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 $100,000+; 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 $100,000+; 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 $100,000+; 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 exam for the license class you are applying for. Providers, passing scores and fees are in the Exams section below.
Secure your surety bond. Alabama requires ALBGC: No bond is required; an applicant may furnish a bond to make up a net worth or working capital shortfall for the bid limit it wants (Ala. Code 34-8-2); minimum net worth $10,000 for the lowest classification. HBLB: No bond required for Unlimited or Limited Home Builder license.
Check the insurance rules. Liability: ALBGC: proof of liability insurance is required with the application; the statute sets no minimum amount (Ala. Code 34-8-2). 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.
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 $100,000+; Alabama Home Builders Licensure Board (HBLB) — residential construction $10,000+ — $300 (ALBGC new application) / $100 non-refundable processing fee (HBLB) application fee, plus a $200 (ALBGC annual renewal; the $300 is the new-application fee) / $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: approximately 3 to 4 weeks for a complete application.
Keep the license active. Renewal: 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.

For the general path in every state, see the General Contractor guide →

Alabama general contractor license lookup

To confirm a general contractor is properly licensed in Alabama — or to check the status of your own license — search the issuing agency's official license database. The record shows whether the license is active and in good standing.

Verify a license now: Search the official licensesearch.alabama.gov database →

License types

ALBGC — Prime Contractor (Unlimited) — Commercial, industrial, and public projects of unlimited value at or above the $100,000 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 new application) / $100 non-refundable processing fee (HBLB)
License fee	$200 (ALBGC annual renewal; the $300 is the new-application fee) / $250 annual license fee (HBLB Unlimited/Limited)
Renewal fee	$200/year (ALBGC; $50 late penalty if renewed more than 90 days after expiration, Ala. Code 34-8-2) / $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: No bond is required; an applicant may furnish a bond to make up a net worth or working capital shortfall for the bid limit it wants (Ala. Code 34-8-2); minimum net worth $10,000 for the lowest classification. HBLB: No bond required for Unlimited or Limited Home Builder license.
Liability insurance	ALBGC: proof of liability insurance is required with the application; the statute sets no minimum amount (Ala. Code 34-8-2). HBLB: No insurance amount mandated by statute; builder must disclose insurance status to homeowner in writing before construction begins.
Property damage	—
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) · compare all states
Processing time	ALBGC: 3–6 months typical; application must be filed at least 30 days before quarterly Board meeting. HBLB: approximately 3 to 4 weeks for a complete application.

What an Alabama general contractor license costs

Application fee	$300 (ALBGC new application) / $100 non-refundable processing fee (HBLB).
License fee	$200 (ALBGC annual renewal; the $300 is the new-application fee) / $250 annual license fee (HBLB Unlimited/Limited).
Alabama Business & Law Exam (ALBGC)	$96.
Alabama Trade Exam — Building Construction (ALBGC)	$106.
NASCLA Accredited Contractor Exam (accepted in lieu of ALBGC trade exam)	Varies by provider.
Alabama Business & Law Exam (HBLB)	$80.
Alabama Skills Exam (HBLB — Unlimited only)	$80.
Surety bond	ALBGC: No bond is required; an applicant may furnish a bond to make up a net worth or working capital shortfall for the bid limit it wants (Ala. Code 34-8-2); minimum net worth $10,000 for the lowest classification. HBLB: No bond required for Unlimited or Limited Home Builder license.
Renewal fee	$200/year (ALBGC; $50 late penalty if renewed more than 90 days after expiration, Ala. Code 34-8-2) / $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).

Exams

Alabama Business & Law Exam (ALBGC)	Provider: PSI Services · Passing: 70% (50 questions, 120 minutes) · Fee: $96
Alabama Trade Exam — Building Construction (ALBGC)	Provider: PSI Services · Passing: 70% (115 questions, 330 minutes; 81/115 correct) · Fee: $106
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

Renewing an Alabama general contractor license

The General Contractor License (Commercial) / Residential Home Builder License renews on a fixed cycle set by the Alabama Licensing Board for General Contractors (ALBGC) — commercial projects $100,000+; Alabama Home Builders Licensure Board (HBLB) — residential construction $10,000+. Finish the continuing-education requirement before you file — boards generally will not process a renewal without it. Late and lapsed renewals are handled differently by every board, so check the renewal page linked below before the deadline passes.

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).
Renewal fee	$200/year (ALBGC; $50 late penalty if renewed more than 90 days after expiration, Ala. Code 34-8-2) / $250/year (HBLB Unlimited/Limited) / late penalty $50 (HBLB)
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.
Where to renew	Alabama Licensing Board for General Contractors (ALBGC) — commercial projects $100,000+; Alabama Home Builders Licensure Board (HBLB) — residential construction $10,000+

Local / municipal notes

ALBGC licenses are required for commercial/industrial projects at or above $100,000 (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 an Alabama general contractor license cost?

Application: $300 (ALBGC new application) / $100 non-refundable processing fee (HBLB). License: $200 (ALBGC annual renewal; the $300 is the new-application fee) / $250 annual license fee (HBLB Unlimited/Limited). Renewal: $200/year (ALBGC; $50 late penalty if renewed more than 90 days after expiration, Ala. Code 34-8-2) / $250/year (HBLB Unlimited/Limited) / late penalty $50 (HBLB).

How do I look up a general contractor license in Alabama?

Search the official license database at licensesearch.alabama.gov. The record shows whether the license is active and in good standing.

Do general contractors in Alabama need a surety bond?

ALBGC: No bond is required; an applicant may furnish a bond to make up a net worth or working capital shortfall for the bid limit it wants (Ala. Code 34-8-2); minimum net worth $10,000 for the lowest classification. HBLB: No bond required for Unlimited or Limited Home Builder license.

What experience is required for an 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: proof of liability insurance is required with the application; the statute sets no minimum amount (Ala. Code 34-8-2). 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 long does it take to get an Alabama general contractor license?

Processing time: ALBGC: 3–6 months typical; application must be filed at least 30 days before quarterly Board meeting. HBLB: approximately 3 to 4 weeks for a complete application.

Is a background check required for general contractors in Alabama?

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).

Is there a credit or financial requirement for an Alabama general contractor license?

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.

How often must an 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 $100,000+; Alabama Home Builders Licensure Board (HBLB) — residential construction $10,000+ before applying. This is not legal advice.