Licensing Guides
State Contractor License: How to Become a General Contractor in Arkansas
Contractor, AR
Table of Contents
Why Do You Need a Contractor License in Arkansas?
How Can You Get a Contractor License in Arkansas?
Types of Contractor Licenses in Arkansas
What Are the Requirements of an Arkansas Contractor License?
How Long Does It Take to Get a Contractor License in Arkansas?
How Much Does It Cost to Get a Contractor License in Arkansas?
Arkansas Contractor License Training Programs and Schools
Does Arkansas Reciprocate Contractor Licenses?
Do I Need to Renew my Contractor License in Arkansas?
Are There Any Penalties for Contracting Without a License in Arkansas?
We all need a place to live and work, and those buildings require upkeep and repair. They are often the biggest investments we make in our lives and keeping them in good condition is essential. We count on professionals to know how to fix damage to or wear and tear on our homes and businesses. General contractors are typically the experts we rely on to help us with these repairs, and we need these men and women to know what they’re doing.
Many states require contractors to be licensed. Others simply require solid insurance to back up the essential work they perform. There are 520,900 construction managers and 1,599,800 construction laborers and helpers nationwide according to the Bureau of Labor Statistics (BLS). Arkansas employs 2,080 managers and 8,860 laborers and helpers. The national number for managers is projected to grow 9% from 2023 to 2033 and 8% for laborers and helpers. In Arkansas, according to CareerOneStop, the U.S. Department of Labor’s job search website, the projected growth rate for laborers and managers is 8%. If you’re thinking about becoming a contractor or you want a job in the field, you need to know the licensing requirements in your state or local jurisdiction. This guide will help you determine what you need before you get started.
Why Do You Need a Contractor License in Arkansas?
A contractor license is necessary to perform most work legally in Arkansas. The state of Arkansas offers several types of licenses for home improvement contractors who work on commercial and residential projects, issued by the Arkansas Contractors Licensing Board.
Specifically, a Commercial license is needed for commercial work of $50,000 or more. A Residential Builders license is needed to build a single-family residence if the cost of the project is more than $2,000. A Residential Remodelers license is needed to make major structural changes to a single-family residence or to add on to an existing single-family residence if the project is more than $2,000. A Home Improvement license is needed to do specialty work (roofing, flooring, painting) on a single-family residence if the project is more than $2,000. All of these license classifications include an unlimited license and limited license. The unlimited license holder can work on projects of any value.
Subcontractors in Arkansas only need to register with the licensing board as long as they work under a licensed contractor.
Arkansas also offers temporary licenses for contractors who are licensed in another state. The license is only valid for 90 days.
How Can You Get a Contractor License in Arkansas?
The process for getting your license is all spelled out on the state website. The process for each license type is roughly the same.
You must be at least 18 years of age. You must have either a Social Security number or an individual taxpayer identification number.
You must submit a minimum of three professional references who can verify you meet the required training for each license type.
You must pass Arkansas Business and Law exam and include your scores in the license application.
If applying as a corporation, LLC, LP, or LLP, you must attach a copy of the filing with the Secretary of State’s Office.
If you have one or more employees, you must obtain worker’s compensation insurance coverage.
You must meet minimum financial requirements showing a positive net worth and provide documentation from a licensed CPA.
Commercial license holders must obtain a contractor’s surety bond.
Types of Contractor Licenses in Arkansas
Arkansas offers several types of licenses for commercial and residential contractors.
Residential Remodelers license
Commercial Contractors license
A Residential Builders license enables the license holder to build a single-family residence if the cost of the project is more than $2,000, including labor and materials. A Residential Builders License also allows you to perform remodeling on a single-family residence.
A Residential Remodelers license enables the license holder to make major structural changes to a single-family residence or to add on to an existing single-family residence if the project is more than $2,000, including labor and materials.
A Commercial Contractors license enables the license holder to perform commercial work of $50,000 or more, including labor and materials. Any project that is not a single-family residence is considered a commercial project by the Contractors Licensing Board.
A Home Improvement license enables the license holder to do specialty work on a single-family residence if the project is more than $2,000, including labor and material. “This license is for a contractor who is only responsible for certain types of work (painting, roofing, flooring, etc.). This license does not allow you to build a home or remodel a home,” according to the Board.
Getting a contractor license
The bottom line is that you need to be licensed to do any kind of initial residential or commercial construction, repair, or maintenance valuing more than $2,000 in the state of Arkansas. Here’s how you go about getting licensed.
FULFILL WORK EXPERIENCE: Each license classification requires a minimum amount of work experience that must be backed up by the references you include on the application. Commercial licenses require a minimum of five years of experience, Residential Building licenses require at least four years of experience, and Residential Remodeler licenses require two years of experience. The Home Improvement license doesn’t require a specific amount of training but requires the licensee to include project references for any specialty trades listed on the license.
APPLY FOR LICENSE: Once you’ve fulfilled the work experience requirements, you may apply for a Contractors license. Applications for all license classifications can be found here.
PAY APPLICATION FILING FEE: The filing fee for both the Commercial and Residential Builder license is $100. The filing fee for the Residential Remodeler and Home Improvement license is $50. All fees must be paid by check or money order and included with the license application.
Mail applications to: Contractors Licensing Board, 4100 Richards Rd., North Little Rock, Arkansas 72117
TAKE LICENSING EXAM: All contractor license classifications require you to pass the Arkansas Business and Law exam, administered by PSI. The exam fee is $84. For exam prep, the Arkansas Contractors Licensing Board suggests consulting the NASCLA Contractors Guide to Business, Law and Project Management, Arkansas Edition.
