Anyone planning the above-mentioned contract work must apply for the appropriate license. Alabama also requires a different licensing process by the respective board for specialized professions such as plumbing, electricians, and HVAC work. All general contractors must pass the Alabama Business and Law exam, as well as all exams related to the occupational classifications for which they have applied. PSI Exams is the authority that prepares and administers these exams. The Economics and Law exam is a 50-question test with a 70% pass. The length and score vary depending on the categories requested, as with any business exam. Candidates for the prime contractor must pass the Alabama Business and Project Management exam, as well as all professional exams required by the Board. The tests are carried out by PSI Testing. A step-by-step guide, including all the documentation and requirements, can be useful for a painless licensing process: Prime Contractors – Any prime contractor attempting to complete commercial or industrial projects worth more than $50,000, or prime contractors who wish to complete residential projects with more than $10,000 must have a license.
Unlike many states, you don`t need to get a contractor`s bond to work as a licensed contractor in Alabama. However, if you plan to work on a project with third parties on your site – such as suppliers, customers or other independent contractors – deposit insurance protects these third parties in the event of an accident. It is important to note that liability insurance does not cover these parts on your construction site, which is why all contractors are advised to be both related and insured. Your liability insurance provider may offer common contractor bonds such as sureties. Alternatively, surety companies can offer any bond you need. Subcontractor – Any subcontractor who performs work for a licensed general contractor if the work exceeds $50,000 is required by law to also have a subcontractor`s license. Alabama courts have consistently ruled that general contractors must have their license before applying for a contract. However, subcontractors may bid without a license if their license is up to date before their work on the project begins. Keep in mind that a contractor`s or subcontractor`s failure to obtain an appropriate license is a complete defense that ultimately leaves you unpaid. The Alabama State Licensing Board for General Contractors defines a general contractor as follows: In addition to these two types of licenses, applicants can also apply for a specialized business license in various fields, such as concrete, carpentry, or masonry.
For a complete list of contractor classifications, visit the Licensing Committee website. Not only that, but once you get a driver`s license from Alabama, you`re eligible for reciprocity in Arkansas, Mississippi, Louisiana, and Tennessee. Let`s take a look at the steps you need to take to get a general contractor license in Alabama. To apply for an electrician`s license or to schedule your exam, contact: Alabama Electrical Contractors Board 610 South McDonough Street Montgomery, AL 36104 1-334-269-9990 Website So how do you get your Alabama general contractor license? What steps are required? Where to start? We`re answering all these questions for you, so read on! The state has very specific laws that regulate the approval of general contractors and subcontractors. Anyone working on a construction project above a certain amount must hold a license. Otherwise, there can be virtually no recovery on a mechanic`s lien or a civil judgment if the contract customer does not pay for the services provided. In addition, a subcontractor cannot claim amounts if it has not been duly authorized. Claims based on work performed by an unlicensed subcontractor, including employment agencies, are not recoverable even if the work has been performed. For this reason, it is important to verify that such a company that offers subcontractor work or labor has an appropriate general contractor license from the State of Alabama. In our collective experience, most employment agencies do not. As mentioned above, you must register and obtain your business license if you wish to perform contract work as a company in the state of Alabama.
For more information on business registration and licensing, visit the Alabama Secretary of State`s website. Currently, there is no court decision regarding general contractors who hold a licence in a major classification, but who start a project in a specialty under that classification for which they do not have the correct licence. If the rules are not reviewed and clarified, the issue could eventually be decided by the Alabama Supreme Court in a way that surprises general contractors who believed they were complying with the law. In Alabama, the operational and legal audit must be passed with one of the following professional exams to become a licensed contractor: Building Construction (commercial) or Building Construction (under four floors). This preparation for the exam course includes: practical quiz, mathematics and calculations, learning tips, license information and teacher support. The Tesing agency is PSI (1-800-733-9267). The exam consists of 50 questions with a time limit of 2 hours. You must pass a 70% exam to pass. @HomePrep is a national leader in online education. With more than 100,000.. Aggravating rules are the rules that result from the Statute. This includes NI 230-X-1-.26, commonly referred to as the “51% rule”.
The rule allows a general contractor to accept an engagement provided that 51% or more of the work is included in a classification in which the contractor holds a licence. If no part of the work represents 51% of the project, the contractor must hold a licence for the type of work that represents the highest percentage. The types of “primary classifications” listed in NI 230-X-1-.27 include: Licensing requirements for subcontractors also include an annual application with a $150 fee and a $100 renewal fee. However, instead of other required documents, subcontractors must provide three references, which may come from general contractors, architects or engineers. Licensing requirements are covered by Alabama Code 34-8-2 and the Licensing Board`s Additional Rules for General Contractors. To summarize briefly, a general contractor must contact the Admissions Committee by completing the required forms and paying an application fee of $300 or a renewal fee of $200. Renewals are required each year. Forms must be accompanied by proof of liability insurance. General contractors are divided into categories based on the latest annual financial statements prepared by an auditor as well as previous experience and equipment. Contractors are not allowed to bid on any type of work that is not included in their licence application.
As part of the first application process, a review by the Admissions Committee may be required to determine the contractor`s qualifications. You need to be aware of how each state in the U.S. handles licenses differently, even when it comes to being a general contractor (although they have some similarities). Once you`ve earned an Alabama general contractor license, it can range from supervising crews on construction sites to designing commercial spaces. The State of Alabama refers to a “general contractor” license as a “prime contractor license” and grants two licenses for general contract work: Prime Contractor – License for those who perform commercial or industrial projects valued at more than $50,000, or for prime contractors who perform residential projects with more than $10,000 subcontractors – Any person who performs work for a general contractor approved when the work is 50 years old. exceeds $000.. .