(a) Ownership: When the terms His own or Its own property is used in the contractors licensing law, it shall mean sole and exclusive right to sell or convey the property.

(b) Single-family residences: Single-family residence, as referred to in Arkansas Code Ann. § 17-25-101, as amended, means any project consisting of one but not more than four units constructed for residential occupancy, any project consisting of five or more units is considered multi-family housing.

(c) Qualifying party: A person who has passed the appropriate business and law or trade examination. To act as a “qualifying party” a person must be either: (1) a sole owner; (2) a partner of the partnership; (3) an officer of the corporation who is actively engaged in the day to day activities of the company; (4) a member of the Limited Liability Company who is actively engaged in the day to day activities of the company; (5) a partner of the Limited Liability Partnership who is actively engaged in the day to day activities of the company; or (6) a full time employee.

(d) Full time employee: A person who is an actual employee of the business, not an independent contractor. The person must work, on average, 30 or more hours a week for the business (1500 hours per year), must not be paid as an independent contractor (not receive a “1099” for his earnings but receive a “W-2” for his earnings). A full time employee is not someone who is hired “job to job” as needed. Other factors to be considered in making this determination include, but are not limited to: whether the business pays for workman's compensation insurance on the individual, whether the business pays payroll taxes on the individual, the amount of control the business has over the activities of the individual, the ownership of the tools used by the individual and, whether the individual maintains his own business separate from the business in question.

(e) Construction Management: A process of professional management applied to a construction program, generally from start to finish, for the purpose of controlling time, cost, and quality. Usually the construction management organization links itself to the owner as an agent and thereby places itself in a fiduciary relationship with the owner. Construction management offers a broad range of services encompassing the planning, procurement, construction, and warranty phases of a project. In this relationship, the construction manager can properly represent the owner both to the design professional and to the contractors .

(f) Remodel: Remodeling is the significant structural alteration or repair of an existing structure, including additions to existing structures. Additions that add more than fifty percent (50%) to the existing structure are considered new construction, not an addition.