Alabama residential builders need a Home Builders Licensure Board license when the job exceeds $10,000, or $2,500 for residential roofing. General contractors need a license at $100,000 or more, or $5,000 for swimming pools. Verify both the person and the firm in the official lookups before you hire.

The official HBLB verification FAQ tells consumers to check a builder's licensure status on the board website and, if the builder does not appear on the web list, to call the board at 1-800-304-0853 to verify a current, valid license. The board has also published a notice that the online Licensee Search can be temporarily unavailable and, in that case, to contact the office at 1-800-304-0853 or information@hblb.alabama.gov. The official general-contractor search is available at genconbd.alabama.gov and through the statewide portal at licensesearch.alabama.gov. A truck magnet or a social-media page is not a license.

When is a residential home builder license required?

Section 34-14A-2 defines a residential home builder as a person who constructs a residence or structure for sale or who, for a fixed price, commission, fee, or wage, undertakes or offers to undertake the construction or superintending of the construction of a qualifying residence or structure, or the repair, improvement, or reimprovement thereof, when the cost of the undertaking exceeds $10,000. The structure may not be over three floors in height and may not have more than four residential units. Cost of the undertaking means the total cost of the materials, labor, supervision, overhead, and profit. The definition includes a residential roofer when the cost exceeds $2,500.

Anyone who engages or offers to engage in those acts, through advertising or otherwise, is deemed to have engaged in the business of residential home building. A person may perform the work on his or her own residence or other real estate holdings, subject to the owner-contractor exemption in section 34-14A-6. That exemption is for owners acting as their own contractor on a one-family or two-family residence for the occupancy or use of the owners and not offered for sale. Proof that the owner sold or offered the structure for sale within one year after completion is presumptive evidence that the construction was undertaken for the purpose of sale.

The official HBLB FAQ confirms the difference: residential work above the $10,000 cost threshold (unless it is outside the board's jurisdiction) is a home-builder matter, while commercial or public work at $100,000 or more, and swimming pools at $5,000 or more, is a general-contractor matter.

What if someone works without a required license?

Section 34-14A-14 provides that a person who undertakes or attempts to undertake residential home building without a current, valid license, or who knowingly files false information to obtain a license, is guilty of a Class A misdemeanor, except as provided in section 13A-9-111.1. A residential home builder who does not have the required license may not bring or maintain an action to enforce a contract entered in violation of the chapter. The board may also use administrative complaints, fines of not more than $5,000 for each violation, and injunctive relief.

For general contractors, the official board law page states that an awarding authority has a duty to ascertain that a contractor is duly licensed before permitting a bid or offer on a project of $100,000 or more ($5,000 for swimming-pool contractors). Subcontractors performing contracts of $100,000 or more ($5,000 for swimming pools) under a licensed prime contractor must also be licensed. A prime contractor may receive bids from unlicensed subcontractors, but the subcontractor must be licensed before beginning work.

How do I look a license up and file a complaint?

Search the individual and the company on the official board site, or call 1-800-304-0853 if the web list is down or does not show the builder. Confirm that the license is current, that the name matches the contract, and that the classification matches the work. HBLB is at 445 Herron Street, Montgomery, AL 36104, telephone 334-242-2230, with official hours Monday through Friday, 7:30 a.m. to 4:30 p.m. The Licensing Board for General Contractors is at 445 Dexter Ave, Suite 3060, Montgomery, AL 36104.

An original homeowner may file a written, sworn consumer complaint with the Home Builders Licensure Board under section 34-14A-8 within six years of substantial completion or of the date the original homeowner took possession. The board investigates complaints and can fine, suspend, or revoke a license. A consumer complaint with the board is not, by itself, a Homeowners' Recovery Fund claim. That fund has its own court-judgment and notice rules, which are described in the companion article on written contracts and the recovery fund.

If you are hiring an Alabama builder, remodeler, or roofer, talk with a licensed local agent about whether the work affects your homeowners coverage, and verify the official HBLB or general-contractor license before you sign or pay a deposit. If both a residential license and a general-contractor license could apply to a large mixed project, check both official records and ask the boards which credential is required for the work described in the contract.

FAQ

What is the residential license threshold?

A residential home builder license is required when the cost of the undertaking exceeds $10,000. A residential roofer is included when the cost exceeds $2,500. Cost includes materials, labor, supervision, overhead, and profit.

What is the general contractor threshold?

The official board law page defines a general contractor at $100,000 or more, including labor and materials, and swimming-pool construction at $5,000 or more.

Where do I look up a license?

Use the official HBLB website search for residential work, and call 1-800-304-0853 if the builder is not on the web list or the search is unavailable. Use the Alabama Licensing Board for General Contractors search or licensesearch.alabama.gov for general-contractor work.

How do I complain about a licensed residential builder?

File a written, sworn consumer complaint with HBLB within six years of substantial completion or possession, as section 34-14A-8 provides. The official number is 334-242-2230.