COMPLETE CRIMINAL BACKGROUND CHECK: As part of the licensing process, you must disclose any criminal history on your application, including the charge, jurisdiction, sentence, and a written explanation of what happened. You also have to complete a questionnaire that asks if you have ever had a license revoked or suspended, or ever had to register as a sex offender.
PROVIDE FINANCIAL INFORMATION: All unlimited license holders must provide a financial statement and balance sheet from a CPA showing a positive net worth.
PROVIDE PROOF OF INSURANCE: You must obtain workers’ compensation insurance if you have any employees.
PROVIDE PROOF OF CONTRACTOR BOND: Commercial license holders must obtain a contractor’s surety bond in the amount of at least $10,000.
Getting a specialty trade license
Arkansas also issues trade licenses for electrical work, plumbing, HVACR and other skilled trades. Similar to contractor licenses, specialty trades typically require several years of on-the-job and classroom training.
For example, to become eligible for an electrical journeyman license, you must obtain four years of work experience plus 800 hours of classroom training. To become a master electrician, you need to work an additional two years as a journeyman or earn a degree in electrical engineering and acquire two years of construction-related work.
You can also consult our guides to getting your HVAC license, plumbing license, or electrical license in Arkansas.
What Are the Requirements of an Arkansas Contractor License?
There are age, knowledge/experience, and financial prerequisites.
You must be at least 18 years of age.
You must have either a Social Security number or an individual taxpayer identification number.
Acquire work experience by working under a licensed contractor and submit a minimum of three professional references who can verify you meet the required training.
Apply for the license.
Take and pass all parts of the contractor exam.
Meet the workers’ compensation insurance requirements if you have one or more employees.
Pay all fees.
Attest to any criminal history or former penalties working as a contractor.
Obtain a surety bond for commercial work.
How Long Does It Take to Get a Contractor License in Arkansas?
It will take a minimum of two years to qualify for a Residential Remodeler license and at least five years to qualify for a Commercial license. Additionally, all license applications are reviewed and approved during a regular board meeting of the Arkansas State Contractors Licensing Board. The Board requires you to submit your license application at least three weeks before the next board meeting. View a list of board meeting dates here.
What Business Owners Need to Know
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How Much Does It Cost to Get a Contractor License in Arkansas?
The filing fee for both the Commercial and Residential Builder license is $100. The filing fee for the Residential Remodeler and Home Improvement license is $50. The cost of the licensing exam is $84. You also need to demonstrate a positive net worth and obtain workers’ compensation insurance.
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Arkansas Contractor License Training Programs and Schools
The State of Arkansas requires previous work experience to qualify for all contractor license types. Most people acquire experience by completing an apprenticeship or working under a licensed contractor. The Arkansas Office of Apprenticeship offers a Registered Apprenticeship program to connect candidates with job training.
According to the Office of Apprenticeship, “Registered apprentices can avoid the crippling debt of college loans. They also benefit from experienced mentors in their field. Registered Apprentices are paid for their work, and their wages increase with the growth of their job skills and knowledge.”
If you choose to start your career path at a college or university, you can pursue a degree in construction management or construction engineering. There are many higher education options throughout the Golden State that offer these types of programs. Each of the following schools offers a Construction Management Bachelor of Science degree.
There are also many Arkansas Community Colleges throughout the state that offer Construction Management programs and associate degree and certificate options.
Does Arkansas Reciprocate Contractor Licenses?
Yes. Arkansas has reciprocity agreements with Alabama, Louisiana, Mississippi, and Tennessee. For Alabama, Louisiana, and Mississippi, you must hold a contractor license for at least one year before qualifying for licensure in Arkansas. For Tennessee, you must hold a contractor license for a minimum of three years. To get started, complete the license reciprocity form.
Do I Need to Renew my Contractor License in Arkansas?
To keep your state-issued active license current, you must renew it annually. The license renewal fee for the Commercial and Residential Builder licenses is $50; the late fee is $100. The renewal fee for the Home Improvement and Residential Remodeler licenses is $25; the late fee is $50. The Board will mail you a renewal notice on the 15th of the month prior to your expiration date.
Are There Any Penalties for Contracting Without a License in Arkansas?
Yes. There are fines, misdemeanor charges, and even possible jail time for contracting without a license in the state of Arkansas. Unlicensed contractors face fines between $100 and $200 per day for each offense. Unlicensed contracting is also a Class A misdemeanor, which can potentially lead to some jail time. Unlicensed contractors are also not able to enforce any contract terms or provisions.
National Certifications
Other certifications can help you demonstrate your proficiency to potential employers and clients. There are many professional organizations that offer certification. These certifications are not required but can add to your marketability and therefore increase your opportunity to make more money.
Some of the top construction certifications are:
Occupational Safety and Health Administration (OSHA) Safety Certificate
Construction Management Association of America Certified Construction Manager (CCM)
National Association of Safety Professionals (NASP) Certified Safety Manager (CSM) certification
National Center for Construction Education & Research (NCCER)
Continuing Education
Though Arkansas does not require continuing education to renew your license, you will want to stay informed about emerging technology in the industry. There are many ways to keep yourself current in regard to the technology put to use in construction, roofing, energy and environmental designs, efficiency standards and more. For example, distributors want you to know about their company’s latest offerings and will often hold training sessions about new and changing equipment and parts. Another option is the Associated General Contractors of America (AGC) which provides continuing education courses
Resources
You can stay up to date on contracting industry news several ways:
Check top blogs, including ServiceTitan’s blog.
Read about the latest industry trends, and discover ideas on how to grow your business.
Listen to top podcasts like ServiceTitan’s “Toolbox for the Trades” podcast.
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