Custom Post type Query by Taxonomy

I think showposts was replaced by posts_per_page in wordpress 2.1. See pagination parameters. Also note that print_r($query) won’t return any results because $query variables is WP_Query object; you need to exceute the query.

$args = array( 
        'post_type' => 'contractors',
        'posts_per_page' => -1,
        'tax_query' => array(
            array(
                'taxonomy' => $taxonomy,
                'terms' => $taxarray,
                'field' => 'id'
            )
        )
    );
$query = new WP_Query($args);
$results = $query->get_posts();
print_r($results);