Need a Home Services / Remodeling / Interior Renovation Contract in Alabama? AroundWire Can Help

In Alabama, contracts for home services, remodeling, and interior renovation typically require clear written agreements outlining the scope of work, materials, project timeline, payment schedule, and change order procedures. State law mandates that any residential contractor working on projects valued at $10,000 or more must hold a license from the Alabama Home Builders Licensure Board. Proof of licensing should be included in contract documentation, and unlicensed contracting is subject to legal penalties. Contractors are generally expected to carry general liability insurance and, if they employ workers, workers’ compensation coverage. Contracts often specify retainage—commonly 10% of the total cost—held until satisfactory project completion. Alabama law does not mandate specific contract forms but does require that all terms be clear and mutually agreed upon to mitigate misunderstandings. Payment terms typically involve a deposit (often capped at one-third of the contract price), with progress payments tied to project milestones. Mechanic’s lien rights must be disclosed, as homeowners may be liable if contractors or subcontractors are not paid. Dispute resolution in Alabama commonly favors mediation or arbitration before litigation, and contracts may stipulate the preferred method. Local building permits and inspections are usually required, and contracts should reference compliance with applicable municipal codes and state construction standards. Failure to meet these requirements can result in contract unenforceability or administrative penalties.