Home improvement contractors are generally companies that manage and construct improvements to existing residences—whether kitchens, bathrooms, bedrooms, or complete remodels.

A contract for home improvement includes a description of the scope of the work to be performed; the materials to be used; the general contractor’s obligations to hire and manage subcontractors to construct the various components of the building; the payment terms for the construction of the building and the management of the construction; the time for completion of the work; insurance requirements; and the filing and removal of mechanic’s and materialmen’s liens (also known as construction liens or contractor liens) for labor and materials provided to improve the real estate.

In Arkansas, home improvement contractors are regulated to ensure that they conduct business in a fair, ethical, and legal manner. Contracts for home improvement must be clear and comprehensive, including details such as the scope of work, materials to be used, contractor's obligations, payment terms, completion time, insurance requirements, and provisions regarding mechanic's and materialmen's liens. Arkansas law requires that contractors provide a written contract for any home improvement job that exceeds $2,000. This contract must be signed by both the homeowner and the contractor. Additionally, contractors must be licensed if they perform work on projects that exceed a certain amount, which varies depending on the type of work. The Arkansas Contractors Licensing Board oversees the licensing of contractors and enforces regulations. It is important for homeowners to verify that a contractor is properly licensed before hiring them for a home improvement project. Failure to adhere to these regulations can result in penalties for the contractor and may give the homeowner legal recourse to address any disputes or substandard work.