AZ General Contractor key terms

The state agency that licenses contractors, examines applicants, sets license classifications and limits, and investigates complaints about contractor workmanship or violations of contractor law.

The individual who meets the experience and examination requirements for a contractor license and is responsible for the licensee's construction operations, such as an owner, officer, or responsible managing employee.

A person employed by a licensed contractor who qualifies the license by meeting experience and exam requirements; the RME must be actively engaged in the business and generally may qualify only one licensee.

A category of contractor license, such as general engineering, general building, or specialty (residential or commercial), that defines the types of work the licensee may legally perform and contract for.

The maximum dollar amount of work a licensee may have under contract at one time, set by the Registrar based on the license classification and the applicant's demonstrated financial capacity.

A fund financed by license fees that can pay limited court judgments to homeowners harmed by a licensed residential contractor's poor workmanship or abandonment, after other collection efforts fail.

An exemption allowing a property owner to build or improve a home for personal use without a contractor license; selling or offering the property within one year creates a presumption the exemption does not apply.

A formal allegation filed with the Registrar that a licensed contractor performed poor workmanship, abandoned a job, or violated contractor statutes; the Registrar may inspect, order repairs, or discipline the license.

A statutory claim recorded against real property by a contractor, subcontractor, or supplier who is unpaid for labor, materials, or services that improved the property, allowing eventual foreclosure sale of the property.

A written notice that a subcontractor or supplier without a direct contract with the owner must give the owner and lender, generally within 20 days of first furnishing, to preserve full lien rights.

A written document in which a party gives up lien rights, either conditionally upon receiving payment or unconditionally after payment, and either for progress payments or for final payment.

A surety bond guaranteeing the owner that the contractor will complete the contract according to its terms; if the contractor defaults, the surety must finish the work or pay the resulting loss.

A surety bond that protects the owner and pays subcontractors and suppliers who are not paid by the contractor, reducing the chance they will file liens against the project.

A portion of each progress payment withheld by the owner until the work is substantially complete or fully complete; Arizona law limits how much may be withheld and requires prompt release.

A written amendment signed by the owner and contractor that changes the scope, price, or schedule of the work after the contract is executed, and that becomes part of the contract documents.

The stage when the work is sufficiently complete, in accordance with the contract, that the owner can use it for its intended purpose; it starts warranty periods and triggers deadlines for payment and liens.

A duty read into construction contracts by law requiring the contractor to perform in a good and workmanlike manner, even when the contract does not say so explicitly.

The process of measuring and listing the labor, materials, and equipment required for each part of the work by reading the plans and specifications, forming the basis of a bid estimate.

A reserve of money or time included in an estimate or schedule to cover unknown conditions, minor changes, and risk that cannot be priced precisely in advance.

The indirect project costs of supervision, temporary facilities, insurance, bonds, permits, and site management that are not tied to a single trade but are needed to run the job.

A scheduling technique that links activities in a network, calculates early and late dates, and identifies the longest path through the project, which determines the minimum project duration.

The amount of time an activity can be delayed without delaying the project completion date, computed as the difference between its late and early finish dates.

A surety bond submitted with a bid guaranteeing the bidder will sign the contract and provide required bonds if awarded; a defaulting bidder may forfeit the bond amount.

A written revision to the bidding or contract documents issued before bids are opened, such as a changed detail or clarified specification, which becomes part of those documents.

A specific dollar amount stated in the contract for work or materials that are not yet fully defined, later adjusted to the actual cost with the contract price changing accordingly.

A field test that measures the consistency and workability of fresh concrete by filling a cone, removing it, and measuring how far the concrete settles.

The thickness of concrete between the outer surface and the nearest reinforcing steel, protecting the rebar from moisture, fire, and corrosion as required by code.

A thin, water-resistant material installed at roof edges, walls, valleys, and penetrations to direct water away from joints and prevent it from entering the building envelope.

A material such as plastic sheeting or coated paper that slows the movement of water vapor through a floor, wall, or roof assembly, helping prevent condensation and moisture damage.

A concrete slab containing steel tendons that are stressed after the concrete hardens, compressing the slab so it can span farther or carry more load with less thickness.

A wall, floor, or roof assembly built and tested to resist fire for a stated period, such as one or two hours, using specified materials and details that cannot be substituted arbitrarily.

The installation of pipes, ducts, conduit, and electrical boxes inside walls and floors before the surfaces are closed in, done so that finishes and fixtures can be installed later.

An exterior finish of cement plaster applied over lath or masonry in one or more coats, common in Arizona; it requires flashing and weep screeds at the base to drain moisture outward.

A worker who can identify existing and predictable hazards at the site and has the authority to take prompt corrective action, as required for many OSHA inspections and high-hazard tasks.

A method such as sloping, benching, shoring, or a trench box used to protect workers in excavations, generally required at five feet deep unless the excavation is in stable rock.

Systems such as guardrails, safety nets, or personal fall arrest harnesses used to prevent or stop falls, generally required when workers are six feet or more above a lower level in construction.

An OSHA-required program that informs workers about hazardous chemicals on site through container labels, safety data sheets, and training so they understand the risks and needed protections.

A space large enough to enter, with limited entry or exit, and not designed for continuous occupancy, such as a manhole or vault; entry requires hazard evaluation, air testing, and attendant procedures.

A short, regular safety meeting held at the jobsite to review a specific hazard, procedure, or recent incident with the crew before work begins.

Practices that protect workers from heat stress in Arizona, including water, rest, shade, gradual acclimatization for new workers, and watching for symptoms of heat exhaustion or heat stroke.