Working on Arkansas public jobs: payment bonds, lien deadlines and the license rules subcontractors need to know

Subcontractors and suppliers looking at the jobs on ARDOT's Nov. 4 and Jan. 20 lettings will be working on public projects, where the payment rules differ from private work. This explainer summarizes the Arkansas statutes and licensing board guidance. It is not legal advice.

Public jobs: the payment bond

Arkansas law says the state, its agencies, counties, cities, school districts and other local taxing units may not enter a public construction contract over $50,000 unless the contractor furnishes a payment bond equal to the contract amount (Ark. Code § 18-44-503). The bond must cover claims for labor and materials, including:

• wages of construction workers, supervisors and administrative staff on the contract
• temporary facilities, and machinery, equipment or tools not customarily owned by workers
• building permits, testing fees, and fuel oil and gasoline
• bond and insurance premiums, and taxes arising from workers' wages

Liens do not attach to public property, so on an ARDOT job the payment bond is a subcontractor's main protection. Read the bond and the prime's subcontract for notice and claim terms.

Private jobs: liens

On private projects, Arkansas's mechanics' and materialmen's lien law (Title 18, Chapter 44) sets three main deadlines:

• Notice: at least 10 days before filing, the claimant must notify the owner (§ 18-44-114).
• Filing: within 120 days after the materials were furnished or the work was done, the claimant files with the circuit clerk of the county a just and true account of the amount due, with an affidavit of notice and a legal description of the property. The statute says a street address is not a correct description. The clerk may not file a lien account without the required affidavits and attachments (§ 18-44-117).
• Suit: an action to enforce the lien must be filed within 15 months after the lien is filed (§ 18-44-119).

Licensing

The Arkansas Contractors Licensing Board, part of the Department of Labor and Licensing, publishes these thresholds on its application page:

• Commercial license: work of $50,000 or more, labor and materials included, on a commercial project. Any project that is not a single-family residence is commercial. A business and law test is required.
• Subcontractor registration certificate: subcontractors of properly licensed contractors can work with a registration certificate instead of a full license. A firm with a contract directly with the owner, written or verbal, is a prime contractor.
• Residential builder: building a single-family residence over $2,000, unless an exception applies.
• Residential remodeler: major structural changes or additions to a single-family residence over $2,000.
• Home improvement: specialty work such as painting, windows or flooring on a single-family residence over $2,000.
• Residential roofer registration: roofing projects over $2,000, unless the firm holds a residential builder or remodeler license.

The board also offers a temporary residential remodeler license for contractors with a current out-of-state license or acceptable references. It is valid for 90 days and may be issued only once.

ARDOT's bidders list

ARDOT keeps a record of every firm that quotes on a federally funded job. Since the May 22, 2024 letting, primes must list each subcontractor, trucker and supplier that bid or quoted on any item, whether or not the quote was used. The list includes each firm's address, phone, DBE status, majority owner's race and gender, age of firm, annual gross receipts, type of work and NAICS codes. Under Standard Specification 102.07, a prime that does not submit its bidders lists will not be issued proposals for future lettings.

Where to start

Our lien and bond guide and licensing guide link to the statutes. The bids page lists every advertised ARDOT job, and the proposal holder lists show which primes to contact.