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Construction Work Regulated?

Who Regulates Construction?

Requirements?

Reciprocal Agreements

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Construction Work Regulated?

Licensing is required for most commercial and industrial construction projects when the contract value is $100,000 or more. This includes construction, alterations, maintenance, repairs, demolition, site work, grading, paving, and other building improvements. General contractors working on swimming pools costing $5,000 or more must also be licensed.

Subcontractors performing work valued at $100,000 or more under a licensed contractor are also required to be licensed before beginning work, although they do not need to be licensed at the time of bidding. These requirements apply even if the contractor already holds licenses in trades such as electrical, plumbing, gas fitting, HVAC, or refrigeration.

Residential home builders and remodelers must be licensed when constructing, supervising, repairing, or improving residential properties intended for sale or occupancy by others, if the project cost exceeds $10,000. This applies to homes and residential structures up to three stories in height and containing no more than four dwelling units.

Plumbing and HVAC contractors and journeymen are required to be licensed. Licensing is also required for manufactured housing installers, retailers, manufacturers, and salespersons.

In addition, contractors performing state highway work must meet prequalification requirements.

Who Regulates Construction?

Highway Prequalification information can be obtained from:
Alabama Department of Transportation
1409 Coliseum Boulevard, Montgomery, AL 36110
(334)242-6444 Fax (334)264-9776
http://www.dot.state.al.us

General commercial contractors and swimming pool contractors may obtain applications and licensing information from:
Alabama Licensing Board for General Contractors
445 Dexter Ave, Suite 3060
Montgomery, AL 36104 (334)272-5030
http://www.genconbd.alabama.gov

Residential contractors and remodelers may obtain application and licensing information from:
Alabama Home Builders Licensure Board
445 Herron Street, Montgomery, AL 36130
(334)242-2230 Fax (334)263-1397
https://hblb.alabama.gov/

Plumbers and gas fitters may obtain application and licensing information from:
Alabama Plumbers and Gas Fitters Examining Board
216 Aquarius Drive, Suite 319, Homewood, AL 35209
(205)945-4857 Fax (205)945-9915
http://www.pgfb.alabama.gov

Electrical contractors and journeyman may obtain applications and licensing information from:
Alabama Electrical Contractors Board
100 N. Union Street, Suite 986 Montgomery, AL 36130
(334)679-1020
Email: [email protected]
http://www.aecb.alabama.gov

Fire alarm contractors, sprinkler contractors, fire pumps and blasters may obtain applications and licensing information:
Alabama Insurance Department State Fire Marshal's Office
PO Box 303351, Montgomery, AL 36130
(334)241-4166 Fax (334)241-4158
http://www.aldoi.gov

All permits required by the State Fire Marshal's Office in the state of Alabama are
completed online at www.firemarshal.alabama.gov

Heating and air conditioning and/or refrigeration contractors may obtain application and licensing information:
Alabama Board of Heating, Air Conditioning & Refrigeration Contractors
100 North Union Street, Suite 986, Montgomery, AL 36104
(334)242-5550 Fax (334)242-5555
http://www.hacr.alabama.gov

Manufactured Housing installers, retailers, manufacturers and sales persons may obtain applications and licensing information from:
Alabama Manufactured Housing Commission
350 South Decatur Street, Montgomery, AL 36104
(334)242-4036 Fax (334)240-3178
http://www.amhc.alabama.gov

Requirements?

General commercial contractors must submit a financial statement, proof of relevant experience, evidence of general liability insurance, and a $300 application fee. The size of projects a contractor may perform is based on their net worth or working capital, whichever results in the lower financial limit. Contractor licenses must be renewed annually at a cost of $200. State law requires that $100 from each new application and renewal fee be directed to qualifying higher education programs in building construction and civil engineering. Subcontractors may bid on projects and enter agreements with prime contractors before obtaining a license, but they must be licensed before starting work. The application fee for subcontractors is $150, and the annual renewal fee is $100. Of those fees, $50 is designated by law to support qualifying higher education programs in building construction and civil engineering. Residential home builder and remodeler applicants must pass an examination that evaluates their knowledge, experience, and qualifications. Both new and renewal applicants are required to submit a credit report and pay a $250 license fee. Licenses are renewed annually, with renewal applications due by November 30 and licenses expiring on December 31 each year. The average processing time for a new license application is approximately 60 days. Residential home builders and remodelers are also required to participate in a recovery fund. An annual $15 contribution is included in the $250 licensing and renewal fee.

