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Alabama Contractor License Requirements & Application Help
Commercial and industrial general contractors in Alabama are licensed by the Alabama Licensing Board for General Contractors (ALBGC), with separate boards overseeing residential builders (HBLB), electrical contractors (AECB), and plumbers/gas fitters. Contractor Licensing Inc. handles your application, exam scheduling, and bonding — and every bond link below goes straight to a working Artisan Insurance application, not a dead page.
Who Needs a License?
Commercial or industrial projects totaling $100,000 or more (labor + materials) require a General Contractor license. Swimming pool construction or renovation of $5,000 or more also requires licensure. Subcontractors performing $100,000+ of work under a licensed prime must be licensed before starting.
Prime vs. Subcontractor
- Prime: contracts directly with the owner, meets financial thresholds, completes the Business & Project Management exam plus a trade exam
- Subcontractor: works under a licensed prime, provides three matching references, must be licensed before work begins
What You'll Be Tested On
Two Required Exams
- Alabama Business & Law Exam — open-book, 50 questions / 120 minutes, covers Title 34 Chapter 8, lien law, payroll & safety, 70% to pass
- Alabama Trade Exam (or NASCLA Accredited Exam) — 115 questions / 330 minutes, 70% to pass
Both are administered through Block Exams (PSI-contracted). Exam fee is $215 per part, retakes allowed after a 30-day wait.
Already Have a NASCLA Score?
Alabama accepts the NASCLA Accredited Examination for Commercial General Building Contractors in place of the state trade exam for most building and specialty classifications. This exam is recognized in 17+ jurisdictions — Alabama, Arizona, Arkansas, Florida, Georgia, Louisiana, Mississippi, Nevada, New Mexico, North Carolina, Oregon, South Carolina, Tennessee, Utah, Virginia, West Virginia, and the U.S. Virgin Islands — so one exam score can carry across most of your expansion states.
NASCLA is an exam credential, not automatic reciprocity — you still apply separately in each state and may still need that state's business exam, financials, or bond.
Alabama's Reciprocal Agreements
General Contractors (ALBGC)
Alabama maintains direct reciprocity with the General Contractors Boards of Arkansas, Louisiana, Mississippi, and Tennessee. If your out-of-state license has been in good standing for at least one year under the same qualifier and classification, you may qualify without retesting.
Electrical Contractors (AECB)
The Alabama Board of Electrical Contractors recognizes reciprocal licenses from Mississippi, Louisiana, Tennessee, North Carolina, Virginia, South Carolina, and Texas (EC classifications), plus the NASCLA National Electrical Contractor Exam as a waiver option.
Note: AECB no longer offers reciprocity with Georgia — any outstanding Georgia reciprocal applications no longer qualify. Your current page didn't reflect this change.
ALBGC License Classifications
Building (BC / BCU4)
Structural framing, roofing, masonry, sitework, metal buildings, interiors
Highways & Streets (HS)
Paving/asphalt, bridges, drainage, traffic control, striping, guardrails
Municipal & Utility (MU)
Underground utilities, telecom/fiber, directional boring, paving, concrete
Heavy & Railroad (H/RR)
Railroads, pile driving, runways, industrial, marine construction
Mechanical / Electrical / Environmental
HVAC, plumbing/gas, fire protection, low voltage, substations, abatement
Swimming Pools & Specialty
Pool construction/renovation, splash pads, solar, security equipment, fencing
Alabama Contractor License Bonds
Alabama does not require a universal statewide bond for ALBGC prime contractors who meet the board's net worth/working capital minimum ($10,000). If you fall short of that threshold on projects over $50,000, a surety bond can bridge the gap. Separate specialty boards set their own bond requirements — HVAC and Refrigeration bond limits both increased effective October 1, 2024.
| Bond | Trade | Amount | |
|---|---|---|---|
| Alabama General Contractor License | General (net worth gap) | Varies | Apply Now |
| Heating & Air Conditioning Contractor (new limit, eff. 10/1/2024) | HVAC | $20,000 | Apply Now |
| Refrigeration Contractor (new limit, eff. 10/1/2024) | Refrigeration | $20,000 | Apply Now |
| Refrigeration Contractor (prior limit) | Refrigeration | $15,000 | Apply Now |
Alabama City & County Bonds
Many Alabama cities and counties require their own contractor license bond on top of any state board requirement. All 36 local bonds in our database are listed below — expand to browse.
