Contracting is when a price is quoted and agreed upon by both parties for any type of service. As opposed to the indefinite option of working for an hourly wage. In Arizona whenever tile or likened materials are installed in a residence where the cost of the materials AND labor exceed $999 and the price is negotiated before hand, the State requires that the Contractor be "licensed". In addition, the law suggests that if the installation is part of an overall project where the cost is $1000 or more, then a license is required by any and all participants in that project unless the worker is working for a licensed contractor and being payed an hourly wage.
What that suggests is that BY ARIZONA STATE LAW, if anyone gives a bid for any installation, where the material and labor TOGETHER are $1000 or more, the person MUST be licensed. If the material by itself is $999 and the installer suggests he will do the job for $1, he MUST be licensed. If the $10 tile repair is part of a bigger project that exceeds $1000 and a firm price is negotiated, the installer must be licensed.
And even if the worker who works for a licensed contractor has negotiated an agreed upon price for the installation, THAT TOO, requires a license! As that is contracting to a contractor!
Only a project, where the materials AND labor (regardless of who buys the materials) are less than $1000 together, and the work done in the residence is singular and not part of a bigger project, can that work be negotiated legally by an UNLICENSED contractor, who is then classified as a "handyman".
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