Arkansas Subcontractor Agreement Template | Statutory Compliant
Generate a construction subcontract tailored to Arkansas law — with statutory prompt payment deadlines, retainage caps, lien waiver rules, and anti-indemnification protections built in.
Contract Parties
Subcontractor
Project & Schedule
Payment Terms
Total subcontract price for your scope of work.
Arkansas rules: Arkansas does not cap retainage by statute on private construction; retainage terms are negotiable.
Days after GC receives owner payment.
Unlock Full Document
Download a clean, print-ready PDF with all Arkansas statutory clauses included — prompt payment, retainage, lien waiver, and indemnification.
Live Document Preview
Subcontractor Agreement
Construction Subcontract — State of Arkansas
This Subcontractor Agreement (the “Agreement”) is made and entered into as of October 5, 2026 by and between [General Contractor Name] (“General Contractor”) and [Subcontractor Name] (“Subcontractor”), governed by Arkansas Code Annotated Title 18, Chapter 44 and the laws of the State of Arkansas.
General Contractor
[General Contractor Name]
Subcontractor
[Subcontractor Name]
Project Owner
—
Project Address
—
Contract Price
[Contract Price]
License #
—
1. Scope of Work
Subcontractor shall furnish all labor, tools, equipment, and materials necessary to complete the agreed scope of work in a good and workmanlike manner, in compliance with all applicable building codes.
2. Payment
GC shall pay Subcontractor within 10 days after receiving payment from the Project Owner. Under ACA 18-50-102, the general contractor must pay subcontractors within 10 days after receiving payment from the owner, and if the owner does not pay within 45 days of a proper invoice, interest begins to accrue.
3. Retainage
GC may withhold 10% retainage from each progress payment. Arkansas does not cap retainage by statute on private construction; retainage terms are negotiable. On federal and public works jobs, retainage cannot exceed 5% under Arkansas public contract statutes.
4. Lien Waivers
Arkansas does not require statutory lien waiver forms; waivers are enforceable if they clearly identify the project and amount. Waivers given before payment is actually received should be conditional to avoid losing lien rights.
5. Mechanics Lien Rights Preserved
Arkansas requires filing a lien within 120 days after the last materials furnished or labor performed. Arkansas requires non-privity subcontractors to deliver a 75-day written Notice of Intent to the owner and GC within 75 days of first furnishing labor or materials to preserve full lien rights.
6. Indemnification
Arkansas does not have a broad anti-indemnification statute for construction contracts; broad-form indemnity clauses are generally enforceable if clearly worded. Subcontractors should negotiate limits and confirm payment rights under ACA Title 18, Chapter 50.
7. Governing Law
This Agreement is governed by the laws of the State of Arkansas, including Arkansas Code Annotated Title 18, Chapter 44 (Arkansas Lien Law) and ACA Title 18, Chapter 50 (Prompt Payment).
[General Contractor Name] — General Contractor
Print Name / Title
[Subcontractor Name] — Subcontractor
Print Name / Title
This is an on-page preview only. Unlock to download your clean, print-ready PDF.
Secure checkout via Stripe — your form data is saved automatically.
Arkansas Payment & Retainage Rules
Under ACA 18-50-102, the general contractor must pay subcontractors within 10 days after receiving payment from the owner, and if the owner does not pay within 45 days of a proper invoice, interest begins to accrue.
Retainage Cap
Arkansas does not cap retainage by statute on private construction; retainage terms are negotiable. On federal and public works jobs, retainage cannot exceed 5% under Arkansas public contract statutes.
Pay-When-Paid
Your agreement states that owner payment is a timing mechanism, not an absolute condition precedent — preserving your right to payment and statutory remedies under Arkansas Code Annotated Title 18, Chapter 44.
Lien Waivers
Arkansas does not require statutory lien waiver forms; waivers are enforceable if they clearly identify the project and amount. Waivers given before payment is actually received should be conditional to avoid losing lien rights.
Your Mechanics Lien Rights in Arkansas
This agreement expressly preserves your right to record a mechanics lien and serve statutory preliminary notices — no pay-if-paid, pay-when-paid, or lien waiver clause in the document can waive your lien rights beyond payment actually received.
Arkansas requires filing a lien within 120 days after the last materials furnished or labor performed.
Arkansas requires non-privity subcontractors to deliver a 75-day written Notice of Intent to the owner and GC within 75 days of first furnishing labor or materials to preserve full lien rights.
Deadlines matter: missing a Arkansas lien or notice deadline can permanently waive your security interest in the project. Calendar both dates the day you mobilize on site.
Indemnification Limits Under Arkansas Law
Arkansas does not have a broad anti-indemnification statute for construction contracts; broad-form indemnity clauses are generally enforceable if clearly worded. Subcontractors should negotiate limits and confirm payment rights under ACA Title 18, Chapter 50.
Arkansas Subcontractor Agreement FAQs
When must a general contractor pay me under Arkansas prompt payment law?
Under ACA 18-50-102, the general contractor must pay subcontractors within 10 days after receiving payment from the owner, and if the owner does not pay within 45 days of a proper invoice, interest begins to accrue. Your subcontract should mirror these statutory deadlines so that late payments automatically trigger the statutory interest and remedies without negotiation.
How much retainage can a GC legally withhold in Arkansas?
Arkansas does not cap retainage by statute on private construction; retainage terms are negotiable. On federal and public works jobs, retainage cannot exceed 5% under Arkansas public contract statutes. Your agreement should specify the exact retainage percentage, the release schedule (typically at substantial completion and final completion), and payment of statutory interest on withheld retainage.
Are pay-if-paid clauses enforceable in Arkansas subcontracts?
While Arkansas has not enacted a blanket statutory ban on pay-if-paid clauses, courts and statutes in most states treat "pay-when-paid" as a reasonable timing provision rather than an absolute condition. Check Arkansas Code Annotated Title 18, Chapter 44 (Arkansas Lien Law) and ACA Title 18, Chapter 50 (Prompt Payment) for specific restrictions, and make sure your subcontract states that payment from the owner is not an absolute condition precedent to your right to be paid.
What lien waiver rules apply in Arkansas?
Arkansas does not require statutory lien waiver forms; waivers are enforceable if they clearly identify the project and amount. Waivers given before payment is actually received should be conditional to avoid losing lien rights. Never sign an unconditional waiver until payment has actually cleared your bank account, and make sure your waiver identifies the specific billing period and amounts to avoid losing lien rights on future work.
Can a Arkansas subcontract require me to indemnify the GC for the GC’s own negligence?
Arkansas does not have a broad anti-indemnification statute for construction contracts; broad-form indemnity clauses are generally enforceable if clearly worded. Subcontractors should negotiate limits and confirm payment rights under ACA Title 18, Chapter 50. Always read the indemnification clause carefully — even in states with anti-indemnity statutes, "broad form" indemnity for joint negligence is typically still enforceable.
How do I preserve my mechanics lien rights in Arkansas?
Arkansas requires filing a lien within 120 days after the last materials furnished or labor performed. Arkansas requires non-privity subcontractors to deliver a 75-day written Notice of Intent to the owner and GC within 75 days of first furnishing labor or materials to preserve full lien rights. Send statutory notices by certified mail or another trackable method, keep copies of everything, and calendar the deadlines immediately upon each project’s completion.