Overview of Arkansas Contractor License Bond Requirements

Contractors in Arkansas must obtain a contractor license bond in several instances.

On the state level, commercial contractors must obtain a $10,000 bond to obtain a license from the state License Board.

On a city level, at least 8 cities in the state currently require contractors to post some kind of bond when applying for a permit. Bond amounts in these cities range between $1,000 and $10,000. See the section on bond cost below for more information about these bonds.

All of these bonds are required to guarantee that contractors will comply with the respective statutes and regulations that require them to get bonded. For state commercial contractors, the bond guarantees their compliance with the Arkansas Code Annotated (ACA) §17-25-401.

If a contractor violates the terms of the bond agreement, causing losses to the state or city, or to the public, a claim can be filed against their bond to secure compensation. When a claim is filed, the surety may extend compensation as high as the full amount of the bond.

Not sure how bonds work? Read our detailed ‘What is a surety bond’ guide for an overview of what bonds are, how they work, and why business needs them!

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Keep reading to find out more about contractor license bonds in Arkansas, how much they cost, and how to apply for one!

Give us a call at (866)-450-3412 anytime to learn more about the bonding requirements for contractors in Arkansas!

Arkansas Contractor License Bond Cost

Commercial contractors in the state of Arkansas must obtain a $10,000 bond.

Additionally, contractors in the cities of Little Rock, North Little Rock, Sherwood, Jacksonville, Greenbrier, Fort Smith, Benton, and Pine Bluff must also obtain some type of contractor license bond to perform work in those locations.

Bond amounts for the cities vary between $1,000 and $10,000 depending on local rules and regulations, and also differ for the types of contractor work they are required.

To obtain a surety bond you need to pay a surety bond premium which is equal to a small percentage of the total amount of your bond.

This percentage is determined by the surety you are applying with, and is based on your personal credit score primarily. Your financial statements, your assets, as well as your industry experience may also influence your bond cost in some cases but your credit score remains the most important factor. The higher your credit score is, the lower your bond cost will be. With a credit score of 700 FICO or more, you can expect to get bonded at the lowest possible rates.

Want to know how much it cost to get bonded? Get a quick estimate of your bond cost through our bond calculator or see the table below for reference. You can also get a free and precise quote by completing our bond form!

Bond Cost Based on Credit Score
Surety bond amount Above 700 Between 650-699 Between 600-649 Below 599
Arkansas commercial contractor license bond; City of Little Rock, City of North Little Rock, and City of Sherwood $10,000 $100-$150 $100-$250 $250-$500 $500-$750
City of Pine Bluff $5,000 $100 $100-$125 $125-$250 $250-$375
City of Fort Smith and City of Benton $2,000 $100 $100 $100 $100-$150
City of Jacksonville and City of Greenbrier $1,000 $100 $100 $100 $100

Bad Credit Bond Program

Getting a bond with a low credit score can prove to be difficult with certain sureties.

With us, applicants with lower credit scores have no trouble getting bonded! Thanks to our Bad Credit Program even if you have a low credit score, you can apply for a bond and get bonded as simply and quickly as applicants with high scores.

The only significant difference in the bonding process for applicants with bad credit are the higher rates on their bonds. These are necessary for the surety due to the increased risk it assumes when extending bonds under this program. Bond rates can change significantly over time, though. By improving your credit score, you will be eligible to get a lower rate when you apply for a bond again.

See the link to the bad credit program to find out more about getting a bond under these circumstances.

Claims Against Your Bond

The conditions of each type of contractor bond required in Arkansas differ somewhat because they apply to different types of contractors.

For example, license bonds for commercial contractors require that bonded contractors comply with all provisions of the ACA §17-25-401, as with the Department of Workforce Services Law, §11-10-101 et seq., the Workers' Compensation Law, §11-9-101 et seq.

Residential contractors in Benton, on the other hand, must rather comply with all provisions of ACA §17-25-501, etc. The bond form for every type of bond required in Arkansas specifies the specific laws and conditions the contractor must comply with.

When a bonded contractor violates any of the conditions of their bond, the state may file a claim against the bond for remedies and compensation to anyone (including the state itself, in cases of unpaid taxes) who has been harmed as a result of such a violation. The surety will then usually investigate the issue and may extend compensation up to the full amount of the bond.

But bond claims don’t end there. Once a surety compensates claimants, the bonded contractor must repay the surety in full. This condition is part of all bond agreements.

Apply for Your Bond Here!

To get started with your application or to request a free quote, complete our bond form. We’ll get in touch with your shortly to provide you with your quote, along with further details regarding getting bonded.

As soon as you submit your final application, it will take up to two working days to have it processed and your bond to be issued. We will then forward your bond to you via mail and email.

Not ready to apply? Then simply get a free no-obligations quote, so you can see our low prices!

If you want to learn more about these bonds, call us at (866)-450-3412! We look forward to helping you!


About the author:
Todd Bryant
Todd Bryant is a graduate of Germantown Academy and the University of Pittsburgh College of Business Administration Honors College. He has been President of Bryant Surety Bonds, Inc., an A+ rated Business with the Better Business Bureau, since 2007. Licensed as a producer with the Department of Insurance, he has been published in the National Association of Surety Bond Producers newsletter and on numerous authoritative publications such as The Washington Post, Entrepreneur.com, Azcentral.com and many more.