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Did you know that in the state of Arkansas, there are different licenses that are issued for residential and commercial building contractors? The two positions have obligations and permissions that are very different, and if you’re planning on doing commercial work, you need to know what you can and cannot legally work or bid on. 

If you plan on working on any commercial projects that, including materials and labor, will cost $50,000 or more, you will need a commercial building license. In fact, any person, partnership, association, or company that will bid on, work on, supervise, or manage a commercial project must first obtain a Commercial Building License. 

A person or organization that holds this type of license can manage or perform the alteration, construction, repair, erection, or demolition of commercial structures such as:

• Apartments and condominiums
• Highways
• Utilities
• Public buildings
• Private properties for rent or lease
• Sewers
• Other public structures

Requirements for Getting an Arkansas Commercial Builder License

Interested professionals must contact the Arkansas Contractors Licensing Board to apply for licensure. Some of the requirements for obtaining this license include experience and education requirements. 

As part of the application that must be submitted, applicants are required to provide proof of at least four years of relatable experience in the building industry. Both residential and commercial experience count toward this requirement. 

In addition, applicants must provide information on three verifiable references. They must also take and pass the Business and Law Exam as well as the Commercial Building Contractor Exam.

You will also be required to submit a financial statement that shows a positive net worth that excludes your retirement accounts and your home. You must provide proof of compliance with requirements regarding workers’ compensation and make sure to provide proof that you have obtained a fully executed contractor’s bond for $10,000, as well.

Preparing for the Arkansas Contractor Exams

The Commercial Building Contractor Exam has 115 questions on it, and to pass, you must answer 81 (or 70%) of them correctly. Test-takers will have 330 minutes to complete the test, and it is an open-book exam.

Passing the Business and Law Exam is also a requirement for licensure in Arkansas. This test is open-book as well, and you will have 140 minutes to complete it. There are 50 questions on the exam, and you need to answer 70% of them correctly in order to pass.

Topics for these two tests include things like site construction, finishes, electrical systems, risk management, tax laws, licensing requirements, metals and wood, contracting requirements, organizational and financial management, estimating and bidding, procurement requirements, doors, windows, glazing, and many others.

As you can see, passing these two tests is a big part of the licensing procedure. If you’re going to be applying for your commercial building contractor license in Arkansas, you need to make sure that you’re adequately prepared for the tests. 

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