Construction Law

This article originally appeared in the April 2002 issue of "The Construction Advisor" published by Lang Baker & Klain, PLC. It was revised in January 2010. Free Subscription to the Construction Advisor View the Construction Advisor index

Effective August 9, 2001, A.R.S. § 32-1124(B) required all licensed contractors to print their license number, preceded by the acronym “ROC,” on any advertising or printed materials used in their business. For example, if your license number is 1234567, your printed materials have to show that your license number is “ROC1234567."

Further, an October 2009 amendment to that statute broadens the license number display requirement to include "broadcast, published, internet or billboard advertising, letterheads and other documents used by the licensee to correspond with the licensee's customers or potential customers."

Letterhead, business cards, proposals, invoices, written advertisements or any other printed materials you use must properly display your ROC license number in this manner to avoid penalties.

In addition, unlicensed contractors who are exempt from licensing under A.R.S. § 32-1121(A)(14)(c) must include the phrase “not a licensed contractor” in all advertisements and printed materials.

Violation of the requirements can result in civil penalties up to $500 for each violation. The Registrar can also revoke the license of a contractor who fails to pay the penalty and issue a cease and desist order and an additional penalty of $2,500. Unlicensed contractors who violate the requirements lose their exempt status and can face prosecution.

Penalties

If the Registrar believes a contractor has intentionally failed to include the required language or license number, it can petition the Superior Court for a civil penalty of up to $10,000 under the Arizona Consumer Fraud Act. The Act subjects businesses to severe fines for any misrepresentation in connection with the sale or advertisement of merchandise, real estate or services.