13 CAR § 11-602. Selection of a contractor

(a) Procedures for selecting a contractor and requirements for contractors are contained in Acts 1949, No. 159, as amended, and should be reviewed. (b) The major provisions of Acts 1949, No. 159, are: (1) Contractor license requirements. (A)(i) Contractors must be licensed by the Contractors Licensing Board on projects of ten thousand dollars ($10,000) or more. (ii) Contractors shall indicate their current license number on their bid forms. (B) On projects of less than ten thousand dollars ($10,000), licensed contractors are not required, although the Arkansas Historic Preservation Program highly recommends licensed contractors for all projects. (C) On projects of fifty thousand dollars ($50,000) or more, the general contractor must list any roofing, plumbing, electrical, and HVAC subcontractors, and these subcontractors must be licensed by the Contractors Licensing Board; and (2) Contractor insurance and bonding requirements. (A) All contractors must carry construction liability and workers’ compensation insurance regardless of the cost of the project. (B) On projects of ten thousand dollars ($10,000) to nineteen thousand nine hundred ninety-nine dollars ($19,999), contractors must furnish a five percent (5%) bid bond. (C) On projects of twenty thousand dollars ($20,000) or more, contractors must furnish a five percent (5%) bid bond and a one hundred percent (100%) performance bond. (D)(i) Bonds shall be written in favor of the grantee. (ii) After approval by the architect, the contractor shall file the bond with the circuit clerk and recorder of the county where the work is to be performed. (iii) Contractor shall obtain from the circuit clerk certificates as evidence that the bond has been approved and filed with the clerk and said certificates shall be filed with the architect. (iv) The contractor shall file the premium for the required bond. (v) The contractor must obtain the bond before the contract between the owner and the contractor can be put into effect. (E) Insurance and bonding agents must be licensed and authorized to do business in Arkansas.