Arizona

  • Project Labor Agreements

    Adopted ABC model government neutrality bill.

  • Prevailing Wage

    No.

  • Right to Work

    Yes.

  • Public-Private Partnerships

    Statute authorizes the use of P3s on horizontal and vertical construction projects. Unsolicited bids are allowed.

  • Workforce Development Incentives

    Current labor supply satisfies 105% of peak labor demand.

    State offered $16,198,700 in grants and incentives for workforce preparation and development in 2023.

  • Career and Technical Education

    48% of CTE high school graduates are placed in colleges or careers.

    Arizona recognizes NCCER as an approved curriculum for CTE programs.

  • Job Growth Rate

    5.3%.

Monthly Unemployment Rate in Arizona

Please see ABC's state-by-state construction unemployment data here.

Industry Overview

Prompt Pay

Private: When a contractor completes and an owner approves and certifies all work under a construction contract, the owner shall make payment in full within seven days. 1.6% interest per month.
Public: 14 days after invoice approved. Final payment 60 days after acceptance. 1% interest per month.
Subs: Payment must be made to subs and from subs to lower tiers within 7 days, unless otherwise agreed.

Immigration/E-Verify Mandate

The law requires employers in Arizona to use the E-Verify system to verify the employment authorization of all new employees hired. Government contracts may not be awarded to businesses that do not use E-Verify.

Percentage of State GDP From Nonresidential Construction

4.8%.

Incidence Rate

5.1

Occupational Safety & Health Oversight (State vs. Federal)

State plan covers private workplaces and state and local government workplaces.

Percentage of Union Membership in Private Construction

4.8%

Marijuana Legalization Status

Legalized for medicinal use, decriminalized for personal use.

Business Facts

Minimum Wage

$12.80

Percentage of Pensions Funded

65.2%

Effective Real-Estate Tax Rate

0.60%

Corporate Income Tax Rate(s)

4.9%

State and Local Public Construction Expenditures (in millions)

$5,048
D
Overall Rank 14
  • Project Labor Agreements A
  • Prevailing Wage A
  • Right to Work A
  • Public-Private Partnerships A
  • Workforce Development Incentives C
  • Career & Technical Education D
  • Job Growth Rate A

Compared to

Arizona
 
National
A
PLA
B
A
PPP
C
C
WDI
C
D
CTE
B
A
JGR
C

Compared to the National Average

Arizona
 
National
A
PLA
B
A
PPP
C
C
WDI
C
D
CTE
B
A
JGR
C

Visit Our Local State Chapters

Arizona Builders Alliance