Arkansas Contractor License

In Arkansas to work as a general contractor, you need to obtain the Arkansas general contractor license. Continue reading for detailed information and for a step-by-step guide that will help you quickly and easily get your license.

Why You Need a General Contractor’s License in Arkansas

Some of you may work as a contractor without a license and wonder why you need to get it. Having a contractor license gives you a lot of benefits and opportunities.

The license:

• Shows that you have the corresponding knowledge of your job
• Gives you the advantage over people without a license
• Makes you more competitive in the market
• Protects you and your employees, as with a license you also get an insurance

Now as we have talked about the benefit it’s time to talk about the licensure process in Arkansas.

How to Get a Contractor’s License?

There are two different categories of the general contractor’s license in Arkansas commercial contractor license and residential contractor license. For each license type, there are different requirements. So, let’s talk about each separately.

Commercial Contractor’s License

You will belong to this category if you are doing construction projects in Arkansas that include non-family residential buildings or property. And it doesn’t matter if it is a small office or a large building complex.
Also, the project’s worth must be at least $50,000 and this amount includes any type of cost connected with the project.

So, if you have decided to get a commercial contractor’s license, you need to complete these steps.

1. Fill and submit the Arkansas Commercial New Application Form
2. Pay the fee of$100
3. Provide three written references with your application
4. Provide the copy of the Arkansas Business and Law exam score
5. Submit the fulfilled Contractor’s Bond of $10,000
6. Issue the financial statements

Note: Before filling the Arkansas Commercial New Application Form make sure to read it.

Residential Contractor’s License

You need the Residential Contractor’s License if you are planning to do any type of work on a single-family residence. The work can be building a home or adding an extension.

According to Arkansas law, any property includes a maximum of four separate single units. Any building that includes more than four separate units is a commercial project.

If your project’s worth is more than $2,000 you need to get a residential license. This amount includes subcontractors, materials, and any other costs.

If you want to get a residential contractor’s license, you need to complete these steps:

1. Fill and submit the Arkansas Residential Builder New Application Form
2. Pay the fee of $100
3. Provide three written references with your application
4. Provide the copy of the Arkansas Business and Law exam score
5. Submit a balance sheet that covers 1 (one) year of being in business

Note: Every person in Arkansas has eligibility to build one house per year, and for this, you don’t need a residential contractor’s license. But you cannot sell or rent out the houses.

One more thing if you have a commercial license, there is no need to get a residential one for working on a single-family residence, your commercial one covers it.

Other Licenses

There are other contractor classifications in Arkansas, two more of them are:

Light Building Commercial Classification:

With this license, you can work on a commercial project that

• worth no more than $500,000
• have a maximum of two stories

You can also work on residential properties.

Home Improvement License:

You need this license if you are planning to remodel or repair a house, and the residential project’s worth is more than $2,000.
Note: The requirements for these two are the same as for the general ones.

The General Contractor License Exam in Arkansas

In order to prove that you are ready for a residential or commercial contractor’s license, you need to take and pass the Arkansas Business and Law exam. It’s a national exam and you have two hours to complete a 50-question test. You will take the exam at the nearest testing center.

To register for your contractor’s license exam, do these steps:

1. Register online by visiting Prometric or by phone at 1-888-763-0131
2. Register for the Business and Law exam
3. Use Exam Code 100.
4. Write down the name of the place and the time for the exam
5. Pay the examination fee of $80

If you have more questions about the licensure process visit the Arkansas Contractors Licensing Board website.