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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.

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.


Frequent Questions

How much does a bond cost?

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.

Can I get bonded with bad credit?

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.

Are these the same as contract bonds?

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.

Do I need a state or local bond?

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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Jennifer Henson
Our company has been with JW Surety for several years now so when we needed to obtain a bond for a new company, we immediately went to them for help. Our rep, Melissa, was extremely helpful and prompt which made the process extremely easy for me.
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Trying to get a local Surety Bond was like driving a car on three tires. I searched Surety Bonds and found JW Surety Bonds. I got online and filled out the information and with in 30 minutes received a response from Melissa. She was informative, friendly and helpful. One more super satisfied customer.

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