Page 1 of 207
STATUTES & RULES EXAM (ROC) –
CONTRACTOR LICENSING 2026/2027 EXAM
REAL QUESTIONS WITH WELL ELABORATED
ANSWERS (100% CORRECT VERIFIED
SOLUTIONS) LATEST UPDATED VERSION
GUARANTEED PASS A+
1. A General Commercial Contractor (B-1) bids on a project
to build a strip mall. The contract includes managing the
installation of HVAC systems. Under ARS 32-1102, this falls
under:
A) Specialty Residential Contracting
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B) General Engineering Contracting
C) General Commercial Building contracting
D) General Dual Licensing
Answer: C
Rationale: ARS 32-1102(1) explicitly defines General
Commercial Building contracting as engaging in business for
structures on commercial property, including supervision of
work .
2. According to ARS 32-1101, which activity is specifically
exempt from requiring a contractor’s license?
A) Installing a water heater for a neighbor for $500
B) A homeowner painting their own single-family residence
C) Building a retaining wall over 36 inches for a client
D) Performing drywall repair for a landlord on a rental
property
Answer: B
Rationale: The "Homestead exemption" in ARS 32-1121
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generally allows an owner to build or improve their own
property without a license, provided it is not intended for sale.
3. The Residential Contractors' Recovery Fund is established
under ARS 32-1131 et seq. What is the maximum amount a
single claimant can recover from this fund for damages
caused by a licensed contractor?
A) Unlimited; the fund covers all losses
B) 30,000C)30,000C)100,000
D) 10,000
∗∗Answer:B∗∗∗∗Rationale:∗∗Thefundisdesignedtoreimburseactu
aldamagesupto10,000∗∗Answer:B∗∗∗∗Rationale:∗∗Thefundisde
signedtoreimburseactualdamagesupto30,000
(or 40,000forsomeclaims)butislimitedperclaimant.Notethatthesu
retybondoptioninappealsalsoreferences40,000forsomeclaims)b
utislimitedperclaimant.Notethatthesuretybondoptioninappealsalso
references30,000 .
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4. A Qualifying Party (QP) leaves a company. According to
ARS 32-1127.01, what happens to the license?
A) The license remains active for one year
B) The license becomes inactive immediately unless a new QP is
named within a specific timeframe
C) The license transfers to the employee with the most seniority
D) The license becomes a "Dual" license automatically
Answer: B
Rationale: The license is tied to the Qualifying Party. If the QP
disassociates, the license is void/inactive. The company usually
has 20 days (or up to 120 days with fees) to replace them.
**5. (Scenario) Lisa is a designer who draws plans for a patio
cover. She
charges 800anddoesnotbuildanything.DoessheneedaROClicens
e?∗∗A)Yes,anyworkover800anddoesnotbuildanything.Doesshene
edaROClicense?∗∗A)Yes,anyworkover750 requires a license
B) No, because she is merely furnishing materials or supplies
STATUTES & RULES EXAM (ROC) –
CONTRACTOR LICENSING 2026/2027 EXAM
REAL QUESTIONS WITH WELL ELABORATED
ANSWERS (100% CORRECT VERIFIED
SOLUTIONS) LATEST UPDATED VERSION
GUARANTEED PASS A+
1. A General Commercial Contractor (B-1) bids on a project
to build a strip mall. The contract includes managing the
installation of HVAC systems. Under ARS 32-1102, this falls
under:
A) Specialty Residential Contracting
,Page 2 of 207
B) General Engineering Contracting
C) General Commercial Building contracting
D) General Dual Licensing
Answer: C
Rationale: ARS 32-1102(1) explicitly defines General
Commercial Building contracting as engaging in business for
structures on commercial property, including supervision of
work .
2. According to ARS 32-1101, which activity is specifically
exempt from requiring a contractor’s license?
A) Installing a water heater for a neighbor for $500
B) A homeowner painting their own single-family residence
C) Building a retaining wall over 36 inches for a client
D) Performing drywall repair for a landlord on a rental
property
Answer: B
Rationale: The "Homestead exemption" in ARS 32-1121
,Page 3 of 207
generally allows an owner to build or improve their own
property without a license, provided it is not intended for sale.
3. The Residential Contractors' Recovery Fund is established
under ARS 32-1131 et seq. What is the maximum amount a
single claimant can recover from this fund for damages
caused by a licensed contractor?
A) Unlimited; the fund covers all losses
B) 30,000C)30,000C)100,000
D) 10,000
∗∗Answer:B∗∗∗∗Rationale:∗∗Thefundisdesignedtoreimburseactu
aldamagesupto10,000∗∗Answer:B∗∗∗∗Rationale:∗∗Thefundisde
signedtoreimburseactualdamagesupto30,000
(or 40,000forsomeclaims)butislimitedperclaimant.Notethatthesu
retybondoptioninappealsalsoreferences40,000forsomeclaims)b
utislimitedperclaimant.Notethatthesuretybondoptioninappealsalso
references30,000 .
, Page 4 of 207
4. A Qualifying Party (QP) leaves a company. According to
ARS 32-1127.01, what happens to the license?
A) The license remains active for one year
B) The license becomes inactive immediately unless a new QP is
named within a specific timeframe
C) The license transfers to the employee with the most seniority
D) The license becomes a "Dual" license automatically
Answer: B
Rationale: The license is tied to the Qualifying Party. If the QP
disassociates, the license is void/inactive. The company usually
has 20 days (or up to 120 days with fees) to replace them.
**5. (Scenario) Lisa is a designer who draws plans for a patio
cover. She
charges 800anddoesnotbuildanything.DoessheneedaROClicens
e?∗∗A)Yes,anyworkover800anddoesnotbuildanything.Doesshene
edaROClicense?∗∗A)Yes,anyworkover750 requires a license
B) No, because she is merely furnishing materials or supplies
