Questions to Ask Before Signing a General Contractor Contract in Tempe

Before you sign anything, the contract sitting in front of you is your single strongest protection against cost overruns, shoddy work, and scheduling headaches—so it's worth slowing down and asking the right questions first.

Verify the Contractor's Arizona Credentials

Arizona doesn't mess around with unlicensed construction work. The Registrar of Contractors (ROC) licenses and regulates general contractors statewide, and in Tempe you're also dealing with a dense mix of commercial corridors, older residential neighborhoods near ASU, and newer infill development—each with its own permitting nuances.

Ask these before anything else:

• What is your ROC license number, and what class is it? A-General (residential and small commercial) and B-General (commercial) are the two main categories. Confirm the license is active at azroc.gov before signing.
• Are you bonded and insured in Arizona? You want general liability and workers' compensation. If a subcontractor falls on your property and the GC carries no workers' comp, you could be liable.
• Do you pull the permits, or do you expect the homeowner to? In Tempe, the contractor should almost always pull the permits. If they're pushing that task onto you, treat it as a red flag.

Understand the Scope of Work in Writing

Verbal agreements disappear the moment a dispute starts. The contract must spell out every deliverable in plain language.

• Is the full scope of work attached as an exhibit? Vague language like "demo and rebuild master bath" is not enough. Ask for a line-item spec sheet covering materials, brands or grades, dimensions, and finishes.
• How are change orders handled? This is critical. Any scope change—even something minor—should require a signed, written change order with a price attached before work begins. Contractors who resist this are contractors who pad invoices.
• Who are the subcontractors, and are they also ROC-licensed? In Tempe's competitive market, GCs frequently sub out electrical, plumbing, and HVAC. You have every right to know who will be on your property.

Nail Down the Payment Schedule

Arizona law limits how much a contractor can collect upfront. Generally, down payments above 1/3 of the total contract price for residential work are a warning sign—and collecting excessive deposits is a common complaint filed with the ROC.

Ask: "Will you provide lien releases with each payment?" Mechanic's liens in Arizona can cloud your title even if you paid the GC in full—if they didn't pay their subs, those subs can lien your property. Lien releases protect you at every draw.

Get Clarity on the Timeline (and Arizona's Season Realities)

Tempe summers are brutal. Concrete pours, exterior painting, and roofing work all carry heat-related risks from May through September, and monsoon season (roughly June–September) can shut down exterior jobs for days at a time with little warning.

• What is the project start date and estimated completion date? Both should be written into the contract, not given verbally.
• How does the schedule account for monsoon delays? Ask whether weather delays are defined as an excusable delay or if they affect any penalty clauses.
• What are the daily working hours? Tempe has noise ordinances; confirm the crew won't be starting work at 6 a.m. on a Saturday.

Clarify Warranty and Dispute Terms

• What is the warranty period for labor and materials? Arizona's implied warranty for residential construction is typically one year for labor and may extend longer for structural defects under statute. Get the contractor's explicit warranty terms in writing—some reputable contractors offer two-to-three years on labor.
• How are disputes resolved? Many Arizona contractor agreements include binding arbitration clauses. Understand whether you're waiving your right to sue in court before you sign.
• Does the contract reference Arizona's Prompt Payment Act? For commercial work especially, knowing the legal framework governing payment timing matters.

A Few Tempe-Specific Extras Worth Asking

If your project is in one of Tempe's many HOA-governed communities or near the light rail corridor, a few extra questions apply:

• Will you handle HOA architectural review submissions? Many Tempe HOAs require drawings and approval before work starts, and delays there can cascade into your build timeline.
• Are you familiar with Tempe's TPT (Transaction Privilege Tax) requirements? Contractors doing work in Arizona owe TPT on certain materials; this should be factored into your contract price, not added as a surprise at the end.
• Have you worked on projects in this neighborhood or zip code before? Familiarity with local inspectors and Tempe Building Services can genuinely speed up permit approvals.

Before You Search for a Contractor

If you're still in the research phase, browsing local businesses in Tempe is a good way to orient yourself to what's available in the area. When you're ready to narrow your list, you can search for general contractors near you and compare options before requesting bids.

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A well-written contract protects both parties—a good contractor will welcome your questions, not dodge them. Take the time to read every line, ask for clarification on anything vague, and never let urgency pressure you into signing something incomplete. In Tempe's active construction market, there's almost always another qualified bidder willing to do the job right and on paper.