Category Archives: Arizona Contractor

Contractor License Examination Prep: 5 Tips to Follow

In the aftermath of the financial recession and housing crisis, the American economy has since recovered. More residents want to become homeowners or start their own businesses — which means that contractors and construction workers are in high demand. In fact, at least 19,000 new homes were expected to be constructed in Phoenix, Arizona during 2017, with 68% of Arizona contractors saying they’d increased pay for construction crew positions to fill vacancies and meet demand.

Essentially, that means that there’s never been a better time for hard-working and talented individuals to obtain their Arizona contractor licenses. But before you can achieve your certification and begin working in the industry, you’ll need to take your state exam. In order to successfully complete and pass this test, you’ll need to devote time and energy to proper preparation. Below, you’ll find five helpful tips for Arizona contractor license exam preparation.

Contractors License Exam Prep: 5 Study Tips to Follow

  1. Don’t Wait
    Cramming for exams might be commonplace for many college students, but that tactic won’t work when you’re trying to obtain your Arizona contractor license. Putting off your studying until the last minute won’t help you achieve your goals. Instead, you should start studying as early as possible to give yourself more than enough time to master this material. By giving yourself a bit of breathing room, you’ll have a chance to apply for your exam and study in a way that allows you to absorb all of the essential concepts without causing unnecessary stress.
  2. Set a Schedule
    It’s a good idea to start early, but you should also block off time in your calendar for regular studying. Otherwise, it’s simply too easy to fall behind or to underestimate the amount of time you’ll actually need to prepare. Experiment a bit with the time of day you use for studying and find a period that works best for you. Having a set schedule will make it harder for you to procrastinate and will make the prep process seem a lot more manageable.
  3. Find the Right Environment
    When you don’t live in a dorm room, it can be tough to find the best place for studying. If you don’t have a home office, you might assume that the kitchen table or the couch will do nicely. But depending on your home environment, you could be doing yourself a disservice by failing to establish the right place to study. You don’t need a separate office to invest in a desk or small table. Your study area should be quiet and well-lit — so if you need to devote another room to this purpose, you might be more successful. Alternatively, your local library or community center can be an excellent choice for quiet study time. If you’re serious about obtaining your Arizona contractor license, make sure that you’ve got an equally serious spot for studying.
  4. Enroll in a Prep Course
    You might not realize just how many resources you have available to you. An Arizona contractors license school can provide the courses you need to ace your exam and embark on a successful career in this field. These courses will help you to know what to expect, as qualified staff members will guide you through the process. And because these courses are developed by construction professionals with current regulations in mind, going the extra step by enrolling in these schools can give you an edge and even allow you to pass the exam the first time you take it. Don’t assume that you need to do it all by yourself!
  5. Reward Your Hard Work
    A little bit of motivation can go a long way. Although you already know that obtaining an Arizona contractor license will be an investment in your future, it sometimes helps to add an immediate reward. When you meet or exceed your studying goals each day or each week, take the time to do something fun for yourself or treat yourself in some way. This can help to cement those positive studying habits and give you something to look forward to when you do well.

Ready to get started on prepping for your Arizona contractor licensing exam? We’re here to help. For more information, contact the Contractor’s Exam Center today.

Contractors Business Tips

Contractors Business Tips to Get You Started

Once your exam is passed, your bonding is in place, and your license number is issued, what next? Here are some important contractors business tips compiled from numerous sources to keep in mind when starting your new business. Each State Contractor Licensing Board has laws that should be reviewed for changes and updates on laws on Contractor Requirements. Go to the following websites for Nevada, California and Arizona Contractor License  requirements.

