Arkansas Contractor License Bond— $10,000 Flat -- All Classifications

Arkansas requires a $10,000 contractor license bond for all commercial contractor classifications under Arkansas Code Annotated Section 17-25-401 through 17-25-409. The bond protects consumers from contractor violations and ensures compliance with ACLB regulations. It must be countersigned by an agent licensed by the Arkansas Insurance Department.

Any contractor performing commercial contract work valued at $50,000 or more in labor and materials needs an ACLB license. This includes general building contractors (C-1), residential contractors (C-2), highway contractors (C-3), and specialty contractors. The license is issued by the Arkansas Contractors Licensing Board, now housed under the Arkansas Department of Labor and Licensing.

The $10,000 Arkansas contractor bond typically costs $100 to $300 per year. Contractors with credit scores above 700 generally pay 1-2% of the bond amount ($100-$200). Fair credit applicants (620-699) pay 2-5%. The bond is continuous until cancelled, so there is no fixed expiration date -- just ongoing annual premiums.

Arkansas law requires that your contractor bond be countersigned by a surety agent who is licensed by the Arkansas Insurance Department and resides in Arkansas. This ensures local accountability. When you purchase your bond through us, we handle the countersignature requirement through our Arkansas-licensed agents automatically.

C-1 (General Building) covers all building construction. C-2 (General Residential) is limited to residential structures. C-3 (General Highway) covers highway, street, bridge, and heavy construction. All three require the same $10,000 bond but have different trade exam requirements and scope of work.

Completed applications must be in the ACLB office at least three weeks before a board meeting to be reviewed. Once received, the application must be completed within 90 days. Bond issuance itself is same-day, so you can have your bond ready well before your board review date.

No. Arkansas does not require continuing education for contractor license renewal. However, you must maintain your $10,000 surety bond and keep your license current. The bond is continuous until cancelled, meaning no renewal filing is needed as long as annual premiums are paid.

Unlicensed contracting in Arkansas for commercial projects over $50,000 is a Class A misdemeanor punishable by fines up to $2,500 and possible jail time up to one year. Unlicensed contractors cannot sue for payment. The ACLB actively investigates complaints and refers violations for prosecution.

No. A surety bond and insurance serve different purposes. The $10,000 ACLB contractor bond protects the public — if you violate your obligations, consumers can file a claim and the surety pays them up to $10,000, which you must then repay. Contractor insurance (general liability, workers' comp) protects your business from covered losses. Arkansas requires both for licensed contractors. See our bond vs. insurance guide at /bond-vs-insurance/ for a detailed comparison.

Step 1: Apply online with a surety bond provider — you'll need your business name, EIN, and credit authorization. Step 2: Receive instant approval (most applicants with 600+ credit). Step 3: We prepare the bond with Arkansas countersignature from our AR-licensed agent. Step 4: File the bond with your ACLB application at least 3 weeks before the next board meeting. The full process is detailed in our guide at /how-to-get-a-surety-bond/.