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Key Facts: AR General Contractor Exam

50 Q

Exam Questions

PSI/ACLB

70%

Passing Score

PSI/ACLB

120 min

Time Limit

PSI/ACLB

Open book

NASCLA AR Edition

ACLB

$84

Exam Fee

ACLB Testing Info

Every Arkansas contractor license classification requires the Arkansas Contractor Business and Law Examination: 50 questions, 120 minutes, 70% to pass, open book with the NASCLA Contractors Guide to Business, Law and Project Management, Arkansas Edition. Commercial general building contractors also take the 115-question NASCLA Accredited Examination for the trade portion.

Sample AR General Contractor Practice Questions

Try these sample questions to review concepts for the AR General Contractor exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 160+ question experience with AI tutoring.

1Which agency manages contractor licensing in Arkansas?
A.Arkansas Department of Labor
B.Arkansas Contractors Licensing Board
C.Arkansas Building Commission
D.Arkansas Department of Commerce
Explanation: The Arkansas Contractors Licensing Board manages all contractor licensing in the state. It oversees commercial, residential builder, residential remodeler, and home improvement license classifications and ensures contractors meet legal requirements.
2At what project value is a commercial contractor license required in Arkansas?
A.$10,000
B.$25,000
C.$50,000
D.$100,000
Explanation: Arkansas requires a commercial contractor license for commercial work valued at $50,000 or more, including labor and materials. This threshold applies to any individual project and includes all prime and subcontractor work.
3At what project value is a residential builder license required in Arkansas?
A.$1,000
B.$2,000
C.$5,000
D.$10,000
Explanation: Arkansas requires a residential builder license for residential projects costing more than $2,000, including labor and materials. A residential builder license allows construction of single-family homes as well as major structural changes and additions.
4What exam must most Arkansas contractor license applicants pass (except Home Improvement Specialty)?
A.Only a trade exam
B.The Arkansas Business and Law exam
C.Only an OSHA certification
D.A financial management exam
Explanation: Most Arkansas contractor license classifications (commercial, residential builder, and residential remodeler) require passing the Arkansas Contractor Business and Law Examination administered by PSI. Home Improvement Specialty applicants are exempt from the exam but must still show specialty experience. The open-book exam uses the NASCLA Contractors Guide to Business, Law and Project Management, Arkansas Edition.
5What is the filing fee for an Arkansas contractor license application?
A.$50
B.$100
C.$150
D.$200
Explanation: The nonrefundable filing fee for an Arkansas commercial or residential builder contractor license application is $100, payable by check or money order to the Contractors Licensing Board. Residential remodeler and home improvement licenses have a $50 filing fee.
6What is the exam fee for the Arkansas Business and Law exam?
A.$50
B.$66
C.$84
D.$100
Explanation: The Arkansas Business and Law exam fee is $84, paid to PSI Services at the time of scheduling. This exam is an open-book test using the Contractors Guide to Business, Law and Project Management, Arkansas Edition as the sole reference material.
7What reference book is used for the Arkansas Business and Law exam?
A.Any general construction textbook
B.Contractors Guide to Business, Law and Project Management, Arkansas Edition (NASCLA)
C.The Arkansas Building Code
D.OSHA Construction Safety Manual
Explanation: The Arkansas Business and Law exam is based solely on the Contractors Guide to Business, Law and Project Management, Arkansas Edition, published by NASCLA. This book can be brought into the exam and may be highlighted, underlined, and annotated with permanent tabs.
8What is the surety bond requirement for an Arkansas commercial contractor?
A.$5,000
B.$10,000
C.$25,000
D.$50,000
Explanation: Arkansas commercial contractors must post a $10,000 surety bond with the Contractors Licensing Board. The bond must be in the principal name and EIN as registered with the Secretary of State's office, and must be a fully executed contractor's bond.
9How many reference letters must accompany an Arkansas contractor license application?
A.One
B.Two
C.Three
D.Five
Explanation: Arkansas requires three completed reference letters from individuals who can vouch for the applicant's professional experience and skills. References cannot be from suppliers or bankers, and must not be more than 90 days old at the time of submission.
10What financial documentation must accompany an Arkansas commercial contractor license application?
A.Only a bank statement
B.An audited or reviewed CPA financial statement showing required net worth (or a bond in lieu)
C.Only a credit report
D.No financial documentation required
Explanation: Unrestricted commercial applicants must submit an audited or reviewed financial statement from an independent CPA/RPA showing the classification minimum net worth (e.g., $50,000 for Building). Restricted licenses use a compiled statement. Separately, Arkansas Code § 17-25-304(c) allows a large bond in lieu of a financial statement (typically 10× the net-worth requirement), which is in addition to the $10,000 commercial license surety bond.

