Page 1 of 115
ARIZONA CONTRACTOR STATUTES AND RULES
EXAMINATION (SRE) EXAM | 2026/2027 EDITION
| VERIFIED QUESTIONS WITH DETAILED
ANSWERS AND RATIONALES | BRAND NEW!
1. Under A.R.S. § 32-1101, which of the following best describes a
"contractor" for the purposes of Arizona contractor licensing law?
A. Any person who performs construction work valued under $1,000
B. Any person, firm, partnership, corporation, or other organization
that, for compensation, undertakes to construct, alter, repair, or
improve any building or structure
C. Only general building contractors who supervise subcontractors
D. Any employee of a licensed contractor performing specialty trade
work
B. A.R.S. § 32-1101 broadly defines "contractor" to include any person
or entity that, for compensation, undertakes or offers to undertake
construction, alteration, repair, or improvement work. The definition is
synonymous with "builder" and includes subcontractors and specialty
contractors.
2. The Arizona Registrar of Contractors (ROC) derives its authority to
regulate contractors from which source?
A. Federal OSHA regulations
B. A.R.S. Title 32, Chapter 10 and A.A.C. Title 4, Chapter 9
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C. The Arizona Department of Revenue
D. Municipal building codes
B. The ROC's authority is established by A.R.S. Title 32, Chapter 10
(contractor statutes) and implemented through A.A.C. Title 4, Chapter 9
(administrative rules). A.R.S. § 32-1101 et seq. provides the statutory
foundation for contractor licensing and regulation.
3. A homeowner hires an unlicensed individual to remodel a kitchen for
$15,000. The individual completes the work but the homeowner
refuses to pay. What legal recourse, if any, does the unlicensed
individual have to collect payment?
A. The individual may file a mechanic's lien for the full contract amount
B. The individual may sue for breach of contract in Superior Court
C. The individual is barred from filing a lawsuit for compensation for
work performed without a license
D. The individual may file a complaint with the ROC to compel payment
C. A.R.S. § 32-1153 prohibits an unlicensed contractor from bringing or
maintaining any action for compensation for work performed without a
license. The contract is unenforceable by the unlicensed contractor, and
the ROC has no jurisdiction over unlicensed activity.
4. A licensed contractor's qualifying party disassociates from the
licensee. Within what timeframe must the licensee report this
disassociation to the ROC?
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A. 5 days
B. 15 days
C. 30 days
D. 60 days
B. A.R.S. § 32-1154 requires written notification to the Registrar within
15 days of the disassociation of a qualifying party. Failure to report may
result in suspension or revocation of the license.
5. Which business entity type is NOT eligible to hold an Arizona
contractor's license under A.R.S. § 32-1122?
A. Sole proprietorship
B. Limited liability company (LLC)
C. Corporation
D. A minor under the age of 18
D. A.R.S. § 32-1122 specifies that licenses may be issued to sole
proprietors, partnerships, limited liability companies, and corporations.
A minor cannot hold a contractor's license, as the qualifying party must
meet experience and legal capacity requirements.
6. An applicant for a contractor's license has three years of experience
in residential remodeling. Which license classification would be MOST
appropriate for this applicant to pursue?
A. B-1 General Commercial Contractor
B. B-3 General Remodeling and Repair Contractor
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C. A-4 Drilling
D. C-77 Plumbing Including Solar
B. A.A.C. R4-9-103 establishes residential license classifications. The B-3
General Remodeling and Repair Contractor classification covers
remodeling and repair work on residential structures, aligning with the
applicant's experience.
7. A licensed contractor fails to complete a project and abandons the
contract without legal excuse. Under A.R.S. § 32-1154, this conduct is:
A. Permitted if the contractor files for bankruptcy
B. Grounds for suspension or revocation of the license
C. Acceptable if the owner breached first
D. Not actionable by the ROC
B. A.R.S. § 32-1154(A)(1) expressly identifies abandonment of a contract
or refusal to perform after submitting a bid, without legal excuse, as
grounds for disciplinary action, including suspension or revocation.
8. Under Arizona's Prompt Payment Act (A.R.S. § 32-1129), when is a
billing or estimate deemed approved and certified if the owner does
not respond?
