A.R.S. 32-1154: Grounds to Suspend or Revoke a Contractor's License

If a contractor does something wrong on your Arizona home, A.R.S. 32-1154 is the list that lets the Registrar of Contractors (the ROC ) act against their license. It names the specific acts and omissions that are grounds for discipline, from walking off the job to violating the building code to not paying suppliers. This page translates the key grounds into plain terms and shows which ones a homeowner most often relies on when filing a complaint.

The acts that can cost a contractor their license

The statute opens by telling licensees what they may not do:

The holder of a license or any person named on a license pursuant to this chapter may not commit any of the following acts or omissions...

The grounds most relevant to homeowners include:

• Abandonment. Walking off or refusing to perform a job without a legal excuse. The glossary covers this at abandonment .
• Departure from the plans. Disregarding the plans or specifications in any material way that harms someone.
• Building code violations. Violating a state or local building code in any material respect that is prejudicial to another.
• Not finishing for the contract price. Failing in a material respect to complete the project for the price stated in the contract.
• Fraud. A fraudulent act by the contractor that substantially injures another person.
• Unpaid bills. Failing to pay money over $750 when due for materials or services. The statute puts it directly:

Failure ... to pay monies in excess of $750 when due for materials or services rendered...

These are the workhorse grounds. Most homeowner complaints land on poor workmanship that violates the code, abandonment, or a job left unfinished for the agreed price.

The fines that come with it

Discipline is not only suspension or revocation. The ROC can also fine the contractor. The statute sets the amounts:

...not to exceed $500 on a contractor for each violation.

Contracting while suspended carries a higher fine, up to $1,000 per violation. These civil penalties are separate from any money you recover for your own losses through a lawsuit or the recovery fund.

What this means for you

Say a contractor in Carefree pours your foundation off the approved plans, fails inspection, and then stops returning calls. That is potentially three grounds at once under this section: departure from the plans, a code violation, and abandonment. You do not have to prove all three. Any single ground can support ROC discipline. When you file your complaint, point to the specific acts here so the ROC can match your facts to the statute.

The practical move is to document everything: the signed contract and plans, the failed inspection notice, photos, and dates of missed work. That record is what turns a frustration into a provable A.R.S. 32-1154 violation. A licensed, careful builder like Jematell Homes avoids these grounds by building to the approved plans and passing inspections the first time.

How this connects to the rest of contractors law

These grounds are what you allege when you file a complaint with the ROC under A.R.S. 32-1155 . That complaint has its own deadline, set by A.R.S. 32-1162 . If the contractor's bad work meets these grounds and you cannot collect, the recovery fund may apply. For the full path, see how to file an ROC complaint and recovery fund claim .

Full text and source

Read the complete list of grounds on the legislature's site: View A.R.S. 32-1154 on azleg.gov .

Whether specific conduct meets a ground for discipline depends on the facts, so confirm with the ROC or a qualified attorney before relying on it.