What type of contracts requires a written agreement in Arizona?

In Arizona, contracts for work exceeding $1,000 require a written agreement to ensure that both parties are clear on the terms, scope, price, and obligations of the contract. This written requirement serves to protect both the contractor and the consumer, providing legal backing should any disputes arise.

Having a written contract for larger projects helps establish formal expectations and documentation, which is particularly important in construction where specific details about the work to be performed can greatly affect the outcome and financial implications. While verbal agreements may sometimes be enforceable, they can lead to misunderstandings and are more difficult to prove in the case of a dispute, especially when dealing with larger amounts of money and more complex projects.

In contrast, contracts for work under $1,000 do not have this formal requirement, allowing for more flexibility in smaller transactions, which can often be managed with verbal agreements.