Arkansas Contractor License Bond

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What is an Arkansas Contractor License Bond?

Contractors working in the commercial construction industry are required to obtain a license in order to work on certain projects throughout the state of Arkansas. Some residential contractors must also hold a valid license, depending on the size of the project and the jurisdiction where the work takes place. Part of the licensing requirement is securing an Arkansas contractor license bond.

A contractor bond is a form of protection put in place to ensure third parties and customers of licensed contractors have financial recourse in case the work performed is not in line with state or local codes and regulations. A surety company provides the Arkansas contractor bond to the licensed contractor, known as the principal, and an obligee is the party requiring the bond. When a successful claim is made against the bond, payment is made to the customer or third party to cover financial losses.

Do I Need an Arkansas Contractor License Bond?

Many licensed contractors operating in Arkansas are required to secure an Arkansas contractor license bond as part of the ongoing licensing requirements set by the state. The most common licenses that require a surety bond include:

  • Plumbing contractors
  • HVAC contractors
  • Electrical contractors
  • Residential contractors
  • Commercial contractors

Arkansas Contractor License Bond Obligee Information

Although local jurisdictions may have specific business and contractor licensing requirements, most contractors working in Arkansas must also comply with state licensing regulations. Under state law, an Arkansas contractor license bond is required for most licensed contractors. The obligee of the bond is Arkansas Contractors Licensing Board with the following contact information:

Arkansas Contractors Licensing Board

4100 Richards Road

North Little Rock, Arkansas 72117

Phone: 501-372-4661

What Does an Arkansas Contractor License Bond Cost?

Depending on where a licensed contractor is located in the state, an Arkansas contractor license bond between $1,000 and $10,000 may be required. However, you are not responsible for paying the full bond amount. Instead, you are charged a bond premium which is a percentage of the bond you need. This bond premium ranges from 1 to 10%.

The surety company providing your Arkansas contractor license bond determines the bond premium you pay based on your personal credit history and business financials. Contractors with a low credit score will pay a higher bond premium because they pose a greater risk to the surety company.

How Do I Get an Arkansas Contractor License Bond?

Securing an Arkansas contractor license bond is not a complex process. It requires you to submit an application, often done in a few minutes online, so that a surety company can review your credit and business details. Once this information has been reviewed, you will receive a quote for your Arkansas contractor license bond and instructions on how to finalize your bonding requirement.

Expiration Date and Renewal Terms for Arkansas Contractor License Bonds

The statewide contractors license for Arkansas contractors expires one year from the date it was issued. Licenses must be renewed on or before that date to remain in compliance with state laws. An Arkansas contractor license bond has the same expiration date and one-year term as a contractor license, and also must be renewed. The surety company providing your Arkansas contractor license bond sends renewal details and instructions prior to the bond’s expiration date.

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Frequently Asked Questions

Pricing is a percentage of the contractor license bond amount that’s required of you, which is based on your personal credit. Use our bond pricing tool to to get a quick ballpark estimate.

Yes. You can apply and get bonded with bad credit. Our agency is the largest writer of bonds in the county, which allows us to approve contractors for bonds when other agencies cannot.

No. Contractor license bonds ensure you will abide by the laws of your state, city or municipality when performing contracting work. Contract bonds guarantee public projects will be completed properly and are a separate bond type. You can learn more about contract surety bonds by visiting the contractor bond center.

It depends on who is requiring the bond of you, the local municipality, county or state. Depending on your location, it is possible you may need both a local and state bond, as contractor license bond requirements can vary drastically. You can select your state to see a full list of contractor license bond requirements.


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