Arkansas Contractor License Exam — All Questions
422 questions
Which state body licenses commercial contractors in Arkansas?
- a.Each county quorum court
- b.The Arkansas Real Estate Commission
- c.The Arkansas Secretary of State
- d.The Arkansas Contractors Licensing Board (ACLB)✓
Commercial contractors in Arkansas are licensed by the Arkansas Contractors Licensing Board (ACLB) under the Arkansas Code, Title 17, Chapter 25. The board sets standards, gives the exams, issues licenses, and enforces the licensing law statewide.A.C.A. Title 17, Ch. 25
An Arkansas commercial contractor license is required for a commercial project costing at least:
- a.$20,000
- b.$100,000
- c.$50,000✓
- d.$2,000
A commercial contractor license is required for commercial work of $50,000 or more under A.C.A. Title 17, Chapter 25. The threshold applies to both public and private commercial projects.A.C.A. §17-25-101 et seq.
What is the difference between an Arkansas Restricted Commercial and an Unrestricted commercial license?
- a.Restricted Commercial caps a single project at $750,000, while Unrestricted has no dollar cap✓
- b.They are identical and differ only in fee
- c.Restricted Commercial is only for residential work
- d.Unrestricted is limited to $50,000 projects
The ACLB issues Restricted Commercial licenses, which cap a single project at $750,000, and Unrestricted licenses, which carry no dollar cap. An applicant chooses the classification matching the size of work intended.ACLB commercial classifications
For Arkansas licensing purposes, a residential structure is treated as commercial when it contains at least how many dwelling units?
- a.3 units
- b.2 units
- c.5 units✓
- d.4 units
A residential structure of five or more dwelling units is treated as commercial for Arkansas licensing, so a large multifamily project falls under the commercial rules and the ACLB even though it is residential in use.A.C.A. Title 17, Ch. 25 (multifamily)
Home improvement work on an existing single-family residence in Arkansas requires a home-improvement credential when the work exceeds:
- a.$50,000
- b.$10,000
- c.$500
- d.$2,000✓
Home improvement work on an existing single-family residence that exceeds $2,000 requires a home-improvement credential. A Limited Home Improvement category applies below the $50,000 commercial line.A.C.A. Title 17, Ch. 25 (home improvement)
An applicant for an Arkansas building classification generally must show a net worth of about:
- a.$50,000, with roughly half in cash or current assets✓
- b.$25,000
- c.$500,000
- d.$5,000
The building classification generally requires about $50,000 in net worth, with roughly half in cash or other current assets so the business has real liquidity. The applicant also files a $10,000 surety bond.ACLB financial requirements
A candidate seeks an Arkansas commercial general building contractor license. Which exam satisfies the trade/technical portion?
- a.The Louisiana residential exam
- b.The NASCLA Accredited Commercial General Building Contractor examination✓
- c.The Arkansas home-improvement exam
- d.No trade exam is offered in Arkansas
Arkansas accepts the NASCLA Accredited Commercial General Building Contractor examination for the trade portion of the commercial general building scope. The separate Arkansas Business and Law examination is still required.NASCLA Accredited Examination
On a large Arkansas commercial project, a subcontractor's own scope of work is valued at $80,000. Does that subcontractor need a commercial license?
- a.No, subcontractors are always exempt
- b.No, only the prime contractor needs a license
- c.Yes, because the subcontractor's own portion is $50,000 or more✓
- d.Only if the sub self-performs framing
The $50,000 threshold reaches subcontractors: a subcontractor whose own portion is $50,000 or more must hold the commercial license. The prime being licensed does not cover an unlicensed covered sub.A.C.A. Title 17, Ch. 25 (subcontractors)
Roughly how much construction experience does Arkansas commonly expect for a major commercial classification?
- a.About five years of relevant experience✓
- b.Only a high-school diploma
- c.No experience is required
- d.Twenty years of experience
Arkansas commonly expects about five years of relevant experience for a major commercial classification (roughly one year for a specialty classification). The qualifying party documents this experience with the application.ACLB experience requirement
What surety bond must an Arkansas commercial contractor file with the licensing board?
- a.$10,000✓
- b.$1,000
- c.No bond is required
- d.$100,000
Under the Arkansas Contractors Licensing Law (A.C.A. Title 17, Ch. 25), an Arkansas commercial contractor must file a $10,000 surety bond with the ACLB. The bond protects the state and, in defined circumstances, those who deal with the contractor.A.C.A. Title 17, Ch. 25 (Arkansas Contractors Licensing Law)
Unlicensed commercial contracting in Arkansas can be penalized at approximately what rate?
- a.$100 to $400 per day of the offense✓
- b.No penalty applies
- c.A flat $10 one-time fine
- d.Exactly $1,000,000 per project
Unlicensed commercial contracting in Arkansas can be penalized in the range of $100 to $400 per day, and it is treated as a misdemeanor. Because the penalty accrues daily, exposure on a long project can be large.A.C.A. Title 17, Ch. 25 (penalties)
When must an Arkansas contractor hold the commercial license in relation to bidding a covered $60,000 project?
- a.A license is never needed to bid
- b.Before submitting the bid; the contractor cannot bid the covered project first and license later✓
- c.Only at the final inspection
- d.Only after the project is finished
Arkansas requires the contractor to be licensed before submitting a bid on covered commercial work of $50,000 or more. A contractor cannot lawfully bid a $60,000 project and become licensed afterward; bid documents typically require the license number.A.C.A. Title 17, Ch. 25 (bidding)
An unlicensed contractor completes covered Arkansas commercial work and then tries to sue to collect. What is the practical effect of having been unlicensed?
