Arkansas Financial, Experience & Exam Requirements
Beyond passing the exams, an Arkansas commercial contractor must show net worth, experience, and file a bond. This chapter reviews the net-worth standard, the experience requirement, the dual exam path, and the open-book format.
Net worth and the surety bond
An applicant for the Arkansas building classification generally demonstrates about $50,000 in net worth, with roughly half of that in cash or other current assets, so that the business has liquidity and not just paper value. The applicant also files the $10,000 surety bond required under A.C.A. §17-25-401. These financial requirements give the board and project owners assurance that the contractor can perform.
Experience requirement
Arkansas expects relevant construction experience, commonly described as about five years for a major commercial classification and roughly one year for a specialty classification. The qualifying party documents this experience as part of the application. The experience standard, combined with the examinations, is meant to ensure the licensee can competently manage covered work.
The dual exam path and open-book format
Licensure for the commercial general building scope involves two examinations: the Arkansas Business and Law examination and, for the trade portion, the NASCLA Accredited Commercial General Building Contractor exam. The Business and Law exam is an open-book, multiple-choice test administered by PSI, covering Arkansas licensing law along with estimating, contracts, business and financial management, labor, tax, project management, risk, and safety. Because it is open book, candidates should practice locating rules quickly.