How to get a general contractor license in Alabama

Licensing office Alabama Licensing Board for General Contractors · (334) 272-5030 [13]

The license pathway in Alabama

1. 1

   Construction worker (no state license)

   Neither board licenses individual construction workers. Workers supplied by a labor broker to a licensed general contractor fall under that contractor's license. [1][2][3]

2. 2

   Residential Home Builder, Limited License

   • $100 processing, $250 a year
   • Yearly

   For builders who contract directly with a homeowner for single-trade work over $10,000 that doesn't affect the home's structure. Instead of the exams, you show a current (or held within one year) city or county business or occupational license as a contractor. [5][12]

3. 3

   Residential Home Builder, Unlimited License

   • Yes: Alabama Business and Law (70 to pass) and Alabama Skills (66 to pass), open book, Prov
   • $100 processing, $250 a year; exams $130 same day or $80 each
   • Yearly

   For building or remodeling homes and structures of up to 3 floors and 4 units when the job costs over $10,000. The Board weighs your experience, ability, character and financial condition, and asks for a credit report sent directly from a credit reporting agency. [3][5][11][16]

4. 4

   General Contractor (commercial prime)

   • Yes: Business and Project Management (business and law) plus trade exams, PSI
   • $300 application
   • Yearly, $200

   For projects of $100,000 or more. You apply for specific classifications and get a bid limit based on a CPA-prepared financial statement, from A (up to $100,000) through E (up to $3,000,000) to Unlimited. Applicants need a net worth and working capital of at least $10,000, liability insurance and three references for commercial work. [4][8][9][10]

Two boards, two thresholds

• Commercial and public work: a "general contractor" under Code of Alabama 34-8-1 is anyone who, for a fee, builds or superintends a building, highway, sewer, site work, paving or other project where "the cost of the undertaking is one hundred thousand dollars ($100,000) or more." Subcontractors working under a general contractor need a license at the same amount; they may bid unlicensed but must be licensed before starting work, and they don't take an exam.
• Homes: a "residential home builder" builds, remodels or repairs a residence or structure of not over three floors and not more than four units when the cost "exceeds ten thousand dollars ($10,000)." Residential roofers need a license over $2,500.

The general contractor law exempts "the construction or repair of any residence or private dwelling." Under Act 2026-396, effective October 1, 2026, it also exempts residential swimming pools and certain routine maintenance, repair and cleaning work. The Board's own law page still shows a $5,000 swimming pool threshold. [1][2][3][6][7]

Commercial license: classifications and bid limits

You apply for the type of work you want, and the Board sets a bid limit from your latest CPA (certified public accountant) or approved accountant financial statement: not more than 10 times your net worth or working capital, whichever is less.

• A: up to $100,000
• B: up to $250,000
• C: up to $500,000
• D: up to $1,000,000
• E: up to $3,000,000
• U: unlimited

Applicants must have at least $10,000 in net worth and working capital. To qualify for a major classification (such as Building Construction) you document at least three completed projects in each of its sub-classifications. Since 2008, applicants take a trade exam as well as the business and law exam. The person who takes the exam for a company (the qualifying party) must be an owner, partner or officer, or a full-time employee for 90 consecutive days before the exam. [4][8][9][10]

Home builder licenses

The Home Builders Licensure Board issues three licenses:

• Unlimited: pass the Alabama Business and Law exam (70) and Alabama Skills exam (66), both open book, through Prov. Exams cost $130 if taken the same day or $80 each.
• Limited: for single-trade work that doesn't affect a home's structure; you show a city or county contractor business license instead of the exams.
• Roofer: for residential roofing over $2,500; you post a $10,000 license/permit bond.

Unlimited and limited applicants have a credit report sent directly to the Board. The license fee is $250 a year plus a $100 nonrefundable processing fee for a new license. [3][5][11][12]

Fees and renewal

• Commercial prime: $300 application, $200 yearly renewal, $50 late penalty after 90 days. Subcontractors pay half: $150 to apply and $100 to renew. If you don't renew within a year of expiration, you must reapply and retake the trade and business and law exams.
• Home builder: $250 a year (for 12 months starting January 1) plus $100 processing for a new license.

[2][8][11][13][14][15]

If you're licensed in another state

The commercial board lists reciprocity with Arkansas, Louisiana, Mississippi, North Carolina and Tennessee. You must have held the license for one year in the classification you want in Alabama, and the qualifying party must be the same in both states. Its application instructions name the North Carolina State Board of Electrical Contractors rather than the general contractor board for North Carolina, so confirm with the Board. You file the prime application with an Out of State License Verification form at least 30 days before a meeting. [9][13]

Steps to get licensed in Alabama

1. Pick the right board

   Homes and residential structures of up to 3 floors and 4 units over $10,000: the Home Builders Licensure Board. Commercial, public and other projects of $100,000 or more: the Licensing Board for General Contractors. [1][2][3]

2. Home builder: pass the exams and apply

   Register with Prov and pass the Alabama Business and Law (70) and Skills (66) exams; no Board approval is needed first. Then send the notarized application, $350 ($250 license plus $100 processing), a credit report sent directly by the agency, and proof of citizenship. [5][11]

3. Commercial: file the prime application

   Send the prime contractor application with $300 at least 30 days before a quarterly Board meeting, with a CPA financial statement, liability insurance, work experience and three references. [8][9][13]

4. Commercial: pass the PSI exams

   After the Board reviews your application, pass the business and law exam and any trade exams for your classifications, and send in your scores. [4][9]

5. Renew every year

   Commercial licenses renew yearly ($200 for primes) in a month set by the first letter of the company name. Home builder licenses run January 1 for 12 months. [14][15]

Where to get the hours

Programs that train general contractors in or for Alabama, from their own official pages. Listed by type, not ranked.

• State program

  Alabama Office of Apprenticeship

  Registers apprenticeship programs in Alabama, including construction and carpentry, and maps sponsors around the state. [17][18]

• School

  Academy of Craft Training

  Statewide high school program run with the Alabama Construction Recruitment Institute; students split time between their high school and ACT training centers. [19]

Licensed in another state?

Questions people ask