- a.It doubles the amount the owner must pay
- b.The contractor is in a weak position to enforce the contract because the work violated the licensing law✓
- c.It guarantees full recovery of the contract price
- d.It has no effect on the right to collect
Because the work was performed in violation of the licensing law, an unlicensed Arkansas contractor is in a weak position to enforce the contract or collect through the courts. Licensure before the work is the way to preserve collection rights.A.C.A. Title 17, Ch. 25
How is unlicensed commercial contracting classified under Arkansas law, apart from the daily monetary penalty?
- a.As a misdemeanor✓
- b.As a purely civil matter with no criminal aspect
- c.As a felony on the first offense
- d.As grounds only for a warning
Unlicensed commercial contracting is treated as a misdemeanor under A.C.A. Title 17, Chapter 25, in addition to the $100–$400 per-day penalty and the loss of contract-enforcement rights.A.C.A. Title 17, Ch. 25 (misdemeanor)
A developer builds a new six-unit apartment building in Arkansas for $900,000. Under the licensing rules, this project is:
- a.Never subject to Arkansas licensing
- b.Exempt, because apartments are residential
- c.Treated as commercial, because a structure of five or more dwelling units is commercial and the cost exceeds $50,000✓
- d.Covered only by a home-improvement credential
A residential structure of five or more dwelling units is treated as commercial, and this project also exceeds the $50,000 commercial threshold. The developer's contractor needs the appropriate commercial license (Restricted caps single projects at $750,000, so this $900,000 job needs Unrestricted).A.C.A. Title 17, Ch. 25 (multifamily scope)
A Restricted Commercial licensee in Arkansas is offered a single project worth $800,000. What is the problem?
- a.The single-project value exceeds the $750,000 Restricted Commercial cap, so the contractor needs an Unrestricted license✓
- b.Restricted Commercial is only for homes
- c.The project must be split into daily invoices
- d.There is no problem; Restricted has no cap
The Restricted Commercial classification caps a single project at $750,000. An $800,000 project exceeds that cap, so the contractor must hold an Unrestricted license to perform it. Splitting the contract to evade the cap is not a lawful fix.ACLB Restricted Commercial cap
A contractor performs a $3,000 bathroom remodel on an existing single-family home in Arkansas. What credential does this residential work implicate?
- a.A home-improvement credential, because the work on the existing residence exceeds $2,000✓
- b.No credential, because all residential work is exempt
- c.An Unrestricted commercial license, because $3,000 is a commercial project
- d.The NASCLA commercial exam only
Home improvement on an existing single-family residence exceeding $2,000 requires a home-improvement credential. A $3,000 bathroom remodel exceeds that floor, so the home-improvement rules apply rather than the $50,000 commercial line.A.C.A. Title 17, Ch. 25 (home improvement)
The Arkansas building-classification net-worth requirement is notable because it demands not just total net worth but also:
- a.A college degree in engineering
- b.A minimum of 100 employees
- c.That roughly half be held in cash or current assets✓
- d.Ownership of specific equipment
Beyond showing about $50,000 in total net worth, the applicant must hold roughly half in cash or other current assets. The liquidity requirement helps ensure the business can actually fund and perform covered work.ACLB net-worth requirement
In addition to net worth, what must an Arkansas commercial contractor file to obtain the license?
- a.A personal guarantee from every employee
- b.A $500,000 general liability policy set by statute
- c.A $10,000 surety bond✓
- d.Nothing beyond the application fee
An Arkansas commercial contractor must file a $10,000 surety bond under the Arkansas Contractors Licensing Law (A.C.A. Title 17, Ch. 25) in addition to meeting the net-worth requirement. The bond is a core financial-responsibility element of the license.A.C.A. Title 17, Ch. 25 (Arkansas Contractors Licensing Law)
A candidate passes the NASCLA Accredited Commercial General Building exam. To be licensed by the ACLB for that scope, what else is required on the exam side?
- a.Retaking NASCLA annually
- b.Also passing the Arkansas Business and Law examination✓
- c.Nothing; NASCLA alone licenses the contractor
- d.Passing the Arkansas bar exam
NASCLA covers only the trade/technical portion. To be licensed by the ACLB for the commercial general building scope, the candidate must also pass the separate Arkansas Business and Law examination and meet the financial and experience requirements.NASCLA + ACLB Business and Law requirement
How does Arkansas typically differentiate the experience requirement between a major commercial classification and a specialty classification?
- a.Both require twenty years
- b.Specialty work requires more experience than major work
- c.Neither requires any experience
- d.About five years for a major classification versus about one year for a specialty classification✓
Arkansas commonly expects about five years of relevant experience for a major commercial classification and roughly one year for a specialty classification. Larger scope carries the higher experience expectation.ACLB experience requirement
The Arkansas Business and Law examination administered by PSI is best described as:
- a.A take-home research paper
- b.A closed-book oral interview before the board
- c.A hands-on field skills test only
- d.An open-book, multiple-choice exam covering Arkansas licensing law and business-management topics✓
The Arkansas Business and Law exam is an open-book, multiple-choice test administered by PSI, covering Arkansas licensing law along with estimating, contracts, finance, labor, tax, project management, risk, and safety. Open-book format rewards fast reference navigation.ACLB / PSI examination format