Getting your Alabama license starts here...

In Alabama, general contractors are licensed by the Alabama Licensing Board for General Contractors (ALBGC) for projects over statutory thresholds, while the Home Builders Licensure Board (HBLB) oversees residential builders. Applicants document experience, financial responsibility, insurance, and may be required to pass exams depending on classification. Contractor Licensing Inc understands the complexity of contractor licensing in each state and is here to help with the application process. We are a family run business with 18 years of experience helping contractors get licensed.

Alabama Contractor Licensing (Commercial & Industrial)

To help you move quickly from interest to approval, this guide explains who must be licensed, how applications differ, and which steps come next. In addition, we highlight fees, classifications, exams, reciprocity, and insurance so you can plan with confidence.

Who Needs a License?

If your commercial or industrial project totals $100,000 or more (labor plus materials), you must hold a General Contractor license. Likewise, if you build or renovate a swimming pool for $5,000 or more, you need a license. Furthermore, subcontractors who perform work at $100,000 or more under a licensed prime must also obtain a license before they begin.

Prime vs. Subcontractor

Prime Contractor

Contracts directly with the project owner or awarding authority.
Meets financial statement thresholds and submits experience with references.
Completes the Business & Project Management exam and, when required, a trade exam.

Subcontractor

Works under a licensed prime; therefore, you must hold a license before work starts.
Provides three commercial/industrial references that match requested classifications.
Documents prior experience in the specific trade(s) requested.

Fees & Deadlines

Prime Contractor application: $300, non-refundable.
Subcontractor application: $150, non-refundable.
Board deadline (Prime): File a complete application at least 30 days before a Board meeting; consequently, plan your timeline early.

What to Submit

Prime Contractor Packet

Completed application (typed or clearly printed).
Financial statement (compiled, reviewed, or audited) that is current within one year.
Three commercial/industrial references that align with the requested classification(s).
Experience showing at least three completed projects per classification.
Qualifying Party form (SSN required, not EIN).
Liability insurance certificate naming the Board as certificate holder (see details below).
Alabama SOS entity print screen from the current year.
Citizenship/Lawful Presence declaration with acceptable ID.

Subcontractor Packet

Completed application.
Three references matching the requested classification(s).
Experience statement for prior commercial/industrial work.
Alabama SOS entity print screen when the entity type requires it.
Citizenship/Lawful Presence declaration with acceptable ID.

Classifications

Building (BC / BCU4)

For example: structural framing, roofing, masonry, sitework, metal buildings, and interiors.

Highways & Streets (HS)

For example: paving/asphalt, bridges, drainage, traffic control, striping, and guardrails.

Municipal & Utility (MU)

For example: underground utilities, telecom/fiber, directional boring, paving, and concrete.

Heavy & Railroad (H/RR)

For example: railroads, pile driving, runways, industrial, and marine construction.

Mechanical / Electrical / Environmental

For example: HVAC, plumbing/gas, fire protection, low voltage, substations, and abatement.

Swimming Pools & Specialty

For example: pool construction/renovation, splash pads, solar, security equipment, and fencing.

Because the Board evaluates capability by trade, you typically list three completed projects for each classification you request.

Exams

All prime applicants complete the Business & Project Management exam; moreover, many applicants also take a trade exam as determined by the Board. PSI administers both, so you can schedule efficiently.

Reciprocity

Alabama maintains reciprocity with Arkansas, Louisiana, Mississippi, and Tennessee; additionally, the Board recognizes North Carolina (Electrical Board) for electrical. If your out-of-state license has remained in good standing for at least one year and the same qualifier and classification apply, you may qualify.

Secretary of State Registration

Register your entity with the Alabama SOS and, subsequently, include a current-year Entity Details print screen with your packet. Individuals and general partnerships typically do not submit this item.

Insurance Certificate Holder

Use this certificate holder on your general liability COI:

Alabama Licensing Board for General Contractors
445 Dexter Ave, Suite 3060
Montgomery, AL 36104

FAQs

May a prime accept bids from unlicensed subs?

Yes; however, the subcontractor must hold a license before work begins on any contract at or above the statutory threshold.

What if my working capital falls short?

You may use a qualifying line of credit or a guaranty to increase approved capacity once you meet the minimums.

How current must my financials be?

Submit a CPA-prepared financial statement that is no more than one year old at the time you file.

Apply or Get Help

Official How to Apply Forms & Applications

Meanwhile, if you want hands-on help, our team can assemble your checklist, coordinate references, and schedule your exams.

Alabama Contractor License Requirements & Application Help | Contractor Licensing Inc

Get step-by-step help with the Alabama contractor licensing process—classifications, exams, experience, insurance, and bonds. Contractor Licensing Inc handles filings, testing, and compliance.