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

MeasureArizonaSource
Construction establishments (2023)15,551Census CBP
Construction employees (2023)208,755Census CBP
Annual payroll per construction employee$72,769Census CBP
Commercial and institutional building contractors763Census CBP
Heavy and civil engineering contractors707Census CBP
Construction firms with fewer than 5 employees59%Census CBP
New housing units authorized (2024)59,616Census BPS
Value of new housing units authorized (2024)$14,745,213,000Census 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

  1. Credit of the company and its owners.
  2. Financial statements: working capital, net worth, and profitability.
  3. Experience with jobs of similar type and size.
  4. Backlog compared with your approved capacity.
  5. Job terms: bond form, schedule, warranty period, and liquidated damages.
  6. Bank support and an available line of credit.

See bond cost factors and bonding capacity.

City guides for Arizona

Bond types and guides

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

Start a Arizona bond request

Last updated October 15, 2026 · How we research