How much does a construction contractor bond cost in Arkansas?
The cost of construction contractor bonds are calculated as a percentage of the required bond amount. In Arkansas, the state requires that all contractors or subcontractors have a $10,000 Contractors Licensing Board Contractor or Subcontractor License Bond. This bond is instantly issued for $100 plus shipping cost and fees. Some of the cities and counties in the State of Arkansas require their own specific surety bonds, and those bonds are typically issued for $100 plus shipping costs and fees. Fill out our quick and easy application to buy your bonds instantly!
Why are contractor bonds important in Arkansas?
Contractor license surety bonds are required by The State of Arkansas as well as various cities and counties. These surety bonds offer a financial guarantee to the state that the contractor will ensure compliance with building codes and regulations as well as ensure ethical business practices. These bonds are required for various construction trades including but not limited to construction or deconstruction of residential and commercial buildings, HVAC, electrical work, plumbing and other specialities.
Arkansas contractor license bonds are important because they protect the consumer in the event that the contractor violates building codes or regulations or commits fraud. If the actions of the contractor cause a loss to the consumer, the consumer can file a claim against the bond. If the claim is valid, the surety company will cover the costs to repair damage or complete the work, up to the amount of the bond.
Types of contractor bonds in Arkansas for purchase
State of Arkansas Contractors License Bond – The state of Arkansas requires all contractors and subcontractors to guarantee their performance with a Contractor’s License Surety Bond. Contractors submitting bids must be licensed under the terms of Act 150 of the 1965 Arkansas General Assembly, effective June 9, 1965, and subsequent amendments, which regulates the practice of general contracting in the state of Arkansas.
Little Rock, City Contractor Bond – The City of Little Rock requires all contractors to guarantee their performance with a Contractor Performance Bond.
Sherwood, City License/Permit Bond– The Sherwood, Arkansas Permit and Planning Division is responsible for the inspection of work by contractors and sub-contractors to ensure that work complies with the City’s minimum requirements. This surety bond is required in the city of Sherwood to guarantee contractor performance.
State of Arkansas Water Well Contractor License Bond– Any individual drilling a water well or installing a water well pump in Arkansas must possess both an Arkansas Water Well Contractor’s License and an Arkansas Certificate of Registration in Water Well Drilling or Pump Installation. In order to obtain an Arkansas Water Well Contractor’s License, a contractor will need this bond.
How do I get my general contractor’s license in Arkansas?
- A commercial Arkansas General Contractor License will allow you to bid on and complete projects that are worth $50,000 or more and are working on properties that are not single family residences.
- A residential Arkansas General Contractor License will allow you to supervise construction activities for single family residences.
You will have to pass the Arkansas Business and Law exam which assesses your knowledge of the Arkansas State Building Code before being granted an Arkansas commercial or residential general contractor license.
The exam administrator, Prometric, provides a detailed guide on what is required in order to take the exam, and that guide is linked here for your convenience.
After you complete and pass the exam, you can apply for the general contractor license by:
- Submitting your application to the state by selecting the appropriate application here (You will need three written references to submit with your application).
- Pay the $100 application fee
- Submit your exam score.
- Provide proof of a fully executed $10,000 Contractors Bond with us
- Provide requested financial statements.