Arkansas — Water Well Contractor's License Bond

The Arkansas Water Well Contractor's License Bond is a regulatory requirement for contractors operating within the state. It ensures that licensed professionals comply with state acts and regulations governing water well construction, providing financial protection to the public for damages arising from violations of these rules.

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Recorded state: Arkansas
Bond type: Well Driller / Pump Installer Bond
Category: Contractors & construction

What this bond does

This bond protects members of the public who do business with a water well contractor. If a contractor or their employee violates relevant state laws, damaged parties may pursue financial recovery against the surety bond.

Who needs it: Resident and nonresident water well contractors seeking licensure in Arkansas are required to obtain this bond to maintain their authorization to practice.
Who it protects: The bond acts as a financial guarantee for the Arkansas Natural Resources Commission and the public. It covers damages resulting from non-compliance with applicable statutes, with a penal sum typically set at twenty thousand dollars.

Your bond option

This is the option on record for this bond.

Bond option
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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.

Licensing and Bond Obligations

To obtain an Arkansas water well contractor's license, applicants must secure a surety bond in the full penal sum of no less than twenty thousand dollars. The bond must be issued by a surety company authorized to do business in Arkansas, binding the principal and surety to the Arkansas Natural Resources Commission.

Licensing requires the submission of an original, notarized contractor's bond form provided by the Commission. While the license is renewed annually, the bond must remain in full force and effect to satisfy regulatory requirements throughout the term of practice.

Contract Coverage and Scope

If a contract between the principal and a person doing business with the principal exceeds twenty thousand dollars, or the amount of the existing bond if it is already in excess of twenty thousand dollars, the principal must enter into a separate agreement and bond equal to the amount of that contract.

The scope of the bond pertains to the construction of the well, including drilling, casing, screens, grout, and seals. It does not extend to ancillary items like pumping stations, buildings, or ductwork that fall outside the defined scope of water well construction.

Bond Waivers and Termination

The Commission may waive the twenty-thousand-dollar bond requirement for contractors whose contracts consistently amount to less than twenty thousand dollars per year, provided they prove inability to obtain a bond or undue hardship, and the Executive Secretary recommends it. Those granted a waiver may post an escrow cash bond of no less than five hundred dollars per year until twenty thousand dollars is accrued, plus a signed statement of personal indemnification.

Sureties may terminate a bond by providing thirty days' written notice to the Commission. Importantly, this termination does not release the principal or surety from liability for any incidents that occurred while the bond was in active force.

Sources

17 CAR § 11-307. Bonding (opens in a new tab)Checked October 18, 2026

Have these ready

Verify your eligibility for the standard bond or determine if you qualify for a waiver through the Arkansas Natural Resources Commission.
Obtain the official contractor's bond form directly from the Commission as part of the licensing process.
Ensure the bond document is completed, notarized, and submitted as an original copy to the Commission.
Confirm that your surety provider is authorized to conduct business within the state of Arkansas.

Questions about this bond

What happens if a contractor fails to follow state regulations?

Any person damaged by a violation of Acts 1969, No. 641, as amended, or rules pertaining to the act, may sue the principal and surety in their own name.

Can the bond be cancelled?

Yes, a surety can terminate a bond by providing at least thirty days' written notice to the Commission.

Is a new bond required every year?

The bond is construed as a new bond for each year it remains in force, unless waived, and the license may be renewed annually without a new bond form if the Commission has proof the bond remains in effect.

What if I cannot afford the full twenty-thousand-dollar bond?

Contractors may request a waiver if they prove inability to obtain a bond or that it causes undue hardship, and the Executive Secretary of the Commission must recommend the lesser amount as sufficient protection.

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