Operating without a contractor’s license in Arkansas can lead to serious fines and possible lawsuits. It is imperative that contractors acquire the appropriate license for the job they are performing. Licensing requirements vary by state, and the state of Arkansas has its own specific set of requirements. Below, a Little Rock contractor attorney will describe when a contractor’s license is needed on a project.
Which License Do You Need?
In Arkansas, a license can either be for residential or commercial projects. The requirements for acquiring a license are different for each and largely depend on the cost of the project. Remember, the cost of a project includes both labor and materials.
A residential project is used for work that is done on a single family residence. If the cost of a residential project exceeds $2,000, a residential license is required. This residence cannot contain more than four separate single units, or it will be considered a commercial project.
Anything that is not a single family residence is a commercial project. When the cost of a commercial project exceeds $50,000, a contractor’s license is necessary. You can get either a restricted or full contractor’s license. You will need a full license if the value of the project is over $750,000.
Any project requiring plumbing, electrical work, or HVAC will require a contractor’s license. Additionally, a trade license or certificate may be required depending on the work performed. A Little Rock contractor attorney can help if you are uncertain of what agency to contact for a certificate.
The penalty for working without a contractor’s license in the state of Arkansas is a fine between $100 and $200 per unlicensed work day. It is a misdemeanor that can further open up a construction firm to a lawsuit from a disgruntled property owner. If you are unsure of the need for a contractor’s license or your firm has been accused of operating without one, please contact a Little Rock contractor lawyer immediately. It could mean the difference between a heavy fine and a low exam fee.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.