9 questions

Arkansas Licensing & Classifications

Which state body licenses commercial contractors in Arkansas?

  • a.The Arkansas Secretary of State
  • b.The Arkansas Contractors Licensing Board (ACLB)
  • c.Each county quorum court
  • d.The Arkansas Real Estate Commission

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

Arkansas Licensing & Classifications

An Arkansas commercial contractor license is required for a commercial project costing at least:

  • a.$2,000
  • b.$20,000
  • c.$50,000
  • d.$100,000

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.

Arkansas Licensing & Classifications

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.Restricted Commercial is only for residential work
  • c.Unrestricted is limited to $50,000 projects
  • d.They are identical and differ only in fee

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

Arkansas Licensing & Classifications

For Arkansas licensing purposes, a residential structure is treated as commercial when it contains at least how many dwelling units?

  • a.2 units
  • b.3 units
  • c.4 units
  • d.5 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)

Arkansas Licensing & Classifications

Home improvement work on an existing single-family residence in Arkansas requires a home-improvement credential when the work exceeds:

  • a.$500
  • b.$2,000
  • c.$10,000
  • d.$50,000

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)

Arkansas Licensing & Classifications

An applicant for an Arkansas building classification generally must show a net worth of about:

  • a.$5,000
  • b.$25,000
  • c.$50,000, with roughly half in cash or current assets
  • d.$500,000

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

Arkansas Licensing & Classifications

A candidate seeks an Arkansas commercial general building contractor license. Which exam satisfies the trade/technical portion?

  • a.The NASCLA Accredited Commercial General Building Contractor examination
  • b.The Arkansas home-improvement exam
  • c.No trade exam is offered in Arkansas
  • d.The Louisiana residential exam

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

Arkansas Licensing & Classifications

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, only the prime contractor needs a license
  • b.No, subcontractors are always exempt
  • c.Only if the sub self-performs framing
  • d.Yes, because the subcontractor's own portion is $50,000 or more

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)

Arkansas Licensing & Classifications

Roughly how much construction experience does Arkansas commonly expect for a major commercial classification?

  • a.No experience is required
  • b.About five years of relevant experience
  • c.Twenty years of experience
  • d.Only a high-school diploma

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

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