Electrical contractor applicants must pass both a business law and trade examination with a minimum score of 75% and provide documentation of at least 8,000 hours of supervisory experience. The application fee is $165, and the average processing time for a new application is approximately 60 days. Journeyman electrician applicants must also pass an examination with a minimum score of 75% and document 8,000 hours of experience. The application fee is $115. Electrical contractor licenses require an annual renewal fee of $150 and completion of 14 continuing education units (CEUs) every two years. Journeyman licenses have an annual renewal fee of $35 and do not require continuing education.

Although journeyman electrician licenses are available, they are not required.

Fire alarm contractor applicants must hold a NICET Level III certification or higher. Applications are submitted online through the Alabama Fire Marshal's website and must include proof of certification along with payment of the required fees by debit card, credit card, or eCheck. The NICET-certified individual must be an owner, manager, or responsible employee of the fire alarm company and may not work for another company within the fire alarm industry. This individual is responsible for overseeing the layout, installation, maintenance, repair, and modification of fire alarm systems performed by the contractor. All fire alarm system design drawings must be prepared by a licensed engineer.

Permits are renewed annually and are valid from October 1 through September 30. The average application processing time is approximately 10 days.

Sprinkler contractor applicants must hold a NICET Level III certification or higher. Applications are submitted online through the Alabama Fire Marshal's website and must include proof of certification along with payment of the required fees by debit card, credit card, or eCheck. The NICET-certified individual must be an owner, manager, or responsible employee of the sprinkler company and may not work for another company in the fire sprinkler industry. This individual is responsible for overseeing the layout, installation, maintenance, repair, and modification of sprinkler systems performed by the company. All sprinkler system design drawings must be prepared by a licensed engineer.

Permits are renewed annually and are valid from October 1 through September 30. The average application processing time is approximately 10 days.

Individuals performing weekly fire pump testing must complete an approved Fire Pump Test, Inspection, and Maintenance course. In addition, a licensed sprinkler company must observe the applicant conducting a fire pump test at least once each year. Applicants must submit a Skilled Worker Exemption Certificate application online through the Alabama Fire Marshal's website and provide proof of course completion. A fee of $120 per person, per pump, is required and may be paid by debit card, credit card, or eCheck.

The permit must be renewed annually, and the average application processing time is approximately 30 days.

Blasting contractor applicants must submit a completed application and a $2,000 fee. The applicant must be a responsible representative of the company. A criminal background check is required for each applicant. Individuals with felony convictions may be eligible for approval if they have obtained a Restoration of Rights letter.

Permits are renewed annually, and the average application processing time is approximately 30 days.

Blaster certification applicants must be employed by a blasting contractor licensed in Alabama. Applicants must complete the online certification application through the Alabama Fire Marshal's website and pay a $100 fee by debit card, credit card, or eCheck. New applicants must provide a résumé or work history detailing their blasting experience. A minimum of two years of blasting experience is required to qualify for certification. Applicants who do not hold a blaster certification from a reciprocal state must pass an examination administered by the State Fire Marshal's Office with a score of at least 70%. The exam covers material from Rock Blasting and Overbreak Control, ANSI A10.7-1989, and the ATF Explosives Law and Regulations Manual. All applicants are subject to a criminal background check. Individuals with felony convictions may be eligible for certification if they have obtained a Restoration of Rights letter.

Certification must be renewed annually, and the average application processing time is approximately 30 days.

Permit / Fee
Sprinkler Contractor / $120
Fire Pumps / $120 per person per pump
Blasting Contractor / $2,640
Blasting Certification / $132

Heating and air conditioning contractor applicants must pass an open-book trade examination with a minimum score of 70%.

To qualify for the exam, applicants must meet one of the following experience or education requirements:

Maintain a Board-issued apprentice registration for at least two calendar years;
Complete at least 3,000 hours of qualifying work experience as defined by the Board; or
Graduate from an approved heating and air conditioning training program.

Applicants must satisfy one of these requirements before being eligible to take the licensing examination.

Exam Fee / Initial License / Renewal Fee
$175 / $220 / $220

Heating and air conditioning businesses must maintain a $15,000 performance bond. All licensed contractors, whether active or inactive, are required to complete four hours of continuing education each year. Licenses expire annually on December 31. In addition, each heating and air conditioning business must employ at least one individual who holds an active heating and air conditioning contractor license. Projects involving service, repair, or installation work exceeding $50,000 require both a heating and air conditioning contractor license and a general contractor license. Refrigeration contractor applicants must pass an open-book trade examination with a minimum score of 70%. The examination fee is $150. To qualify for the exam, applicants must meet one of the following experience or education requirements:

Maintain a Board-issued apprentice registration for at least two calendar years;
Complete at least 3,000 hours of qualifying work experience as defined by the Board; or
Graduate from an approved refrigeration training program.

