Refrigeration Contractor ($15,000) Bond - Statewide in Alabama

Brief Summary

The $15,000 in this listing is the amount Code of Alabama 34-31-30 named before Act 2024-310 rewrote it. Since October 14, 2024, Board Rule 440-X-3-.04(5) has required every new refrigeration contractor applicant to post a $20,000 performance bond, and the Board's BF-1 form now prints $20,000. Order at the current figure so the bond is not sent back.

Alabama's State Board of Heating, Air Conditioning and Refrigeration Contractors requires a performance bond from active certified contractors, including refrigeration contractors who install, service or repair commercial refrigeration equipment. Code of Alabama 34-31-30 once set the bond at $15,000 per year. Act 2024-310 changed that to a ceiling of $25,000, and Rule 440-X-3-.04(5), effective October 14, 2024, sets the bond for all new applicants at $20,000.

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How to Apply for a Refrigeration Contractor ($15,000) Bond:

• Pass the refrigeration examination, which carries a $175 nonrefundable fee, or qualify through reciprocity.
• Complete the AL-1 Application for Licensure and the AL-2 Business Info form.
• Have the surety issue the Board's BF-1 Contractor's Performance Bond for $20,000.
• Name the State Board of Heating, Air Conditioning and Refrigeration Contractors as obligee.
• Renew the certificate every year by December 31 and be ready to show proof of the bond.

Detailed Information About the Alabama Refrigeration Contractor ($15,000) Bond:

Why the listing says $15,000

Before 2024, Code of Alabama 34-31-30 let the Board require a performance bond in the amount of $15,000 per year for all active certified contractors. Act 2024-310 amended the section so the Board may require a bond not to exceed $25,000 per year. The Board then amended Rule 440-X-3-.04, effective October 14, 2024, and paragraph (5) now reads that all new heating and air conditioning, or refrigeration contractor applicants must provide a performance bond of $20,000 to the Board. The Board's licensing page and its BF-1 bond form both show $20,000.

Contractors certified before the change

The rule speaks to new applicants and adds that proof of bond may be required annually during renewal. If your certificate predates October 14, 2024 and your bond still reads $15,000, ask the Board before your next renewal whether it must be replaced at $20,000.

Who posts it

The bond goes with an active certificate. The Board lists active status at $220 a year with a bond and business name, and inactive status at $110 a year with no bond. The refrigeration certificate covers installation, service and repair of commercial refrigeration equipment. Code of Alabama 34-31-28 carves out work on motor vehicles, residential refrigerators, ice machines and household appliances, among other exemptions.

What the bond promises

On the BF-1 Contractor's Performance Bond, the State Board of Heating, Air Conditioning and Refrigeration Contractors is obligee. The contractor agrees to faithfully observe all ordinances and laws, perform all work in a workmanlike manner, and indemnify the Board. The surety's liability ends 15 days after the Executive Director receives written notice of cancellation, except for liabilities that accrued earlier.

Renewal

Certificates renew annually, no later than December 31 of each year, under Code of Alabama 34-31-26.

Eligibility and Requirements for a Alabama Refrigeration Contractor ($15,000) Bond:

• Bond amount of $20,000 for new applicants under Rule 440-X-3-.04(5), effective October 14, 2024.
• Statutory ceiling of $25,000 per year under Code of Alabama 34-31-30.
• Board form BF-1, Contractor's Performance Bond.
• Active status fee of $220 a year. Inactive status is $110 a year and carries no bond.
• Surety cancellation takes effect 15 days after the Executive Director receives written notice.

Alabama Refrigeration Contractor ($15,000) Bond FAQs:

Official and Additional Resources for the Alabama Refrigeration Contractor ($15,000) Bond: