05/06/2026
I read a post on another site that was asking if AZ should require certain payment regulations for contractors the in the manner that CA does.
Although AZ does not have many requirements to limit payments to contractors, it is very clear on what is allowed in the pool industry. And for good reason. Front ended contracts in AZ have been a problem in the past with customers paying for projects and never actually seeing the project completion do to contractors mismanagement.
Here is a little info about swimming pool payments to your contractor if you are hiring a pool builder:
Arizona has a very specific statutory payment schedule for swimming pool and spa construction contracts under
A.R.S. § 32-1158.01. That law tightly controls how much a pool contractor can collect at each stage of the project.
Currently, the statute generally limits payments to:
• 15% down at signing
• 25% after excavation
• 25% after steel/plumbing/shotcrete
• 25% after decking
• Remaining balance before interior finish/plaster
This is unique because Arizona historically had major issues with pool contractor abandonments and front-loaded
payment schedules.
For most other types of contractors in Arizona — such as:
• General contractors
• Remodelers
• HVAC
• Roofing
• Electrical
• Plumbing
• Landscaping
• Concrete
• Commercial construction
There is generally not a comparable statutory percentage cap like the pool industry has.
Instead, Arizona mainly regulates:
1. Contract disclosure requirements
2. Prompt payment timelines
3. Consumer protection issues
4. Licensing and bonding
For ordinary residential construction contracts, Arizona law requires the contract to clearly state:
• Deposits
• Progress payment amounts
• The construction stage tied to each payment
But unlike pool construction, the state usually does not dictate the actual percentages.
Arizona’s Prompt Pay statutes then govern how quickly owners and contractors must pay approved invoices and
subcontractors.
A few important practical points:
• Excessive front-loading can still create ROC problems if it appears deceptive or financially irresponsible.
• Residential contractors must still comply with Arizona consumer fraud and ROC standards.
• If a contractor collects large sums and abandons the project, the homeowner may pursue:
- ROC complaints
