What is an Arkansas contractor license bond?
As required by the Contractors Licensing Board, commercial contractors in Arkansas must obtain a contractor license bond to become licensed in the state. This protects customers by providing a financial backup if a contractor doesn’t complete a project according to state or local codes and regulations.
The following municipalities have additional bonding requirements for certain contractor classifications:
The bond amount is determined by each individual city and may range from $1,000 and $10,000. The general statewide contractor license bond amount is $10,000. In Benton, a bond for a Heating Contractor is $1,000. And for an Electrical or Plumbing Contractor, it’s $2,000.
Bond requirements in other cities and for other contractor types aren’t fixed. Instead, they depend on an applicant’s personal credit score, business record, financials, and industry experience.
Get Your Arkansas Contractor License Bond:
How much does an Arkansas contractor license bond cost?
Contractors must pay a premium – a percentage of the full bond amount – to obtain their bond. You can expect to pay as little as $100 for a $10,000 contractor license bond if you have an excellent credit score. Even with poor credit, contactors can often obtain a surety bond for a higher premium (possibly up to $1,000).
Learn more about how contractor license bonds work in our complete guide.
Frequently Asked Questions
The state contractor license bond in Arkansas expires one year from the issue date. You must renew your license bond on or before that date to remain in state compliance. A contractor’s license has the same one-year term as a license bond and also requires renewal.
You can apply directly through the Contractors Licensing Board. Choose a classification and then submit professional references, financial statements, and a statement of professional experience. The final step is an examination administered by the Board. Different license types may require additional steps, so contact your licensing authority for complete information.
Take care to avoid triggering a claim against your bond. If a customer makes a valid complaint, you should settle it before it becomes a claim. Claims will cost a significant amount of time and money and can lead to a contractor’s inability to get bonded again. Contact your local licensing authority to know which laws and regulations apply to you.
Get Your Contractor License Bond in Arkansas
ZipBonds offers the fastest and most secure option for getting bonded. Our all-digital platform is intuitive and straightforward. Apply online, email email@example.com or call 888.435.4191 to speak with an agent directly.
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.