Holtzman Construction and Holtzman Remodeling have shut down and pulled their contractor licenses, leaving homeowners with unfinished projects and subcontractors seeking payment for unpaid invoices. The closure presents different recovery questions for each group: homeowners may be eligible to seek help from Arizona’s Residential Contractors’ Recovery Fund, while suppliers and subcontractors are excluded from it.
Richard and Amanda Finley signed a contract with Holtzman Construction in August 2024 for what they described as their dream-home project, according to FOX 10 Phoenix. Work began in January, and the couple told the station that the first three months went smoothly. The project was scheduled for completion by September 1. Richard Finley said Holtzman had taken $622,000 of the $900,000 contract price but completed only about $135,000 worth of work.
The Finleys told FOX 10 that the unfinished work included wiring that was about 20 to 25 percent complete, plumbing that was roughly 25 percent complete, and skylights that had not been installed. They also said they went without laundry facilities for five and a half months while waiting for the work to progress.
Permits for unfinished work
For homeowners planning to resume unfinished work in Phoenix, the City of Phoenix says many residential improvement projects require permits and inspections. The city’s overview describes project requirements and the application process, but does not specify how an open permit is handled when a contractor stops work.
A Final Visit, Then Silence
According to FOX 10’s reporting, Brandon Holtzman visited the Finleys’ home on August 19 and promised the family would see progress. The couple said communication from the company stopped after the visit. Employees later received an email citing a bankruptcy filing, although the companies had not filed for bankruptcy by the time FOX 10 reported on their closure, the station reported. When FOX 10 visited Holtzman’s brick-and-mortar location, no one answered.
Danny Holtzman and his son Brandon founded Holtzman Home Improvement in Tempe in 2006, building it over 18 years into a full-service residential remodeling and custom home construction company, according to Construction In Focus. That long track record makes the sudden collapse notable: it was not a fledgling operation but an established name in Phoenix-area construction.
Trouble had reportedly been brewing well before the shutdown. Former employee and client reviews posted to Indeed from early to mid-2026 documented severe job scheduling delays, internal chaos, and rising customer complaints months before the company closed its doors.
Subcontractors Left Chasing Unpaid Bills
A&M Electric, a subcontractor with nine years in business, told FOX 10 it was owed $36,657 for work across about a dozen Holtzman projects. Arizona’s Residential Contractors’ Recovery Fund is limited to homeowners: suppliers, subcontractors, and commercial clients cannot make claims, according to the Arizona Registrar of Contractors.
Subcontractors also cannot record mechanic's liens against owner-occupied primary residences unless they entered into a direct, written contract with the homeowner, under A.R.S. § 33-1002(B), as explained by Provident Lawyers. The ROC director told FOX 10 that unpaid subcontractors may need to pursue remedies through the courts.
What Homeowners Can Actually Claim
For homeowners, the Residential Recovery Fund offers a possible lifeline, capped at $30,000 per customer and $200,000 per contractor license. To qualify, homeowners must prove the contractor held an active license when the contract was signed, when payment was made, or when work started, per the recovery fund statutes. Before reaching the fund, homeowners must first file a claim against the contractor's required license bond, which state law sets between $4,250 and $100,000.
Tom Cole advised residential contract customers to file complaints as soon as possible, the station reported. Under A.R.S. § 32-1162, filing an administrative complaint with the Arizona Registrar of Contractors is subject to a two-year deadline tied to project milestones, rather than the date of an alleged violation.
The Arizona Registrar of Contractors website has listed Holtzman Construction and Remodeling as inactive, and state data shows 45 complaints filed against the company since 2024, and more than 150 complaints against Holtzman companies dating back to 2010. The regulator oversees more than 60,000 licensed residential and commercial contractors statewide and expects to process over 8,000 contractor complaints by the end of 2026.
Any payout from the recovery fund carries lasting consequences for the company's principals. Under A.R.S. § 32-1139(B), a payout automatically triggers suspension of the contractor's license by operation of law, and no associated officers can obtain or reactivate a license until the fund is fully reimbursed with 10% annual interest.
Bankruptcy Filing
Joel Sannes represented Holtzman as a bankruptcy attorney, and said in a statement that Holtzman Construction and Holtzman Remodeling experienced a unique and unexpected business challenge. The companies plan to make all efforts to ensure creditors have complete and accurate information about company debts, and may file for protection under the bankruptcy code, according to the attorney's statement reported by the station. The Arizona Attorney General's Office declined to comment on whether Holtzman companies are under investigation.
