Obtaining an Arkansas general contractor license requires understanding of the licensing requirements and passing the necessary tests. In this blog post, we'll discuss the steps you need to take to meet the Arkansas general contractor license requirements and pass the Arkansas general contractor license test. We'll also provide tips on how to make the process as smooth and successful as possible. So, if you’re ready to get started, let’s dive in!

Who Needs an Arkansas General Contractor License?

In Arkansas, all commercial contractors working on projects that are not single-family residences with a contract value of $50,000 or more need a license in Arkansas. Additionally, residential contractors are required to have a license if they work on projects over $2,000. It's important to note that the contract value includes the cost of materials, subcontractors, permits, and anything else involved in the project.

Who Issues an Arkansas General Contracting License?

The Arkansas Contractors Licensing Board is in charge of issuing general contractor licenses– both commercial and residential. The application page with links to these types of licenses can be found here. Keep in mind that Arkansas also offers general contractor license reciprocity, allowing individuals who are licensed in other states to obtain a license in Arkansas without going through the full examination process.

How To Get a Contractors License in Arkansas

In Arkansas the the prerequisites for both residential and commercial contracting licenses are as follows: 

1. Complete the Application:

Begin the process by filling out the application form. You can access the application on the official website or through other authorized channels.

2. Payment of Application Fee:

Along with your application, submit a $100 check made payable to the Contractors Licensing Board. This fee is a mandatory part of the application process.

3. Provide References:

Include three non-supplier or banker references on the provided forms within your application. These references should be individuals who can vouch for your professional competence and character.

4. Pass the Arkansas General Contractor License Test:

Successfully pass the Arkansas Business and Law test and provide a copy of your test score as part of your application. This test evaluates your knowledge of relevant business and legal aspects related to construction.

5. Financial Documentation

Submit a compiled financial report from a Certified Public Accountant (CPA). This report should demonstrate a positive net worth, indicating your financial stability.

6. Corporate Entities (if applicable)

If you are applying on behalf of a corporation, Limited Liability Company (LLC), Limited Partnership (LP), or Limited Liability Partnership (LLP), attach a copy of the articles of incorporation or filings from the Secretary of State to verify your business entity.

7. Worker's Compensation Insurance

Provide proof of Worker's Compensation insurance if you have one or more employees. This is a mandatory requirement to ensure the well-being of your workers in case of accidents or injuries on the job.

How much does licensing cost in Arkansas

A nonrefundable filing fee of $100 and an $84 exam fee, payable to the Contractors Licensing Board, are mandatory. Please be aware that additional fees may be necessary to obtain contractor licensing from specific municipalities.

Passing The Arkansas General Contractor License Test

Also known as the Business and Law exam, all contractors must complete this test in order to obtain a license in the state of Arkansas. In order to take the tests contact PSI at 800-733-9267 to begin this process. Once you have your testing location and date secure here are a few tips to help you pass the examine:

1. Review Study Materials

Start by delving into study materials that cover the topics featured in the exam. You can find a wealth of resources, such as online courses, practice tests, and study guides, to aid your preparation.

2. Allocate Study Time

Create a study schedule that suits your needs and commit to it. Managing your time effectively ensures you cover all necessary materials. Consider forming study groups with fellow aspiring contractors for mutual support and knowledge exchange.

3. Test Day Preparation

On the day of the exam, arrive early at the testing center. Familiarize yourself with the location and any specific rules or regulations set by the testing authorities.

Arkansas General Contractor License Reciprocity

Arkansas extends reciprocity for contractors from neighboring states who wish to work within its borders. Here's an overview of the general contractor reciprocity agreements:

• Alabama: Requires a valid contractor license for at least one (1) year.
• Louisiana: Requires a valid contractor license.
• Mississippi: Requires a valid contractor license for at least one (1) year.
• Tennessee: Requires a valid contractor license for at least three (3) years.

Penalties for Unlicensed Contractors in Arkansas

Contractors in Arkansas who engage in unlicensed work for projects that necessitate licensing may face severe consequences, including financial penalties and the risk of losing their right to receive payment for their services. These state-imposed fines can range from $100 to $200 for each violation, and each day they continue working without a license is considered a new offense. Additionally, unlicensed contracting is classified as a Class A misdemeanor, potentially leading to incarceration.

Leveraging your license on Houzz

Now that you know the Arkansas general contractor license requirements  it’s time to start thinking about how you can promote your license to potential clients. Everyone who’s anyone knows the value of a blue checkmark on social media. That’s what the green Verified License Badge is for businesses on Houzz Pro. With one glance, this Badge helps you:

• Let homeowners know that your business is licensed by state industry experts.
• Stand out from the competition while homeowners consider who to hire
• Add credibility to your company name, providing peace of mind to future clients

Here are the steps you can take to add a verified license to your Houzz profile. If you haven’t created a free profile on Houzz, sign up today and get ready to make a bigger impact with your business’ online presence.