How to Become a Contractor in Arkansas

In Arkansas, residential projects valued at over $20,000 require a contractors license.

Under Arkansas law, a residential contractors license is required to build any residential structure with a value exceeding $20,000. The State of Arkansas Contractors Licensing Board has sole local authority to grant such licenses. To become a licensed residential contractor in Arkansas, you must show sufficient experience, maintain sufficient finances and pass an examination.

Instructions

1. Acquire at least four years of verifiable experience in the construction industry. Your experience must be sufficient to justify the issuance of a license, as determined by the Arkansas Licensing Board.

2. Navigate to the Licensing Board website and access the residential questionnaire form for new applicants. Print this application document.

3. Identify three licensed contractors who can attest to your experience in the construction industry. The referents must complete information forms showing that you have four years of relevant experience. Blank forms are included in the application document. Choose your referents carefully. The Licensing Board will rely heavily on their evaluations of you.

4. Complete the Company Information form included in the application document. If you have not formed a company, you may choose to file as an individual.

5. Confirm that you are not currently under contract to do residential construction. Confirm that you do not have any outstanding bids for such work. Confirm that you will not bid, contract or perform any such work until you are issued a license. You will make these confirmations on the appropriate affidavit in the application document.

6. Compile a balance sheet statement showing positive net worth. If you are filing as an individual, this balance sheet must exclude your personal residence and retirement accounts. You can download a form for individuals on the Licensing Board's website.

7. Acquire workers' compensation insurance coverage. Submit the certificate of insurance to the Arkansas Contractors Licensing Board.

8. Schedule and complete a written examination covering the business and law of contracting. The exam is conducted by the private company Prometric. See the registration form included in the application document for more details. Provided you take the computerized version of the exam, your results will be available immediately upon completion. You must achieve a score of 70 percent. Include your score report with your application.

9. Complete your application. Ensure that you have included all supporting documentation. Visit a commissioned notary public and have your application notarized on all indicated pages.

10. Submit your application to the Licensing Board, along with supporting documentation and all fees. Your application must arrive at least seven business days prior to a committee meeting to be reviewed during that meeting. Contact the Licensing Board for committee meeting dates. If your application is accepted, you will be issued a license.

Tips & Warnings

• A commercial contractor's license has heightened requirements. You may apply for both residential and commercial licenses at the same time. See the application for more information.

References

• State of Arkansas: Residential Licensing Law

Resources

• State of Arkansas Contractors Licensing Board: New Applicant Questionnaire Form
• State of Arkansas Contractors Licensing Board: Personal Balance Statement Form
• Prometric Services: Arkansas Construction