Is there a difference between a Home Builder’s License and a General Contractor’s License?

Yes. In the State of Alabama, one who engages in the construction of commercial or public properties where the cost of the undertaking including labor and materials is $50,000 or more and swimming pool construction of $5,000 or more is considered a General Contractor. A residential Home Builder is one who engages in the construction, remodeling, repair, improvement, or reimprovement of a residential structure where the cost of the undertaking including labor and materials exceeds $10,000, unless the work performed is not within the jurisdiction of the Board.

I have a General Contractor’s License. Can I build homes?

Anyone holding a General Contractor License issued prior to the passing of the statute that brought into being the Home Builders Licensure Board in 1992 may engage in residential construction. This would include ONLY General Contractors License numbers from 1 to 18907. Anyone holding a General Contractors License with a license number of 18908 or higher MUST hold a Home Builders License to perform residential construction.

Is there an age limitation for receiving a license?

The statute is silent as to an age limit requirement. In order to follow the Board’s Rules and Regulations, a license holder must be old enough to enter into a contract with a homeowner. The statute in Alabama states that a person must be 19 years of age to enter into a contract.

Are builders required to offer a home warranty?
The home builder’s licensure law does not require builders to provide a written home warranty. However, many licensed builders provide written home warranties to homeowners. If you have questions about a written home warranty provided to you, you may consult with your attorney.
Does the law require home builders to be insured or offer workman’s compensation to their employees?
The law regulating residential home builders does not address insurance. However, insurance may be required under other state laws. If you have questions regarding this issue, you should consult with your attorney and contact the Department of Labor.
Where can I find a sample home warranty?

The Home Builders Association of Alabama offers a sample home warranty to its members. If you are not a member, consult with your attorney to write a home warranty specifically for your contracts.