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How to get a Prime Contractor license in Alabama

Alabama licenses general contractors statewide through the Alabama Licensing Board for General Contractors.1 For the Prime Contractor (General Contractor license) you need a passing score on the Alabama Business and Project Management exam (the board also calls it Business and Law), plus a trade exam for each classification required2. The board lists $300 for the application2. You renew every year3.

Last checked · 35 official sources

Who issues it

Alabama Licensing Board for General Contractors

Exam

Alabama Business and Project Management exam (the board also calls it Business and Law), plus a trade exam for each classification required2

Fees the board lists

Application fee: $3002

Renewal

Every year3

From another state

Reciprocity agreements and Military service members and spouses45 Details

On this page
  1. Alabama general contractor licenses
  2. Applies to every license level
  3. Who needs a Prime Contractor license
  4. Requirements for a Prime Contractor license
  5. How much a Prime Contractor license costs
  6. How to apply
  7. Renewal and continuing education
  8. Moving to Alabama with a license from another state
  9. Residential Home Builder License with Limitation (Limited)
  10. Residential Home Builder License without Limitation (Unlimited)
  11. Subcontractor license
  12. City and county rules
  13. Check a license or report a problem
  14. Laws and rules
  15. Rule changes since January 2024
  16. Common questions
  17. General contractor licenses in other states

Alabama general contractor licenses

Alabama issues 4 general contractor credentials. Each has its own section below; the table shows what each one covers and its headline requirements.

LicenseWhat it coversExamApplication or license fee
Residential Home Builder License with Limitation (Limited)One-trade residential work that does not affect structural integrity (roofing needs its own roofing-limited license).6No7$2357
Residential Home Builder License without Limitation (Unlimited)Residential work that affects structural integrity or involves more than one trade, on buildings up to three floors and four units.7Yes8$2357
Prime Contractor (General Contractor license)Commercial, industrial and public construction, alteration, maintenance, repair, remediation or demolition of any building, highway, sewer, structure, site work, grading, paving or improvement, within the classifications and bid limit shown on the license.1Yes9$3002
Subcontractor licenseWork of $100,000 or more under contract to a general contractor or another subcontractor. A subcontractor cannot contract directly with a property owner.10No11$15011

Applies to every license level

These rules are the same for several of the Alabama general contractor licenses on this page, so they are shown once here, with the licenses they apply to. Each license's own section lists only what differs.

1. Every license level (all 4)

Renewal

How often
Every year37

2. Every license level except Subcontractor license

Renewal

Late renewal
Late renewal fee: $5037

3. Prime Contractor (General Contractor license) and Subcontractor license

Requirements

Residency or citizenship
Applicants must be US citizens or legally present, and the application includes citizenship verification with proof documents.3
Also required
Fees are paid by cashier’s check or money order. Personal and company checks are returned.12

How to apply

Renewal

From another state

Route
Military service members and spouses
What the board says
Eligible military family applicants with a substantially similar license get a certificate for one year after review, or a 180-day temporary license while meeting any gap. Initial fee waiver is available and applications are expedited.5

4. Residential Home Builder License with Limitation (Limited) and Residential Home Builder License without Limitation (Unlimited)

Requirements

Background check
The board considers character among the qualifications, and licensees must report felony prosecutions within 10 days.7
Residency or citizenship
Proof of citizenship or lawful presence is required.8
Insurance
The law does not require insurance for a license, although other state laws can.16
Business requirements
Corporations, LLCs and limited partnerships provide a Revenue Certificate of Compliance and notarized minutes naming the qualifying representative. Foreign entities also provide a Certificate of Existence.8
Also required
A current credit report sent directly from a credit reporting agency.8

Fees

FeeAmountPaid toNotes
Initial license fee$2357HBLB–
Annual Homeowners' Recovery Fund Fee$157HBLB–
Application fee$1007HBLBNot refundable
Inactive Fees$1257HBLB–
Application Package Fee (mailed package only)$257HBLB–

Each line is a separate charge as the board lists it. The board does not publish a combined total, so none is shown here.

