Arkansas Contractor Bond

An Arkansas contractor bond is the $10,000 surety bond that commercial contractors and registered commercial subcontractors must file with the Arkansas Contractors Licensing Board (ACLB) before their license or registration is valid. Arkansas Code § 17-25-404 makes the bond a condition of licensure, and it guarantees that you'll meet your obligations under the state's tax, unemployment and workers' compensation laws. The bond protects the state, not your business. If the surety pays a claim, you must pay the surety back under the indemnity agreement.

Key Takeaways

•  Bond amount: $10,000 for every commercial license and commercial subcontractor registration, regardless of classification.
• Cost: with a credit score of 700 or higher, most contractors pay $100 to $300 a year.
• Other bonds: residential roofers need a $15,000 registrant bond. Commercial applicants who skip the CPA financial statement file a bond in lieu of it, worth $50,000 to $500,000.
• Continuous coverage: the bond has no expiration date. If it's canceled and no replacement reaches the ACLB, your license becomes invalid.

Our surety bond cost guide explains how sureties set premiums in more detail. If your quote comes in high, see our surety bond rates guide for ways to pay less.

1. Identify the Bond Your License Requires

The bond you need depends on what you're applying for:

• A commercial license or commercial subcontractor registration requires the $10,000 contractor's bond
•  A residential roofing registration requires the $15,000 registrant bond
• A commercial applicant who won't submit a CPA financial statement also needs a bond in lieu of it

Residential builder, remodeler and home improvement licenses have no state bond requirement.

2. Apply Online

Our online application only takes a few minutes. Have this information ready:

• your company's legal name, exactly as it will appear on your ACLB application,
• your federal Employer Identification Number (EIN), 
• the license or registration type and classification(s) you're applying for.

3. Review Your Quote

Most applicants with solid credit receive a quote within minutes. Applications that need extra review, such as those with a prior claim or lower credit, usually take 24 to 48 hours. We compare rates across our surety partners so you get the best price we can find.

4. Pay the Premium and File the Bond With the ACLB

After you pay, we issue the bond on the ACLB's prescribed form, since the Board won't accept a generic license and permit bond. Your company name and EIN on the bond must match your application exactly, and the bond must be signed by an agent licensed by the Arkansas Insurance Department, with that license and the power of attorney attached. You can then email, fax or mail the bond to the Board. Your license isn't valid until the ACLB has it on file. See the Board's $10,000 surety bond form for the full filing instructions.

Getting bonded for the first time? Our guide on how to get bonded covers the basics. If anything is unclear, contact us or call (877) 514-5146.

Commercial Contractors and Subcontractors

The $10,000 bond doesn't change with your classification or license size. It's the same whether you hold a restricted license, which covers single commercial projects under $1,500,000, or an unrestricted license with no project limit. Temporary commercial licenses, which are valid for 90 days, need the bond too.

Act 235 of 2025 raised the restricted license limit from $750,000 to $1,500,000 on August 4, 2025. Some ACLB forms still show the old figure, so see the Board's announcement.

Registered subcontractors file the same $10,000 bond. A registration isn't a license, and it only lets you work as a subcontractor under a properly licensed prime contractor. If you contract directly with the owner on a commercial job of $50,000 or more, you need a full commercial license. See our guide on how to become a subcontractor.

Residential Roofing Contractors

Under Act 1072 of 2021, residential roofers register with the Residential Contractors Committee instead of holding a home improvement roofing license. The registration requires a $15,000 surety bond on the Board's form, proof of workers' compensation coverage if you have employees and a $20 filing fee (registration application). Out-of-state roofers must also name a registered agent in Arkansas.

Unlike the $10,000 bond, the roofing bond protects homeowners and businesses damaged by a breach of contract or an unlawful act during the work. The surety's total liability is capped at $15,000, however many claims are filed. A.C.A. § 17-25-610 exempts some contractors. ACLB licensees whose classification includes roofing don't need the registration. Neither do home improvement or residential builder licensees if roofing is no more than 50% of the project cost and they don't sell roofing door to door. Other roofers must register.

Bond in Lieu of Financial Statement

Commercial applicants normally prove their finances with a CPA-prepared statement: a compiled statement for a restricted license, or a reviewed or audited statement for an unrestricted license. New applicants taking that route must hold at least half of their classification's minimum net worth in cash.

