Arkansas Contractor License Guide

There are two main contractor licenses in the State of Arkansas:

• Commercial Contractor’s Classification
• Residential Contractor’s Classification

Commercial classifications and required minimum net worth of the contractor’s business:

• Heavy construction: $50,000
• Highway, railroad and airport construction: $50,000
• Municipal & utility construction: $50,000
• Building contracting: $50,000
• Light building: $20,000
• Mechanical contracting: $20,000
• Electrical contracting (requires a master electrician license): $20,000

Note: One half of the net worth must be cash in the bank and cannot be a stockholder note to the company or receivables.

Residential classifications:

• Residential Builder: To qualify for this license, you are required to have four years of experience and two verifiable references. The license authorizes you to do residential building and residential remodeling work.
• Residential Remodeler: To qualify for this license, you are required to have two years of experience and two verifiable references.
  • Limited License: Authorizes you to complete only residential home improvement projects with a value of less than $50,000, including labor and materials
  • Unlimited License: Authorizes you to complete residential home improvement projects of any size
• Home Improvement Speciality License
  • Limited License: Authorizes you to complete only residential home improvement projects that are less than $50,000, including labor and materials
  • Unlimited License: Authorizes you to complete residential home improvement projects of any size

If you already hold a Commercial License from the Arkansas Contractors Board with either a Building or Light Building classification, you are also authorized to perform residential contracts. If you don’t have these classifications you can apply for performing residential building by filling out, notarizing and sending an Amended Class Request to the Board.

The application forms, as well as the licensing laws, rules and regulations, can be found on the Arkansas Contractors Licensing Board’s Apply for Contractors License page.

• Provide References and Related Experience: For each license application (excluding the Home Improvement Contractor’s License) you must submit three verifiable written references by a qualified individual who has direct observations of your experience.

Note: The reference forms must be completed by the people giving the reference. For a commercial license, you must prove five years of relevant experience. For a Residential Builder license or Residential Remodeler license, you must have at least four years of experience. For a Home Improvement Speciality License (both limited and unlimited), you must show proof of experience for the specialty or specialties that you have requested.

• Provide a Financial Statement or Compiled Balance Sheet: A reviewed or audited financial statement must be submitted with the applications form for a Commercial License and Limited Residential Remodeler’s License.

If you are applying for a Residential Builder’s License or Unlimited Residential Remodeler’s License you need to submit a current compiled balance sheet (no older than one year). Note: If applying as a corporation, LLC, or LP provide a copy of the articles from your entity’s Secretary of State office.

• Provide Proof of Worker’s Compensation Insurance Coverage: If you are applying for a Commercial License and you have employees you must provide a current certificate of insurance that verifies the Worker’s Compensation insurance coverage.

All Residential Builder’s License, Unlimited Residential Remodeler License and Unlimited Home Improvement Speciality License applicants must provide a certificate of insurance in the name of business name you are applying for the license for.

How to fill out your application:

Please type or print plainly in ink. All questions must be answered and reference forms completed.

Licensing Fees:

• Commercial License: $100
• Residential Builder’s License: $100
• Residential Remodeler License (limited/unlimited): $50
• Home Improvement Speciality License (limited/unlimited): $50

Mailing Address:

Submit your application along with the examination score and all supporting documentation to:

Contractors Licensing Board
4100 Richards Road
North Little Rock, Arkansas 72117

Note: The completed application must be received in the board’s office three weeks prior to a board meeting. A list of the upcoming meeting dates can be found in the Calendar of Events.

Both commercial and residential classifications require passing a Business and Law test. An exception is the Home Improvement Specialty License, which does not require the examination.

The test is given by an independent testing company, Prometric. You can register for the exam by calling 1-888-763-0131 or online by visiting Prometric. Further instructions are also provided in the application forms.

The test fee is $80. It is the applicant’s responsibility to send the passing test score to the Contractors Licensing Board by fax (501-372-2247) or regular mail. Note: A license can be approved but not released without a passing test score. The passing score is 70%.

An Arkansas contractor license bond is required only if you are applying for a Commercial Contractors License.

The bond must have a value of $10,000 and must be signed by an owner, officer, member or partner of the company, prior to mailing the original bond to the board’s office. Note: The license can be approved but not released without the bond.

Mail the completed original bond and its power of attorney to:

Contractors Licensing Board
4100 Richards Road
North Little Rock, AR 72117