Sources: Home Builders Licensure Law, HBLB how to verify a license, HBLB Licensee Search status, HBLB FAQ on home-builder and general-contractor licenses, Alabama Licensing Board for General Contractors law page, Alabama License Search.

An Alabama licensed residential builder has to use a valid written contract, under section 34-14A-7(f). Before work starts, section 34-14A-19 requires a written disclosure of whether the builder maintains liability insurance, signed by both parties and attested by one witness the homeowner selects.

Those two writings are official consumer protections, and they are not optional formalities. If a person offers to start a remodel on a handshake, or cannot produce a current HBLB license, stop and verify the license on the official board site, or by calling 1-800-304-0853 if the web list is unavailable. A contract with an unlicensed residential builder also has a hard legal consequence: the unlicensed builder may not bring or maintain an action to enforce that contract, under section 34-14A-14.

What should the written contract and insurance disclosure contain?

The statute requires a valid written contract. It does not, in the text reviewed here, prescribe a state fill-in form or a maximum deposit percentage. Put the legal name and license number, the address of the property, a description of the work, the price, the payment schedule, the start and completion expectations, and change-order rules in the contract you actually sign. Keep a copy.

The insurance disclosure is more specific. It has to be in writing, it has to state whether the builder currently maintains liability insurance, it has to be signed by the builder and the homeowner, and it has to be attested by one witness selected by the homeowner. Failure to comply is a violation of the chapter and can be punished by the board under section 34-14A-8. The disclosure is not the same thing as a certificate of insurance. Ask for the current certificate as well, and confirm that the name matches the license.

If the work will go beyond the applicable building code and follow a resiliency program, section 34-14A-7(g) requires the licensee to disclose that compliance to the homeowner in writing before the work starts. Building permits remain a local matter, and officials are directed not to issue a permit for work that requires a license unless the applicant shows a license or an exemption.

How does the Homeowners' Recovery Fund work?

The board may establish a Homeowners' Recovery Fund under section 34-14A-15. Official board materials and Alabama Administrative Code Rule 465-X-7-.02 state the current payment caps: payments for claims arising out of the same transaction shall not exceed $30,000 in the aggregate, and payments for claims based on judgments or settlements against any one licensee shall not exceed $90,000 in the aggregate. Payment is for actual economic damages only, not interest, court costs, pain and suffering, mental anguish, loss of consortium, or attorney fees.

A homeowner cannot make a claim against the fund based on the actions of a licensee holding a residential roofers license, under Rule 465-X-7-.01 as the official Recovery Fund page explains. Consent judgments do not qualify. The licensed home builder must have been licensed at the time of the contract and at the time of the conduct. Filing a consumer complaint with the board is required as part of the path, but it is not enough by itself. The homeowner has to obtain a valid court judgment, excluding a consent judgment, and then follow the fund's notice and collection steps.

Official timing rules include these points:

• Submit the board consumer complaint within six years of substantial completion or of the date the original homeowner took possession.
• When a civil action is filed that may result in fund liability, notify the board by certified mail at that time, not later than 10 days from the date the complaint is filed, and include a copy of the civil complaint. Do not name the board as a party.
• After a final qualifying judgment, make reasonable efforts to collect, then file a verified claim in the same court and give the board 30 days' written notice before applying for an order directing payment from the fund.

If the fund pays, the board may revoke the license and may refuse to issue a new license until the former licensee repays the fund in full plus interest at 12 percent a year. A discharge in bankruptcy does not relieve those penalties. If the fund balance is insufficient, unpaid claims wait, in the order filed, until money is available.

What should you do before work starts?

Verify the license, sign a written contract, complete the witnessed insurance disclosure, and ask the county or city about permits. If a dispute later arises, use the six-year consumer-complaint window and get legal advice before you file a lawsuit if you hope to preserve a fund claim. Roofing jobs above $2,500 still require the proper license, but they are outside the fund according to the official rule cited above.

If you are hiring an Alabama residential builder or remodeler, talk with a licensed local agent about whether the project affects your homeowners coverage, and do not start work without the official written contract and insurance disclosure.

FAQ

Does Alabama require a written residential-builder contract?

Yes. Section 34-14A-7(f) requires each licensee to use a valid written contract when engaging in the business of residential home building.

What insurance disclosure is required?

Before work begins, the builder must disclose in writing whether the builder has and is maintaining liability insurance. The homeowner and the builder sign it, and one witness selected by the homeowner attests it, under section 34-14A-19.

How much can the Homeowners' Recovery Fund pay?

Official Rule 465-X-7-.02 and the board's Recovery Fund page cap payments at $30,000 for claims arising out of the same transaction and $90,000 in the aggregate against any one licensee, for actual economic damages after a qualifying non-consent judgment.

Does the fund cover a licensed roofer?

No. The official Recovery Fund page states that a homeowner cannot make a claim against the fund based on the actions of a licensee holding a residential roofers license.

Sources: Home Builders Licensure Law, HBLB Recovery Fund, Alabama Administrative Code Rule 465-X-7-.02, HBLB licensee search.