Alabama Contractor & Trade License Requirements
Alabama requires statewide licensing for general contractors (projects $100,000+), electricians, plumbers, HVAC contractors, and residential roofers (projects $2,500+). Each trade is regulated by a separate state board. Alabama has reciprocity agreements with several southeastern states, particularly for general contractors and electricians. The state uses a classification-based system for general contractors with monetary limits tied to net worth or working capital.
General Contractor
RequiredElectrician
RequiredPlumber
RequiredHVAC Technician
RequiredRoofing Contractor
RequiredReciprocity Agreements
Alabama has reciprocity agreements with 10 states. Licensed contractors from these states may be eligible to skip certain exams.
Alabama Licensing Overview
Alabama requires statewide licensing for 5 of 5 contractor trades. The licensed trades — general contractor, electrician, plumber, hvac technician, roofing contractor — are regulated by 5 separate agencies: Alabama Licensing Board for General Contractors (ALBGC), Alabama Electrical Contractors Board (AECB), Alabama Plumbers and Gas Fitters Examining Board (PGFB), Alabama Board of Heating, Air Conditioning & Refrigeration Contractors (HACR), Alabama Home Builders Licensure Board (HBLB). Across all licensed trades, initial costs range from $150 to $574, including application fees, exams, and license issuance. Alabama also participates in reciprocity agreements with 10 other states, which can streamline the process for out-of-state contractors.
Alabama Contractor License Cost Summary
| Trade | Application | Exam | License | Bond | Est. Total |
|---|---|---|---|---|---|
| General Contractor | $300 | $111 | $163 | — | $574 |
| Electrician | — | $115 | $35 | $1,000 | $150 |
| Plumber | $50 | $110 | $75 | $2,000 | $235 |
| HVAC Technician | — | $150 | $190 | $15,000 | $340 |
| Roofing Contractor | $100 | — | $150 | $10,000 | $250 |
Estimated totals include application, exam, license, and fingerprinting fees. Bond amounts are separate and typically paid as an annual premium.
Key Facts About Alabama Contractor Licensing
- GL required: $1M per occurrence / $2M aggregate recommended (industry standard for Alabama). Commercial auto: $1M combined single limit. Workers comp required for employers with 5+ employees (Alabama Department of Labor).
- Alabama has reciprocity agreements with 10 states, which may allow licensed contractors to skip certain exams.
- License required for any project $100,000+ (labor + materials combined)
- Swimming pool construction requires license for projects $5,000+
- Major classifications: Building (BL), Highways & Streets (HS), Municipal & Utility (MU)
Frequently Asked Questions
Does Alabama require a contractor license?
Yes, Alabama requires statewide licensing for 5 of 5 trades: general contractor, electrician, plumber, hvac technician, roofing contractor.
How much does a contractor license cost in Alabama?
Initial licensing costs range from $150 to $574 depending on the trade, including application, exam, and license fees.
Does Alabama have license reciprocity with other states?
Yes, Alabama has reciprocity agreements with 10 states. Licensed contractors from these states may be eligible to skip certain exams or have an expedited application process.
Do I need workers compensation insurance in Alabama?
GL required: $1M per occurrence / $2M aggregate recommended (industry standard for Alabama). Commercial auto: $1M combined single limit. Workers comp required for employers with 5+ employees (Alabama Department of Labor).
Official Alabama Licensing Resources
- Alabama Licensing Board for General Contractors (ALBGC) — for general contractor
- Alabama Electrical Contractors Board (AECB) — for electrician
- Alabama Plumbers and Gas Fitters Examining Board (PGFB) — for plumber
- Alabama Board of Heating, Air Conditioning & Refrigeration Contractors (HACR) — for hvac technician
- Alabama Home Builders Licensure Board (HBLB) — for roofing contractor