How to apply

  1. Download the free application package or send $25 for a mailed one.8
  2. Have your credit report sent directly to the board.8
  3. Return the notarized application with payment by check or money order. The individual unlimited packet asks for $350.17
Processing time
About three to four weeks including board review; the file must be complete seven days before a meeting.16

Renewal

When it expires
A license is valid only for the calendar year shown on it.7
Renewal fee
$2357
Continuing education
6 hours each renewal period7
Required topics
2 of the 6 credits must be Alabama-specific topics designated by the board.7
Approved courses
Courses must be taught by a board-approved provider or instructor.7
If it expires
An expired license can be reactivated within three years on the experience and ability already shown, with the $350 processing fee.7

From another state

Route
Exam waiver
What the board says
A residential license from Tennessee, South Carolina, Mississippi, Louisiana or North Carolina can exempt you from the Skills section, but not the Business and Law section.16
States named for the waiver
Tennessee, South Carolina, Mississippi, Louisiana and North Carolina16
Licenses from these states can qualify for the waiver described above. This is not a list of licenses Alabama accepts in place of its own; it does not say those states give a Alabama license the same waiver.

5. Residential Home Builder License with Limitation (Limited) and Subcontractor license

Requirements

Exam
Not required711

Who needs a Prime Contractor license

Commercial, industrial and public construction, alteration, maintenance, repair, remediation or demolition of any building, highway, sewer, structure, site work, grading, paving or improvement, within the classifications and bid limit shown on the license.1

Exemptions and dollar thresholds:

  • Swimming pools: license needed when the price or cost exceeds $5,000 (the board page says $5,000 or more). Residential pools are exempt from October 1, 2026.11
  • An owner building on their own property is exempt, but any work contracted out must follow the law.11
  • From October 1, 2026, routine maintenance and similar services are exempt as listed, with several items subject to the board’s view of scope, frequency and specialty. Ask the board before bidding if unsure.11
  • Government workforces, utilities in emergencies and on routine work, routine landscaping, and temporary labor providers have listed exemptions with conditions.11

Other rules on who may do this work:

  • A job cannot be split to get under the threshold, and labor and materials count together.18
  • Houses and private dwellings are outside this license; the Home Builders Licensure Board licenses residential work.11

Requirements for a Prime Contractor license

More rules for this license are shared with other levels: group 1, group 2 and group 3 under Applies to every license level.

Experience
The board reviews work experience in each classification requested. A major classification takes at least three completed projects in each sub-classification listed.19
Supervision: Three references on the board forms from a licensed general contractor, registered architect, registered professional engineer or board-declared qualified person, for commercial or industrial work completed in prior years.2
Exam
Alabama Business and Project Management exam (the board also calls it Business and Law), plus a trade exam for each classification required2
Given by: PSI2
When you can take it: A complete application must be on file before registering. Testing eligibility may wait until the board reviews the application.2
Retakes: A person who fails may be reexamined at any regular or called board meeting.3
Time limit: Board approval and passing scores must be complete within one year of the original application date.20
Exam waived: Trade exam can be waived through reciprocity. Exemptions also exist for some subsidiaries, a qualifying party who already passed, and sub-classifications with no written exam (references instead).9
Social Security number
The qualifying party form requires a Social Security number; tax ID numbers cannot be used instead.2
Insurance
Proof of current liability insurance, with the board as certificate holder. No minimum amount found.2
Business requirements
Corporations, LLCs and other entities must be registered with the Alabama Secretary of State and send a dated print screen of the entity details. Does not apply to individuals and general partnerships.2
Business requirements
The license belongs to the entity. A qualifying party must take the exam: an owner, partner, officer or member, or a full-time employee of 90 days with limited written power of attorney. If the qualifier leaves, notify the board within 30 days and qualify a replacement within 60 days.21
Business requirements
An organizational chart must be submitted.2
Also required
Minimum net worth and working capital of $10,000. A current financial statement (audited, reviewed or compiled, from a CPA or board-approved licensed public accountant, or the ALDOT booklet), no more than one year old. Deficits and cash or tax-based statements are not accepted.2
Also required
Bid limits: not more than 10 times the lesser of net worth or working capital. A up to $100,000; B up to $250,000; C up to $500,000; D up to $1,000,000; E up to $3,000,000; U unlimited.3
Also required
Classifications: Building Construction, Building Construction Under Four Stories, Highways and Streets, Municipal and Utility, Heavy/Railroad and Specialty Construction. Work must generally be at least 51% within the licensed classification.19
Also required
Electrical, plumbing, mechanical and similar classifications require the matching Alabama state board card. Local cards are not accepted.14
Also required
The license number must appear in every construction contract, subcontract, bid and proposal.22

