Questions to Ask Before Signing a General Contractor Contract in Phoenix

Signing a general contractor agreement in Phoenix is one of the biggest commitments a homeowner or commercial property owner can make—and the desert climate, Arizona-specific licensing rules, and local tax codes all add wrinkles you won't find in a generic contract checklist.

Verify Licensing, Insurance, and ROC Registration

Arizona's Registrar of Contractors (ROC) requires all general contractors to hold a valid license before performing work. Before you sign anything, ask:

• What is your ROC license number, and what classification does it cover? You can verify this free on the ROC's public database. Residential and commercial work require different license types.
• Do you carry general liability insurance, and what is the coverage limit? For most Phoenix remodels or new builds, you want to see at least $1 million per occurrence—though larger projects warrant more.
• Do you carry workers' compensation for all employees and subcontractors on site? Arizona law requires it if the contractor has employees. An uninsured worker injured on your property can become your liability.

Understand the Scope of Work and Project Timeline

Vague contracts are where disputes are born. Push for specificity on every line.

• Is the scope of work attached as a written exhibit? It should itemize materials, brands, finishes, and square footage—not just say "kitchen remodel."
• What is the projected start date, and what milestones trigger progress payments? Phoenix's brutal summers (temperatures regularly exceed 110°F) and the mid-summer monsoon season can genuinely delay poured concrete curing, exterior paint adhesion, and roofing work. Ask how weather delays are handled and whether they are documented in writing.
• What is the substantial completion date, and is there a liquidated damages clause? A well-drafted contract specifies a daily penalty if the contractor misses the finish date without a valid excuse.

Ask About Subcontractors and Material Sourcing

Most GCs in the Phoenix metro subcontract electrical, plumbing, HVAC, and specialty trades. That's normal—but you need transparency.

• Which trades will be subcontracted, and will those subs be licensed and insured? Ask for proof, not promises.
• Who purchases materials—you or the contractor? Understand the markup structure. Some contractors charge cost-plus (actual material cost plus a percentage), others quote a fixed lump sum. Both are legitimate; just know which you're agreeing to.
• Where are materials sourced? During high-demand periods, supply chain delays are real. Ask how substitutions are handled if a specified product is unavailable, and require written approval rights before any swap is made.

Clarify Payment Structure and Lien Rights

Arizona lien law is one of the most important things to understand before a single nail is driven.

• Will you provide conditional and unconditional lien waivers at each payment? Arizona's preliminary notice ("20-day notice") system means subcontractors and suppliers can place liens on your property even if you paid your GC in full. Get waivers at every payment.
• Is there a retainage clause? Holding back 5–10% until the punch list is complete gives you real leverage.

Review Permit and Inspection Responsibilities

Phoenix building codes and Maricopa County requirements vary by project type. Don't assume the contractor handles everything automatically.

• Who pulls the permits—you or the GC? A licensed contractor should always pull permits in their own name for work that requires it. An owner-pulled permit can void your homeowner's insurance for construction-related claims.
• Who is responsible for scheduling city inspections? Delays at the inspection stage can extend your timeline by weeks; clarify this in the contract.
• Does the project require HOA approval before breaking ground? Phoenix-area HOAs frequently govern exterior work, including roofing materials, desert landscaping changes, and paint colors. If HOA approval is pending, make sure the contract start date reflects that reality.

Nail Down Change Order Procedures

Change orders are where budgets balloon.

• Are change orders required to be in writing and signed by both parties before work begins? Verbal approvals are hard to dispute after the fact.
• Is the markup rate for change-order labor and materials defined in the contract? Typical markups range from 10–20%, but that should be stated explicitly—not discovered on the final invoice.

Dispute Resolution and Warranty Terms

• What warranty do you provide on workmanship? One year on labor is common for Phoenix residential projects; some contractors offer more.
• Does the contract require mediation or arbitration before litigation? Arizona courts can be slow; a mandatory mediation clause often resolves disputes faster and cheaper.
• What is the governing law and venue clause? Confirm it specifies Arizona and ideally Maricopa County if that's where your project is.

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Taking time to ask these questions before you sign—rather than after a dispute arises—is the single best investment you can make in a smooth project. If you're still in the comparison stage, search local general contractors on Saguaro List to find vetted Phoenix-area pros, or browse the full construction directory to compare options by specialty and location. A thorough contract isn't a sign of distrust—it's a sign of a professional relationship that protects everyone involved.