Contractor License ($10,000) Bond - City of North Little Rock, AR in Arkansas

Brief Summary

North Little Rock's Planning Department will not issue a permit to a contractor until a current $10,000 bond is on file. Getting it in place before your first job keeps the permit from stalling, and you pay a premium instead of setting aside $10,000 in cash.

Section 1.1.4 of Chapter 4 of the North Little Rock Municipal Code requires any contractor doing business in the city to provide a $10,000 bond with a surety bonding company before any permit is issued. The bond, a current city business license and a current Arkansas contractor license must all be on file with the Planning Department. Property owners building or remodeling their own residence, or building their own commercial structure, do not need the bond.

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How to Apply for a Contractor License ($10,000) Bond:

• Confirm you are pulling permits as a contractor. Property owners working on their own residence or building their own commercial structure are exempt.
• Hold a current Arkansas contractor license and a current business license from any Arkansas city.
• Use the exact business name that will appear on your permit applications.
• Complete the bond application and review the quoted premium.
• Pay the premium and receive the signed $10,000 bond naming the City of North Little Rock.
• File the bond, business license and state license with the Planning Department before applying for a permit.

Detailed Information About the Arkansas Contractor License ($10,000) Bond:

Who has to post this bond

Chapter 4 of the North Little Rock Municipal Code, Buildings and Building Regulations, controls who can pull permits in the city. Section 1.1.4(B), as amended by Ordinance 9017 in 2018, says any contractor doing business in the City shall provide a bond with a surety bonding company in the sum of $10,000. No permit is issued to any contractor unless the bond has been provided and is in full force and effect.

The Planning Department's residential construction reference says a licensed contractor may be issued building, plumbing, electrical and HVAC permits, so the requirement is not limited to general contractors. Trade contractors pulling their own permits need the bond too.

Who does not need it

Section 1.1.4(A) exempts property owners in three situations. An owner building their own personal residence, limited to one residence per calendar year, an owner doing repairs, remodeling or additions to their own personal residence, and an owner building their own commercial structure. None of them has to submit a contractor license, a bond or a business license.

The bond is one of three items on file

The city's permit checklists list three things that must be on file with Planning before a contractor can get a permit. A current bond, a current business license, and a current state license. Section 1.1.4(B) accepts a business license from any city in Arkansas, and requires a current State of Arkansas contractor's license.

What the bond covers

The bond indemnifies the City or any citizen for damage caused when the contractor fails to comply strictly with Chapter 4. A homeowner harmed by work that breaks the city's building rules can make a claim, and the contractor must repay the surety for anything it pays out.

The code does not prescribe a bond form. Confirm with the North Little Rock Planning Department whether it has its own form and how it wants the bond delivered before the bond is issued.

Eligibility and Requirements for a Arkansas Contractor License ($10,000) Bond:

• Bond amount of $10,000 under NLR Municipal Code Chapter 4, Section 1.1.4(B).
• Written by a surety bonding company.
• City of North Little Rock as obligee.
• Bond kept current and in full force while you hold permits in the city.
• Current Arkansas contractor license and Arkansas city business license on file with Planning.

Arkansas Contractor License ($10,000) Bond FAQs:

Official and Additional Resources for the Arkansas Contractor License ($10,000) Bond: