Alabama Contractor License Guide

There are two main contractor licenses available in the State of Alabama:

• General Contractor License: If a project’s value is over $50,000, you will need to obtain a license as a general contractor.
• Subcontractor License: If you carry out work for a licensed general contractor, and the work is valued at over $50,000, you are legally required to hold a subcontractor license.

Note: If you have held a contractor license for the same classification for which you are applying for three (3) consecutive years from the following Boards, you may be eligible to receive reciprocity from the Alabama Board for General Contractors: Arkansas, Louisiana, Mississippi, or Tennessee General Contractors Board, or the North Carolina State Board of Electrical Contractors.

General contractor license applications are available online via the Alabama Licensing Board for General Contractors:

• General contractor applications are available here.
• Subcontractor applications are available here.

You can also request a mailed application by calling (334) 272-5030. Both general contractor and subcontractor license applications include a detailed list of requirements.

• Determine your minimum net worth or working capital: You must have a minimum of $10,000 in net worth and/or working capital. A certified public accountant (CPA) must complete the Board’s Confidential Financial Statements, Equipment Questionnaire, and Experience Statement (CFS). This form is available for download via the Board’s website.
• Obtain a Bank Authorization Statement: This form must be signed and submitted with the contractor license application, and grants the applicant’s bank the authorization to provide a verification of assets and holdings to the Board. This list must reflect the information provided in the CFS.
• Obtain a Certificate of Existence: This certificate can be obtained via the Alabama Secretary of State website. It must be dated with the year of application, and is not applicable to individuals or general partnerships.
• Obtain liability insurance: Proof of liability insurance is also a requirement to apply for your general contractor license. The certificate holder must be listed as:

Alabama Licensing Board for General Contractors
2525 Fairlane Dr.
Montgomery, AL 36116

How to fill out your application:

Please type or print plainly in ink. All questions must be answered and financials completed.

Licensing Fees:

A cashier’s check, certified check or money order (non-refundable, non-transferable) must be made payable to the Alabama Licensing Board for General Contractors.

• General Contractor License: $300
• Subcontractor License: $150

Note: Personal or company checks will be returned. For more information regarding renewal fees, please visit the Board’s website.

Mailing Address:

Submit your application along with all supporting documentation to:

ALABAMA LICENSING BOARD FOR GENERAL CONTRACTORS
2525 Fairlane Dr.
Montgomery, AL 36116

Contractor Insurance

There are several types of insurance coverages that are recommended for contractors, but the recommended coverage will vary based on your operation.

If you’d like to learn more about all of the insurance coverages available to you, please read our contractor insurance guide.

Phone: (334) 272-5030
Fax: (334) 395-5336

A complete application must be on file in the office of the licensing board before anyone can register for examination. You’ll need to register and pass the Business and Project Management and/or Skill Test Examination on the classification(s) of which you are applying.

Note: It is the applicant’s responsibility to submit passing test scores to the Board.

The administrator of the exam will be Psychological Services Inc. (PSI). You can reach PSI online at www.psiexams.com or 1-800-733-9267

You must complete the Alabama Business and Law Exam if the project’s value is over $50,000. Options are available either for commercial or residential projects (under 4 stories). The Homebuilder license examination is required for residential projects over $10,000 but under $50,000.

Note: Examinations are also required for HVAC contractors, electricians, gas fitters, plumbers, and journeymen to receive their licenses. More information regarding examination specifics can be found here.

After you pass your exam and receive your contractor’s license, you’ll need to check with your municipal or county board to see whether an Alabama contractor license bond is required to perform construction work. Each county and city in Alabama has differing surety bond requirements. Bond amounts can range from $2,500 to $10,000, but are typically about $5,000.

Note: all Alabama HVAC and refrigeration contractors are required to hold a $15,000 contractor license bond before applying for a license. This is a legal requirement for the entire state.