Arkansas
Contractor Bonds

Arkansas Contractor Bond License Guide

Arkansas requires contractors to obtain a contractor bond to become licensed. The amount for these bonds varies depending on the type of contractor, location, and project. Some of these bonds can be issued instantly online for a set premium or are prorated for the bond term’s end date.

Why are contractor bonds required in Arkansas?

Multiple counties and cities require contractors in Arkansas to post surety bonds prior to starting work. These bonds ensure the principal (contractor) will abide by all applicable rules and legislation outlining the classification-specific work, in addition to protecting consumers from damages caused by negligent or faulty work. Obligees (government entities requiring the bond) enforce the legal language on the bond form that places liability on the principal.

Affected contractors can file a claim against the surety bond; if found to have validity, the surety (the company that financially backs the bond) will pay the claim up to the bond’s full amount. However, the principal is required to reimburse the surety in full for any money paid out.

CLB Commercial Contractor License Bond

Contractors are required to post a $10,000 surety bond to be registered to work within the state of Arkansas. This bond can be purchased instantly online for a one-year term for a $75 premium. Along with the surety bond, contractors must submit an application, along with the following to become registered:

• Submit a specialty contractor license application:

  • Subcontractor Registration Certificate

  • Commercial License

  • Temporary Commercial License

  • Residential Builders License

  • Temporary Residential Builder

  • Residential Remodelers License

  • Temporary Residential Remodeler License

  • Residential Roofer Registration

  • Home Improvement License

  • Temporary Home Improvement License

• Certificate of Insurance

• Provide appropriate business-style affidavit and affidavit regarding bidding.

  1. Must be signed and notarized within 90 days

• Pay the $100 nonrefundable filing fee

• Provide three written references.

• Supply a copy of an Arkansas Business and Law passing test score.

• Produce an independent CPA report.

  1. Those applying for a restricted license must submit a compiled report

     1. Report letter from an independent CPA

     2. Balance sheet prepared in accordance with GAAP or on an income tax basis

• Supply a copy of the business’s articles/filings.

Arkansas city-specific contractor bonds

Many Arkansas contractors are required to post a surety bond with the city or county they work in. More information on city and county-specific requirements can be found below.

City of Fort Smith Contractor Bond

The City of Fort Smith requires contractors to post a $2,000 surety bond to become registered to work. Though the bond can be registered for a one-year term, a 25% multi-year discount is available for customers who purchase this bond for a multiple-year term upfront. To obtain a contractor’s permit within the city, applicants must contact Fort Smith Building Safety at (479) 784-2206.

Visit SuretyBonds.com or call us at 1 (800) 308-4358 to talk to a representative to get started on securing your Arkansas bond today!