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Arkansas bonds

Arkansas — Commercial Contractor's License Bond

Arkansas commercial contractors need the Board's $10,000 surety bond on file for a valid license. Use its specific form: the Board says it cannot accept a generic License and Permit Bond.

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Recorded state
Arkansas
Bond type
Commercial Contractor Bond
Category
Contractors & construction

What this bond does

Provide the security filed with the Arkansas Contractors Licensing Board under A.C.A. §17-25-401 et seq. for commercial contractors and registered subcontractors.

Who needs it
Applicants and licensees in the Board's commercial programme, including registered subcontractors. Confirm the correct license or registration; contracting directly with the owner is treated differently from subcontracting to a properly licensed contractor.
Who it protects
The principal and surety bind themselves jointly and severally to the State of Arkansas for $10,000. The form's condition is prompt payment of amounts due under A.C.A. §17-25-401 et seq.; it is not a general guarantee to complete every project or pay every private construction invoice.

Your bond option

This is the option on record for this bond.

The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.

Details

The Board's current guidance calls for commercial licensing on commercial projects of $50,000 or more, including labor and materials, and treats projects other than single-family residences as commercial. Ask the Board which license or registration applies to your role. Its subcontractor route depends on a contract with a properly licensed contractor; a direct contract with the owner is treated as prime contracting.

The January 2025 bond and instructions require the principal's company name and EIN exactly as used on the license application. The same company identity is used for Arkansas work and bids. Have the provider prepare the Board's actual $10,000 surety form rather than a generic license-and-permit instrument.

Execution depends on who signs for the surety. An appropriately Arkansas-licensed resident or nonresident agency, agent, broker or producer must attach the Arkansas insurance license and power of attorney. A direct underwriter employed by the surety may execute for the surety under the form's separate instructions; do not assume every applicant or signatory needs the same attachments.

This is continuous security, and the Board says continuation certificates are not required. The surety may cancel on 60 days' written notice to the principal and State through the Board. Maintain the accepted security needed for a valid license; the notice period is not a bond term or permission to work without it.

Purchase Now opens Propeller's Arkansas commercial-contractor application in a new tab. Bring the exact company name, EIN, Board application or license details and required form. Before paying, check the statutory condition, effective date and execution. The bond and power of attorney may be mailed, faxed or emailed to the Board as its form directs. The Board separately instructs new applicants to mail the completed initial license application; emailing a bond alone does not complete that application or issue a license.

Sources

Have these ready

  1. Confirm commercial license versus subcontractor registration with the Board.
  2. Use the exact applicant company name and EIN on the $10,000 Board form.
  3. Arrange the appropriate surety execution and any agent license/power-of-attorney attachments.
  4. Follow the bond filing instructions and the separate initial-license application delivery instructions.

Questions about this bond

Can the provider use a generic License and Permit Bond?

The Board's instructions expressly say it cannot accept that form. Have the provider use the specific Arkansas $10,000 surety bond.

Does a contract directly with the owner count as subcontracting?

The Board treats a direct owner contract as prime contracting. Its registration route for subcontractors depends on a contract with a properly licensed contractor; confirm the correct application before purchasing.

Is this a project performance or payment bond?

No. The State form conditions its obligation on prompt payment of amounts due under §17-25-401 et seq. A project's separate completion or payment security must be matched to that request.

Do I need an annual continuation certificate?

The Board says its bond is continuous until cancelled and does not require continuation certificates. Keep effective security in place and respond to any cancellation or Board instructions.

Can I email the bond instead of mailing my license application?

The bond and power of attorney may be emailed, faxed or mailed as the bond form directs. The current initial licensing guidance separately calls for mailing the completed application. Follow both instructions rather than treating the bond as the whole application.

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