Alabama General Contractor License Requirements (2026)

The Alabama Licensing Board for General Contractors (ALBGC) licenses general contractors statewide under Code of Alabama Title 34 Chapter 8. A license is mandatory for any project valued at $50,000 or more, and for any swimming pool project valued at $5,000 or more. ALBGC issues three monetary classifications — Unlimited (no project value cap), Major (up to a board-set ceiling), and Minor — across building, highway and street, municipal and utility, and specialty classifications. Most building and specialty classifications accept the NASCLA Accredited Examination in lieu of a state-specific trade exam, but every applicant must still pass the Alabama Business and Law portion administered by Block Exams.

Regulatory Body Profile

Licensing for this trade is governed by Alabama Licensing Board for General Contractors (ALBGC), the agency that issues and regulates the credential under Code of Alabama Title 34 Chapter 8 (General Contractors). ALBGC licenses general contractors statewide, sets monetary classifications, administers the Alabama portion of the contractor exam, and conducts disciplinary proceedings under Title 34 Chapter 8.

Official portal: https://genconbd.alabama.gov/
Address: 2525 Fairlane Drive, Suite 100, Montgomery, AL 36116
Phone: (334) 272-5030

The Eligibility Audit

The applicant must be at least 19 years of age and possess a valid Social Security Number. No Alabama residency requirement; out-of-state applicants must designate an Alabama agent for service of process.

Good moral character

ALBGC reviews the qualifying individual's background and may deny applicants for fraud, gross negligence, or revoked licenses in any jurisdiction.

Background investigation

Mandatory criminal history disclosure on the application; ALBGC may request additional documentation for any disclosed offense.

Experience and Education Standards

A minimum of three years of practical construction management or supervisory experience for the qualifying individual in the classification applied for; the qualifying individual must be a full-time employee, owner, or officer of the licensed entity must be documented and verified. Unless the board publishes a different lookback period, applicants should keep payroll, tax, project, or supervisor records that support the claimed experience.

Accepted proof of experience or eligibility

ALBGC Experience Affidavit signed by each prior employer or supervising contractor
W-2 statements, 1099 records, or pay stubs covering the qualifying period
Project list with addresses, contract values, and references
Notarized affidavits from prior supervising contractors

Education substitution

A four-year construction-related degree may substitute for up to two years of the experience requirement at the board's discretion.

The Exam Syllabus

Testing is handled by Block Exams (under contract to ALBGC); NASCLA Accredited Examination accepted for many building and specialty classifications. The applicant has to pass each part listed here before the credential is granted:

Alabama Business and Law Examination — open-book, covers Title 34 Chapter 8, lien law, payroll, safety — 50 questions, 120 minutes, passing score 70%
Alabama Trade Examination (or NASCLA Accredited Examination) for the requested classification — 115 questions, 330 minutes, passing score 70%

Examination fee: $215 examination fee paid to Block Exams per part.

Retake policy: Failed parts may be re-taken individually after a 30-day wait by paying a new $215 fee. Each application remains valid for one year.

Bonding, Insurance & Financial Security

No statewide contractor license surety bond is required for this credential in the cited sources. Project-specific, permit, or public-works bonds may still apply, so confirm bonding before bidding a given job.

General liability

ALBGC does not impose a state-level general liability minimum. Most commercial owners contractually require $1,000,000/$2,000,000.

Workers' compensation

Workers' compensation insurance is mandatory in Alabama under §25-5-1 et seq. for any business with five or more employees (including part-time).

Additional financial requirements

Unlimited classification requires a CPA-reviewed or audited financial statement showing positive net worth and adequate working capital. Major and Minor classifications require a compiled financial statement; the board sets the monetary cap based on the working capital shown.

Schedule of Fees

Fee	Amount
Application (non-refundable)	$300
Examination	$430
Initial license	$300
Renewal (every year)	$300

Renewal and Continuing Obligations

The Alabama General Contractor License (Unlimited, Major, or Minor) runs on a year renewal cycle. The current renewal fee is $300. Alabama general contractor licenses renew every year on the license anniversary date.

Continuing education: ALBGC does not currently mandate continuing education for general contractors, but the board may add CE requirements by rule.

Downloadable Asset

2026 Alabama General Contractor License Roadmap (PDF) — a printable step-by-step checklist for the application process.

Download the PDF roadmap →

Out-of-State Reciprocity

For this classification, Alabama recognizes the NASCLA Accredited Examination.

Reciprocal State	Accepted Exam	Conditions
Georgia	Trade exam waived	Bilateral ALBGC–Georgia State Licensing Board for Residential and General Contractors reciprocity for active general contractors in good standing.
Tennessee	Trade exam waived	Bilateral ALBGC–Tennessee Board for Licensing Contractors reciprocity for active general contractors.
Mississippi	Trade exam waived	Bilateral ALBGC–Mississippi State Board of Contractors reciprocity for active general contractors.
North Carolina	Trade exam waived	Bilateral ALBGC–NCLBGC reciprocity for active general contractors in good standing.

