Arkansas Contractor Business and Law Exam Practice Exam
Free Practice Exam
Test your knowledge with 10 questions from our pool of 20 free questions.
- 10 questions per attempt
- 30 minute time limit
- Unlimited attempts
- A new mix each time
- Instant results
Full Practice Exam
Complete exam simulation matching the real PSI test format.
- 50 questions (same as real exam)
- 120 minute time limit
- 12 topic areas covered
- 262 questions in pool
- Detailed explanations
Texts preferred · 9am–9pm Central
Arkansas Contractor Business and Law Practice Exam Guide
What's on the exam
Questions per topic, out of 50This practice exam follows the official content outline for the Arkansas Contractor Business and Law exam: Business Management, Contracts and Agreements, Environmental Laws and Regulations, Estimating and Bidding, Financial Management, Insurance and Bonding, Labor Laws and Employment Regulations, Project Management, OSHA Recordkeeping and Reporting, Tax Laws, Arkansas Lien Laws, Arkansas Contractor Rules and Regulations.
You have two ways to practice. The free practice exam gives you 10 questions per attempt, and you can retake it as often as you like. The full practice exam gives you 50 questions on a 2 hours clock, with a new draw from our question bank every attempt.
Business Management 4 items
Our study plan for this topic: Arkansas registration and filing requirements for business entities (Secretary of State, franchise tax reports); Business naming rules, fictitious name filing, and Arkansas contractor license name requirements; Business plan development: elements, functions, and pitfalls; Time management, delegation, and business ethics for contractors; Marketing, promotional strategies, and sales process management.
Contracts and Agreements 5 items
Environmental Laws and Regulations 2 items
Our study plan for this topic: U.S. EPA and Arkansas ADEQ roles and regulatory programs; Key federal environmental laws applicable to construction (Clean Water Act, Clean Air Act, ESA, NEPA, NHPA); Air quality requirements: indoor and outdoor pollutants and permitting; Asbestos identification, ADEQ notification, and removal requirements; Stormwater management and NPDES permitting for construction sites; Sedimentation and erosion control best management practices; Hazardous and non-hazardous solid waste identification, disposal, and notification requirements; Lead hazards: worker exposure limits, engineering controls, and Lead Pre-Renovation Education Rule (Lead PRE).
Estimating and Bidding 5 items
Financial Management 4 items
Insurance and Bonding 5 items
Our study plan for this topic: Workers' compensation insurance requirements for Arkansas contractors and subcontractors; Arkansas $10,000 contractors bond filing requirement for commercial licensure; Arkansas state public project bond thresholds (5% bid bond over $20,000; performance/payment bonds over $50,000); Miller Act and Little Miller Act bonding requirements for federal and state public construction projects.
Labor Laws and Employment Regulations 3 items
Our study plan for this topic: Arkansas new hire reporting requirements and procedures; Arkansas Workers' Compensation — coverage requirements, benefits, and fraud.
Project Management 4 items
OSHA Recordkeeping and Reporting 2 items
Our study plan for this topic: OSHA Forms 300, 300A, and 301 — purpose and completion requirements; Employer exemptions from recordkeeping (size and industry classifications); Recordability criteria — work-relatedness, new case determination, and general recording triggers; First aid versus medical treatment distinctions for recordkeeping purposes; Mandatory reporting of fatalities, hospitalizations, amputations, and loss of an eye (timeframes and methods); Record retention requirements for injury/illness logs and exposure/medical records; Annual summary posting requirements (Form 300A — dates and certification); Employee rights and privacy protections in the recordkeeping system.
Tax Laws 3 items
Our study plan for this topic: Arkansas state tax specifics: withholding, corporation, partnership, and S corporation filing requirements.
Arkansas Lien Laws 4 items
Our study plan for this topic: Who is entitled to a mechanics' lien (eligible parties); Definitions of contractor, subcontractor, material supplier, and privity; Preconstruction notice requirements for residential projects (4 or fewer units); 75-day notice requirement for commercial projects; 10-day notice before filing a lien; Filing requirements and deadlines for a lien (120-day rule, required contents, affidavit); Priority of liens and commencement of construction; Bonding around a lien (filing, notification, sufficiency challenge).
Arkansas Contractor Rules and Regulations 9 items
Our study plan for this topic: Commercial contractor licensing thresholds and definitions; Residential contractor licensing thresholds and definitions; Exemptions from contractor licensing requirements; License application process and qualifying party requirements; Financial statement and surety bond requirements for licensure; License classifications and authorized scope of work; License expiration, renewal procedures, and late renewal penalties; Prohibited acts and civil and criminal penalties for violations.
Sample 1 — Arkansas Contractor Rules and Regulations
Question: Your residential contractor license expired 45 days ago. You now mail the renewal application with the late renewal fee to the Residential Contractors Committee. What is your licensing status upon the Committee's receipt of the application?
- A. A new application is required because 30 days passed
- B. Reinstatement is retroactive to the expiration date
- C. The license is invalid until the Committee approves it
- D. The license is reinstated upon receipt of the application
Correct Answer: C
Under Rule 224-25-5-2(b)(4), a renewal application received more than 30 days after expiration must include the late renewal fee and may be reviewed at the Committee's next available meeting; the applicant does not have a valid license until the application is approved. Automatic reinstatement on receipt applies only within 30 days after expiration (Rule 224-25-5-2(b)(3)), and a new application is required only after two years.
Reference: NASCLA Contractors Guide, Arkansas (8th ed.), Appendix F, Rule 224-25-5-2(b)
Sample 2 — Contracts and Agreements
Question: A contract specifies a $500 per-day liquidated damages assessment. You complete the project 20 days past the contracted completion date with no excused delays. The owner decides to pursue liquidated damages. How much can the owner collect, and can the owner also sue for actual damages?
- A. $5,000, and the owner may also sue for actual damages
- B. $5,000, and the owner cannot also sue for actual damages
- C. $10,000, and the owner cannot also sue for actual damages
- D. $10,000, and the owner may also sue for actual damages
Correct Answer: C
Liquidated damages are calculated as $500 × 20 days = $10,000. An owner who sues for liquidated damages cannot sue for actual damages. These are mutually exclusive remedies.
Reference: NASCLA Contractors Guide, Contract Management chapter — Breach of Contract section
Sample 3 — Estimating and Bidding
Question: When changes are made to a bid package before it is due, what document is issued to communicate those changes?
- A. A supplement
- B. An addendum
- C. A change order
- D. A revised invitation to bid
Correct Answer: B
According to the NASCLA Contractors Guide (Page 7-1), if changes are made to a bid package before it is due, an addendum is issued. The addendum becomes part of the bid documents and, ultimately, part of the contract when awarded.
Reference: NASCLA Contractors Guide, Bidding and Estimating chapter — Bid Documents section
Treat your first attempt as a checkup, not a verdict. After every attempt, the results page breaks your score down by outline topic, so you can see which topics need work. Compare your score with the real exam's passing score, 35 correct answers out of 50 scored questions, and keep practicing until you pass consistently.
- Answer what you know first. Go through every question once, answer the ones you know, and bookmark the rest. Our practice exams let you bookmark and come back.
- Come back to your bookmarks. Work them out on your second pass.
- Watch your pace. The real exam works out to about 2 minutes 24 seconds per question.
- Look up every miss. After each attempt, find each missed question's reference in your book and read the section.
| 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 |
- 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.