Arkansas Contractor Business and Law Exam Study Guide
This guide covers what you need for the Arkansas Contractor Business and Law exam: the key facts from the official bulletin, the topics it tests, the reference books, sample questions with answers, and a plan to prepare. PSI gives the exam.
Arkansas Contractor Business and Law Exam at a Glance
Here are the exam's key facts from the official bulletin:
| Questions | 50 questions |
| Time limit | 2 hours |
| Passing score | 35 correct answers out of 50 scored questions |
| Books in the exam room | Open book |
| Exam fee | $84 |
On exam day
- You must present one valid, non-expired, signature-bearing photo ID matching your registration name, from the listed choices.
- You should arrive 30 minutes before your appointment.
- You must bring your own reference, it may not be written in during the exam, no additional loose or attached papers are permitted, and a downloaded reference must be bound.
- Highlighting, underlining and annotation done before the exam are allowed, and only permanent tabs may be used.
- An online calculator is provided; you may not bring your own calculator.
- Scratch paper and a pencil are provided and must be returned, while personal electronic devices, outerwear, hats and other personal items are prohibited in the testing room.
References you may bring
- NASCLA Contractors Guide to Business, Law and Project Management, Arkansas (8th Edition)
Scheduling, changes and retakes
- You can schedule the examination online at https://test-takers.psiexams.com/arconst or by telephone at (855) 257-1620.
- You may cancel and reschedule without forfeiting your fee if notice is received 2 days before the scheduled examination date, online or by speaking with a PSI representative.
- Missing the appointment, arriving after the examination start time, failing to cancel 2 days ahead, or lacking proper ID means you cannot test and forfeit your fee.
- Your score is given to you immediately after you finish the examination, and duplicate score reports can be requested by emailing scorereport@psionline.com.
- You may retake the exam an unlimited number of times until you pass, but you cannot book the new appointment on the same day you tested.
Source: Arkansas Contractors Licensing Board Contractor Licensure Examinations Candidate Information Bulletin, Updated 6/3/2022. Check the bulletin before test day: fees and rules can change.
What the Arkansas Contractor Business and Law Exam Covers
The official content outline has 12 topics:
| Topic | Questions | Share of the exam |
|---|---|---|
| Business Management | 4 | 8% |
| Contracts and Agreements | 5 | 10% |
| Environmental Laws and Regulations | 2 | 4% |
| Estimating and Bidding | 5 | 10% |
| Financial Management | 4 | 8% |
| Insurance and Bonding | 5 | 10% |
| Labor Laws and Employment Regulations | 3 | 6% |
| Project Management | 4 | 8% |
| OSHA Recordkeeping and Reporting | 2 | 4% |
| Tax Laws | 3 | 6% |
| Arkansas Lien Laws | 4 | 8% |
| Arkansas Contractor Rules and Regulations | 9 | 18% |
How to Prepare for the Arkansas Contractor Business and Law Exam
Start with the books. This is an open-book exam, so the references on the bulletin's list are your main study tool. Get the editions the bulletin names.
Learn where things are. Read the table of contents and the index of each book until you know where every major subject lives. On test day, finding an answer fast matters more than memorizing it.
Highlight the sections you use most. The exam facts above list the bulletin's rules on tabs and markings, so follow them exactly.
Take timed practice exams. The clock trains you to find answers at the pace the real exam needs: about 2 minutes 24 seconds per question.
Aim to pass more than once. One passing score can be luck. Several in a row means you're ready.
Reference Books for the Arkansas Contractor Business and Law Exam
The allowed reference is the NASCLA Contractors Guide to Business, Law and Project Management, Arkansas 8th Edition.
Where to get them:
On Test Day
- Go through the whole exam first. Answer every question you know and bookmark the ones you don't. Every exam lets you come back to bookmarked questions.
- Then go back to your bookmarks and work them out.
- Don't let one question eat your time. You have 2 hours for 50 questions, which is about 2 minutes 24 seconds per question.
- Before you finish, answer anything you skipped. A blank can't earn a point.