Alabama accepts the NASCLA Accredited Examination for many building and specialty classifications in lieu of the Alabama trade exam. The Alabama Business and Law portion is required even for NASCLA and reciprocal applicants.

Weighing more than one jurisdiction? The national hub compares General Contractor license requirements in every state — exam, bond, fee, and experience thresholds side by side.

The Application Roadmap

Choose the classification and monetary class. Pick the trade classification (Building, Highway and Street, Municipal and Utility, or Specialty) and the monetary class (Unlimited, Major, or Minor).
Document the qualifying individual's experience. Three years of supervisory experience in the requested classification. The qualifying individual must be a full-time employee, owner, or officer of the licensed entity.
Prepare the financial statement. Unlimited requires a CPA-reviewed or audited statement. Major and Minor require a compiled statement. The board uses working capital to set the monetary cap.
Submit the ALBGC application. File at least 30 days before the next board meeting with the application fee, qualifying individual designation, financial statement, and proof of experience.
Pass the Block exams at 70%. Take the Alabama Business and Law exam plus the trade exam (or NASCLA exam) for the requested classification.
Attend the board meeting. ALBGC reviews applications at scheduled board meetings. Applicants are typically required to appear or be available by phone.
Receive the Alabama license. ALBGC issues the license after the exam is passed and the board approves the application. The license must be renewed annually.

Where Applications Stall

The following pitfalls summarize the issues most likely to delay, return, or derail a Alabama General Contractor application based on the published board instructions and source materials cited on this page.

Bidding work without a license

Any bid on a project of $50,000 or more without an active license is a violation, even if the contract is never signed. ALBGC actively pursues unlicensed bidders.

Underestimating the financial statement

Unlimited classification requires an audited or CPA-reviewed statement. Compiled statements are not accepted for Unlimited and informal balance sheets will be rejected.

Missing the board meeting deadline

Applications must be on file at least 30 days before the next board meeting. Late applications roll to the following meeting, adding 30 to 60 days to the timeline.

Skipping the Business and Law exam after NASCLA

NASCLA only waives the trade portion. Every Alabama applicant must still pass the Alabama Business and Law exam.

Letting the license lapse

Alabama licenses renew annually. A lapsed license blocks bidding immediately and requires reinstatement fees plus possible re-examination after extended lapses.

Pre-Application Checklist

Have each of the following squared away before the packet goes to ALBGC:

☐ ALBGC application filed at least 30 days before the next board meeting
☐ Qualifying individual designation with three years of documented supervisory experience
☐ Financial statement appropriate to the requested monetary class (audited, reviewed, or compiled)
☐ Block Alabama Business and Law exam pass certificate at 70%+
☐ Block trade exam or NASCLA Accredited Examination pass certificate at 70%+
☐ Workers compensation coverage for any business with five or more employees
☐ Out-of-state applicants: Alabama agent for service of process designation

Recommended Study Materials

These materials are drawn from the regulator's own citations and the references applicants commonly use to prepare. CLR receives no compensation for listing them.

NASCLA Contractors Guide to Business, Law and Project Management — Alabama edition — NASCLA. Standard reference for the Alabama Business and Law exam. Open-book at the test center.
Code of Alabama Title 34 Chapter 8 and ALBGC Administrative Code — State of Alabama. Licensing law and rules.
International Building Code (current Alabama-adopted edition) — International Code Council. Primary technical reference for building classifications.

Other Alabama Trade Licenses

CLR maintains guides for additional Alabama trades; the published ones are listed here:

Common Questions

When do I need an Alabama general contractor license?

Any project valued at $50,000 or more requires an ALBGC license under Code of Alabama §34-8-1. Swimming pool projects of $5,000 or more also require licensure regardless of the overall project value.

What are the Alabama contractor monetary classes?

Unlimited has no project value cap and requires an audited or CPA-reviewed financial statement. Major and Minor are capped at board-set monetary limits derived from the applicant's working capital.

Does Alabama accept the NASCLA exam?

Yes for many building and specialty classifications. NASCLA-certified applicants still must pass the Alabama Business and Law exam administered by Block Exams.

Does Alabama have reciprocity with neighboring states?

Yes. ALBGC maintains bilateral reciprocity agreements with Georgia, Tennessee, Mississippi, and North Carolina for active general contractors in good standing. The Alabama Business and Law exam is still required.

How often does the Alabama contractor license renew?

Every year. Renewal is due by the license anniversary date and the board may impose late fees and reinstatement fees for lapsed licenses.

Primary Sources

Regulatory requirements on this page are drawn from the official board, statute, and exam-provider materials listed below.

Verified 2026-06-01 · Next scheduled review 2026-08-30