When a contractor's license is suspended, what activities are they prohibited from doing?

Study for the Arizona Statutes and Rules Exam. Prepare with comprehensive questions and detailed explanations. Ace your exam with confidence!

When a contractor's license is suspended, they are prohibited from offering to contract or bid. This prohibition is in place because a suspended license indicates that the contractor is not in good standing and does not have the legal authority to enter into new contracts or obligations. The integrity of the licensing system is maintained by ensuring that only contractors who have met all legal and regulatory requirements can engage in activities that require a valid license.

Seeking new contracts would generally be covered by the prohibition on bidding or contracting, as the contractor cannot legally enter into agreements while their license is suspended. Although completing ongoing projects may have its own specific provisions, typically, a contractor may still be allowed to finish existing contracts but under certain conditions, and hiring subcontractors might not be outright prohibited depending on the terms of the suspension. Thus, the most direct and clear prohibition relating to the status of their license is the inability to offer to contract or bid for new work.

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