Arkansas Contractor License Search
What You Should Know about Hiring a Contractor in Arkansas
There are over 47,500 professional contractors in Arkansas that can provide quality services. With so many options, deciding on the best contractor to hire for your project can be daunting. Nevertheless, doing your due diligence when hiring professionals for your building projects assures you satisfactory results. So, before hiring a contractor, it is essential that you thoroughly consider various factors such as their license, experience, and insurance coverage. Doing this can help you avoid issues like the following:
- Contractor scams
- Financial and legal liabilities due to project-related accidents
- Common safety hazards associated with poor workmanship and nonadherence to relevant building regulations
In light of this, to help you make an informed decision, below are some key points to consider when hiring contractors in Arkansas:
- Who Is a Contractor in Arkansas?
- How to Search for a Contractor's License in Arkansas
- Penalty for Hiring a Contractor Without a License in Arkansas
- How Much Does a Contractor Charge in Arkansas?
- Tips for Hiring a Contractor in Arkansas
- Is Your Contractor Insured and Bonded as Required by Arkansas Statutes?
- Top Home Improvement Scams in Arkansas
- How to Report Fraudulent Arkansas Contractors
Who Is a Contractor in Arkansas?
In Arkansas, contractors are businesses or individuals that provide various services, such as modifying, constructing, demolishing, or repairing existing structures or properties. The Arkansas Contractors Licensing Board regulates and licenses contractors working on projects that cost $50,000 or more (considering labor and materials) in the state. These contractors carry out different activities, including building, construction, plumbing, painting, electrical work, and carpentry. Contractors in Arkansas fall under two main categories:
- General Contractors: This group of contractors is mainly responsible for overseeing and managing home improvement and construction projects. They are also usually the contact person for the project owner, and they have the necessary skills and resources to pull permits and hire subcontractors. Although general contractors can offer various construction services, they are not allowed to provide certain types of work, such as those requiring specialty trade licenses. There are three types of general contractors in Arkansas based on their specialization:
- Residential Building Contractors: Residential building contractors require a license when working on projects that are over $2,000; this includes the cost of supplies, permits, and other necessary items. These contractors provide services related to constructing or modifying a single-family residence or the property and structures appurtenant. A licensed residential building contractor can perform any specialty work associated with their classification.
- Residential Remodeler: These contractors cannot build new homes but can remodel or build an addition to a single-family residence. They are allowed to carry out specialty work associated with their classification.
- Commercial Contractor: A commercial contractor license is required for work worth over $50,000. These contractors focus on projects other than single-family residences, such as commercial real estate, hotels, shopping centers, and industrial and office buildings. Commercial contractors can be licensed in any of the following classifications: Heavy construction, municipal and utility, highway, railroad, airport, building (commercial and residential), light building, mechanical, and electrical. Commercial contractors under these classifications can carry out any specialty task associated with it.
- Specialty Contractors: These individuals specialize in one specific trade or area of expertise, making them highly competent and able to handle specific projects. Unlike general contractors, they do not usually handle entire construction projects. Instead, they focus on a specific aspect of a project and are usually accompanied by a general contractor. These contractors are not allowed to carry out tasks outside of their specific specialty trade license. These trades include but are not limited to carpentry, flooring, painting, plumbing, roofing, landscaping, masonry, and HVAC-R (heating, ventilation, air conditioning, and refrigeration).
How to Search for a Contractor's License in Arkansas
Contractors handling any project that costs at least $50,000 in Arkansas must hold a valid license issued by the state's Contractors Licensing Board. Similarly, any specialty contractor (including electricians, plumbers, and HVAC technicians) must obtain a license from the Board to offer their services within the state.
You can check if a contractor has the appropriate licenses to operate in Arkansas by using the Uhire professional license search. This tool allows you to conduct license searches for any location conveniently. Likewise, you can verify a contractor's or specialty contractor's licensing status through the Arkansas Contractors Licensing Board's Find a licensed contractor platform. This platform allows you to search using the contractor's name or license number.
Penalty for Hiring a Contractor Without a License in Arkansas
Even though there are no penalties for hiring unlicensed general and specialty contractors in Arkansas, doing so has several disadvantages:
- Unregistered contractors are typically not bonded or insured. This means they cannot provide you with legal or financial protection in case something goes wrong during the project.
- Unlicensed contractors typically lack the necessary experience and knowledge to do the job. This can lead to safety issues and subpar service delivery.
- Unlicensed contractors cannot legally pull permits, and without the proper permits, they won't be able to carry out the work on your project. Permit non-compliance can negatively affect the value of your property.
Be aware that unlicensed contractors who offer their services in Arkansas face penalties of $100 for the first offense and up to $400 for subsequent offenses.
How Much Does a Contractor Charge in Arkansas?
A specialty contractor in Arkansas typically charges around $50 to $100 an hour for their work. However, their total fees depend on different factors, like the complexity and scope of the projects they're working on.
Below is a table that shows average hourly rates for common specialty contractor services in Arkansas. Note that the contractor's level of experience and reputation can also affect their charges:
Most home improvement and construction projects require hiring two or more specialty contractors. However, delegating this task to a general contractor can save you time, money, and stress. These managers typically charge around 10 to 20 percent of the project's total cost based on one of two calculation methods:
- Fixed Price Method: This method involves the contractor agreeing to handle the project for a set amount. It's ideal for projects that have a deadline or defined scope.
- Cost Plus Fee Method: This arrangement allows the contractor to bill for the work completed and add a markup for services. This method is ideal for large projects with unclear timelines. Still, it is critical to set a maximum price cap when adopting it to prevent overall costs from overinflating.
