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Sunday, May 1, 2016

New law makes contractors accountable

Friday, September 9, 2011

Act 1208, a new law that will go into effect January 1, 2012, will require contactors and subcontractors who perform over $2,000 in work, to meet residential licensure requirements.

Previously, subcontractors were allowed to work under licensed contractors, and were required to be licensed only if the project was over $20,000 in both labor and materials.

Act 1208 was passed during the last legislative session and signed into law by Arkansas Governor Mike Beebe. Representatives from the licensing board have been distributing applications and making contractors aware of the new law. By visiting job sites where current building permits are held, the office is attempting to assist contractors with the transition.

Although homeowners are exempt from the law and may still perform construction on their homes, acting as a contractor, they may build only one home during a calendar year.

Other exemptions include subcontractors working for licenced contractors, if the amount is less than $2,000 and contractors who are licensed by other licensing agencies of boards, such as plumbers who are licensed by the Plumbing Board.

There is currently a "grandfathering period" which began July 27 and runs through the time the law is effective. During this time, anyone who performs any type of construction o a single family residence is required to submit proof of experience. This may be in the form of letters of recommendation from contractors for whom they have worked over the previous years. The applications will be reviewed by the board and licenses will be issued during this time only with no testing required.

Contractors may choose from either limited or unlimited license options. With the limited license, the contractor may perform residential construction work amounting to $20,000 or less in labor and materials.

The unlimited option allows the contractor to perform unlimited labor and material amounts on residential home improvement or construction projects.

The penalty for not obtaining the license by January 1, 2012 will be from $100 to $400 per day.

Questions about the new law may be directed to the board at 501-371-4661 or by visting their Website at www.aclb. arkansas.gov.

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