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 |
| Late renewal penalty (after July 31) | $50 |
| Late renewal penalty (after September 30) | $250 |
| Est. Initial Total | $874 |
Renewal: $163 every 1 year (due by July 31)
Exam Requirements
Business and Law Exam
75 questions3.5 hoursPass: 70%
Alabama contractor lawContracts and liens (ALA Code Section 35-11)OSHA safety (1926)Bidding proceduresInsurance and bonds
Trade Exam (classification-specific)
100 questions4 hoursPass: 70%
IRC/IBC 2021 building codesFramingConcreteConstruction methodsSafety
Exam provider: PSI
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. You may be able to skip the trade exam if you hold a valid license from one of these states.
arkansasTrade exam waiver for comparable classification. Must pass AL Business & Law exam. License must be held 1+ year with no disciplinary actions. 30-day processing.
mississippiTrade exam waiver for comparable classification. Must pass AL Business & Law exam. License must be held 1+ year with no disciplinary actions. 30-day processing.
louisianaTrade exam waiver for comparable classification. Must pass AL Business & Law exam. License must be held 1+ year with no disciplinary actions. 30-day processing.
tennesseeTrade exam waiver for comparable classification. Must pass AL Business & Law exam. License must be held 1+ year with no disciplinary actions. 30-day processing.
north carolinaTrade exam waiver for comparable classification. Must pass AL Business & Law exam. License must be held 1+ year with no disciplinary actions. 30-day processing.
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
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.
Data last verified: 2026-04-02 | Source: ALBGC