How much a Prime Contractor license costs

FeeAmountPaid toNotes
Application fee$3002Alabama Licensing Board for General ContractorsNot refundable
Inactive status fee$2003Alabama Licensing Board for General ContractorsInactive license, renewed annually
Request for a Bid Limit Increase$5023Alabama Licensing Board for General Contractors–
License verification to another state$5023Alabama Licensing Board for General Contractors–
Change or add classifications, first change$7523Alabama Licensing Board for General ContractorsFirst change
Change or add classifications, each later change$5023Alabama Licensing Board for General ContractorsEach change after the first

Each line is a separate charge as the board lists it. The board does not publish a combined total, so none is shown here.

The board's pages we cite do not list the exam fee; check it with the exam provider, PSI2, when you schedule.

How to apply

  1. Register your business with the Alabama Secretary of State if it is an entity, and get current liability insurance naming the board as certificate holder.2
  2. Get a current financial statement, three reference forms and an organizational chart ready, and choose a qualifying party.2
  3. Complete and notarize the prime application and send it with a $300 cashier’s check or money order at least 30 days before a board meeting.2 Form (PDF, genconbd.alabama.gov)24
  4. Take the PSI Business and Project Management exam and any trade exams, then send the passing scores to the board. It is your job to submit them.2
  5. Attend a board interview if asked; missing three scheduled interviews without notice means a new application and fee.9
  6. Once approved, the board issues the license showing your classifications and bid limit.9
Temporary or provisional license
At its discretion, the board may issue a limited license for a particular project.3
Processing time
The application and fee must be received at least 30 days before a board meeting, and meetings are quarterly. The board publishes no total processing time. An incomplete application is noncompliant after a year.25

Renewal and continuing education

When it expires
Renewal month is set by the first letter of the company name, for example A in December, B in November and C in October. Renewals are due 30 days before expiry; those sent more than 45 days early may be returned.26
Renewal fee
$2003
If it expires
Renewal is possible up to one year after expiry. After that, a new application and the trade and business and law exams are required.27
An inactive license is available for $200 a year. It needs no financial statement or insurance filing, but the holder cannot do covered work until reactivated.28

Renewal planner

Enter the expiration date printed on your Alabama Prime Contractor (General Contractor license). The count is worked out on your device from today's date; nothing is sent anywhere.

Moving to Alabama with a license from another state

These are the routes the Alabama Licensing Board for General Contractors publishes for the Prime Contractor license. The other general contractor licenses have their own routes in their sections below.

Route
Reciprocity agreements
What the board says
The trade exam can be waived for a license held at least one year in a recognized reciprocal state, in a comparable classification and with the same qualifying person. The business and law exam is still required.4
States on Alabama's list
Arkansas, Louisiana, Mississippi and Tennessee29
This is the list of states whose licenses Alabama accepts for this route. It does not say those states accept a Alabama license.
Condition for North Carolina
Only a license from the North Carolina State Board of Electrical Contractors counts, according to the board's 2026 out-of-state verification form; the board's reciprocity page lists North Carolina without that limit.29
Conditions
Application must be on file for 30 days with the completed Out of State License Verification form.2
The Alabama qualifying party must be the same person as in the reciprocal state.2

Residential Home Builder License with Limitation (Limited)

One-trade residential work that does not affect structural integrity (roofing needs its own roofing-limited license).6

Requirements

Experience
Provide a contractor business or occupational license held now or within the year before applying, issued by a municipality, township or county in the state.8

How to apply

  1. Provide your contractor license document.8

More rules for this license are shared with other levels: group 1, group 2, group 4 and group 5 under Applies to every license level.

