Alabama Administrative Code Title 230 - STATE OF ALABAMA LICENSING BOARD FOR GENERAL CONTRACTORS
Title 230 of the Alabama Administrative Code specifically pertains to the State of Alabama Licensing Board for General Contractors. This Board is the state agency responsible for regulating and licensing commercial/industrial contractors in Alabama to protect the public's safety and welfare.
Purpose and Mission of the Alabama Licensing Board for General Contractors:
The Board's core mission is to:
Ensure Public Safety: By requiring that individuals and companies undertaking general contracting work meet minimum standards of competence, financial responsibility, and ethical conduct.
Maintain Professional Standards: By establishing qualifications for licensure, including education, experience, and examinations.
Regulate the Construction Industry: By enforcing the state's contractor licensing laws and addressing violations.
It's important to distinguish this Board from the Alabama Home Builders Licensure Board, which licenses residential contractors. The Licensing Board for General Contractors focuses on commercial and industrial projects where the cost is $50,000 or more, or any swimming pool construction of $5,000 or more. Subcontractors performing work for $50,000 or more (or $5,000 for swimming pools) under a licensed prime contractor must also be licensed by this Board.
Key Roles and Responsibilities of the Board, as reflected in Title 230 rules:
The administrative rules in Title 230 cover the comprehensive process of becoming and remaining a licensed general contractor in Alabama. They typically include:
Licensing Requirements and Procedures:
Application Process: Detailed steps for applying for a new license, including required forms, fees, and submission deadlines.
Financial Statements: Requirements for submitting audited, reviewed, or compiled financial statements prepared by a Certified Public Accountant (CPA) to demonstrate financial stability. The Board uses these statements to determine a contractor's maximum bid limit.
Examinations: Requirements for passing specific examinations, including a mandatory Business and Law Exam and trade-specific exams relevant to the classifications being sought. These exams are often administered by a third-party testing service (e.g., PSI).
Qualifying Party: Rules regarding the "qualifying party" for a license (the individual whose experience and knowledge qualify the company for a license), including employment requirements and responsibilities.
Reciprocity: Provisions for licensing contractors who are already licensed in other states that have reciprocity agreements with Alabama (e.g., Arkansas, Louisiana, Mississippi, North Carolina, and Tennessee).
License Classifications and Monetary Limits: Detailed descriptions of the various types of general contractor licenses (major and specialty classifications) and how the Board determines the maximum monetary limit for projects a contractor can bid on or undertake based on their financial strength.
License Renewal and Maintenance:
Renewal Procedures: Steps for renewing an existing license, including fees and deadlines (often a staggered renewal schedule).
Inactive Licenses: Rules for maintaining an inactive license.
Changes to License: Procedures for requesting an increase in bid limit, changes in classification, or changes in the form of operation (e.g., sole proprietorship to corporation).
Standards of Practice and Conduct:
Ethical Conduct: Implied and explicit expectations for professional conduct.
Prohibited Acts: Actions that can lead to disciplinary action.
Joint Ventures: Specific rules for how joint ventures must be licensed.
Subsidiary Companies: Regulations for subsidiary entities seeking licenses.
Enforcement and Disciplinary Actions:
Complaint Process: Procedures for filing complaints against licensed or unlicensed contractors.
Investigations: The Board's authority to investigate alleged violations.
Sanctions: Potential disciplinary actions for non-compliance, which can include probation, debarment, suspension, or revocation of a license, and administrative fines.
Administrative Operations:
Board Organization: Description of the Board's structure, meetings, and operational procedures.
Fees: A schedule of fees for applications, exams, renewals, and other services.
Public Records: Rules regarding access to Board records.
Key Chapters within Title 230 (as indicated by public sources):
The Alabama Administrative Code for this Board is primarily found in:
Chapter 230-X-1 - CONTRACTORS: This is the most extensive chapter, covering the vast majority of the rules related to licensing, examinations, classifications, financial requirements, renewal, and general conduct.
Chapter 230-X-2 - DESCRIPTION OF ORGANIZATION: This chapter would typically outline the Board's structure, its powers and duties, and how it generally operates.
In essence, Title 230 provides the legal and procedural framework through which the Alabama Licensing Board for General Contractors regulates the commercial construction industry, ensuring that only qualified and financially responsible entities undertake projects that impact the state's infrastructure and economy.
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