GC Laws — Arizona contractor-law checklist preview (free) Sources reviewed 2026-09-30. Public summaries remain free on gclaws.com. [ ] Licensing - A person must hold the appropriate contractor license in good standing to act or offer to act as a contractor, submit a bid, or respond to a request for qualifications or proposals, unless an exemption applies. - The casual-or-minor-work exemption in §32-1121(A)(14) requires a statutory aggregate contract price below $1,000 and no required building permit. It does not cover part of a larger operation or divided contracts designed to evade licensing. Advertising must disclose that the person is not a licensed contractor; the statute specifies certain appliance exclusions when calculating price. [ ] Mechanic's liens - The ordinary recording deadline is 120 days after statutory project completion. A valid recorded notice of completion generally shortens it to 60 days after recording; §33-993(I) preserves the longer period for an affected claimant if the owner does not provide the required notice. - Completion is defined by §33-993(C), including the applicable final-inspection/acceptance or cessation rules; it is not invariably the claimant’s last day on site. Serve the owner with the recorded claim within a reasonable time after recording. - A claimant required to be licensed but lacking that license has no lien under §33-981(C). When a preliminary 20-day notice is required, the lien is enforceable only to the extent supported by that notice and proof of service. Section 33-981 also expressly preserves the limits in §§33-1002 and 33-1003. [ ] Retainage - The public progress-payment provision permits retention of 10%. At 50% completion, the contractor may request release of half the accumulated retention; release depends on satisfactory progress and the absence of a specific cause or claim requiring greater retention. - After that reduction, subsequent retention is limited to 5% while progress remains satisfactory. Unsatisfactory progress permits the statutory restoration of 10% retention. - Retained amounts are due within 60 days after completion and filing of the notice of completion. A longer period requires the specific written finding under §34-221(C)(5), and withholding is limited to the amount necessary for the identified purpose. [ ] Prompt payment - For covered private work, the ordinary cycle is 30 days. A properly submitted billing is deemed approved after 14 days unless the owner supplies the required timely written objection; payment is due within seven days after approval. The statute allows different cycles and timing only through its prescribed contract and plan notices. Contracts lasting under 60 days require mutual agreement for progress payments. - For public contracts under §34-221(C), monthly progress estimates generally are deemed approved after seven days unless a timely detailed objection is issued, and payment is due within 14 days after approval. Contracts under 90 days use progress payments by mutual agreement. - Section 34-221(G) requires public-project downstream payments within seven days after receipt unless otherwise agreed in writing, with the section’s restrictions on materially altering protected rights. [ ] Prevailing wage - A.R.S. section 34-321(B) prohibits state agencies and political subdivisions from requiring public-work contracts to contain a clause mandating payment of at least the local prevailing wage. The definition of public-works contract appears in subsection (E)(5). - This state-law restriction does not dispense with applicable federal contract requirements. ADOT requires contractors and subcontractors of all tiers on FHWA-funded ADOT construction to use its LCPTracker system for certified payroll reporting and Davis-Bacon/prevailing-wage compliance. [ ] Davis-Bacon (federal) - Under 40 U.S.C. section 3142, covered contracts require payment to laborers and mechanics employed directly on the site of the work at least weekly, at rates no lower than the applicable prevailing wage determination. The required compensation includes the basic hourly rate and required fringe benefits, which may be provided through qualifying benefits or cash as the statute permits. - Qualifying apprentices may receive a lower registered-program rate only when the applicable registration and program conditions are met. The Department of Labor’s apprenticeship rules govern those exceptions. - The Department of Labor determines the prevailing rates for the work classifications and locality. Contractors and subcontractors must use the wage determination applicable to their covered contract. - Federal assistance alone does not establish coverage: many, but not all, construction-assistance statutes include Davis-Bacon requirements. Identify the funding program and its governing Related Act. - SAM.gov publishes Davis-Bacon wage determinations. Search by the wage-determination number or the Davis-Bacon public-buildings-or-works category, and match the decision to the contract, locality, and work classification. This preview lists the topics and rules covered in the full state pack. The paid pack adds the complete source URLs, citations, review dates, and the three editable tools. GC Laws is owned and operated by GCExperts LLC, a Texas corporation.