Arizona
Performance and payment bonds in Arizona
Construction data, public works bond rules, and city guides for Arizona contractors. A quote is not a binder.
Arizona had 15,551 construction establishments employing 208,755 people in 2023, and builders pulled permits for 59,616 new housing units in 2024. Public owners across the state require bid, performance, and payment bonds on most construction contracts. Below are the state's construction numbers, the bond law that applies to public work, the factors sureties weigh, and guides for the largest cities.
Arizona construction at a glance
| Measure | Arizona | Source |
|---|---|---|
| Construction establishments (2023) | 15,551 | Census CBP |
| Construction employees (2023) | 208,755 | Census CBP |
| Annual payroll per construction employee | $72,769 | Census CBP |
| Commercial and institutional building contractors | 763 | Census CBP |
| Heavy and civil engineering contractors | 707 | Census CBP |
| Construction firms with fewer than 5 employees | 59% | Census CBP |
| New housing units authorized (2024) | 59,616 | Census BPS |
| Value of new housing units authorized (2024) | $14,745,213,000 | Census BPS |
Sources: U.S. Census Bureau, County Business Patterns 2023: construction (NAICS 23), commercial and institutional building construction (NAICS 236220), and heavy and civil engineering construction (NAICS 237); U.S. Census Bureau, Building Permits Survey, 2024 annual state estimates.
Public works bond law in Arizona
State and local public construction in Arizona is governed by A.R.S. § 34-222 (performance and payment bonds). Federal projects in Arizona are bonded under the Miller Act. Thresholds, notice periods, and claim deadlines differ, so read each solicitation and the statute. More in our public works bond laws guide.
What moves a Arizona bond quote
- Credit of the company and its owners.
- Financial statements: working capital, net worth, and profitability.
- Experience with jobs of similar type and size.
- Backlog compared with your approved capacity.
- Job terms: bond form, schedule, warranty period, and liquidated damages.
- Bank support and an available line of credit.
See bond cost factors and bonding capacity.
City guides for Arizona
- Phoenix
- Tucson
- Mesa
- Chandler
- Gilbert
- Glendale
- Scottsdale
- Peoria
- Tempe
- Surprise
- Goodyear
- Buckeye
- Yuma
- Avondale
- Flagstaff
- Queen Creek
- Maricopa
- Casa Grande
- Lake Havasu City
- Marana
- Prescott Valley
- Oro Valley
- Prescott
- Sierra Vista
- Bullhead City
Bond types and guides
- Performance bonds for contractors
- Payment bonds
- Bid bonds
- Maintenance bonds
- Supply bonds
- Contractor license and permit bonds
- How to get bonded as a contractor
- Bonding capacity explained
- What determines performance bond cost
- Public works bond laws: the Miller Act and state statutes
- Surety prequalification checklist for contractors
More Arizona communities
We accept bond requests for projects anywhere in Arizona. Other communities, A to Z:
A — Apache Junction
B — Benson · Bisbee
C — Camp Verde · Carefree · Cave Creek · Chino Valley · Clarkdale · Clifton · Colorado City · Coolidge · Cottonwood
D — Dewey-Humboldt · Douglas · Duncan
E — Eagar · El Mirage · Eloy
F — Florence · Fountain Hills · Fredonia
G — Gila Bend · Globe · Guadalupe
H — Hayden · Holbrook · Huachuca City
J — Jerome
K — Kearny · Kingman
L — Litchfield Park
M — Mammoth · Miami
N — Nogales
P — Page · Paradise Valley · Parker · Patagonia · Payson · Pima · Pinetop-Lakeside
Q — Quartzsite
S — Safford · Sahuarita · San Luis · Sedona · Show Low · Snowflake · Somerton · South Tucson · Springerville · St. Johns · Star Valley · Superior
T — Taylor · Thatcher · Tolleson · Tombstone · Tusayan
W — Wellton · Wickenburg · Willcox · Williams · Winkelman · Winslow
Y — Youngtown
Contractor bonds in Arizona: FAQ
Which law requires bonds on Arizona public works?
A.R.S. § 34-222 (performance and payment bonds). Federal projects follow the Miller Act.
How many construction companies are in Arizona?
The Census Bureau counted 15,551 construction establishments in Arizona in 2023, including 707 heavy and civil engineering contractors.
Who regulates surety companies in Arizona?
Surety companies are regulated by the Arizona Department of Insurance and Financial Institutions.
How do I get a performance bond in Arizona?
Apply with your company and owner information, financial statements, and project details. The surety sets your limits and rate based on underwriting.
Sources
- U.S. Census Bureau, County Business Patterns 2023: construction (NAICS 23), commercial and institutional building construction (NAICS 236220), and heavy and civil engineering construction (NAICS 237)
- U.S. Census Bureau, Building Permits Survey, 2024 annual state estimates
- U.S. Census Bureau, American Community Survey 5-year estimates, 2020–2024 (tables B25024, B25035)
- U.S. Census Bureau Vintage 2024 city population estimates
- Arizona Department of Insurance and Financial Institutions
Last updated October 15, 2026 · How we research