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Pass your Arizona Business Management exam on your first attempt

Arizona Business Management Exam

get arizona contractors licenseAll qualifying individuals must pass the standard Business Management examination; in addition, qualifying individuals must pass a second test covering the specific trade or certification area for which they are applying. The Business Management examination consists of multiple choice questions related to business management and construction law. Applicants can find information below on the breakdown of the topics covered in the examination. All Contractors are required to obtain bonds. The amount is based on the license classification and the yearly work volume.


Arizona Contractors License Requirements


let us help you get your contractors licenseA contractors license is required in Arizona for any contract that exceeds $1,000 (including labor and materials) or if the work requires a building permit. A business consisting of a sole proprietorship (individual), a partnership, limited liability company, or a corporation may apply for a contractor's license if they have a regularly employed person with the necessary experience, knowledge and skills who serves as the qualifying party. All persons listed on the application must be 18 years of age or older. A corporation or limited liability company must be registered with the Arizona Corporation Commission and in good standing with that agency before submitting an application for a contractor's license. The corporation or limited liability company must remain in good standing in order to renew their contractor's license. Any business which contracts or offers to contract to build, alter, repair, add to, subtract from, improve, move, wreck or demolish any building, highway, road, railroad, excavation or other structure, development or improvement, or to do any part of the work must be a licensed contractor. Also included in work requiring a license is the erection of scaffolding, connections to utility service lines, metering devices and sewer lines, mechanical or structural service to a structure or improvement and any other work in connection with the project. More info here.


Arizona Business Management Fees


contractors license feesAfter you pass the exam, you can complete your license application. You'll need a financial statement, proof of Workers' Compensation Insurance if you have employees, and a bond. The amount of the bond depends on the type of license you're getting and the gross amount of business you expect to do in Arizona. For commercial contractor licenses, bonds can be from $5,000 to $90,000 for each license. For residential contractor licenses, they're from $1,000 to $15,000 each. Residential contractors also need to pay into the Arizona Recovery Fund. The amount of the payment may vary from year to year depending on how much the Fund has accumulated over the year. One part law or trade examination is $56. Two parts law and trade examinations are $106. New license fees range from: $580 for each specialty classification, $780 for each general commercial classification, and $870 for each residential construction classification.


Arizona Business Management Exam Details


contractor exam detailed informationAll candidates are required to take and pass a Business Management Examination. In addition, the qualifying party must, if required, pass a second test covering the specific trade for which you are applying. The business management test contains questions on state and federal laws and questions on the management of construction projects and business and financial management. There are 80 questions and a time limit of 3 hours. A score of 70% is needed to pass. Exam fee is $75. More info here.

Business Management Exam Content


Arizona Registrar of Contractors Statutes
Arizona Registrar of Contractors and Rules
Arizona Registrar of Contractors Workmanship Standards
Business Management
Business Mathematics
Contracts and Agreements
Insurance and Bonding
Safety, Record Keeping and Reporting
Labor Laws and Employment Regulations
Financial Management
Tax Laws
Environmental Laws and Regulations

Total Number of Test Questions: 80

Time Allowed: 180 minutes


Books That Are Allowed Into The Exam


1. Code of Federal Regulations - 29 CFR Part 1926, (OSHA).  


2. Arizona NASCLA Contractor's Guide to Business, Law, and Project Management, 6th Edition.      


3. Arizona Statutes, 2015, Arizona Registrar of Contractors.          


4. Arizona Registrar of Contractors Rules, 2014.     


5. Arizona Workmanship Standards for Licensed Contractors, 2009, Arizona Registrar of Contractors.   


6. Arizona ADEQ Construction General Permit, 2013 Edition, Arizona Dept. of Environmental Quality.


NOTE: If you are not currently a licensed contractor then you are required to take and pass BOTH the standard LAW exam and TRADE specific exam.


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Arizona Contractors Business Management Exam Home Study Kit $149


complete home study kit saleOur home study materials are available in either books with CD-ROMs version or online downloadable version. Our CD-ROM software is developed using the computer-assisted testing software, which means that no internet or prior computer experience is required. Both CD-ROM and instant online download versions are identical and cover everything you need to study and pass your law and business contractors exam. The complete home study kit includes: Business Management study manual with over 200 pages related to business management and construction law, financial, record keeping, math examples, estimating, safety, and more. Plus 500 hundred of exam practice questions with detailed explanations to all Business Management exam practice questions. All orders also receive a complete contractors application review, 30-day online exam support, and 24/7 online applicant support.


Arizona Contractors License Reciprocity


contractors license reciprocityArizona contractors registrar will let you waive any trade exam you already have a license if you qualify. The Business Management exam cannot be waived because it has reference to Arizona specific statutes and rules. To waive the trade portion of the exam you must: The applicant/qualifier shall have taken and passed an equivalent trade exam that led to the approval of a contractor’s license. The contractor’s license must have been active and in good standing within the preceding five years. The exam content and the license classification must be equivalent to the Arizona exam and license for which the exam waiver is being requested. Additionally, you also must include; A description of the scope of license classification from the jurisdiction where the trade exam was taken. A copy of the passing tests results. A description of the exam content from the exam provider. Proof of the license status and history from the other jurisdiction (e.g. state, county, city). More info here.