About the AR General Contractor Exam

The Arkansas Contractor Business and Law Examination is a 50-question, 120-minute open-book test required of every ACLB license classification. It covers Arkansas contractor rules and regulations, Arkansas lien law, contracts, estimating and bidding, insurance and bonding, financial management, project management, labor law, tax law, OSHA recordkeeping, and environmental regulations.

Exam sponsor: PSI Services LLC for the Arkansas Contractors Licensing Board. The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Questions

50 questions

Time Limit

2 hours

Passing Score

70% (35 of 50 correct)

Exam / Certification Fees

$84 (PSI exam); $100 ACLB application filing fee

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

9 items

Arkansas Contractor Rules and Regulations

ACLB classifications, thresholds, qualifying party, financial requirements, renewal, discipline

5 items

Contracts and Agreements

Formation, delivery methods, change orders, subcontracts, termination, disputes

5 items

Estimating and Bidding

Takeoff, labor burden, markup versus margin, bid procedures

5 items

Insurance and Bonding

CGL, builder's risk, workers' compensation, bid/performance/payment bonds

4 items

Arkansas Lien Laws

Pre-construction notice, 75-day notice, 10-day notice of intent, 120-day filing, 15-month suit

4 items

Business Management

Business planning, organization, management and marketing basics

4 items

Financial Management

Balance sheet, income statement, job costing, cash flow, ratios

4 items

Project Management

Scheduling, submittals, RFIs, documentation, quality control, closeout

3 items

Labor Laws and Employment Regulations

FLSA, Form I-9, anti-discrimination law, child labor, Arkansas Minimum Wage Act

3 items

Tax Laws

Arkansas gross receipts and use tax on materials, payroll withholding

2 items

Environmental Laws and Regulations

Stormwater, erosion control, hazardous materials, waste disposal

2 items

OSHA Recordkeeping and Reporting

Forms 300/300A/301, posting periods, fatality and severe-injury reporting

Preparing for the AR General Contractor Exam

What You Need to Know

  • Passing score: 70% (35 of 50 correct)
  • Exam length: 50 questions
  • Time limit: 2 hours
  • Exam / certification fees: $84 (PSI exam); $100 ACLB application filing fee Official sources

Using Our Practice Resources

  • Work through all 160 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

AR General Contractor: Suggested Study Strategy

1Tab the NASCLA Arkansas Edition with permanent tabs before test day; sticky notes are confiscated at the PSI center
2Arkansas Contractor Rules and Regulations is the largest single area at 9 of 50 items - learn 17 CAR 255 cold
3Memorize the lien clock: pre-construction notice, 75-day commercial notice, 10-day notice of intent, 120-day filing, 15-month suit
4Know the license tiers: restricted is under $1,500,000 with a compiled statement; unrestricted requires reviewed or audited
5Practice locating any topic in the reference book in under two minutes - the exam is lost on the clock, not on knowledge

Frequently Asked Questions

What does the Arkansas general contractor exam cover?

The AR GC exam covers state contractor licensing law, construction contracts, mechanics lien law, bonding, insurance, OSHA safety, building codes, and business management.

What is the passing score for the AR GC exam?

A minimum score of 70% is required to pass the Arkansas general contractor licensing exam.

Does Arkansas accept the NASCLA exam?

Arkansas accepts the NASCLA accredited exam for the trade portion of the contractor exam, but Arkansas still requires its own state Business & Law exam.

What experience is needed for a Arkansas contractor license?

Arkansas typically requires 4 years of verifiable construction experience before applying for a general contractor license.