There are over 8,000 active contractors working in Alabama. If you want to join the ranks and learn how to become a contractor in AL yourself, you’re in the right place.
Contractors and subcontractors in Alabama must be licensed by the Alabama Licensing Board for General Contractors. To apply for a general contractor license, you’ll need a registered business, qualifying party, sufficient net worth, and liability insurance.
Keep reading below for official links and information about Alabama’s contractor licensing procedures.
Do You Need a Contractor’s License in Alabama?
Chapter 8, Title 24 of the Code of Alabama requires contractors and subcontractors to be licensed in the state.
You are exempt from this law if you are working on your residence, are an authorized U.S. government representative, or are employed by the Public Service Commission.
Licensed Contractors in AL
Alabama licenses two types of contractors:
- General contractors (GC) are anyone who bids on construction projects worth $50,000 or more or swimming pool construction of $5,000 or more.
- Subcontractors performing work of the same value must also be licensed and employed under a GC.
Contractors will choose a classification when applying for a license.
- GC classifications: building construction, building construction under 4 stories, highways & streets, municipal and utility, heavy and railroad, swimming pools, mechanical, electrical, environmental, and demolition
- Subcontractor classifications: based on the specialty of your company’s work experience and that of the qualifying party
Contractors will apply for examination. Once their application is approved, they can sit for the official contractor’s exam. If you pass the exam, you will receive your license.
Obtaining Your Alabama Contractor’s License
To become a general contractor in AL, you’ll need the following:
- A completed, signed, and notarized application
- General liability insurance
- A business that is registered with the Alabama Secretary of State
- A qualifying party*
- A financial statement or audit by a Certified Public Accountant or the Alabama Department of Transportation Booklet
- The listed net worth must be at least $10,000 to qualify for contractor bidding
- 3 reference forms from licensed general contractors, registered architects, registered professional engineers, or other qualified persons declared so by the Board
- An organizational chart of your business and all respective members
- To verify your U.S. citizenship
- A cashier’s check or money order for $300 – personal checks are not accepted
*The qualifying party for the application is the individual who will oversee your business’s contracting work. This could be the person applying for the license or an employee, partner, or other person employed by the company. The qualifying party will be responsible for taking and passing all official exams.
Subcontractors will complete a separate application, pay $150, list a qualifying party, and complete three reference sheets.
AL Contractor’s Exam
Once your application is approved, you’ll be able to sit for the official contractor’s exam. This exam has two parts: a trade exam and a Business and Law exam.
For more information see here.
Reciprocal GC Licenses
If you have been licensed as a GC in one of the following states for at least one year, you may qualify for a reciprocal license.
- Mississippi
- Tennessee
- Louisiana
- Arkansas
- North Carolina – electrical Board only
