Arkansas Contractor License Bond Requirements
Arkansas’ Contractors Licensing Board requires that commercial contractors maintain a valid contractors license bond to ensure that they comply with the provision of A.C.A 17-25-401 as well as all other applicable regulations.
Like other surety bonds, the contractors license bond in Arkansas is a legally binding agreement between the contractor, the state, and the bonding company. Should the contractor violate the terms of their bond, they may face a claim. A claim can be made on behalf of third parties who have suffered losses or damages due to the contractor’s work.
If you want to learn more about contractor license bonds in Arkansas, consult the FAQ section below.
Questions about Contractor License Bonds in Arkansas
Which contractors need to get bonded in Arkansas?
Commercial contractors across the state are required to post a contractor license bond. Additionally, the following municipalities have bonding requirements for certain types of contractor classifications: Benton, Fort Smith, Greenbrier, Little Rock, Jacksonville, North Little Rock, Pine Bluff, Sherwood and Star City.
How much does an Arkansas contractor license bond cost?
The cost of your bond depends on a number of factors. Each city determines their own total amount, but they all vary between $1,000 and $10,000. To get bonded, contractors are required to pay a premium, which is a percentage of the total bond amount. The table below contains more information about total values by location as well as estimated premiums.
|Location||License Type||Surety Bond Amount||Credit Sore|
|Above 700||Between 650-699||Between 600-649||Below 599|
|Statewide||Contractor License Bond||$10,000||$100-$150||$100-$250||$250-$500||$500-$1,000|
|Little Rock||Contractor License Bond||$10,000||$100-$150||$100-$250||$250-$500||$500-$1,000|
- Bond amounts for contractor license bonds in other cities and for other contractor types are not fixed, so they cannot be displayed here.
The cost of your bond is directly related to your personal credit score, how long you’ve been in business, your financials and your industry experience. Learn more all about these factors on our What Does a Surety Bond Cost? Page.
Can I get these bonds with bad credit?
Most of these bonds are not considered high-risk, so they may not even require a credit check. However, even if a credit check is required, you will still be able to get bonded even if you have bad credit.
Lance Surety Bonds offers bad credit bonds through a specialty program, so 99% of our clients successfully get bonded. On rare occasions, such as when you are late on child support payments or are in an open bankruptcy, you may not be able to get bonded.
How do I apply for my bond?
We offer a fast, secure and easy online application process. All you have to do is submit our application, which takes no more than five minutes, provide ownership information and pay your premium– we take care of the rest.
You can access the bond to use as reference form from the link below:
Under normal circumstances, our turnaround time is quite fast: you can expect to have your bond signed in as little as 1-2 business days.
How do I get an Arkansas contractors license?
To get your contractor’s license you need to apply with the Contractors Licensing Board. You will need to pick a classification, submit professional references as well as financial statements, and a statement detailing your experience. Finally, you will need to pass an examination, which is currently administered by Prometric.
Keep in mind that different license types will require an additional set of steps, so be sure to contact your licensing authority for more detailed information.
What happens in case of a claim?
You should take utmost care so as not to trigger a bond claim. A claim can cost you a lot of time and money, and may make it impossible to get bonded in the future.
If you have been notified of a valid complaint, you should settle it before it turns into a claim. What constitutes a valid source for a claim can vary depending on your city and location. You should contact your local licensing authority so that you know which laws and regulations apply to you. Typical activities that lead to a claim include violating building codes, or failing to declare and pay taxes.
Still got questions about Arkansas contractor license bonds? Give us a call at (877)-514-5146 and let us know how we can help!
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