Commercial refrigeration businesses are required to maintain a $15,000 performance bond. All licensed contractors, whether active or inactive, must complete four hours of continuing education annually. Licenses expire each year on December 31. Projects involving refrigeration service, repair, or installation work exceeding $50,000 require both a refrigeration contractor license and a general contractor license.

Exam Fee / Initial License / Renewal
$175 / $220 / $220

Any firm or corporation performing commercial refrigeration installation, repair, or service work must employ at least one individual who holds a valid refrigeration contractor license. This individual serves as the responsible person in charge of the company's refrigeration operations. Applicants seeking a Journeyman Plumber/Gas Fitter certificate must complete two years of Board-approved apprenticeship experience, pass a written or oral examination, and pay the required fees. To obtain a Master Plumber/Gas Fitter certificate, applicants must pass a written examination, provide proof of at least one year of experience as a journeyman, hold a valid journeyman certificate, and pay the applicable fees. Individuals holding a master, journeyman, or apprentice plumber/gas fitter registration or certification who wish to perform medical gas piping work must obtain a medical gas piping endorsement. To qualify, applicants must complete a Board-approved medical gas piping certification program.

All certificates are renewed annually and expire on December 31 of the year issued.

Fees / Apprentice / Journeyman* / Master**
Examination Fee / N/A / $110 / $160
Registration Fee / $35 / N/A / N/A
License Fee / N/A / $75 / $175
Annual Renewal Fee / $35 / $75 / $175
Medical Gas Piping Endorsement / $25 / $25 / $25

Renewal fees for medical gas piping endorsements are based on the license classification. Apprentices pay $60 annually, journeyman plumbers and gas fitters pay $100 annually, and master plumbers and gas fitters pay $200 annually.

Individuals seeking certification to install manufactured homes or modular buildings must successfully complete an installer training course approved by the Alabama Manufactured Housing Commission and pass a written or oral examination. To maintain certified installer status, a person, company, or corporation must employ at least one driver/installer who holds a current Certificate of Training issued by the Commission. Installer licenses must be renewed annually, and certified installers are required to complete a refresher course every two years. Salespersons must complete Commission-approved training and obtain a license before selling manufactured homes or modular buildings in Alabama. Salesperson licenses are renewed annually. Manufacturers and retailers (dealers) must also apply for licensure each year and complete a refresher course every two years. In addition, manufacturers, retailers, and installers are required to maintain appropriate bonding and insurance coverage as specified by the Commission.

Type / Bond Amount / Insurance Amount
Manufacturer / $25,000 per Licens. Facility or a minimum of $100,000 / $1,00,000
Retailer / $25,000 for 1-3 Facilities or $50,000 for more than 3 / $500,000
Installer / $20,000 / $100,00

License / Certification Type
Manufacturer / $500
Dealer / $450
Installer / $200
Salesperson / $200

Reciprocal Agreements

Alabama maintains several reciprocity agreements for contractor licensing.

General contractor reciprocity is available with Arkansas, Louisiana, Mississippi, North Carolina, and Tennessee.

The Alabama Board of Heating, Air Conditioning & Refrigeration Contractors has reciprocity agreements with Louisiana, Mississippi, South Carolina (Residential), Tennessee, and West Virginia. Applicants must hold a valid license and be in good standing in their home state.

The Alabama Electrical Contractors Board recognizes licenses from Georgia, Louisiana, Mississippi, North Carolina, Ohio, South Carolina, Tennessee, and Virginia through reciprocity agreements.

The Alabama Plumbers & Gas Fitters Examining Board and the Alabama Liquefied Petroleum Gas (LP Gas) Board also maintain reciprocal recognition. Master Gas Fitters certified by the Plumbers & Gas Fitters Board may obtain an LP Gas Board Employee Competency Card. Likewise, individuals who have held an LP Gas Board Employee Competency Card for at least three years may qualify for Master Gas Fitter certification.

The Alabama Insurance Department has reciprocity agreements with Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Kentucky, Maryland, Nebraska, New Hampshire, New York, South Carolina, Tennessee, Virginia, Washington, and Wisconsin.