A person, firm or corporation which undertakes to construct a building or other improvements on his/her own real property (Exception – is long term* lease with option to extend/or purchase as in an Industrial Development Board situation) is not required to be licensed as a general contractor if the person, firm or corporation's own forces (non-contractual) are used. An owner/builder may only let and/or award contracts for work in the amount of $50,000 ($5,000 for swimming pools) or greater to a properly licensed prime contractor.

*Long term is 20 years or greater.

Author: Ralph E. Compagno

Statutory Authority: Code of Ala. 1975, §§34-8-1, 34-8-2, 34-8-7.

Editor’s Note: Previous Rule(s) 230-X-1.07 Contractor/Owner; Owner/Builder filed September 16, 1982. Repealed: Filed July 2, 1992 amendment was in conflict with the General Contractors

History: Filed July 2, 1992. Amended: Filed December 15, 1992. Amended: Filed September 15, 1994; effective October 20, 1994. Amended: Filed December 16, 1997; effective January 20, 1998. Amended: Filed February 24, 2016; effective April 9, 2016.