What Arizona law says about a residential pool contract

A.R.S. §32-1158.01 governs contracts to build a residential in-ground pool or spa for an owner who lives in the home. It limits how much a contractor can collect before the work is done and spells out when each payment comes due. Knowing the rule lets you spot a contract that doesn't follow it.

What a new pool costs, for context

Published 2026 price guides put a new concrete pool at about $50,000 to $120,000 or more (typical, October 2026). At those prices, a 15% down payment comes to $7,500 or more, and each 25% stage to $12,500 or more.

The payment schedule

Under §32-1158.01, the payments on a residential pool contract with an owner-occupant follow this pattern:

The final payment comes due before the plaster or pebble goes on. So once you have made it, the interior finish is the main work left. Walk the pool with the contractor before that payment and write down anything unfinished.

Bonds

The statute requires the contractor to offer you the option of payment and performance bonds. You pay for them, and the contractor can't add a surcharge. A performance bond backs completion of the work. A payment bond backs payment to the subcontractors and suppliers. Ask for the bond price in writing so you can decide whether it's worth it.

Notices and change orders

The required notices in a pool contract must appear in at least 10-point type. Any change to the work requires a written change order. If the crew hits rock and the price goes up, the change order is where that increase belongs, signed before the extra work starts.

What any Arizona residential contract must include

A.R.S. §32-1158 applies to residential contracts over $1,000, which takes in any pool contract. The contract must list:

• the contractor's name, address, and license number
• a description of the work
• the total price
• any deposit and the schedule of progress payments
• notice of the owner's right to file a complaint with the Registrar of Contractors, in 10-point bold type, with the registrar's phone number and website

If a contract is missing any of these, ask why before you sign it.

Which license fits the job

The Arizona Registrar of Contractors (ROC) licenses pool contractors. The state's rules set several pool classes:

For a new residential pool, look for B-5, B-6, KA-5, or KA-6, or a B-4 or KA engineering license, whose scope includes B-5 work (A.A.C. R4-9-103, R4-9-104). Check the license on the ROC's website, roc.az.gov, and make sure the name and number match the contract.

Arizona exempts some small jobs under $1,000 from licensing, but A.R.S. §32-1121(A)(14) says the exemption doesn't apply when the work needs a building permit. A pool needs a permit, so the contractor needs an ROC license. Scottsdale's permit application asks for the contractor's ROC number, and so do the Paradise Valley and Cave Creek forms.

If something goes wrong

The complaint deadline. Under A.R.S. §32-1162(A), a complaint to the Registrar of Contractors must be filed within two years after the project is completed. Keep the contract, change orders, payment records, and photos together until that window closes.

The recovery fund. Arizona's Residential Contractors' Recovery Fund can compensate an owner-occupant of the damaged residence who hired a contractor holding the appropriate license at the time (A.R.S. §32-1132). The fund's total liability is capped at $200,000 per contractor license (A.R.S. §32-1139). Eligibility depends on the contractor's license, which is one more reason to check it before you sign.

A checklist for comparing contracts

• Down payment at or below 15%, with four stages tied to excavation, shell, decking, and pre-finish
• The bond option offered in writing
• Contractor name, address, and ROC license number on the contract, with the license class matching the work
• A clear scope: barrier, decking, equipment pad and screen wall, dust permit, startup
• A stated method for pricing rock or hardpan
• Proof of insurance before work starts
• Finish and equipment warranty terms in writing
• The registrar complaint notice in bold type

The barrier guide covers the notice a Scottsdale pool contractor must give you about barrier rules. For the full project sequence, see how a new pool project runs.