Refrigeration Contractor ($20,000) NEW LIMIT EFFECTIVE 10 1 2024 Bond - Statewide in Alabama

Brief Summary

Refrigeration is its own certification in Alabama, separate from heating and air conditioning, and a refrigeration contractor posts its own $20,000 performance bond with the board while the certificate is active. The board's BF-1 form is a single page and travels with the AL-1 and AL-2 license applications.

Alabama certifies refrigeration contractors through the State Board of Heating, Air Conditioning and Refrigeration Contractors under Code of Alabama 34-31-18 and following. Board Rule 440-X-3-.04(5) requires every new refrigeration contractor applicant to provide a $20,000 performance bond to the board, on form BF-1. Code of Alabama 34-31-30 lets the board require up to $25,000 a year from active certified contractors. Holders who elect inactive status do not post the bond.

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

• Pass the refrigeration prelicensure exam or qualify through reciprocity.
• Fill out form AL-1 for the license and form AL-2 for the business.
• Get the BF-1 Contractor's Performance Bond executed by a surety for $20,000.
• Email the packet to applications@hacr.alabama.gov at least ten working days before the board meeting, by 4:00 PM.
• Pay the $220 active certification fee.
• Each year, finish four hours of continuing education and renew by December 31.

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

Two certifications, same board

The board licenses two kinds of contractor. Heating and air conditioning covers heating and cooling equipment. Refrigeration covers the installation, service and repair of commercial refrigeration equipment. Code of Alabama 34-31-18 defines a certified refrigeration contractor as a person engaged in the business of refrigeration contracting and servicing, installation and repair. Rule 440-X-3-.04(5) applies the same $20,000 bond to new applicants in either category.

The amount and the rule behind it

The statute sets a ceiling, not a figure. Code of Alabama 34-31-30, amended by Act 2024-310, allows a performance bond of up to $25,000 per year for all active certified contractors and requires that contractors who are similarly situated be treated alike. The board set the bond at $20,000 in Rule 440-X-3-.04(5), amended effective October 14, 2024. The same rule says proof of bond may be required annually during renewal.

The BF-1 bond

The bond names the State Board of Heating, Air Conditioning and Refrigeration Contractors as obligee for $20,000. The contractor promises to observe the ordinances and laws of Alabama, perform all work undertaken in a workmanlike manner, and indemnify and defend the board against suits based on the contractor's default. The surety can end its liability by written notice, effective 15 days after the executive director receives it, with earlier liabilities still covered.

Getting certified

Applicants sit for the board's prelicensure examination, with a $175 fee and a passing score of 70 percent, or apply by reciprocity, which also requires the $20,000 bond. The licensure packet is form AL-1, form AL-2 and the BF-1 bond, emailed to applications@hacr.alabama.gov by 4:00 PM ten working days before a board meeting. The active certification fee is $220.

Keeping it

Certificates renew by December 31 each year, with a $250 late renewal fee afterward. Four hours of continuing education are required each year. A contractor who stops doing refrigeration work can move to inactive status for $110 a year and drop the bond, but cannot perform refrigeration work until returning to active status with a bond in place.

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

• $20,000 performance bond for active refrigeration certification.
• The State Board of Heating, Air Conditioning and Refrigeration Contractors as obligee.
• A person in responsible charge who is certified and is a regularly employed W-2 employee, not an independent contractor.
• Certification number and company name displayed on advertising, documents and service vehicles.
• Bond kept in force for as long as the certificate is active.

Alabama Refrigeration Contractor ($20,000) NEW LIMIT EFFECTIVE 10 1 2024 Bond FAQs:

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