Alabama Home Builder Licensure Exam Prep 2026/2027
| Complete 200-Question Practice Test Bank with
Detailed Answers & Explanations (IRC, OSHA, AL Law)
LATEST THIS YEAR.pdf
1. What is the primary purpose of the Alabama Home Builders Licensure Board
(HBLB)?
A) To design building plans for residential structures
B) To enforce local zoning ordinances
C) To regulate and license residential home builders
D) To sell building materials to licensed contractors
Answer: C) To regulate and license residential home builders
Rationale: The HBLB was established to regulate and license residential home
builders, ensuring compliance with state laws and maintaining professional
standards to protect public health and safety .
2. According to the Alabama Home Builders Licensure Board (HBLB), what is the
minimum dollar threshold for a residential construction project that legally
requires a licensed home builder?
A) $2,500
B) $5,000
C) $10,000
D) $50,000
**Answer: C) $10,000**
*Rationale:* Under Title 34, Chapter 14A of the Alabama Code, any person or
business entity undertaking residential construction, remodeling, or repair with a
total cost (labor + materials) of $10,000 or more must hold an active license
issued by the HBLB .
3. How many members serve on the Alabama Home Builders Licensure Board?
A) 5
B) 7
C) 9
D) 11
Answer: B) 7
,Rationale: The Alabama Home Builders Licensure Board is composed of seven
members appointed by the Governor .
4. Which of the following requires a residential home builder license?
A) Building a deck costing $5,000
B) Constructing a new single-family home costing $150,000
C) Installing a water heater for $800
D) Replacing windows for $4,500
**Answer: B) Constructing a new single-family home costing $150,000**
*Rationale:* A license is required for any residential construction, remodeling, or
repair where the project cost exceeds $10,000. New construction of a single-
family home exceeds this threshold and requires licensure .
5. What is the minimum required amount of general liability insurance coverage
a licensee must maintain to hold an active residential home builder license?
A) $100,000
B) $250,000
C) $500,000
D) $1,000,000
**Answer: A) $100,000**
*Rationale:* The HBLB mandates that licensed residential builders show proof of
financial responsibility, including holding continuous general liability insurance
coverage of at least $100,000 (or satisfying equivalent financial proof
requirements) .
6. How often must a residential home builder license be renewed in Alabama?
A) Annually
B) Every two years
C) Every three years
D) Every five years
Answer: A) Annually
Rationale: Licenses must be renewed annually by December 31st. Failure to
renew results in the license becoming inactive .
7. What is the continuing education requirement for Alabama Home Builder
license renewal?
A) 0 hours
, B) 2 hours
C) 4 hours
D) 8 hours
Answer: C) 4 hours
Rationale: The HBLB requires 4 hours of approved continuing education per year
for license renewal .
8. What type of bond is required to be maintained by a licensed home builder?
A) A fidelity bond
B) A performance bond
C) A license and permit bond
D) A bid bond
Answer: C) A license and permit bond
Rationale: The HBLB requires a license and permit bond to protect consumers.
The bond amount depends on the license type (Limited or Unlimited) .
9. Under Alabama Mechanics' Lien law, an original contractor (one having a
direct contract with the property owner) must file a verified statement of lien
within how many months after the last item of work was performed?
A) 3 months
B) 4 months
C) 6 months
D) 12 months
Answer: C) 6 months
Rationale: Pursuant to Code of Alabama § 35-11-215, an original contractor has 6
months from the date of the last item of work or material furnished to file their
verified lien statement. Subcontractors have 4 months, and journeymen/laborers
have 30 days .
10. Which OSHA regulation primarily requires employers to provide a workplace
free from recognized hazards?
A) National Electrical Code
B) International Residential Code
C) Fair Labor Standards Act
D) General Duty Clause
Answer: D) General Duty Clause
| Complete 200-Question Practice Test Bank with
Detailed Answers & Explanations (IRC, OSHA, AL Law)
LATEST THIS YEAR.pdf
1. What is the primary purpose of the Alabama Home Builders Licensure Board
(HBLB)?
A) To design building plans for residential structures
B) To enforce local zoning ordinances
C) To regulate and license residential home builders
D) To sell building materials to licensed contractors
Answer: C) To regulate and license residential home builders
Rationale: The HBLB was established to regulate and license residential home
builders, ensuring compliance with state laws and maintaining professional
standards to protect public health and safety .
2. According to the Alabama Home Builders Licensure Board (HBLB), what is the
minimum dollar threshold for a residential construction project that legally
requires a licensed home builder?
A) $2,500
B) $5,000
C) $10,000
D) $50,000
**Answer: C) $10,000**
*Rationale:* Under Title 34, Chapter 14A of the Alabama Code, any person or
business entity undertaking residential construction, remodeling, or repair with a
total cost (labor + materials) of $10,000 or more must hold an active license
issued by the HBLB .
3. How many members serve on the Alabama Home Builders Licensure Board?
A) 5
B) 7
C) 9
D) 11
Answer: B) 7
,Rationale: The Alabama Home Builders Licensure Board is composed of seven
members appointed by the Governor .
4. Which of the following requires a residential home builder license?
A) Building a deck costing $5,000
B) Constructing a new single-family home costing $150,000
C) Installing a water heater for $800
D) Replacing windows for $4,500
**Answer: B) Constructing a new single-family home costing $150,000**
*Rationale:* A license is required for any residential construction, remodeling, or
repair where the project cost exceeds $10,000. New construction of a single-
family home exceeds this threshold and requires licensure .
5. What is the minimum required amount of general liability insurance coverage
a licensee must maintain to hold an active residential home builder license?
A) $100,000
B) $250,000
C) $500,000
D) $1,000,000
**Answer: A) $100,000**
*Rationale:* The HBLB mandates that licensed residential builders show proof of
financial responsibility, including holding continuous general liability insurance
coverage of at least $100,000 (or satisfying equivalent financial proof
requirements) .
6. How often must a residential home builder license be renewed in Alabama?
A) Annually
B) Every two years
C) Every three years
D) Every five years
Answer: A) Annually
Rationale: Licenses must be renewed annually by December 31st. Failure to
renew results in the license becoming inactive .
7. What is the continuing education requirement for Alabama Home Builder
license renewal?
A) 0 hours
, B) 2 hours
C) 4 hours
D) 8 hours
Answer: C) 4 hours
Rationale: The HBLB requires 4 hours of approved continuing education per year
for license renewal .
8. What type of bond is required to be maintained by a licensed home builder?
A) A fidelity bond
B) A performance bond
C) A license and permit bond
D) A bid bond
Answer: C) A license and permit bond
Rationale: The HBLB requires a license and permit bond to protect consumers.
The bond amount depends on the license type (Limited or Unlimited) .
9. Under Alabama Mechanics' Lien law, an original contractor (one having a
direct contract with the property owner) must file a verified statement of lien
within how many months after the last item of work was performed?
A) 3 months
B) 4 months
C) 6 months
D) 12 months
Answer: C) 6 months
Rationale: Pursuant to Code of Alabama § 35-11-215, an original contractor has 6
months from the date of the last item of work or material furnished to file their
verified lien statement. Subcontractors have 4 months, and journeymen/laborers
have 30 days .
10. Which OSHA regulation primarily requires employers to provide a workplace
free from recognized hazards?
A) National Electrical Code
B) International Residential Code
C) Fair Labor Standards Act
D) General Duty Clause
Answer: D) General Duty Clause
