At a Glance: Arkansas Contractor License
| Item | Details |
|---|---|
| Licensing Board | Arkansas Contractors Licensing Board |
| License Types |
|
| License Threshold | $20,000 for commercial; $2,000 for residential |
| Application Fee | $100–$300 |
| Exam Required | ✅ Yes |
| Exam Provider | PSI Exams |
| Exam Cost | $100–$150 |
| Experience Required | 2 years minimum experience |
| Insurance Required | General Liability ($300,000 minimum) |
| License Renewal | Annual; $100–$300 |
Step-by-Step: How to Get Your Arkansas Contractor License
- Determine license type needed (commercial vs residential)
- Pass Business & Law and trade exams via PSI
- Obtain required insurance
- Submit application to ACLB with fees
- Receive license within 30 days of approval
Exam Requirements
Provider: PSI Exams
Cost: $100–$150
Topics covered: Business & Law, Trade Knowledge
Most state contractor exams test two main areas: Business & Law (contracts, lien law, workers' comp, licensing regulations) and Trade Knowledge (construction practices, building codes, safety). Prepare for both sections — even experienced contractors struggle with the Business & Law portion without dedicated study.
Study Resources
- PSI Candidate Handbook (available on PSI website — free, covers exactly what's on the exam)
- ICC Study Guides for code-based exams
- Contractor's Business & Law Study Guide by Craftsman Book Company
- Online prep courses from Contractor Exam Prep and similar providers
Insurance & Bonding Requirements
General Liability ($300,000 minimum)
Beyond what Arkansas requires, consider these coverage types for complete protection:
- General Liability: Protects against third-party bodily injury and property damage claims
- Workers' Compensation: Required if you have employees; protects against job-site injury claims
- Commercial Auto: Your personal auto policy won't cover your work truck
- Inland Marine (Tools & Equipment): Covers tool theft from job site or vehicle
Reciprocity
Arkansas has the following reciprocity agreements with other states:
- Tennessee
- Mississippi
Important: Reciprocity agreements change over time. Always contact the Arkansas licensing board directly to confirm current reciprocity status before assuming your out-of-state license qualifies for expedited licensure.
Important Notes for Arkansas
Arkansas has separate boards for residential vs commercial. Residential new construction requires separate RLSB registration.
Official Resources
- Arkansas Contractors Licensing Board — Official Website
- PSI Exams — Schedule Your Contractor Exam
- Contractor Insurance Guide
- Contractor Bonding Guide
- How to Start a Construction Business
Always verify requirements directly with the Arkansas Contractors Licensing Board. Requirements, fees, and exam procedures change frequently — this guide is updated periodically but may not reflect the most recent changes.