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
Formal prep pays for itself against a $100+ retake. Many states examine contractors on two separate papers — the trade exam and a business and law exam — so we list the course covering both first, with trade-specific depth after.
Some links below are affiliate links. If you buy through them we may earn a commission at no extra cost to you.
Mometrix · SponsoredContractor License Online Study CourseFull online prep course covering the trade and business-and-law exams — video lessons, practice questions, and a study plan built for a first-try pass.See the course →
Mometrix · SponsoredContractor's Exam FlashcardsPortable flashcards for the high-frequency exam topics — a cheaper add-on for drilling terms and code references on the go.See the flashcards →Set up the business before you apply in Alabama
Most states license the company as well as the person, so the application usually asks for an LLC or corporation and a registered agent in Alabama. Northwest forms the entity and acts as your registered agent — a flat fee, no upsell funnel.
Some links below are affiliate links. If you buy through them we may earn a commission at no extra cost to you.
Form an LLC with Northwest→License Tiers
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.
You're licensed in Alabama as a general contractor — the next 30 days
Most of the steps below are required before your first paid job; the order is the order the state and its counties will ask for them.
Some links below are affiliate links. If you buy through them we may earn a commission at no extra cost to you.
Form the business and get an EIN.
The Alabama Licensing Board for General Contractors issues the General Contractor — Building (BL) / Highways & Streets (HS) / Municipal & Utility (MU); the business that invoices Alabama customers is a separate decision. A sole proprietorship is the default, an LLC keeps business liability off your personal assets, and either needs an EIN before the first payroll. Settle it before the license number goes on an estimate.
Bond: none required by the state.
Alabama does not require a surety bond for this license — Not required at the state level for ALBGC licensees. Some municipalities may require local surety bonds. Financial statement review determines license classification instead.
Carry the insurance the license requires.
Alabama requires general liability insurance for this license. 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). Contractor insurance requirements→
Register locally.
Most Alabama cities and counties require a local business license (a tax registration) on top of the state credential, and a few add their own contractor registration or permit — confirm with the city or county where the job is.
Set up quoting, scheduling and invoicing before the first call.
Your first customers will ask for a written estimate and expect to pay by card on site. Most one-truck general contractor businesses run that on field-service software; Housecall Pro is the one we link because it is built for this size of company and this link carries 20% off your first 12 months. Start a free trial of Housecall Pro→
Keep the license.
Renewal is every year (due by July 31) at $163. Continuing education: 17 hours annually — 5 hours code updates (IRC/IBC), 5 hours safety (OSHA 10/30), 7 hours elective. ALBGC-approved providers.
Other licenses in Alabama
- Electrician license in Alabama
Statewide license required · $150 in initial government fees · AECB
- Plumber license in Alabama
Statewide license required · $235 in initial government fees · PGFB
- HVAC Technician license in Alabama
Statewide license required · $340 in initial government fees · HACR
- Roofing Contractor license in Alabama
Statewide license required · $250 in initial government fees · HBLB
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