Alabama General Contractor License Requirements

The Alabama Licensing Board for General Contractors regulates covered general contractors and subcontractors. Since October 1, 2024, the general-contractor and subcontractor threshold is $100,000 per undertaking. The Board’s current law page separately states a $5,000 threshold for swimming-pool construction. The Board’s license uses classifications and a maximum single-contract bid limit: A ($100,000), B ($250,000), C ($500,000), D ($1 million), E ($3 million), or Unlimited. Prime contractors and subcontractors use different Board applications and requirements.

Regulatory Body

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 §§ 34-8-1 through 34-8-55. Licenses and regulates covered general contractors and subcontractors in Alabama.

Official portal: https://genconbd.alabama.gov/

Eligibility Requirements

Applicants must be at least 19 years old. Applicants must provide a Social Security Number. Applicants must be U.S. citizens or legally present in the United States with appropriate federal documentation under § 34-8-2. Entity-registration requirements are addressed in the current Board application.

Good moral character

The Board may fine, revoke, or discipline a licensee for fraud or deceit in obtaining a license, or gross negligence, incompetence, or misconduct in business.

Background investigation

Use the current ALBGC application for required disclosures and documentation. This audit does not state a separate statewide fingerprint requirement.

Experience and Education

The sources cited here stop short of naming a year requirement; the operative standard is The sources reviewed require a qualifying party, Board application, financial information, and examinations for prime applicants; they do not set a universal three-year experience threshold for every prime classification..

Accepted proof of experience or eligibility

Current ALBGC prime or subcontractor application
For prime applicants, a current CPA or approved licensed-public-accountant financial statement
For subcontractors, three references from general contractors, architects, engineers, or awarding authorities
Qualifying-party information and current entity documentation where applicable

Education substitution

No universal education-for-experience substitution was identified in the current ALBGC application materials reviewed.

Exam Requirements

Testing provider or authority: PSI for the Alabama Business and Law examination and Board-required trade examinations. The following examination requirements cover the pathways described in this guide; follow each part's classification, waiver, and local-scope conditions. Unpublished format details do not remove an examination requirement:

Alabama Business and Law examination — question count: confirm with the authority, timing: confirm with the authority, passing score: confirm in the current candidate bulletin
Board-required trade examination for the requested classification — question count: confirm with the authority, timing: confirm with the authority, passing score: confirm in the current candidate bulletin

Examination fee: Confirm the current PSI examination fee, format, references, and score directly with PSI and ALBGC before scheduling.

Retake policy: Follow the current PSI and ALBGC candidate instructions; this audit removes unsupported universal waiting-period and fee claims.

Insurance and Bonds

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’s former certificate-of-insurance rule is repealed. This audit found no Board-set statewide general-liability minimum for this license; project owners or local authorities may impose their own requirements.

Workers' compensation

Confirm workers’ compensation obligations with the Alabama Department of Labor based on the business and workforce. This guide does not rely on an unsupported five-employee rule.

Additional financial requirements

Prime applicants submit a current financial statement prepared under generally accepted accounting principles by a CPA or Board-approved licensed public accountant. The Board requires at least $10,000 in net worth and working capital for the lowest limit; except for Unlimited, the bid limit is no more than 10 times the lesser of net worth or working capital.

Fee Schedule

Fee	Amount
Application	$300
Initial license	No separate amount recorded; confirm in the fee guidance
Renewal (every year)	$200

To turn these board fees into a realistic year-one budget — bond premium, liability insurance, and exam prep included — open the cost calculator preloaded for Alabama general contractor.

Renewal and Continuing Education

The Alabama General Contractor License (prime or subcontractor) runs on a year renewal cycle. The current renewal fee is $200. Prime licenses renew annually on the Board-assigned renewal date. ALBGC materials allow a limited financial-information extension in specified circumstances; confirm the current renewal form and deadlines directly with the Board.

Continuing education: No current ALBGC continuing-education requirement was identified in the reviewed primary materials.

Downloadable Asset

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

Download the PDF roadmap →

Reciprocity

For this classification, Alabama does not recognize the NASCLA Accredited Examination.

Reciprocal State	Accepted Exam	Conditions
Arkansas	Reciprocity application	Current same classification held for at least one year, subject to ALBGC verification.
Louisiana	Reciprocity application	Current same classification held for at least one year, subject to ALBGC verification.
Mississippi	Reciprocity application	Current same classification held for at least one year, subject to ALBGC verification.
North Carolina	Reciprocity application	Current same classification held for at least one year, subject to ALBGC verification.
Tennessee	Reciprocity application	Current same classification held for at least one year, subject to ALBGC verification.

ALBGC’s current application page lists Arkansas, Louisiana, Mississippi, North Carolina, and Tennessee. Confirm the requested classification and current verification process before filing.