A. 7 days after receipt
B. 14 days after receipt
C. 21 days after receipt
D. 30 days after receipt
ARIZONA CONTRACTOR STATUTES AND RULES
EXAMINATION (SRE) EXAM | 2026/2027 EDITION
| VERIFIED QUESTIONS WITH DETAILED
ANSWERS AND RATIONALES | BRAND NEW!
1. Under A.R.S. § 32-1101, which of the following best describes a
"contractor" for the purposes of Arizona contractor licensing law?
A. Any person who performs construction work valued under $1,000
B. Any person, firm, partnership, corporation, or other organization
that, for compensation, undertakes to construct, alter, repair, or
improve any building or structure
C. Only general building contractors who supervise subcontractors
D. Any employee of a licensed contractor performing specialty trade
work
B. A.R.S. § 32-1101 broadly defines "contractor" to include any person
or entity that, for compensation, undertakes or offers to undertake
construction, alteration, repair, or improvement work. The definition is
synonymous with "builder" and includes subcontractors and specialty
contractors.
2. The Arizona Registrar of Contractors (ROC) derives its authority to
regulate contractors from which source?
A. Federal OSHA regulations
B. A.R.S. Title 32, Chapter 10 and A.A.C. Title 4, Chapter 9
,Page 2 of 115
C. The Arizona Department of Revenue
D. Municipal building codes
B. The ROC's authority is established by A.R.S. Title 32, Chapter 10
(contractor statutes) and implemented through A.A.C. Title 4, Chapter 9
(administrative rules). A.R.S. § 32-1101 et seq. provides the statutory
foundation for contractor licensing and regulation.
3. A homeowner hires an unlicensed individual to remodel a kitchen for
$15,000. The individual completes the work but the homeowner
refuses to pay. What legal recourse, if any, does the unlicensed
individual have to collect payment?
A. The individual may file a mechanic's lien for the full contract amount
B. The individual may sue for breach of contract in Superior Court
C. The individual is barred from filing a lawsuit for compensation for
work performed without a license
D. The individual may file a complaint with the ROC to compel payment
C. A.R.S. § 32-1153 prohibits an unlicensed contractor from bringing or
maintaining any action for compensation for work performed without a
license. The contract is unenforceable by the unlicensed contractor, and
the ROC has no jurisdiction over unlicensed activity.
4. A licensed contractor's qualifying party disassociates from the
licensee. Within what timeframe must the licensee report this
disassociation to the ROC?
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A. 5 days
B. 15 days
C. 30 days
D. 60 days
B. A.R.S. § 32-1154 requires written notification to the Registrar within
15 days of the disassociation of a qualifying party. Failure to report may
result in suspension or revocation of the license.
5. Which business entity type is NOT eligible to hold an Arizona
contractor's license under A.R.S. § 32-1122?
A. Sole proprietorship
B. Limited liability company (LLC)
C. Corporation
D. A minor under the age of 18
D. A.R.S. § 32-1122 specifies that licenses may be issued to sole
proprietors, partnerships, limited liability companies, and corporations.
A minor cannot hold a contractor's license, as the qualifying party must
meet experience and legal capacity requirements.
6. An applicant for a contractor's license has three years of experience
in residential remodeling. Which license classification would be MOST
appropriate for this applicant to pursue?
A. B-1 General Commercial Contractor
B. B-3 General Remodeling and Repair Contractor
, Page 4 of 115
C. A-4 Drilling
D. C-77 Plumbing Including Solar
B. A.A.C. R4-9-103 establishes residential license classifications. The B-3
General Remodeling and Repair Contractor classification covers
remodeling and repair work on residential structures, aligning with the
applicant's experience.
7. A licensed contractor fails to complete a project and abandons the
contract without legal excuse. Under A.R.S. § 32-1154, this conduct is:
A. Permitted if the contractor files for bankruptcy
B. Grounds for suspension or revocation of the license
C. Acceptable if the owner breached first
D. Not actionable by the ROC
B. A.R.S. § 32-1154(A)(1) expressly identifies abandonment of a contract
or refusal to perform after submitting a bid, without legal excuse, as
grounds for disciplinary action, including suspension or revocation.
8. Under Arizona's Prompt Payment Act (A.R.S. § 32-1129), when is a
billing or estimate deemed approved and certified if the owner does
not respond?
A. 7 days after receipt
B. 14 days after receipt
C. 21 days after receipt
D. 30 days after receipt
