Alabama General Contractor License Requirements

Official classification: General Contractor License (Commercial) / Residential Home Builder License · Issued by the Alabama Licensing Board for General Contractors (ALBGC) — commercial projects $50,000+; Alabama Home Builders Licensure Board (HBLB) — residential construction $10,000+.

🏗️ General ContractorAL ✔ Verified 2026-06-22

In Alabama, general contractors must hold the General Contractor License (Commercial) / Residential Home Builder License, issued by the Alabama Licensing Board for General Contractors (ALBGC) — commercial projects $50,000+; Alabama Home Builders Licensure Board (HBLB) — residential construction $10,000+, and a surety bond is required. Full requirements — experience, exams, fees, insurance, renewal and reciprocity — are detailed below.

How to become a licensed general contractor in Alabama

Follow these steps to earn your General Contractor License (Commercial) / Residential Home Builder License. Every figure is verified against the Alabama Licensing Board for General Contractors (ALBGC) — commercial projects $50,000+; Alabama Home Builders Licensure Board (HBLB) — residential construction $10,000+; full detail for each step is further down the page.

Build the required experience. ALBGC: Qualifying Individual must document 3 years of supervisory construction experience; references from licensed general contractors, architects, or professional engineers required. HBLB Unlimited: must demonstrate experience and ability in residential homebuilding (no fixed year minimum in statute); HBLB Limited/Roofer: must provide proof of current or recent business/occupational contractor license from a municipality, county, or township.
Pass the Alabama Business & Law Exam (ALBGC) and Alabama Trade Exam — Building Construction (ALBGC) and NASCLA Accredited Contractor Exam (accepted in lieu of ALBGC trade exam) and Alabama Business & Law Exam (HBLB) and Alabama Skills Exam (HBLB — Unlimited only) exams. Providers, passing scores and fees are in the Exams section below.
Secure your surety bond. Alabama requires ALBGC: Surety bond required only if net worth / working capital is deficient for the requested monetary classification; minimum net worth $10,000. HBLB: No bond required for Unlimited or Limited Home Builder license.
Line up insurance. You'll need liability insurance (ALBGC: $1,000,000 per occurrence / $2,000,000 general aggregate (products/completed operations); commercial auto $1,000,000 CSL. HBLB: No insurance amount mandated by statute; builder must disclose insurance status to homeowner in writing before construction begins.), and workers' compensation coverage.
Clear the background check. ALBGC: Proof of U.S. citizenship or lawful presence required. HBLB: Proof of citizenship or lawful presence required (driver license, birth certificate, or passport).
Meet the credit / financial requirement. ALBGC: CPA-reviewed financial statement required; positive net worth and adequate working capital to support requested monetary classification. HBLB Unlimited/Limited: Current credit report from a credit agency required.
Submit your application and fees. Apply through the Alabama Licensing Board for General Contractors (ALBGC) — commercial projects $50,000+; Alabama Home Builders Licensure Board (HBLB) — residential construction $10,000+ — $300 (ALBGC Prime Contractor application) / $100 non-refundable processing fee (HBLB) application fee, plus a $300 (ALBGC annual renewal) / $250 annual license fee (HBLB Unlimited/Limited) license fee. Processing time: ALBGC: 3–6 months typical; application must be filed at least 30 days before quarterly Board meeting. HBLB: Not publicly specified.
Keep the license active. Renew aLBGC: Annual (renews on license anniversary date, by first letter of company name; must submit renewal 45 days before expiration). HBLB: Annual (expires December 31; timely renewal by November 30; expired license processing fee $350)., completing ALBGC: None required. HBLB: 6 credit hours annually for active licensees under age 60 (minimum 2 hours must be Alabama-specific content); effective since October 1, 2021.

License types

ALBGC — Prime Contractor (Unlimited) — Commercial, industrial, and public projects of unlimited value at or above $50,000 threshold; requires highest net worth documentation
ALBGC — Prime Contractor (Limited — Classes A through E) — Commercial projects capped at $100K (A), $250K (B), $500K (C), $1M (D), or $3M (E) based on demonstrated working capital
HBLB — Unlimited Home Builder License — Residential construction of unlimited scope where project cost exceeds $10,000; also qualifies licensee to perform residential roofing without a separate roofer license
HBLB — Limited Home Builder License — Restricted residential homebuilding authorization; scope determined by Board
ALBGC — Swimming Pool Contractor — Swimming pool construction projects valued at $5,000 or more

