Mulcahy Law Firm, P.C. often receives questions related to HOAs/condos hiring contractors, and whether it is necessary for associations to hire licensed and bonded contractors. Regardless of the job at hand (no matter how small of a project!), it is the firm’s opinion that it is best practice for associations to hire a licensed and bonded contractor. The Arizona Registrar of Contractors is a great resource, and we urge your board to review their page entitled, Before You Hire a Contractor, for advice and tips related to hiring!
It is important to remember that Arizona law requires contractors to be licensed through the Arizona Registrar of Contractors. Set forth below we have provided relevant Arizona laws related to the hiring of a contractor.
A.R.S. 32-1151 sets forth Arizona’s contractor licensing requirements. It is unlawful for a person to even submit a bid or respond to a request for a proposal for construction services without having a license. There is an exception known as the “Handyman Exemption” which is contained in A.R.S. 32-1121(A)(14).
A.R.S. 32-1121(A)(14) permits a person who does not hold a contractor’s license to bid and accept work when the job (contract price, labor and materials) amounts to less than $1,000.
Important reminder! Make sure to check a vendor’s references, do financial research, check for licensing, type of bonds held, insurance coverage, check the Better Business Bureau, the Arizona Registrar of Contractors for licensing and the vendor’s complaint background. Additionally, investigate for technical training, certifications and any professional designations that are appropriate to the scope of work to be completed.
Don’t do this! One common mistake is trying to save a little money by hiring an unlicensed contractor. In the end, the unlicensed contractor ends up costing a lot more money for the association.