Alabama Licensed Residential Home Improvement Contract
ALABAMA LICENSED RESIDENTIAL HOME IMPROVEMENT CONTRACT
Before use: Complete the work, payment and insurance sections before signing. Select exactly one insurance declaration. A licensed residential home builder must use a written contract containing its board-issued license number. The builder must disclose its current liability-insurance status in writing to the homeowner before work begins. If the builder does not have current liability insurance, the homeowner selects the witness who attests the signed disclosure.
1. Parties and property
This Contract is made on [__/__/____] between:
Homeowner: [FULL LEGAL NAME(S)], [MAILING ADDRESS, PHONE, EMAIL]
Residential home builder: [LEGAL NAME AND ENTITY TYPE], [BUSINESS ADDRESS, PHONE, EMAIL]
Alabama builder license number and status checked on: [NUMBER, DATE]
Property: [STREET ADDRESS, CITY, COUNTY, ALABAMA ZIP]
The Builder will perform the residential improvement work described below for the Homeowner at this property.
2. Work and materials
Detailed scope: [DESCRIBE EACH ROOM, SURFACE, SYSTEM, TASK, AND RESULT. ATTACH SIGNED PLANS OR SPECIFICATIONS.]
Included materials and fixtures: [BRANDS, MODELS, GRADES, COLORS, QUANTITIES, OR SIGNED SCHEDULE]
Work excluded from this price: [LIST / NONE]
Plans, specifications and exhibits incorporated: [IDENTIFY EACH BY TITLE AND DATE / NONE]
Permits and inspections: [IDENTIFY WHO WILL APPLY, PAY, SCHEDULE AND PROVIDE COPIES]
Builder will perform the agreed work with reasonable care, protect the occupied premises, remove project debris as agreed, and comply with applicable permit and inspection requirements. Homeowner will provide access during [DAYS AND HOURS] and make the selections identified in [SCHEDULE] by the stated dates.
3. Price and payment
Contract price: $[__________], comprising [LABOR $____] and [MATERIALS $____ / INCLUDED IN LUMP SUM]. Taxes are [INCLUDED / ITEMIZED AS $____].
| Payment | Amount | Objective milestone or due date |
|---|---|---|
| Initial payment | $[____] | [EVENT / DATE] |
| Progress payment 1 | $[____] | [COMPLETED WORK / DATE] |
| Progress payment 2 | $[____] | [COMPLETED WORK / DATE] |
| Final payment | $[____] | [COMPLETION AND FINAL WALK-THROUGH / DATE] |
Total of scheduled payments: $[__________]. This total must equal the contract price unless a signed change order changes it.
Builder will give Homeowner an invoice identifying the applicable milestone. Payment method and address: [METHOD AND ADDRESS]. A disputed invoice item will be identified in writing with the reason for dispute; undisputed work remains payable under the schedule.
4. Schedule and changes
Target start: [__/__/____], after the parties complete Section 6.
Target substantial completion: [__/__/____]. Final walk-through target: [__/__/____].
The parties will record any change to scope, materials, price or completion date in a written change order signed by both before changed work begins. Each change order will state the added or removed work, price adjustment and schedule effect. Builder will promptly report concealed conditions or supply delays and propose a change order when they affect the agreed work.
For a project under this contract, the parties may use the Alabama Residential Home Improvement Change Order.
5. Completion and warranty
At substantial completion, the parties will make a written list of unfinished or disputed items and a date for Builder to address each. Homeowner's final payment follows the completed milestone in Section 3, subject to any signed change order.
Builder's express warranty, if any: [STATE COVERED WORK, DURATION, START DATE, CLAIM ADDRESS, AND REMEDY / NONE ADDED BY THIS CONTRACT]. This section does not waive rights that applicable law does not permit the parties to waive.
6. Written liability-insurance disclosure
Disclosure date: [__/__/____] Planned work commencement: [__/__/____]
Builder makes one of the following declarations about its liability insurance as of the disclosure date and before work commences. Select one, strike the other, and complete its signature lines.
☐ Insured route. Builder has obtained and is currently maintaining liability insurance. Insurer and policy identifier, if supplied: [NAME AND NUMBER]. This declaration records current status; any certificate furnished is identified here: [DOCUMENT AND DATE / NONE].
Builder signature or initials for insured declaration: [SIGNATURE OR INITIALS] Date: [__/__/____]
Homeowner signature or initials for insured declaration: [SIGNATURE OR INITIALS] Date: [__/__/____]
☐ Uninsured route. Builder has not obtained or does not currently maintain liability insurance.
Builder signature for uninsured declaration: [SIGNATURE] Date: [__/__/____]
Homeowner signature for uninsured declaration: [SIGNATURE] Date: [__/__/____]
Witness selected by Homeowner: I witnessed the Builder and Homeowner sign the uninsured declaration above.
Witness signature: [SIGNATURE] Printed name: [NAME] Date: [__/__/____]
If the declared status changes before work starts, Builder will provide an updated written disclosure and the parties will complete the signatures, and homeowner-selected witness when required, for that status before commencement.
7. Notices and agreement
Project notices and change orders will be sent to the party contacts in Section 1 by [AGREED DELIVERY METHOD]. Either party may update its contact information by written notice. Any dispute about the work will be described to the other party with the requested resolution; the parties may agree on a written resolution without giving up a right to seek lawful relief.
This Contract, its identified exhibits and later signed change orders state the parties' agreement for the project. Alabama law governs. The parties have received a completed copy.
Homeowner signature: [SIGNATURE] Printed name: [NAME] Date: [__/__/____]
Additional homeowner signature: [SIGNATURE / NOT APPLICABLE] Date: [__/__/____]
Builder authorized signature: [SIGNATURE] Printed name and title: [NAME, TITLE] Date: [__/__/____]
Official source
About this template
- Last updated
- November 9, 2026
- Citations checked
- November 6, 2026
- Jurisdiction
- Alabama
- Category
- Contracts & Agreements
Legal authority
- Ala. Code § 34-14A-2(8), (16)
- Ala. Code § 34-14A-7(f)
- Ala. Code § 34-14A-19(a)-(b)
A contract is a written record of what two or more parties agreed to and what happens if someone does not follow through. Clear language, defined terms, and clean signature blocks keep disputes small and enforceable. The most common mistakes in contracts come from vague promises, missing details about timing or payment, and skipping standard protective clauses like governing law and dispute resolution.
Not legal advice
This template is provided for informational purposes. We recommend having an attorney review any legal document before signing, especially for high-value or complex matters.
Checked against the law it cites
A reviewer verified this template's legal citations against the official source on November 6, 2026.
Ala. Code § 34-14A-2(8) (checked November 6, 2026): "HOMEOWNER. A person who owns and resides in or intends to reside in a structure constructed or remodeled by a licensee of the board"
Ala. Code § 34-14A-2(16) (checked November 6, 2026): "Notwithstanding the foregoing, the term includes a residential roofer when the cost of the undertaking exceeds two thousand five hundred dollars ($2,500)."
Ala. Code § 34-14A-7(f) (checked November 6, 2026): "Each licensee shall use a valid written contract when engaging in the business of residential home building. In addition to any other requirements provided by law, the contract shall contain the licensee’s license number issued by the board."
Ala. Code § 34-14A-19(a) (checked November 6, 2026): "Prior to the commencement of residential home building by a residential home builder, the residential home builder shall disclose in writing to the homeowner whether the residential home builder has obtained and is currently maintaining liability insurance."
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