Nevada: Nevada State Contractors Board

California: Contractors State License Board

Arizona: Arizona Registrar of Contractors

Contractors Business Tips: Follow These Steps

  1. Enlist the services of required professionals, (legal, accounting, insurance, etc)
  2. Research and obtain general liability and other required insurance. Contractors Exam Center can assist you with this step.
  3. Obtain required state, city, and county licenses.
  4. Finalize your Business Plan. A great resource is SCORE (Service Corps of Retired Executives) https://www.score.org/ , Small Business Administration https://www.sba.gov/  and Minority Business Enterprise http://www.mwbe-enterprises.com/mbe/.
  5. Research sources for financing.
  6. Hire necessary employees.
  7. Secure Workers Compensation For quotes: http://contractorsexam.com/contact-us/
  8. Obtain pre approval for contract bonding, for more information: http://contractorsexam.com/bonding-services-arizona-nevada/
  9. Print Business Cards, great deals can be found at: http://www.vistaprint.com/?couponAutoload=1&GP=7%2f25%2f2016+4%3a32%3a59+PM&GPS=4021502237&GNF=0.
  10. Order tools and Equipment.
  11. Prepare Contracts .
  12. Check to ensure licenses or persons with whom you contract are active and valid.
  13. Be sure that the contract is within the scope of work/license classification. If any additional licenses are required we offer exam prep and possible exam waivers, contact us at: Contact Us – Contractors Exam Center – Arizona and Nevada Contractor’s License.
  14. If it is not in your contract, it doesn’t exist. Make sure all change orders are in writing and signed by all parties.
  15. Make sure your license number is on all business advertisements, vehicles, business cards, letterhead, website, and any other place your business name appears in public.
  16. If your address or other pertinent information about your business changes, notify your state Board immediately.

Bonding Insurance Evaluation

Please call and check with one of our experienced license agents for your bonding and insurance needs Contractors License Center has a new instant quote page,  Contact Us – Contractors Exam Center – Arizona and Nevada Contractor’s License.

Contractor’s License Surety Bonds: AZ, NV, CA

Understanding Contractor’s License Surety Bonds

Contractor License Bonds are a type of Surety Bond, and are typically required from a variety of businesses, such as Contractors, as a pre-licensing requirement.  California, Arizona and Nevada Contractors are all required to post Contractor’s License Surety Bonds or a cash deposit. This type of bond is a guarantee that the contractor will satisfactorily complete all work for the owner according to the contract, and that all construction costs be paid. This is a three party agreement between the Surety Company (Guarantor), the Contractor (Principal) and the Owner (Obligee, such as in this case, the Contractors Board).

Each State Contractor Licensing Board has their own specific bond form and amounts required. Nevada, California and Arizona Contractor’s License Surety Bond requirements can be found using these links: Nevada: Nevada State Contractors Board; California: Contractors State License Board; and Arizona: Arizona Registrar of Contractors.

Contractors Exam Center is ready to help you acquire your bond. You can start your application here.

Is a Contractor’s License Surety Bond an Insurance Policy?

Contractor License Surety Bonds are not insurance. They do not protect the Contractor. The Contractor, who defaults, will be responsible pay back any money spent to complete the project.  Bonds function as a credit guarantee to the owner.

How much do Contractor’s License Surety Bonds cost?

Most contractors purchase a Contractor’s License Surety Bond in lieu of putting up a large cash deposit for a long period of time. For example, if the Nevada State Contractors Board requires a $10,000.00 bond, they would require a cashier’s check for $10,000.00 and a biennial fee of $200.00. If a Contractor opted to purchase a bond instead, the Surety Company would charge a premium of the bond amount which usually paid annually.  You can see bond rates here.

An important factor in determining premium is credit score based, however, some are instant issue. As a premium example from above, a $10,000.00 Nevada Contractors License with good credit could cost an experienced contractor approximately $300.00 annually, and discounts are offered in multi years.  Most Nevada Contractor License Surety Bonds $2,000.00 and under are instant issue, as are most Arizona Contractor License Commercial Surety Bonds.

Other Types of Surety Bonds

After a Contractor is licensed, they may be asked for additional bonding for public works, or large construction projects. These are called Contract Bonds, which are different than a Contractor’s License Surety Bond and include bid, payment and performance bonds. These guarantee the Contractor fulfills his contractual agreement as promised and that subcontractors are paid.

Contractors Exam Center is a great source to discuss these needs with you after licensing, as well as Liability Insurance and Workers Compensation. We can be reached at Contact Us – Contractors Exam Center – Arizona and Nevada Contractor’s License.   Next month we will discuss Liability and Workers Compensation in more detail.