View all 36 Alabama local & county bonds
| Jurisdiction | Trade | Amount | |
|---|---|---|---|
| City of Auburn | Electrical Contractor | $5,000 | Apply Now |
| City of Auburn | General Contractor | $1,000 | Apply Now |
| City of Auburn | General Contractor | $5,000 | Apply Now |
| City of Auburn | Plumbing Contractor | $5,000 | Apply Now |
| City of Birmingham | Electrical Contractor | $10,000 | Apply Now |
| City of Birmingham | Gas/Butane or Propane Contractor | $2,500 | Apply Now |
| City of Chickasaw | Contractor License | $10,000 | Apply Now |
| City of Dothan | Commercial Refrigeration Contractor | $5,000 | Apply Now |
| City of Dothan | Electrical Contractor | $5,000 | Apply Now |
| City of Dothan | General Contractor | $10,000 | Apply Now |
| City of Dothan | Plumbing Contractor | $5,000 | Apply Now |
| City of Dothan | Subcontractor | $2,000 | Apply Now |
| City of Fultondale | Plumbing Contractor | $5,000 | Apply Now |
| City of Homewood | Contractors Clearing, Earthwork, Soil Erosion Control & Other Land Disturbing | Varies | Apply Now |
| City of Hoover | Contractors Clearing, Earthwork, Soil Erosion Control & Land Disturbing | Varies | Apply Now |
| City of Mobile | Permitting Contractor License | $10,000 | Apply Now |
| City of Mountain Brook | Blasting Contractor | $100,000 | Apply Now |
| City of Mountain Brook | Building Contractor | $10,000 | Apply Now |
| City of Mountain Brook | Excavation Contractor | $10,000 | Apply Now |
| City of Mountain Brook | Paving Contractor | $10,000 | Apply Now |
| City of Mountain Brook | Plumber or Gas Fitter Contractor | $10,000 | Apply Now |
| City of Mountain Brook | Sewer and Septic Tank Contractor | $10,000 | Apply Now |
| City of Mountain Brook | Sprinkler System Contractor | $10,000 | Apply Now |
| City of Opelika | Electrical Contractor | $5,000 | Apply Now |
| City of Opelika | Plumbing Contractor | $5,000 | Apply Now |
| City of Ozark | Tree Cutting or Stump Grinding Contractor | $10,000 | Apply Now |
| City of Prichard | Contractor License | $10,000 | Apply Now |
| City of Prichard | Plumbing Contractor | $10,000 | Apply Now |
| City of Russellville | Contractor License | Varies | Apply Now |
| City of Saraland | Contractor License | $10,000 | Apply Now |
| City of Satsuma | Contractor License | $5,000 | Apply Now |
| City of Sheffield | Gas Fitting Contractor | $2,500 | Apply Now |
| City of Tuscaloosa | Contractor License | $5,000 | Apply Now |
| Cullman County | Contractor License | $2,500 | Apply Now |
| Jefferson County | HVAC Contractor | $5,000 | Apply Now |
| Tuscumbia | Electrical Contractor License | Varies | Apply Now |
Fees & Deadlines
- Prime Contractor application: $300, non-refundable
- Subcontractor application: $150, non-refundable
- File at least 30 days before a Board meeting
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
Official Resources
Alabama Licensing Board for General Contractors — 445 Dexter Ave, Suite 3060, Montgomery, AL 36104 · (334) 272-5030
Official How to Apply Forms & ApplicationsLet Us Know How We Can Help
We handle your ALBGC application, reference coordination, exam scheduling, bond, and insurance — start to finish.
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