In 2021, the state of Arkansas made sweeping changes to the statutes concerning public and private bonds. These changes affect contracts that started in April 2021 and involve multiple types of notices and deadline requirements. If you are a contractor in the State of Arkansas, you must keep yourself as informed as possible about these changes in order to protect yourself, your work, and your money. Keep reading to learn about the various changes brought on by these amendments.

Prior to the 2021 amendments, those making a claim against a payment bond were not required by law to serve any notice to assert that claim. However, on all contracts created after April 2021, claimants are required to serve a final bond notice to the general contractor within 90 days of their last day supplying labor or material. This is true of both private and public projects, so it is very important to keep this in mind as it affects the full range of projects.

The next change brought on by the amendment is in regard to deadlines for payment bonds. The deadline for claimants is now the earlier of the following two options: one year from the final date the general contractor completes the work or one year from the final payment date under the contract. Again, the deadline is whichever of those two dates is earliest. This applies to public and private projects.

Previously, there was nothing clearly stated concerning whether or not rental equipment was included in payment bonds or whether a claimant could assert a claim against a bond because of rental equipment. The 2021 amendments changed that. Rental equipment is now covered under the bonds. However, this is only true for public projects. You will not be able to file a claim against a bond for private projects for this reason

The changes in these amendments were broad and will have some effect on most contractors working in Arkansas. It is particularly important that contractors adhere to the new deadlines and notice changes, as failure to comply with them will likely void any claim to a bond or lien. These laws directly correlate with the ability to collect money that a contractor has already performed labor and supplied material toward.

If you're a contractor in Arkansas, no matter if you work on private or public projects, these new amendments will affect you. Don't make the mistake of losing out on your own already-earned money. Nationwide Notice, Inc. can guarantee the appropriate notices are served and help adhere to the new deadlines put into place. Nobody knows better how critical it is that you get what's yours and keep it. You've already put in the work and deserve the right compensation. You don't have to lose out on that because of a missed deadline or failure to serve! Nationwide Notice, Inc. will make sure of it.

We strive to work with your subcontractors and contractors, no matter what size the construction company, to ensure payment by utilizing existing lien laws as leverage to make sure you get payment, along with securing lien rights. Our goal is to assist construction companies to protect their receivables. With our experienced staff, we will assist you in both submitting and tracking your state's required legal documents to protect your lien rights, and help with your receivables. You can find Nationwide Notice, Inc. online or give us a call to learn more - or click here to learn about the other services we offer.