Study Tips
On an open-book exam, the winners aren't the smartest people in the room — they're the fastest at finding answers. Buy the required book, practice with it open, and tab and highlight each section the first time a question sends you there. Learn the index and table of contents until you can land on any topic in seconds. That speed is what separates a pass from a fail.
Know your way around each book's index and table of contents. Open-book exams reward speed: you need to find specific items quickly.
On an open-book exam, work through every question once: answer the ones you know and skip the ones you don't. Then go back to the ones you flagged. You can bookmark questions for later review, just like on our exams — and don't sink too much time into any single question. The clock is still running.
Give yourself at least three to six weeks. Use your exam's candidate bulletin as your roadmap for what's tested, and spend your time on finding-it-fast skills over rote memorization. In practice, aim for three clean passes at 80% or higher — setting your practice bar above the real cut score gives you a comfortable margin on test day.
Practicing against a ticking clock is the best way to beat exam-clock anxiety. Use these timed tests to build your pacing, so you learn to move steadily and never burn too long on a single question. By test day, the format feels routine.
Sample Arkansas Contractor Business and Law Practice Questions
These questions come from our practice question bank, each with its answer and reference.
Sample 1 — Insurance and Bonding
Question: What type of coverage do AIA and AGC standard contract documents require for builder's risk losses so that damaged property is replaced without deductions for depreciation?
- A. Actual cash value coverage
- B. Replacement cost coverage
- C. Named peril coverage
- D. Agreed value coverage
Correct Answer: B
AIA and AGC standard documents require replacement cost coverage, which replaces damaged property without any allowances or deductions such as depreciation.
Reference: NASCLA Contractors Guide, Managing Risk chapter — Insurance section
Sample 2 — Business Management
Question: A Missouri-based construction corporation plans to begin transacting business in Arkansas. Which document must it file with the Arkansas Secretary of State, Business and Commercial Services Division, to obtain authority to do so?
- A. Application for Certificate of Registration
- B. Application for Authority
- C. Certificate of Good Standing
- D. Articles of Incorporation
Correct Answer: B
Per the NASCLA Arkansas guide, foreign (out-of-state or out-of-country) corporations file an Application for Authority with the Secretary of State, Business and Commercial Services Division. Articles of Incorporation are used by domestic Arkansas corporations, while an Application for Certificate of Registration is the filing used by foreign partnerships and foreign LLCs.
Reference: NASCLA Contractors Guide, Arkansas (8th ed.), Chapter 2 — Filing for Incorporation in Arkansas / Foreign Corporations section
Sample 3 — Financial Management
Question: What is the working capital formula according to the balance sheet analysis?
- A. Total Assets - Total Liabilities = Working Capital
- B. Current Assets - Current Liabilities = Working Capital
- C. Cash + Accounts Receivable = Working Capital
- D. Revenue - Expenses = Working Capital
Correct Answer: B
According to the NASCLA Contractors Guide, working capital is calculated as Current Assets - Current Liabilities = Working Capital.
Reference: NASCLA Contractors Guide, Financial Management chapter — Balance Sheet section
Sample 4 — Project Management
Question: Who on the project supervisory team is primarily responsible for supervising the materials procurement process to ensure accurate and timely delivery?
- A. Owner's representative
- B. Superintendent
- C. Materials expediter
- D. Foreman
Correct Answer: C
A materials expediter supervises the materials procurement process to ensure accurate and timely delivery of materials. Timely delivery of materials is important to keeping a project schedule on track.
Reference: NASCLA Contractors Guide, Scheduling and Project Management chapter — Materials section
Why Practice Online Instead of With a PDF
A PDF shows you questions. It doesn't show you the clock. Our practice exams are timed and on a screen, so you practice finding answers under time pressure, not just reading them. Each attempt draws a new set of questions from our bank, and your results break the score down by outline topic so you know what to study next.
Start Practicing
Take the free Arkansas Contractor Business and Law practice exam to see where you stand, then work through the topics that need attention. For the official rules, read the exam bulletin, and see the licensing board's website.