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

General Contractor Licensing in Neighboring States

Contractors working near a state line, or weighing where to qualify first, should compare Alabama's requirements against the bordering jurisdictions before committing to an application:

Florida General Contractor License Requirements — Florida Certified General Contractor (CGC)
Georgia General Contractor License Requirements — Georgia General Contractor (Unlimited Tier)
Mississippi General Contractor License Requirements — Mississippi Commercial Contractor / Residential Builder or Remodeler
Tennessee General Contractor License Requirements — Tennessee Contractor License — Building Classifications (TBLC)

Step-by-Step Application Roadmap

Confirm that the project is within ALBGC jurisdiction. The general-contractor and subcontractor threshold is $100,000 per undertaking. ALBGC separately states a $5,000 threshold for swimming-pool construction; review the statutory exemptions and confirm project treatment with the Board before relying on an exemption.
Choose prime or subcontractor status and classification. Prime and subcontractor applications are different. Choose the type of work and the bid limit needed for a single contract.
Prepare financial information for a prime application. Provide a current qualifying financial statement. The bid-limit formula and minimum $10,000 net-worth/working-capital requirement determine the available limit.
File by the Board deadline. Prime applications must be on file 30 days before a quarterly Board meeting. Subcontractors submit their application and three required references.
Complete the required examinations. ALBGC states that prime applicants take Business and Law through PSI and, since 2008, a trade exam as well. Confirm current classification-specific testing with PSI.
Maintain the license and bid limit. Renew by the assigned date and keep current financial information on file as required. Do not bid or perform outside the approved type of work or maximum bid limit.

Application Checklist

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

Confirm the project threshold and any statutory exemption
Choose the prime or subcontractor application
Choose the type of work and required single-contract bid limit
For prime applicants, obtain a current qualifying financial statement
For subcontractors, obtain three qualifying references
File the application by the Board deadline and complete required PSI testing
Renew by the assigned date and remain within the approved bid limit

Common Filing Mistakes

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.

Using the old $50,000 threshold

Act 2024-277 increased the general-contractor and subcontractor threshold to $100,000 effective October 1, 2024.

Using outdated “Major” or “Minor” classes

ALBGC’s current statutory bid-limit structure is A through E plus Unlimited, with specific maximum single-contract values.

Confusing prime and subcontractor applications

They have different fees and supporting-document requirements. A subcontractor may bid but cannot start work until licensed.

Treating Unlimited as a shortcut around financial review

The Board sets bid limits from the applicant’s financial information. Keep the financial statement current and within the Board’s accepted format.

Assuming project insurance terms are set by ALBGC

The Board’s certificate-of-insurance rule is repealed. Review the owner’s contract and local requirements independently.

Study and Reference 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.

ALBGC law, rules, and bid-limit materials — Alabama Licensing Board for General Contractors. Primary source for coverage, classification, financial-statement, and bid-limit rules.
PSI Alabama contractor candidate information — PSI. Confirm the current classification-specific examination references, format, fees, and scheduling rules.

Other Alabama Trade Licenses

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

Frequently Asked Questions

When does Alabama require a general-contractor license?

The current general-contractor and subcontractor threshold is $100,000 per undertaking. ALBGC separately states a $5,000 threshold for swimming-pool construction. The statute also contains exemptions, so confirm the project status with ALBGC before relying on one.

What are Alabama’s bid-limit classes?

The statutory limits are A $100,000, B $250,000, C $500,000, D $1 million, E $3 million, and U Unlimited. The Board bases the approved limit on the financial-statement requirements and other application facts.

What is the prime-contractor application fee?

ALBGC lists a $300 prime application fee. It separately lists a $150 subcontractor application fee; the fees are not interchangeable.

Does Alabama have general-contractor reciprocity?

ALBGC currently lists Arkansas, Louisiana, Mississippi, North Carolina, and Tennessee. The applicant must have held the same requested classification for one year and complete the Board verification process.

Does ALBGC require statewide general-liability insurance?

The Board’s former certificate-of-insurance rule is repealed. This audit found no Board-set statewide liability minimum for this credential; verify project and local requirements separately.

Primary Sources

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

Verified 2026-09-04 · Next scheduled review 2026-12-03

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Corrections and presentation updates

2026-09-30: Corrected examination detection when format details are unpublished and updated the summary layout and requirements score. Source-check dates are unchanged.
2026-09-08: Shared template updated to distinguish unspecified eligibility requirements, retain cost qualifications, and use consistent headings. Source-check dates are unchanged by presentation updates.
2026-09-21: Local-only guides now use a compliance-focused structure and terminology instead of implying a statewide license application. Source-check dates are unchanged by this presentation update.