Arizona Registrar of Contractors Contract Requirements | Contract Essentials for the Arizona Contractor Registrar

Arizona Registrar of Contractors Contract Requirements lists the elements necessary for a valid and binding contract for licensed contractors in Arizona.  The AZ Registrar of Contractors (ROC) is in charge of contractors who have a license in Arizona. Each time a contractor performs work under his license for over $1,000, Arizona law requires a contract. This applies both to residential and commercial work. The ROC requires that each contract must contain a number of key elements in order to be legal and binding.

Minimum Arizona ROC Contract Information

There are specific contract elements that the ROC requires in the contract. A contract always needs to contain these elements, or you could run into trouble with the ROC.  The licensee can give accurate information about things like installation, repair, and the use of industry-standard guidelines because of external systems and qualifying party classification. 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 an AZ Contractors 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 contractors 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 licensed contractor may have to go to an administrative hearing in front of the Arizona Office of Administrative Hearings if contract violations are found.

ROC Contractor Complaint Regulations

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 as a requirement.  When the Registrar’s 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. Unlicensed contracting can trigger an investigation as well.

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 licensed contracting license from be suspended or revoked.

Arizona Board License Defense for an Arizona Contractor

It’s always disappointing when a contractor receives an unfavorable decision from the Arizona Registrar of Contractors (“ROC“). However, contractors in Arizona can benefit from understanding the process that goes along with Arizona Registrar of Contractors appeals and hearings after a case is heard by the Board. If you are facing an unfavorable outcome due to an offered disciplinary action, consent agreement or order, you can always appeal the decision and request an administrative hearing before the Office of Administrative Hearings.

Filing an Appeal after a Registrar of Contractors Meeting

The investigatory process and the appeal process work like this:  Once the Board receives a complaint or self-report they will then initiate an investigation into the Arizona contractor license. The purpose of this investigation is to give the ROC evidence to make a decision on whether or not a contractor should face disciplinary action. If the contractor receives an unfavorable formal disciplinary decision, it is at this point, they can then file an appeal and request a hearing with the Arizona Office of Administrative Hearing. An Administrative Law Judge will then oversee the appeal and the contractor may need to attend a hearing. However, sometimes the investigation is automatically sent to hearing or an informal settlement conference can be held (if requested).

Arizona Administrative Appeal and Hearing

Any contractor licensee may request a legal appeal of the Board’s Discipline to an administrative law judge with the Arizona Office of Administrative Hearings (OAH) which is located in Phoenix. In some instances, a case is sent automatically to OAH. The Arizona’s OAH hearing is conducted before an Administrative Law Judge (ALJ).  The administrative process is not as formal as a trial, but is similar. Each party presents evidence using documents or sworn testimony. Each party also gives an opening and closing argument which should explain why the judge should rule one way or the other. A contractor’s attorney can cross examine witnesses and testify on his or her behalf. After it is completed, the ALJ reviews the transcripts, evidence and makes a recommendation. However, the Board makes the decision to either accept, reject or modify the ALJ’s decision.  If an individuals feels there has been a mistake they can request a rehearing by appealing the decision.

Criminal Reporting Requirements for a Contractor

A.R.S. 32-3208 requires that contractor licensees and applicants for a contractor license must report misdemeanor criminal charges involving conduct that may affect public safety or a felony to the Arizona Registrar of Contractors within 10 working days after the charge is filed.  A working day would be considered Monday through Friday. Failure to report a reportable criminal charge within 10 business days is a violation of the Arizona statutes.

What Current and Past Crimes Must Be Reported?

Arizona Registrar of Contractors Criminal Reporting rules hold that a felony must be reported within 10 days of being charged. The following types of misdemeanor or other criminal histories are crimes that have been determined by the Board to be reportable pursuant to the chapter in A.RS § 32-3208: 

• Assault and Related Offenses
• Theft and Related Offenses
• Fraud, Deceit and Related Offenses
• Abuse, Neglect, Exploitation of a Child or Vulnerable Adult and Related Offenses
• Sexual and Related Offenses
• Drug and/or Alcohol Related Offenses
• Arson and Related Offenses
• Animal Abuse, Cruelty and Related Offenses

Failure to report a reportable criminal charge within 10 business days is a violation of the Arizona Medical Practice Act and could result in disciplinary action which could result in Arizona Registrar of Contractors’s Probation.

DUI Criminal History

Contractors who contact our office frequently ask our attorney’s if state law allows a contractor with a DUI crime or conviction to get a license with the Arizona State Registrar of Contractors? The short answer is yes. An Arizona Contractor DUI will not necessarily prevent a contractor from obtaining a license or a career in the health field. However, the Board (which handles all complaints) has a public policy (updated as of September 2020) on their website which covers the details of what circumstances contractors with a case that resulted in a felony DUI criminal conviction can get licensed.

Professional License Criminal Consequences

This specific policy does not apply to criminal conduct involving misdemeanor DUI charges or convictions. Once a contractor professional applies for a license to practice to the Arizona Registrar of Contractors, they need to disclose any felony DUI criminal court convictions (from previous years) on their application. A contractor must report a felony DUI no matter how much time or how many years have passed since the time of the conviction or case.  The AZ Board may also ask about past DUI misdemeanor criminal charges or cases that resulted in a conviction. This is done to ensure a contractor can perform safe work and can have safe direct contact with clients or other providers.

Disclosing a Criminal Record for a Professional Applicant

If a contractor license applicant is not required to disclose a legal misdemeanor DUI, the AZ Board can still initiate an investigation based upon the results of a fingerprint background check. The Board will then contact the professional and initiate an investigation in their practice utilizing the law of the AZ Medical Practice Act. This license investigation determines whether the contractor is a danger to the public, has any medical or mental health problems and whether the contractor has rehabilitated in the time since the criminal misdemeanor DUI or DUI charges occurred. Simply, the Board wants to know whether the contractor can provide safe care with a past criminal case involving alcohol or substance abuse.

The attorneys at Chelle Law assist contractors with interpreting Board policy (which is generally on the Board website). Our attorneys help contractors with their application to show the Board the professional isn’t a danger to the health, safety and welfare of the public and is able to provide safe client care.

Registrar Attorney

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.