Contracting or Advertising Without a License is a Crime in Arizona
What this means is a contractor must have a current and active license, showing he or she is qualified to perform the type of work required, before he or she can even bid on a project. Violation of this statute is a class 1 misdemeanor.
There are exemptions to these licensing requirements listed under Chapter 10, Title A.R.S. §32-1121, however most of the exemptions do not effect the consumer directly. The most frequently claimed exemption to the licensing requirements is that of the “handyman”. The statute allows individuals who perform minor repairs or installations to do so without being licensed. To qualify for this exemption two conditions must be met: The work does not require a local building permit, AND the total cost of the project, including labor, materials and all other items does not exceed one thousand ($1,000.00) dollars.
As used in the statute, the term “total cost of the project” does not refer strictly to the work of the handyman. As an example, a “handyman” cannot build a brick fireplace for $1,000.00 in a ten thousand-dollar addition to a home. The “total” cost of the project would be considered as $ 11,000.00. In such cases, the “handyman” would be required to be a licensed contractor.
As another example, a “handyman” installing the same fireplace in an existing home for $ 1,000.00 would still need to be licensed, if a local building permit was required to perform the work. The reason for these licensing requirements is to protect the health, welfare and public safety and to promote quality construction in Arizona. Under Title §32-1165, it is also a class 1 misdemeanor for any person to advertise that he or she is able to perform any service or contract for compensation subject to the regulation by the registrar under the terms of the chapter, unless a license is first obtained, regardless of whether his operations as a contractor are otherwise exempt.