Residential Home Builder License without Limitation (Unlimited)

Residential work that affects structural integrity or involves more than one trade, on buildings up to three floors and four units.7

Requirements

Experience
Experience and ability are shown by passing the exams. No set number of years was found.8
Exam
Alabama Business & Law exam and Alabama Skills exam8
Given by: Prov8
Passing score: Business & Law 70, Skills 668
Retakes: Failed exams can be retaken as often as needed, subject to the provider rules in the bulletin.30
Time limit: A test score is valid for three years from the test date.16

Fees

FeeAmountPaid to
Exam fee$13030Prov
Exam fee$8030Prov

Each line is a separate charge as the board lists it. The board does not publish a combined total, so none is shown here.

How to apply

  1. Register with Prov and pass both exams.8

More rules for this license are shared with other levels: group 1, group 2 and group 4 under Applies to every license level.

Subcontractor license

Work of $100,000 or more under contract to a general contractor or another subcontractor. A subcontractor cannot contract directly with a property owner.10

Requirements

Experience
Three references from any combination of licensed general contractors, registered engineers, registered architects or board-declared qualified persons. Someone employed by only one company lists three or more jobs with amounts, dates, locations and a statement of experience.11
Insurance
No separate insurance item appears on the subcontractor instructions, but a subcontractor must comply with the chapter as a general contractor apart from the listed exceptions, and the chapter requires proof of liability insurance.11
Business requirements
Entities must be registered with the Alabama Secretary of State and send a dated print screen of entity details. Does not apply to individuals and general partnerships.10
Also required
A statement of financial condition is required with the application and renewals, as prescribed by the board.11
Also required
No bid limits apply. Subcontractors receive classifications from the specialty construction list.11
Also required
Attach Alabama state board cards where the work needs them. Plumbers need a master card and electrical cards must be electrical contractor or master electrician. Local cards are not accepted.10
Also required
A subcontractor can bid unlicensed but must be licensed before starting work.11

Fees

FeeAmountPaid toNotes
Application fee$15011Alabama Licensing Board for General ContractorsNot refundable

How to apply

  1. Register your entity with the Secretary of State if needed, and collect three work references and any Alabama state board cards.10
  2. Complete and notarize the subcontractor application and send it with a $150 cashier’s check or money order.10 Form (PDF, genconbd.alabama.gov)13
  3. Wait for the license before starting work, then show subcontractor status on the license number the board issues.11

Renewal

When it expires
Same staggered schedule as primes, by first letter of the company name.31
Renewal fee
$10015
If it expires
Renewal is possible up to one year after expiry, after which a new application is required.27

From another state

Route
No reciprocity
What the board says
Subcontractors take no exam, so there is no exam to waive. The out-of-state verification form is for prime contractors only.11

More rules for this license are shared with other levels: group 1, group 3 and group 5 under Applies to every license level.

City and county rules

Prime Contractor (General Contractor license)Permit offices must see proof of state licensing or exemption before issuing permits. County and city privilege licenses are separate from this license.32

Check a license or report a problem

Before you hire a general contractor in Alabama, you can confirm the license is current on the board's own search. Every board we cover in Alabama is on the Alabama license lookup page.

File a complaint
genconbd.alabama.gov34

Laws and rules

The requirements above come from these laws and board rules.

Rule changes since January 2024

  • October 1, 2026: Act 2026-396 added exemptions to 34-8-7 for residential swimming pools and certain routine maintenance, repair, cleaning and facility support services.35

Common questions

Can I transfer my general contractor license to Alabama?

The Alabama Licensing Board for General Contractors publishes this route for the Prime Contractor license: reciprocity agreements4. Conditions and forms.

How often do you renew a Prime Contractor license in Alabama?

Every year3. The renewal fee is $2003.

General contractor licenses in other states

Sources

Every number and rule above links to one of these official pages. Select a footnote number to read the board's own words.

