GC Laws — Arkansas contractor-law checklist preview (free) Sources reviewed 2026-09-30. Public summaries remain free on gclaws.com. [ ] Licensing - A commercial contractor license is required for covered commercial projects costing $50,000 or more, including labor and materials, subject to the applicable category and exceptions. - A residential builder license covers construction of a single-family residence costing more than $2,000 unless an exception applies. The residential remodeler category covers major structural changes or additions to an existing single-family residence costing more than $2,000. The Board has separate specialty home-improvement and residential-roofing categories. [ ] Mechanic's liens - File the lien account with the circuit-court clerk in the property county within 120 days after furnishing the covered items or performing the work. The account states the amount after credits and includes the verified property description and affidavit of notice. - Act 806 expressly states that a street address is not a sufficient description of real property. The affidavit must document compliance with applicable notices and attach the required notices and proof of service; timely recording alone does not replace those requirements. [ ] Retainage - For a public-agency construction contract requiring a performance and payment bond, Arkansas Code §22-9-604 provides for payment of 95% of earned progress payments and retention of 5%. At 50% completion, the agency may stop further withholding if performance is satisfactory and the design professional and agency approve; this is discretionary. The enacted text requires agency-held sums to be paid within 30 days after completion and includes proportional release for qualifying phased work. - Section 22-9-604(d) excludes qualifying stored materials and equipment from retainage on that part of the progress payment. The current DFA Financial Management Guide separately describes the state agency’s 95%/5% progress-payment procedure and the discretionary midpoint cessation. [ ] Prompt payment - Arkansas DFA’s Financial Management Guide explains payment processing for properly prepared state-construction payment requests: the design professional, an applicable exempt state agency or higher-education institution, and DFA each have five working days for their processing stage, excluding transmission time. The guide calls for documenting receipt and forwarding times and notifying the contractor of delays. It identifies an 8% annual penalty against parties responsible for untimely processing under §19-4-1411. [ ] Prevailing wage - The 2026–2027 ACEDP exhibits require the applicant’s compliance certification for the listed labor standards, including §110 of the Housing and Community Development Act and Davis-Bacon requirements. These are conditions of this state-administered federal grant program. - For covered CDBG construction, 42 U.S.C. §5310 requires contractor and subcontractor laborers and mechanics to receive at least the federal prevailing rate for similar local construction. Residential rehabilitation is covered only when the property has at least eight units; subsection (b) excludes qualifying volunteer services. [ ] Davis-Bacon (federal) - Under 40 U.S.C. section 3142, covered contracts require payment to laborers and mechanics employed directly on the site of the work at least weekly, at rates no lower than the applicable prevailing wage determination. The required compensation includes the basic hourly rate and required fringe benefits, which may be provided through qualifying benefits or cash as the statute permits. - Qualifying apprentices may receive a lower registered-program rate only when the applicable registration and program conditions are met. The Department of Labor’s apprenticeship rules govern those exceptions. - The Department of Labor determines the prevailing rates for the work classifications and locality. Contractors and subcontractors must use the wage determination applicable to their covered contract. - Federal assistance alone does not establish coverage: many, but not all, construction-assistance statutes include Davis-Bacon requirements. Identify the funding program and its governing Related Act. - SAM.gov publishes Davis-Bacon wage determinations. Search by the wage-determination number or the Davis-Bacon public-buildings-or-works category, and match the decision to the contract, locality, and work classification. This preview lists the topics and rules covered in the full state pack. The paid pack adds the complete source URLs, citations, review dates, and the three editable tools. GC Laws is owned and operated by GCExperts LLC, a Texas corporation.