Arkansas's home renovation, building, and construction projects typically cost around $100 to $400 per square foot. Nevertheless, the following factors determine the actual overall expenses:
- The nature and scope of the project
- Your location
- Materials costs
- Site conditions
- Contractor fees
- The urgency of the project
- Accessibility to the project site
- Permit costs, labor charges, and other miscellaneous costs
- The experience and local reputation of involved contractors
Tips for Hiring a Contractor in Arkansas
It is essential to hire qualified contractors as they can provide the best possible service for your home improvement, construction, or building project. However, before hiring a contractor in Arkansas, check they are competent and knowledgeable enough to handle your project satisfactorily. Below are some key factors you should consider:
- Get a clear idea of the project and everything it entails.
- Get bids from multiple contractors for your project to compare their cost estimates.
- Request references from the contractors and contact the references to ask about their experience working with them.
- Verify the contractors' licenses through the Arkansas Contractors Licensing Board's Find a licensed contractor platform or by contacting the board at (501) 372-4661.
- Get a written contract that clearly outlines all project details, like timelines, payment terms, and scope of work.
- Request proof of insurance and bonding.
- Avoid cash payments.
- Be wary of contractors who demand a full payment upfront. Always limit down payments to around 10% to 30% of the total project value.
- Ensure that the project is completed satisfactorily before making final payments.
- Request a lien waiver to protect your property if the contractor refuses to pay its subcontractors and other suppliers.
- Contact the Attorney General's Office at (501) 682-2007 to check whether complaints have been filed against your prospective contractor.
Is Your Contractor Insured and Bonded as Required by Arkansas Statutes?
When hiring contractors, ensure they are adequately insured and bonded to avoid potential liabilities for work-related accidents, property damage, and mistakes. Hiring an insured contractor can help protect you and the contractor from various risks, such as accidental property damage and worker injuries. Bonding also helps minimize the financial impact of any damages the contractor might cause due to their failure to complete the agreed-upon job.
Hence, before hiring a contractor in Arkansas, ensure they have adequate insurance by requesting their certificate and authenticating it with their insurer. On the other hand, be aware that Arkansas contractors must file a $10,000 bond with the Arkansas Contractors Licensing Board and carry workers' compensation insurance for their employees, if any. Contact the Contractors Licensing Board at (501) 372-4661 for more information about bond and insurance requirements for contractors.
Top Home Improvement Scams in Arkansas
Home improvement scams are among Arkansas's top 10 consumer issues that residents complain about to the state's Attorney General's Office. These complaints typically involve a contractor performing poorly or abandoning the project midway and failing to complete the job after being paid. Therefore, when looking for a contractor for home improvement work in Arkansas, you should consider it a red flag if the person you are considering hiring does any of the following:
- Exaggerates or fabricates issues during home inspections or repairs
- Demands full payment upfront
- Hesitates or refuses to offer written contracts
- Uses high-pressure sales or scare tactics
- Price gouging by inflating the prices for materials and their services
- Presents fake credentials, including licenses or insurance certificates
- Offers unsolicited home inspections
- Offers one-time-only discounts
- Requests for cash payment or checks made to someone other than the contractor or their company
Presented below are some precautions you can take to lessen the likelihood of getting scammed out of your money by contractors in Arkansas:
- Avoid contractors offering deals or discounts that require you to act immediately.
- Request proof of insurance and bonding from the contractor.
- Avoid making upfront payments or paying in cash.
- Get and compare bids from at least three contractors in Arkansas before making a hiring decision.
- Verify the licensing status of your prospective contractor.
- Check reviews of the contractors on various platforms, such as the Better Business Bureau. The Arkansas Attorney General's Office can also help you check a contractor's complaints history when you contact their office at (501) 682-2007.
- Avoid working with contractors who ask for an upfront payment, and never make an advance payment of more than 10 to 30 percent of the project's overall cost.
- Execute a well-written contract that includes all the necessary information, like the scope of work, materials, and timelines.
- Get references from the contractor and contact their past clients to verify their experiences.
How to Report Fraudulent Arkansas Contractors
You can file a complaint with pertinent authorities in Arkansas to address issues involving fraudulent or dishonest contractors. Some of these agencies are listed below:
The Arkansas Attorney General's Office: You can report home improvement scams and deceptive business practices involving contractors to the state's Attorney General's Office by completing an online complaint form or filling in and sending a complaint form by mail to:
323 Center Street,Suite 200,
Little Rock, AR 72201
Phone: (501) 682-2007
The Arkansas Contractors Licensing Board: You can also file a complaint against a licensing contractor involved in deceptive business practices or poor service delivery with the Arkansas Contractors Licensing Board. You can do this by completing a complaint form and sending it by mail to
Arkansas Contractors Licensing Board4100 Richards Road
North Little Rock, Arkansas 72117
Phone: (501) 372-4661
The Better Business Bureau (BBB): You can report fraudulent contractors in Arkansas to the local Better Business Bureau. By doing this, you can help warn other consumers about these individuals and prevent them from being victimized.
Local Police Departments: It is advisable to report cases where a contractor threatens or steals from you to your local police department.
Civil Court: If you seek monetary compensation or other personal remedies from a contractor, you can file a civil lawsuit. This can be done through a small claims court, which allows you to seek up to $5,000 in damages. You must pay a filing fee between $30 to $65. You must file a lawsuit in the county where the contractor resides or where they were supposed to perform the duties.