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Am I able to enforce my lien in court, or do I have to be an Arkansas licensed contractor?

I have filed a mechanics lien in Arkansas for the amount of $32k. I am a licensed GC in California. I am registered with Arkansas as a foreign corporation, done payroll in that state, and I am set up with a registered agent in that state. Am I able to enforce my lien in court, or do I have to be an Arkansas licensed contractor?

1 reply

Mar 13, 2020

The Arkansas mechanics lien statute doesn't specifically require that a contractor be licensed in order to proceed with a lien claim. However, it appears that unlicensed general contractors who contract for work in excess of $20,000 must be licensed in Arkansas (though, apparently that limit changes for specialty contractors and drops to $2,000 for residential jobs). And, if a license is required, but not held, it appears that an unlicensed Arkansas contractor won't be able to bring suit to collect on their contract. Meaning, that may well block a contractor from enforcing a mechanics lien when the amount owed exceeds $20,000. Of course, it might be worthwhile to reach out to a local Arkansas construction attorney considering the amount of the dispute at hand. $32,000 is a lot of money, and a local attorney will be able to review the situation more thoroughly, take a look at any project documents, and they'll be more familiar with the state's licensing rules.

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