Home improvement contractors are generally companies that manage and construct improvements to existing residences—whether kitchens, bathrooms, bedrooms, or complete remodels.

A contract for home improvement includes a description of the scope of the work to be performed; the materials to be used; the general contractor’s obligations to hire and manage subcontractors to construct the various components of the building; the payment terms for the construction of the building and the management of the construction; the time for completion of the work; insurance requirements; and the filing and removal of mechanic’s and materialmen’s liens (also known as construction liens or contractor liens) for labor and materials provided to improve the real estate.

In Arizona, home improvement contractors are regulated under state statutes that require contractors to be licensed by the Arizona Registrar of Contractors (ROC). The licensing process ensures that contractors meet certain qualifications and adhere to state standards. Contracts for home improvement must be in writing and include specific information such as the scope of work, materials to be used, contractor's obligations, payment terms, completion time, insurance requirements, and provisions related to mechanic's and materialmen's liens. Arizona law requires that any person who wishes to perform work on a residential structure must provide a written contract for any project over $1,000 or that requires a permit. The contract should be clear and detailed to protect both the homeowner and the contractor. It is important for homeowners to verify that the contractor is licensed and to understand the terms of the contract, including lien rights, before work begins. Failure to adhere to these regulations can result in penalties for the contractor and potential legal disputes.