Who needs to obtain an Arkansas Contractor License Surety Bond?
Arkansas Contractor License Surety Bonds are required for all contractors who perform commercial construction in the state. Commercial construction is defined as all construction other than work on a “single family residence.” This bond has a penalty amount of $10,000 and must be filed with the Arkansas Contractor Licensing Board before a license can be issued.
While there are several different license types for residential contractors, only the commercial license has a surety bond requirement.
How does an Arkansas Contractor License Surety Bond work?
Arkansas Contractor License Surety Bonds guarantee that the contractor (principal) complies with the Arkansas Code and Rules, Act 150 of 1965 and Act 162 of 1987. This bond protects any person who is damaged by the unlawful actions of the principal. If the principal does not comply with the terms of the bond, a claim can be filed with the surety company for relief. If the claim is valid, the surety will pay up to the penal sum ($10,000) of the bond to resolve the claim.
The principal is then required to reimburse the surety for all monies paid out, including any attorney fees incurred by the surety in the defense of the claim.
What are the terms of the bond?
Arkansas Contractor License Surety Bonds renew on an annual basis. The term for the bond is indefinite and remains in full force and effect until canceled by the surety. The surety may cancel the bond at any time by giving 60-days written notice to the State of Arkansas Contractors Licensing Board.
The aggregate liability of the surety will not exceed the penal sum of the bond in any event.
What are the requirements for an Arkansas Commercial Contractors License?
- Completed application
- $100.00 filing fee
- Three (3) written references
- Copy of the Arkansas Business and Law passing test score
- Fully executed Arkansas Contractor License Surety Bond
- A current (company year-end) financial statement
- If the business is a corporation of LLC a copy of the Articles of Incorporation for the company
- Current worker’s compensation insurance certificate (If there are employees)
Can I get an Arkansas Contractor License Surety Bond with bad credit?
Pacific Surety offers a wide range of approvals, regardless of credit, for Arkansas Contractor License Surety Bonds. Our strong surety relationships help get your price down as low as possible each year.
There is no need to shop your rate – we do that for you! If you have any specific questions, feel free to contact our knowledgeable underwriting staff.
How much does an Arkansas Contractor License Surety Bond cost?
Arkansas Contractor License Surety Bonds are subject to underwriting and the price you will pay depends on a review of your personal credit report. Pacific Surety is proud to offer rates starting at $75 annually for well-qualified applicants. It typically takes just a few hours from quote to issuance of the bond, and we have the ability to beat any competitors pricing.
If you have any specific questions, feel free to contact our knowledgeable underwriting staff.
How do I get an Arkansas Contractor License Surety Bond?
The first step is to complete our quick online application for your free bond quote. Submission takes only five minutes, and our underwriting staff will be in contact with you within a couple of hours with pricing.
After you receive approval, you must sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day we receive your signed documents and payment.