Requirements at a glance

Experience required	ALBGC: Qualifying Individual must document 3 years of supervisory construction experience; references from licensed general contractors, architects, or professional engineers required. HBLB Unlimited: must demonstrate experience and ability in residential homebuilding (no fixed year minimum in statute); HBLB Limited/Roofer: must provide proof of current or recent business/occupational contractor license from a municipality, county, or township.
Application fee	$300 (ALBGC Prime Contractor application) / $100 non-refundable processing fee (HBLB)
License fee	$300 (ALBGC annual renewal) / $250 annual license fee (HBLB Unlimited/Limited)
Renewal fee	$300/year (ALBGC) / $250/year (HBLB Unlimited/Limited) / late penalty $50 (HBLB)
Renewal period	ALBGC: Annual (renews on license anniversary date, by first letter of company name; must submit renewal 45 days before expiration). HBLB: Annual (expires December 31; timely renewal by November 30; expired license processing fee $350).
Continuing education	ALBGC: None required. HBLB: 6 credit hours annually for active licensees under age 60 (minimum 2 hours must be Alabama-specific content); effective since October 1, 2021.
Bond required	ALBGC: Surety bond required only if net worth / working capital is deficient for the requested monetary classification; minimum net worth $10,000. HBLB: No bond required for Unlimited or Limited Home Builder license.
Liability insurance	ALBGC: $1,000,000 per occurrence / $2,000,000 general aggregate (products/completed operations); commercial auto $1,000,000 CSL. HBLB: No insurance amount mandated by statute; builder must disclose insurance status to homeowner in writing before construction begins.
Property damage	ALBGC: Included in general liability policy requirements
Workers' comp	ALBGC: Required for any employees (Alabama law threshold 5+ employees for most industries; construction employers with 1+ employee may be required). HBLB: Not mandated by HBLB statute; subject to Alabama Department of Labor requirements.
Background check	ALBGC: Proof of U.S. citizenship or lawful presence required. HBLB: Proof of citizenship or lawful presence required (driver license, birth certificate, or passport).
Credit requirement	ALBGC: CPA-reviewed financial statement required; positive net worth and adequate working capital to support requested monetary classification. HBLB Unlimited/Limited: Current credit report from a credit agency required.
Reciprocity	Arkansas (ALBGC — trade exam portion may be waived); Mississippi (ALBGC); Louisiana (ALBGC); Tennessee (ALBGC); North Carolina (ALBGC); Tennessee, South Carolina, Mississippi, Louisiana, North Carolina (HBLB — Skills exam may be waived; Business & Law exam required)
Processing time	ALBGC: 3–6 months typical; application must be filed at least 30 days before quarterly Board meeting. HBLB: Not publicly specified.

Exams

Alabama Business & Law Exam (ALBGC)	Provider: Block Exams · Passing: 70% (50 questions, 120 minutes) · Fee: $215 per part
Alabama Trade Exam — Building Construction (ALBGC)	Provider: Block Exams · Passing: 70% (115 questions, 330 minutes; 81/115 correct) · Fee: $215 per part
NASCLA Accredited Contractor Exam (accepted in lieu of ALBGC trade exam)	Provider: NASCLA-approved testing center · Passing: 70% · Fee: Varies by provider
Alabama Business & Law Exam (HBLB)	Provider: Prov (provexam.com) · Passing: 70% · Fee: $80
Alabama Skills Exam (HBLB — Unlimited only)	Provider: Prov (provexam.com) · Passing: 66% · Fee: $80

Preparing for the General Contractor exam? State-specific contractor exam-prep courses help you pass the first time. Start exam prep →

Local / municipal notes

ALBGC licenses are required for commercial/industrial projects at or above $50,000 (materials and labor combined) and swimming pools at $5,000+. HBLB licenses cover residential construction at $10,000+ and roofing at $2,500+. An Unlimited HBLB license qualifies the holder to perform residential roofing without a separate Roofer License.

Frequently asked questions

How much does a Alabama general contractor license cost?

Application: $300 (ALBGC Prime Contractor application) / $100 non-refundable processing fee (HBLB). License: $300 (ALBGC annual renewal) / $250 annual license fee (HBLB Unlimited/Limited). Renewal: $300/year (ALBGC) / $250/year (HBLB Unlimited/Limited) / late penalty $50 (HBLB).

Do general contractors in Alabama need a surety bond?

ALBGC: Surety bond required only if net worth / working capital is deficient for the requested monetary classification; minimum net worth $10,000. HBLB: No bond required for Unlimited or Limited Home Builder license.

What experience is required for a Alabama general contractor license?

ALBGC: Qualifying Individual must document 3 years of supervisory construction experience; references from licensed general contractors, architects, or professional engineers required. HBLB Unlimited: must demonstrate experience and ability in residential homebuilding (no fixed year minimum in statute); HBLB Limited/Roofer: must provide proof of current or recent business/occupational contractor license from a municipality, county, or township.

Is insurance required for general contractors in Alabama?

Liability: ALBGC: $1,000,000 per occurrence / $2,000,000 general aggregate (products/completed operations); commercial auto $1,000,000 CSL. HBLB: No insurance amount mandated by statute; builder must disclose insurance status to homeowner in writing before construction begins. Workers' compensation: ALBGC: Required for any employees (Alabama law threshold 5+ employees for most industries; construction employers with 1+ employee may be required). HBLB: Not mandated by HBLB statute; subject to Alabama Department of Labor requirements.

How often must a Alabama general contractor license be renewed?

ALBGC: Annual (renews on license anniversary date, by first letter of company name; must submit renewal 45 days before expiration). HBLB: Annual (expires December 31; timely renewal by November 30; expired license processing fee $350).. Continuing education: ALBGC: None required. HBLB: 6 credit hours annually for active licensees under age 60 (minimum 2 hours must be Alabama-specific content); effective since October 1, 2021.

Fees and rules change frequently (often annually). This page was last verified on 2026-06-22 — always confirm current requirements directly with the Alabama Licensing Board for General Contractors (ALBGC) — commercial projects $50,000+; Alabama Home Builders Licensure Board (HBLB) — residential construction $10,000+ before applying. This is not legal advice.