If a contract stipulates $1,500 for labor but the materials double the overall cost, can an unlicensed individual legally complete the work?

In Arkansas, the requirement for a contractor to be licensed is primarily based on the total cost of the project, which includes both materials and labor. Even if the labor portion of the contract is below the threshold that might allow an unlicensed individual to perform the work, the total cost is what ultimately determines the need for a license.

In this scenario, if the labor fee is $1,500 and the materials halve the overall cost, the total cost easily surpasses the threshold typically requiring a license. This implies that the presence of an unlicensed individual performing work on a project with a total cost that exceeds that threshold is against the law, regardless of the breakdown between labor and materials.

Thus, an unlicensed individual would not be able to legally complete the work because the total project cost is relevant, and it exceeds the limits outlined by state law for unlicensed contracting. A contractor must have a valid license for handling projects that exceed certain financial thresholds, regardless of how labor and materials contribute to that total.