includes the Recovery Fund assessment.