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Contractor Recovery Fund Eligibility Guide

The Arizona Registrar of Contractors outlines eligibility criteria for homeowners and renters to claim damages from the Residential Contractors’ Recovery Fund, which includes violations by licensed contractors. The maximum award for a single claimant is $30,000, while the total liability for claims against a single licensee is capped at $200,000. Licensees face automatic suspension and must repay awarded amounts with interest if claims are made against them.

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30 views1 page

Contractor Recovery Fund Eligibility Guide

The Arizona Registrar of Contractors outlines eligibility criteria for homeowners and renters to claim damages from the Residential Contractors’ Recovery Fund, which includes violations by licensed contractors. The maximum award for a single claimant is $30,000, while the total liability for claims against a single licensee is capped at $200,000. Licensees face automatic suspension and must repay awarded amounts with interest if claims are made against them.

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HIEN PHAM
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Arizona Registrar of Contractors

Statutes and Rules Exam

Residential Contractors’ Recovery Fund

Eligibility to Make a Claim


Owners and renters who contract for residential construction work and suffer damages as a result may be
eligible to be awarded payment from the Recovery Fund if they meet the requirements under A.R.S. § 32-1132:

• AZ ROC has determined the contractor violated statutes,

• The property is (or will be) the claimant’s primary residence,

• The contractor was licensed at any one of these three times: the date the contract was signed, the date first
payment was made, or the date work started.

Planned communities may also seek payment from the Recovery Fund for damages to common property if the
community was no longer controlled by the builder. They must also prove that the contractor was licensed and
that the contractor violated statutes.

Awards
The maximum award for a single claimant is $30,000, which may cover:

• Costs to complete or repair the job, based on bids from licensed contractors.

• Down payments for work that was never started.

• Deposit for materials that were never delivered.

Legal fees are not eligible for payment from the Recovery Fund unless the claim was contested in superior court.
A.R.S. § 32-1132.01

Maximum Liability for Recovery Fund


The Recovery Fund will not pay more than $200,000 in claims against a single licensee. A.R.S. § 32-1139(A)

Consequences for Licensees


• License automatically suspended until Recovery Fund is repaid.
• Licensee must repay full amount awarded, plus 10% annual interest.
• Any other licenses associated with persons named on the disciplined license will be suspended until the
Recovery Fund is repaid.

Right to Request a Hearing


Licensees have the right to contest claims for payment from the Recovery Fund and must request a hearing to do
so within 15 days of the date AZ ROC mailed the notice. A.R.S. § 32-1133.01(C)

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