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.
Frequently Asked Questions
-
Do I need a contractor license in Arkansas?Yes. In Arkansas, contractors are required to be licensed for projects valued at $20,000 for commercial; $2,000 for residential. The licensing is managed by the Arkansas Contractors Licensing Board. Operating without a license can result in fines and inability to enforce contracts.
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How much does a Arkansas contractor license cost?The application fee for a Arkansas contractor license is $100–$300. An exam fee of $100–$150 is also required for the PSI Exams exam. Renewal is Annual; $100–$300.
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Is an exam required for a Arkansas contractor license?Yes. Arkansas requires passing the PSI Exams exam (cost: $100–$150) covering Business & Law and Trade Knowledge. Passing the exam is a prerequisite before applying for your license.
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What insurance is required for a Arkansas contractor license?Arkansas requires the following insurance for contractor licensing: General Liability ($300,000 minimum). This is the minimum required — most contractors carry higher limits for additional protection on job sites.
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How long does it take to get a contractor license in Arkansas?Getting a Arkansas contractor license typically involves 5 steps: obtaining required experience (2 years minimum experience), passing the exam, securing insurance, and submitting the application to the Arkansas Contractors Licensing Board. Processing times vary but most applications are decided within 4–8 weeks after submission.
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.