How to File a Bond Claim in Arkansas
- Bonds are required on public projects over $20,000 and on churches and charitable projects over $1,000.
- You cannot have a bond claim if you are in Place 4* or below.
- The bond is supposed to be filed with the County Circuit Clerk.
- An action on the bond must be brought within twelve (12) months of the final payment to the Place 1* Contractor.
- If suit to enforce fees are mandatory and at 12%, or you have proof the bond company denied the claim.
How to File a Lien in Arkansas
- You must be in Place 3* or above to have lien rights.
- Materials must actually be used at the project, and the burden is on the Material Supplier to prove.
- Liens must be filed within one hundred and twenty (120) days of work being done or materials being supplied.
- Lien must have a copy of all the required notices that were sent attached and included with the lien.
- Must give a ten (10) day notice before you file your lien to the Owner and General Contractor.
- Residential (four or fewer units) Owners must be given “Important Notice” form before a lien can be filed. This is a notice required by law and is normally given by a Place 1* Contractor. If they don’t provide the notice, anyone who wants to file a lien can send the notice to the Owner by certified mail.
- If you are working on a residential project, you may want to send the “Important Notice” before you begin work, because if the Place 1* Contractor did not provide the notice you will not have lien rights. Or ask for a copy of the signed “Important Notice” from the Contractor.
- A Place 3* Subcontractor or Material Supplier must send notice to the Owner and Place 1* Contractor within seventy-five (75) days of the last time they supplied work and/or materials. The notice must include:
- Description of work and/or material supplied;
- The amount you are due;
- Your name and address;
- The name and address of the person who hired you;
- Job name and address; and
- BOLD face statement as required by law. (meaning you actually need to have the following statement bolded in your notice)
- TAKE NOTICE that if this claim is not paid within 10 days of the date of this notice, Claimant intends to file a lien against the above property. If this claim is not paid within 20 days of the date of this notice, the Claimant is required to sue for enforcement of the claim, Claimant will be entitled to reasonable attorney fees in addition to other relief.
If you work in Arkansas, it’s important that you follow the rules above to ensure you file a valid construction lien. Your Arkansas liens and bond claims are your leverage and are there to protect your compensation. If you want to have a fool-proof collection strategy, tune into the Arkansas Lien Laws episode of The Quit Getting Screwed Construction Podcast. If you want someone else to take care of filing your lien, and do it the right way, contact an experienced Arkansas lien lawyer who knows construction law. Our sister company, The Cromeens Law Firm, has a 90% success rate of collections before having to foreclose on a lien, saving you costly legal fees. File your liens the right way, today.
*The “places” referenced in the rules above correlate to the Construction Food Chain Chart from Karalynn Cromeens’ book,
Quit Getting Stiffed. The chart can be found here to use when following these lien and bond rules.