Arizona Registrar of Contractors Contract Requirements list the elements necessary for a valid and binding contract for licensed contractors in Arizona. A licensed contractor in Arizona is under the jurisdiction of the AZ Registrar of Contractors (ROC). Each time a contractor performs work under his license for over $1,000, Arizona law requires a contract. This applies both to residential work and commercial. The ROC requires that each contract must contain a number of key elements in order to be legal and binding.
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Minimum Arizona ROC Contract Requirements
There are specific contract elements that the ROC require in the contract. A contract always needs to contain these elements or you could run into trouble with the ROC. External systems and qualifying party classification allows the licensee to provide accurate information (such as install, repair, and the application of industry standard guidelines). These items are:
- The contract must contain the name and business license of the contractor
- It must have the contractor’s license number included
- The job owner’s name and mailing address
- The job owner’s address and/or legal description of the jobsite
- The date of the contract – when the contract on the job was entered
- The estimated date of completion of the job by the licensed contractor
- A description of the work to be done
- The total amount owed for the job including taxes
- The amount of any deposit on the job
- The timing and amount of progress payments
- Notice that the property owner can fine a written complaint for an alleged violation
Missing Elements of a Services Contract
When there are contract omissions, it can have serious ramifications for the contractor’s license and in fact can trigger ROC action. Every single contract element listed above needs to be on the contract; otherwise you are in violation of the contracting statutes of Arizona. If any one of the elements are missing, the license can and will have disciplinary actions taken. In many cases, the license is suspended temporarily. But it can be worse, depending on the circumstances, such as if contact omissions accompany job site violations. In some cases, the contractor may have to go to an administrative hearing in front of the Arizona Office of Administrative Hearings if contract violations are found.
ROC Complaint Legal Process
You may need to contact an attorney before submitting a response, if the Registrar of Contractors initiates an investigation due to service issues or business disputes. If a complaint is filed against an AZ licensed contractor, it’s then assigned to an Investigator and a construction jobsite inspection may be scheduled. If that is the case, after completing a jobsite inspection, an investigator finds the work is below industry standards a Written Directive may be issued concerning the below average practice applications. This directive states work must be corrected within 15 days. If the contractor doesn’t respond to the ROC or if the services provided are not corrected, a Compliance Inspection will be held. When a Compliance Inspection shows the contractor has still failed to correct work in the Written Directive the ROC Legal Department then receives the complaint. The ROC Legal Department will then set an administrative hearing with the Office of Administrative Hearings after a written response from the contractor.
Contact our Office for Review and Drafting ROC Contract Requirements
In view of the fact that contract omissions can be so serious for a construction company, it is best to review your contracts for compliance. In fact, if any questions exist, an attorney can help. It is always safer to be absolutely sure your contracts conform to the law. All contractors must perform their work in a professional and competent manner.
If a customer or another contractor is not happy with the job you’ve done, they can file a complaint against you and your license. These things don’t always just work themselves out on their own. It is important to take the ROC Complaint Process seriously. Part of the way to protect your license in any dispute is to have contract elements completely and fully filled out and understandable. It can help protect you from ending up performing work that you weren’t responsible for, fixing work that didn’t need fixing or even prevent your contracting license from be suspended or revoked.
If you have questions about Arizona Registrar of Contractors Contract Requirements and would like to learn more about the services we offer contact Chelle Law today.