Can an unlicensed person or company complete a project if the total valuation of labor and materials exceeds $2,000?

Prepare for the Arkansas Contractor Business and Law Exam. Study with flashcards and multiple choice questions. Each question comes with hints and explanations. Ace your exam confidently!

In Arkansas, the law clearly stipulates requirements regarding contractor licensing based on the value of a project. When the total valuation of labor and materials exceeds $2,000, individuals or companies are mandated to possess the necessary licensing to legally undertake construction projects. This regulation is in place to ensure that individuals performing construction work are qualified and have met specific standards that protect the public and ensure quality workmanship.

Thus, the assertion that an unlicensed person or company cannot complete a project with a valuation exceeding this threshold is consistent with state law. This licensing requirement helps maintain professional standards in the construction industry, safeguarding both the contractor and the client from potential legal and financial issues that may arise from unlicensed work. Therefore, if a project surpasses the $2,000 mark, it is clear that licensure is necessary and an unlicensed entity would not be allowed to proceed legally with that project.

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