Arkansas HVACR NewsMagazine January 2024

News Magazine January 2024

FEATURE STORY

Restricted License

Bond Requirement ✓ $10,000.00 Contractors License Bond to be executed on prescribed form. • Complete Criminal Background Check Form • License Renewal Fee

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• Privilege: ✓ A restricted license allows one to do work less than $750,000.00 (labor and material included). ✓ May contract with the Owner, Prime, or other Sub-contractor • Financials for license: ✓ Complied financial statement of applicant’s year end or more current, prepared on a GAAP or accrual income tax basis by an Independent CPA or Public Accountant. ✓ The financial must include CPA Report Page and Balance Sheet. Footnotes are not required unless requested by the Board. ✓ Minimum Financial Requirement is a $5,000.00 net worth with a positive working capital with half in cash in the bank. May not include any assets not used for business, i.e., home, and personal property. ✓ A $50,000.00 bond as authorized

✓ $50.00 (timely) ✓ $100.00 (late) Experience ✓ Specialty 1 year

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Test ✓ All contractor specialty licensees must successfully complete the Arkansas Business & Law Exam (This includes HVAC and Refrigeration and Cold Storage.)

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Subcontractor Registration

Now, this is something most of us knew nothing about. An HVACR person / company can have a contract with a Prime Contractor or a Licensed Specialty Subcontractor and the sub will only have to do the following: • Privilege: ✓ May contract with the Prime, or other Sub-contractor • Financials are not required • Apply for Registered Status • Provide Proof of Workers’ Compensation • Provide a Bond of $10,000.00 • $100.00 fee • Limited by contract limitations of the contractor or subcontractor

by Ark. Code Ann. ξ17 -25-304(c) may be used in lieu of the financial statement.

Unrestricted & Restricted Licensees

• Must have or have employed at least 1 person with the appropriate Class “A” or “B” license from the Department of Labor and Licensing HVACR Program. • Proof of Workers Compensation coverage must be provided to the Board for licensing purposes for companies that have employees.