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

In Alabama, contracts for home services and remodeling are generally governed by state statutes and local ordinances, with several key features shaping their structure. Contractors performing residential remodeling projects valued at $10,000 or more must hold a Home Builders License issued by the Alabama Home Builders Licensure Board; unlicensed contracting above this threshold is prohibited and can result in penalties or contract unenforceability. Written contracts are strongly recommended and often expected by clients, typically outlining project scope, detailed specifications, payment schedules, timelines, and change order procedures. Alabama law does not mandate a specific right of rescission for home improvement contracts unless door-to-door sales rules apply, but clear cancellation terms are advisable. Risk allocation is commonly addressed through indemnity clauses and proof of general liability insurance; contractors may also be required to provide workers’ compensation coverage if employing more than four workers. Payment terms usually involve a deposit (often capped at a percentage of the total price), with subsequent payments tied to project milestones. Local permitting requirements must be addressed in the contract, as failure to obtain proper permits can halt work and expose parties to fines. Dispute resolution in Alabama contracts often favors mediation or arbitration before litigation, in line with industry practice. Awareness of lien rights and proper notice procedures is important, as Alabama law allows contractors to file liens for unpaid work, provided statutory requirements are met.