Heating and Air Conditioning Contractor ($20,000) NEW LIMIT EFFECTIVE 10 1 2024 Bond - Statewide in Alabama

Brief Summary

The $20,000 performance bond is required only while your Alabama heating and air conditioning certification is active. It is filed on the board's one page BF-1 form, it goes in with the AL-1 and AL-2 applications, and an inactive certificate holder can skip it entirely until returning to active work.

The Alabama State Board of Heating, Air Conditioning and Refrigeration Contractors requires every new active heating and air conditioning contractor to provide a $20,000 performance bond under Board Rule 440-X-3-.04(5). The bond is written on form BF-1 with the board as obligee and guarantees that the contractor will follow Alabama law, do workmanlike work and protect the board from liability for the contractor's acts. Inactive status certificates do not require a bond.

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How to Apply for a Heating and Air Conditioning Contractor ($20,000) NEW LIMIT EFFECTIVE 10 1 2024 Bond:

• Pass the board's prelicensure examination ($175 exam fee) or qualify through a reciprocity state.
• Complete form AL-1 (application for license) and form AL-2 (business information).
• Have the surety execute the $20,000 BF-1 Contractor's Performance Bond.
• Email the AL-1, AL-2 and BF-1 to applications@hacr.alabama.gov by 4:00 PM ten working days before the board meeting.
• Pay the $220 active certification fee.
• Renew by December 31 each year after completing four hours of continuing education.

Detailed Information About the Alabama Heating and Air Conditioning Contractor ($20,000) NEW LIMIT EFFECTIVE 10 1 2024 Bond:

Where the $20,000 comes from

Code of Alabama 34-31-30 lets the board require a performance bond of up to $25,000 per year for all active certified contractors. That section was last amended by Act 2024-310. The board fixed the figure at $20,000 in Rule 440-X-3-.04(5), which says all new heating and air conditioning or refrigeration contractor applicants must provide a performance bond of $20,000 to the board. The rule's history shows it was amended and published August 30, 2024, effective October 14, 2024. The rule also says proof of bond may be required annually at renewal, so a contractor licensed before the change should ask the board whether the bond on file needs to be raised.

Active versus inactive

The bond is tied to active status. The board's licensing page lists the $20,000 bond and a $220 annual fee for active certificates, and no bond with a $110 fee for inactive status. An inactive holder keeps the certification but may not do heating or air conditioning work.

What the BF-1 bond promises

The board's Contractor's Performance Bond runs to the State Board of Heating, Air Conditioning and Refrigeration Contractors in the amount of $20,000. The principal agrees to faithfully observe the ordinances and laws of Alabama, to perform all work in a workmanlike manner, and to indemnify and defend the board against suits arising from the principal's default. A surety may cancel by written notice, and its liability ends 15 days after the board's executive director receives it, except for liabilities that accrued before then.

Who must be certified

Code of Alabama 34-31-24 bars anyone from advertising, bidding, pulling permits or doing business as a certified contractor unless the person in responsible charge is a certified contractor. Board rules require that person to be a regularly employed W-2 employee of the business, not an independent contractor.

Renewal

Certificates renew annually by December 31. A late renewal fee of $250 applies after that date. Contractors need four hours of continuing education a year, and the board's rules ask for proof before November 1.

Eligibility and Requirements for a Alabama Heating and Air Conditioning Contractor ($20,000) NEW LIMIT EFFECTIVE 10 1 2024 Bond:

• Bond amount of $20,000 for active certification.
• State Board of Heating, Air Conditioning and Refrigeration Contractors named as obligee on form BF-1.
• Person in responsible charge certified and regularly employed by the business on a W-2.
• Certification number and company name shown on advertising, documents and service vehicles.
• Proof of bond kept current, as the board may ask for it at each annual renewal.

Alabama Heating and Air Conditioning Contractor ($20,000) NEW LIMIT EFFECTIVE 10 1 2024 Bond FAQs:

Official and Additional Resources for the Alabama Heating and Air Conditioning Contractor ($20,000) NEW LIMIT EFFECTIVE 10 1 2024 Bond: