General Contractor License Requirements in Alabama
| Licensing Authority | Alabama Licensing Board for General Contractors (ALBGC) |
| License Type | General Contractor — Building (BL) / Highways & Streets (HS) / Municipal & Utility (MU) |
| Experience Required | Minimum 4 years of verifiable construction experience in the classification applied for. Experience must be documented on the application with references. The qualifying individual must demonstrate supervisory or managerial construction experience. |
| Education Substitute | An engineering degree or construction-related degree may substitute for up to 2 years of experience at the Board's discretion. |
| Exam Required | Yes — Business and Law Exam + Trade Exam (classification-specific) |
| Bond Required | No |
| Insurance | General liability: required. Workers comp: required with employees |
| Continuing Education | 17 hours annually — 5 hours code updates (IRC/IBC), 5 hours safety (OSHA 10/30), 7 hours elective. ALBGC-approved providers. |
| Processing Time | 6-8 weeks standard. Board meets quarterly — application must be submitted 30 days before meeting. Total timeline: 3-6 months from application to license. |
Fee Breakdown
| Application Fee | $300 |
| Exam Fee | $111 |
| Initial License Fee | $163 |
| Est. Initial Total | $574 |
Related & additional fees
Separate or ongoing costs — not included in the estimate above.
| Late renewal penalty (after July 31) | $50 |
| Late renewal penalty (after September 30) | $250 |
Renewal: $163 every 1 year (due by July 31)
Exam Requirements
Business and Law Exam
Trade Exam (classification-specific)
Exam provider: PSI
Recommended exam prep
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Classified (A through E)
Monetary limit = 10x lesser of net worth or working capital. Classes A ($50K max) through E ($5M max) based on financial qualification.
Exam: Required
Unlimited (U)
No monetary limit on single-project bids. Requires highest financial qualification.
Exam: Required
License Reciprocity
This state has reciprocity agreements with 5 states. View full reciprocity details — You may be able to skip the trade exam if you hold a valid license from one of these states.
Notes
- 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)
- Financial statement required with application (reviewed or audited CPA statement)
- Open-book exams — tabbed and highlighted reference books permitted
- NASCLA exam scores accepted
- Application fee is $300 payable by cashier's check or money order
Local requirements on top of your Alabama license
The ALBGC general contractor license is the credential that lets you work anywhere in Alabama. On top of it, most Alabama cities and counties require a local business license (a tax registration) to operate, and a few add their own contractor registration or permit. These are in addition to your state license, not a replacement — always confirm the rules with the city or county where the job is.
Frequently Asked Questions
Do I need a general contractor license in Alabama?
Yes, Alabama requires a statewide general contractor license through the Alabama Licensing Board for General Contractors.
How much does a general contractor license cost in Alabama?
The estimated initial cost is $574, including application, exam, and license fees.
What experience do I need for a general contractor license in Alabama?
Minimum 4 years of verifiable construction experience in the classification applied for. Experience must be documented on the application with references. The qualifying individual must demonstrate supervisory or managerial construction experience. Education substitute: An engineering degree or construction-related degree may substitute for up to 2 years of experience at the Board's discretion.
What exams are required for a general contractor license in Alabama?
You must pass the Business and Law Exam and Trade Exam (classification-specific) exams. A passing score of 70% is required. Exams are administered by PSI.
Does Alabama have general contractor license reciprocity?
Yes, Alabama has reciprocity agreements with 5 states that may apply to general contractors. Licensed contractors from these states may be eligible to skip certain exams or have an expedited application process.
How long does it take to get a general contractor license in Alabama?
Processing time is typically 6-8 weeks standard. Board meets quarterly — application must be submitted 30 days before meeting. Total timeline: 3-6 months from application to license. after submitting a complete application.
Is continuing education required for general contractors in Alabama?
Yes, 17 hours per annually — 5 hours code updates (IRC/IBC), 5 hours safety (OSHA 10/30), 7 hours elective. ALBGC-approved providers. is required for license renewal.
Next steps
You know the requirements for general contractors in Alabama— here's how to actually pass and apply.
Data last verified: 2026-04-02 | Source: ALBGC