Do you know that as an Arizona contractor, you are obliged by law to include in your contract the right of the person that engages you to file a complaint with the Arizona Registrar of Contractors if they are dissatisfied with your work?
This means that if Mr. Smith hires you to build him a house and then complains about some defect to be found in the finished product, you must give him the opportunity to have his case heard by the registrar. This is called "due process" and it is required by law for anyone who contracts with an Arizona-licensed builder.
The reason this is important is because the registrar can fine you or remove your license if he finds that you have not complied with this requirement. He can also find you in violation if you fail to pay your filing fee or respond to a complaint filed against you.
In conclusion, yes, we know that as a contractor in Arizona you are required by law to include this information in your contract.
First and foremost, you must have a signed contract. Though the Arizona Registrar of Contractors will enforce verbal contracts, such enforcement will often work AGAINST the contractor, and failure to have a written contract will expose you to potential penalties or license suspension. Additionally, some projects may be too small to require a written contract, but even these projects should always have an agreement between the contractor and the homeowner. Finally, some types of work cannot be done orally, such as hiring someone to do electrical work or plumbing services; in these cases, a written contract is required by law.
The basic form of contract used in Arizona is called a standard form contract. This form is established by statute and includes many provisions that are essential to give both you and your employer protection. For example, your employer needs to be paid in advance of delivering any goods or services. The contract also requires that you be given 30 days to review any changes that your employer wants to make to this contract. If you reject these changes, then you have another period of time to accept or reject them.
In addition to these requirements, there are several other elements included in standard form contracts that are important for you to understand. For example, your employer must provide you with a copy of the contract within 24 hours of you signing it. Also, if you commit a violation of any provision of the contract, your employer can suspend performance of the contract without penalty.
Arizona law enables unlicensed contractors to undertake some work as long as the total cost of labor, materials, and other goods is less than $1,000. Read up on your rights and do some research on the individual you hire, no matter how minor or straightforward the task appears to be. An unlicensed contractor could end up costing you a lot more than you think!
An unlicensed contractor in Arizona may not be able to give you a warranty, return phone calls, or offer guidance if something goes wrong with their work. They are also not required to carry insurance or provide workers' compensation coverage. If you have an issue with their job, you are on your own - they can refuse to help you.
In addition, all contractors in Arizona are required by law to have general liability insurance. This covers you, the homeowner, in case someone is injured on your property. It also includes damage caused by faulty workmanship.
The best way to avoid hiring an unlicensed contractor is to check their license before you hire them. The proper licensing process should include proof of insurance, a license verification sheet, and evidence of worker's compensation coverage. If an unlicensed contractor works for another licensed company, they still need to be licensed.
In conclusion, hiring an unlicensed contractor is dangerous for you, the homeowner. You could be exposed to serious risks such as poor workmanship, material defects, and injury claims.
You are subject to TPT if you are an out-of-state contractor doing construction contracting operations in Arizona because you have a physical nexus. The economic nexus regulations and criteria (which apply to retail sales) do not apply to income streams generated by such contractual operations.
This is known as Arizona's "handyman" exemption for a restricted set of services. Handyman services include plumbing, heating, air-conditioning, electrical, tiling, carpentry, masonry, and appliance repair.
The handyman exemption does not apply to work that requires a contractor's license. For example, an unlicensed contractor could not charge money for advice about licensing requirements or for applying for a license. An unlicensed contractor could be sued for negligence if they cause damage to someone's property during work they are not licensed to perform.
In Arizona, there is no requirement that you must be licensed to operate a business. However, only a few states have enacted legislation providing for criminal penalties for those who conduct business without a license. These states include Alabama, Arkansas, Florida, Georgia, Indiana, Kansas, Louisiana, Mississippi, Oklahoma, South Carolina, Tennessee, Texas, and Virginia. The remaining states rely on their common law to provide sanctions against unlicensed operators.
License requirements vary from state to state. In most cases, if you want to work as a contractor you will need to get a license. However, there are ways around this if you are working within the limits of the handyman exemption.
Everyone named on the application must be at least 18 years old. Before applying for a contractor's license, a corporation or limited liability firm must be registered with the Arizona Corporation Commission and in good standing with that agency. A person can be licensed as a sole proprietor but not as an agent of a corporation.
The cost depends on how many licenses you want to apply for. The basic fee is $150 for a contractor license. An additional $50 fee is required for each license category desired (e.g., carpentry, drywall, etc.). A record check for criminal history reports costs an extra $10 per report. For example, if you are applying for five licenses, the total would be $200 ($15 x 5). If you require only one license, there is no charge for the record check.
If you plan to do work in more than one category, you should apply for multiple licenses. The Arizona State Board of Contractors requires all contractors to be licensed regardless of whether they plan to do business in several categories. The board issues separate licenses for each category you are working in even if you are only planning on doing work in one area.
When determining whether an individual is an employee or an independent contractor, Arizona employs the common-law standard. Employers in Arizona might require individuals designated as independent contractors to sign a Declaration of Independent Business Status (DIBS). The DIBS must be notarized and include language that the independent contractor is not an employee of the company. Additionally, employers need to provide workers' compensation insurance for any independent contractors.
Employees are usually given some form of compensation, such as wages or salary, which shows that the employer and employee have a contract that defines the relationship between them. Employees also receive benefits such as health insurance, retirement plans, and other forms of compensation. On the other hand, independent contractors are not given any form of compensation but are expected to pay all applicable taxes and file all necessary documents including federal income tax returns. Also, independent contractors are not eligible to receive benefits from their employers.
Individuals who are considered employees by another name - "leased employees" - can also be subject to employment laws. Under this category would fall people who work for one company but are technically employed by another. For example, if a company leases new employees to another company then those employees would be considered leased employees. The hiring company would be responsible for providing any required benefits to these individuals. In addition, the hiring company would be required to comply with all employment laws while working with this other company.