🔧 Handyman vs. Licensed Contractor in Arizona: What Homeowners Need to Know

Arizona law distinguishes between handymen and licensed contractors based on job size, scope, and licensing. Here’s how they compare across legal, financial, and operational requirements:

1. 🧰 What Is a Handyman in Arizona?

• No License Required — If:

  • Total job cost (labor + materials) is under $1,000

  • No permit is required (electrical, plumbing, structural changes usually do)

• Cannot Advertise as a Contractor

  • Must include "not a licensed contractor" in any advertisement (websites, flyers, vehicles, business cards, etc.)

• Cannot Do Specialty Trades

  • No electrical, plumbing, HVAC, or structural work requiring permits

• Source: AZ Commerce

2. 📋 What Is a Licensed Contractor in Arizona?

• Must be licensed through the Arizona Registrar of Contractors (ROC)

• Required for:

  • Jobs over $1,000

  • Any work that requires a permit (regardless of price)

• Must pass exams, submit financials, and carry bonds

• Can legally perform and subcontract most scopes of work

3. 🛡️ Insurance Requirements

Handyman (Unlicensed)

• General Liability Insurance: ✅ Not legally required, but highly recommended. Some property owners or PMs may require it by contract.

• Workers’ Comp: ❌ Not required if solo. Required if hiring employees.

• Bonding: ❌ Not required

Licensed Contractor

• General Liability Insurance: ✅ Yes, strongly recommended (some ROC classifications may require bonding instead, but insurance is expected for liability)

• Workers’ Comp: ✅ Required if employees are hired.

• Bonding: ✅ Yes, ROC requires a surety bond based on license type

💡 Note for Handymen: Even though it’s not required by law, not having insurance means you’re personally liable for damages or injuries on the job. Many landlords and homeowners may refuse to hire uninsured handymen.

4. 📦 Warranty Requirements

Handyman (Unlicensed)

• Legal Warranty Obligation:❌ Not required by Arizona law

• Recovery Fund Access:❌ No homeowner protection

Licensed Contractor:

• Legal Warranty Obligation:✅ Yes, required to offer a 2-year warranty on workmanship per A.R.S. § 32-1155

• Recovery Fund Access:✅ Homeowners may access the Residential Recovery Fund for licensed contractor failures

⚠️ Important: If a handyman does offer a warranty, it’s voluntary and not legally enforced unless in writing. By contrast, licensed contractors in Arizona are bound by statute to warranty their workmanship.

5. 💼 Summary Table: Handyman vs Licensed Contractor in Arizona

Handyman (Unlicensed)

• Legal for jobs under $1,000: ✅ Yes

• Can pull permits:❌ No

• License required:❌ Not required

• Insurance required:❌ Not required

• Can advertise as “contractor”:❌ No – must say “not licensed”

• Can do plumbing/electrical: ❌ No

• Can be paid over $1,000: ❌ Not legally

Licensed Contractor

• Legal for jobs under $1,000: ✅ Yes

• Can pull permits:✅ Yes

• License required: ✅ Yes

• Insurance required: ✅ Expected / Often required

• Warranty required: ✅ Yes – 2 years (by law)

• Can advertise as “contractor”:✅ Yes

• Can do plumbing/electrical:✅ With proper license

• Can be paid over $1,000:✅ Yes

✅ Final Notes for Homeowners & Contractors

• If you're hiring for a small repair like caulking, fixing doors, or hanging shelves: a handyman may be fine if under $1,000 and no permit is needed.

• For any serious remodeling, plumbing, electrical, or jobs over $1,000, Arizona law requires a licensed contractor.

• If you’re operating as a handyman, carry insurance anyway. It protects your business and gives peace of mind to clients.

• If you're a contractor, make sure to meet warranty and bonding requirements — these offer protection to your clients and keep you compliant.

If you read this to the bottom and are looking for a free over the phone estimate schedule an appointment with us today urbanedgeaz.com