Updated · 3 min read
Written by the Z Construction team, from the projects we price and build in Lee County.
Short answer
In Alabama, anyone doing residential construction, remodeling or repair where the cost, labor and materials combined, exceeds $10,000 must hold a license from the Alabama Home Builders Licensure Board (HBLB). You can look up a contractor's license on the HBLB website before you sign. Also ask for a certificate of insurance, get a written contract with a clear scope and payment schedule, and never pay most of the price up front.
The $10,000 rule
Alabama law requires an HBLB license for the construction, remodeling, repair or improvement of a residential structure (single-family homes up to fourplexes) when the total cost of the undertaking, labor and materials, exceeds $10,000. Splitting one project into smaller contracts to stay under the threshold doesn't make it legal.
The separate Alabama Licensing Board for General Contractors covers non-residential work; its threshold rose to $100,000 in October 2024. If you're hiring for your home, the HBLB license is the one to check. Georgia has its own rules, so a contractor working across the state line needs a Georgia license too.
How to verify a license
- Ask for the contractor's HBLB license number (it should be on their estimate, website and truck).
- Look it up on the Alabama Home Builders Licensure Board website (hblb.alabama.gov) and confirm the name and status match the company you're hiring.
- Confirm the license type covers your work; some licenses are limited.
- Search the business name on the Alabama Secretary of State site to confirm the LLC or corporation is active.
Insurance to ask for
- A certificate of general liability insurance, sent directly from their agent, naming you as certificate holder.
- Workers' compensation coverage for their employees (Alabama generally requires it for employers with five or more employees), or proof subcontractors carry their own.
- Check the policy dates cover your project.
What belongs in the contract
- A written, itemized scope of work, including materials and allowances
- Price and payment schedule tied to milestones, not dates
- Who pulls permits (it should be the contractor)
- Start date and estimated duration
- How change orders are priced and approved: in writing, before the work
- Warranty terms and cleanup and disposal
Red flags
- Door-to-door offers after a storm, especially with pressure to sign today
- Cash-only, or asking for most of the money before work starts
- No license number, no insurance certificate, no written contract
- Suggesting you pull the permit yourself or skip it
- Prices far below every other estimate, with vague scope
Get a written price for home remodeling
A free walkthrough, a line-by-line estimate in writing, and the owner on the job from start to finish.
Typical 2026 range in Lee County: From $10,000 · whole-home $70,000–$150,000
Or just leave your number
The owner calls or texts you back, usually the same business day. No spam, no mailing list.
FAQ
Does a painter or handyman need a license in Alabama?
If the total job, labor and materials, exceeds $10,000 on a residential structure, the HBLB license requirement applies. Smaller jobs may not require it, but insurance and a written agreement still matter.
How much deposit is normal?
A deposit to schedule the work and order materials is normal; the rest should follow completed milestones, with the final payment after your walkthrough.
Where can I report an unlicensed contractor?
The Alabama Home Builders Licensure Board accepts complaints about unlicensed residential contractors.