Front Matter

• Library: Arkansas Construction Law Manual (2016 Ed.)

Arkansas Construction Law Manual

A project of the

Arkansas Bar Association Construction Law Section

Richard C. Downing, Chair

Carl J. Circo, David M. Powell, & John Dewey Watson, editors

2016

ACKNOWLEDGMENT

For many years, the Construction Law Section of the Arkansas Bar Association has debated whether or not to publish a manual regarding Arkansas construction law. This past year, commencing April 2015, the section took on the daunting task of preparing such a book. The volunteer authors (section members), each an expert on construction law, have devoted countless hours to their respective topics. Each author is commended for their excellent work—thank you. But, particular praise needs to be directed to our editorial group—Professor Carl Circo, chief editor, and Dewey Watson and David Powell, co-editors. Without their dedication, expertise and tireless efforts, this manual would not exist nor would it be so excellent. It is my privilege, as chairperson of the Arkansas Bar Association Section on Construction Law, to present the section’s collective work—the Arkansas Construction Law Manual. We hope it serves, our fellow lawyers, as a good research source.

Respectfully submitted, Richard

C. Downing Chairperson

Construction Law Section

May 2016

CONTENTS

Chapter 1 – Overview

Chapter 2 – Contractor Licensing Requirements

Chapter 3 – Bidding for Construction Work

Chapter 4 – Bonds

Chapter 5 – Construction Insurance

Chapter 6 – Change Orders

Chapter 7 – Delay

Chapter 8 – Contract Claims

Chapter 9 - Damages

Chapter 10 – Arkansas Mechanics’ and Materialmen’s Liens

Chapter 11 – Statutes of Limitation and Repose

Chapter 12 – Alternative Dispute Resolution

Chapter 13 – Public Contracts

Chapter 14 – Professional Liability

DETAILED CONTENTS

Overview

Cyril Hollingsworth

1.1 ....... Scope of Chapter.......................................... 1-1

1.2 ...... Construction Law – Generally....................... 1-1

1.3 ...... The Construction Industry Players................ 1-4

1.4....... The Construction Industry Process................ 1-5

1.5 ...... The Contractual Relationship as the

........... Foundation for Construction Law ................. 1-7

1.6 ...... Overview of the Manual Topics as Part of Construction Law 1-10

Contractor Licensing Requirements

Lizabeth Lookadoo and Gregory L. Crow

2.1 ...... Scope of Chapter.......................................... 2-2

2.2 ...... General Requirements for Both Commercial

........... and Residential Licenses.............................. 2-2

2.3 ...... Requirements for a Commercial License........ 2-6

2.4 ...... Requirements for a Residential License....... 2-12

2.5 ...... Organization of the Commercial Board........ 2-14

2.6 ...... Organization of the Residential Committee.. 2-15

2.7 ...... Powers of the Commercial Board and

........... Residential Committee............................... 2-16

2.8 ...... Enforcement of Licensing Laws and

........... Regulations; Unlicensed Contractor Barred

........... from Suit................................................... 2-17

2.9 ...... Duties of Investigators................................ 2-19

2.10 .... Hearings Before the Commercial Board

........... and Residential Committee......................... 2-20

2.11 ..... Penalties for Violations of the Licensing

........... Laws and Regulations................................. 2-23

2.12 ..... Additional Criminal and Civil Penalties

........... for Violations............................................. 2-24

2.13 ..... Other Reasons a Licensee May Be Asked

........... to Appear Before the Commercial Board

........... or Residential Committee........................... 2-25

2.14 .... Steps a Contractor Can Take to Avoid

........... Violations and Otherwise Being Called

........... before the Commercial Board or

........... Residential Committee .............................. 2-26

Bidding for Construction Work

Jack East, III

3.1 ...... Scope of Chapter.......................................... 3-1

3.2 ...... Purpose of Competitive Bidding and Statutory Framework 3-2

3.3 ...... Bid Document Requirements and Bid

........... Protests....................................................... 3-6

A. ....... Is the Bid Responsive to the IFB?.................. 3-6

B. ....... Is the Bidder a Responsible Bidder?.............. 3-7

C......... Would the Best Interest of the Owner Be

........... Served by Rejection of the Bid?..................... 3-9

D. ....... Remedies and Burden of Proof..................... 3-9

E. ....... Protests by Other Bidders........................... 3-10

3.4 ...... Contractor Bid Errors and Remedies and Bid Bonds 3-12

A. ....... General Principles Governing Allegedly Defective Bids 3-13

B. ....... The Elements of a Defective Bid Claim......... 3-14

C. ........ Relief Prior to Award.................................. 3-16

D. ....... Relief After Award but Before the Work

........... Begins....................................................... 3-16

E. ....... Relief After the Work Has...