  1. Code of Alabama 34-8-1Alabama LegislatureChecked November 5, 2026
  2. 2022-Prime-App-InstructionsAlabama Licensing Board for General ContractorsDated February 1, 2022Checked November 5, 2026
  3. Code of Alabama 34-8-2Alabama LegislatureChecked November 5, 2026
  4. Alabama LBGC reciprocityAlabama Licensing Board for General ContractorsChecked November 5, 2026
  5. Ala. Admin. Code r. 230-X-1-.45Alabama Legislative Services AgencyDated July 12, 2021Checked November 5, 2026
  6. Code of Alabama 34-14A-2Alabama LegislatureChecked November 5, 2026
  7. HBLB law and rulesHome Builders Licensure BoardDated October 1, 2026Checked November 5, 2026
  8. How to Get LicensedHome Builders Licensure BoardChecked November 5, 2026
  9. Ala. Admin. Code r. 230-X-1-.34Alabama Legislative Services AgencyDated March 12, 2018Checked November 5, 2026
  10. 2022-Sub-App-InstructionsAlabama Licensing Board for General ContractorsDated February 1, 2022Checked November 5, 2026
  11. Code of Alabama 34-8-7Alabama LegislatureChecked November 5, 2026
  12. Ala. Admin. Code r. 230-X-1-.41Alabama Legislative Services AgencyDated March 12, 2018Checked November 5, 2026
  13. Alabama LBGC formsAlabama Licensing Board for General ContractorsChecked November 5, 2026
  14. 2026-Prime-RenewalAlabama Licensing Board for General ContractorsChecked November 5, 2026
  15. 2026-Sub-RenewalAlabama Licensing Board for General ContractorsChecked November 5, 2026
  16. hblb.alabama.govHome Builders Licensure BoardChecked November 5, 2026
  17. Unlimited individual application packetHome Builders Licensure BoardChecked November 5, 2026
  18. Ala. Admin. Code r. 230-X-1-.09Alabama Legislative Services AgencyDated January 20, 1998Checked November 5, 2026
  19. Ala. Admin. Code r. 230-X-1-.27Alabama Legislative Services AgencyDated June 24, 2005Checked November 5, 2026
  20. Ala. Admin. Code r. 230-X-1-.35Alabama Legislative Services AgencyDated March 12, 2018Checked November 5, 2026
  21. Ala. Admin. Code r. 230-X-1-.36Alabama Legislative Services AgencyDated March 12, 2018Checked November 5, 2026
  22. Code of Alabama 34-8-6Alabama LegislatureChecked November 5, 2026
  23. Ala. Admin. Code r. 230-X-1-.43Alabama Legislative Services AgencyDated December 23, 2011Checked November 5, 2026
  24. 2022-Prime-App-with-CitizenshipAlabama Licensing Board for General ContractorsDated February 1, 2022Checked November 5, 2026
  25. Alabama LBGC applyAlabama Licensing Board for General ContractorsChecked November 5, 2026
  26. Alabama LBGC renewalAlabama Licensing Board for General ContractorsChecked November 5, 2026
  27. Ala. Admin. Code r. 230-X-1-.01Alabama Legislative Services AgencyDated March 12, 2018Checked November 5, 2026
  28. Ala. Admin. Code r. 230-X-1-.42Alabama Legislative Services AgencyDated March 12, 2018Checked November 5, 2026
  29. 2026-OOS-VerificationAlabama Licensing Board for General ContractorsChecked November 8, 2026
  30. Candidate Information Bulletin on the board siteHome Builders Licensure BoardChecked November 5, 2026
  31. Ala. Admin. Code r. 230-X-1-.39Alabama Legislative Services AgencyDated July 12, 2021Checked November 5, 2026
  32. Code of Alabama 34-8-9Alabama LegislatureChecked November 5, 2026
  33. Alabama LBGC homeAlabama Licensing Board for General ContractorsChecked November 5, 2026
  34. Alabama LBGC complaintsAlabama Licensing Board for General ContractorsChecked November 5, 2026
  35. New Contractor Licensing ExemptionsAlabama Licensing Board for General ContractorsDated September 10, 2026Checked November 5, 2026