The alternative is a surety bond equal to ten times the net worth your classification requires (bond form):

• $500,000 for Building, Heavy, Highway/Railroad/Airport and Municipal & Utility ($50,000 net worth)
• $200,000 for Light Building, Mechanical and Electrical ($20,000 net worth)
• $50,000 for Specialty classifications ($5,000 net worth)

This bond goes on file alongside the $10,000 contractor's bond, never in place of it. It must be continuous and stay in effect while you hold the license unless you file an acceptable financial statement, and the State has priority over other claims against it. The surety must be authorized in Arkansas and appear on the U.S. Treasury's list of approved sureties. If the bond is canceled, you must file a replacement or a qualifying financial statement before the cancellation date, or your license will be suspended.

Other Bonds Arkansas Contractors May Need

Your license bond covers your obligations to the state, nothing more. Owners of public projects, and many private ones, require separate contract bonds, including bid bonds, performance bonds and payment bonds. These guarantee a specific job rather than your license. Some Arkansas cities also set their own contractor or permit bond requirements, so check with the local building department before you pull permits. For other bonds required in the state, visit our Arkansas surety bonds page.

Arkansas licenses contractors based on the type of project and its total cost, including labor and materials:

• Commercial license: any project other than a single-family residence that costs $50,000 or more.
• Residential builder license: building a single-family residence (one to four units) when the project costs more than $2,000.
• Residential remodeler license: structural changes or additions to a single-family residence over $2,000.
• Home improvement license: specialty work such as painting, windows or flooring on a single-family residence over $2,000.
• Residential roofing registration: residential roofing work, unless you qualify for an exemption under A.C.A. § 17-25-610.

Dividing one project into smaller contracts to stay under these limits doesn't exempt you. City building officials also can't issue a permit for commercial work of $50,000 or more until you show proof of a license.

Contracting without a required license carries civil penalties of $100 to $400 per day, which are capped at 3% of the project's total cost. It's also a Class A misdemeanor, with each day counted as a separate offense (A.C.A. § 17-25-103), and you generally can't sue to enforce a contract made without the license.

Arkansas contractor bonds are continuous. They stay in force until they're canceled, and the ACLB doesn't need a continuation certificate each year (renewal process). Your premium is still due annually to keep coverage in place.

A surety must give you and the ACLB 60 days' written notice before canceling, and the Board passes the notice to the state agencies that can claim against the bond (A.C.A. § 17-25-406). Get a replacement on file in that time, because once the bond lapses your license is invalid until the Board receives a new one. Failing to maintain the required bond can also bring a penalty of up to 5% of the contract's value, or 10% and a possible one-year license loss for a repeat violation.

If your company's EIN changes, you'll need a new bond, and name changes need other paperwork, so call the Board first. Commercial licenses renew every year. You can check any contractor's status with the Board's Find a Licensed Contractor search.

How much is an Arkansas contractor bond?

The bond amount is $10,000 for commercial licenses and commercial subcontractor registrations, and $15,000 for residential roofing registrations. You only pay a yearly premium. Contractors with a credit score of 700 or higher usually pay $100 to $300 a year for the $10,000 bond.

Do residential contractors need to be bonded in Arkansas?

Not for a residential builder, remodeler or home improvement license, since Arkansas has no state bond requirement for them. Residential roofers are the exception. Unless they qualify for an exemption, they must register with the Residential Contractors Committee and file a $15,000 surety bond. Some cities have their own bond rules, so check locally too.

How long does an Arkansas contractor bond last?

Arkansas contractor bonds are continuous, so they stay active until you or the surety cancels them, with no continuation certificate needed. You pay the premium each year. The surety must give the ACLB 60 days' written notice before canceling, and if no replacement is filed, your license becomes invalid.

Can a homeowner file a claim against an Arkansas contractor bond?

Not against the $10,000 bond. It secures a contractor's tax, unemployment and workers' compensation obligations, so claims come from government agencies. Homeowners harmed by a registered roofer can claim against the $15,000 roofing bond, and anyone damaged by a breach of a construction contract can claim against a bond in lieu of a financial statement. To report a contractor to the Board, email the ACLB's complaint form with copies of your contract.

Do I need a contractor license for small jobs in Arkansas?

Not always. Commercial projects under $50,000 don't require a state license, and residential projects of $2,000 or less are exempt. Both limits include labor and materials, and splitting one job into smaller contracts doesn't count. Local rules may still apply.

Do subcontractors need a contractor bond in Arkansas?

On commercial work, yes. A subcontractor can register with the ACLB instead of getting a full license, but the registration still requires the same $10,000 bond and a $100 filing fee. Registered subcontractors can only work under a properly licensed prime contractor. On residential jobs, subcontractors of a licensed residential contractor don't need their own license, although roofers still need a roofing registration.

Can I get an Arkansas contractor bond with bad credit?

Yes. Lower credit means a higher rate, but our bad credit program helps contractors with challenged credit get bonded and licensed

Have another question? Browse our surety bond FAQ or get in touch with our team.