How to Get an Alabama Contractor License

Learn how to obtain an Alabama contractor license: from how to submit an application, to the requirements for approval.

1. Identify the Contractor License Type Need

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

• General Contractor License, licensed by the Alabama Licensing Board for General Contractors (LBCG). These are subsequently divided in 6 classifications:
  • Building Construction
  • Building Construction Under Four Stories (BCU4)
  • Highwaytility
  • Heavy & Ras & Streets
  • Municipal & Railroad Construction
  • Specialty Construction

A General Contractor license is required for any non-residential projects where the cost of the undertaking including labor and materials is $50,000 or more and $10.000 for the Residential Home Builders license for residential projects.

Consult the in-depth overview of contractor classifications on the Alabama Licensing Board website.

• Residential Home Builders License, licensed by the Home Builders Licensure Board (HBLB). These are subsequently divided in 3 classifications:
  • Unlimited license
  • Limited license
  • Roofers license

Consult the in-depth overview of Residential Home Builders licensing classifications on the Home Builders Licensure Board website. 

2. Understand The Requirements

All entities conducting business in Alabama must be registered with the Alabama Secretary of State.

Some cities might have additional contractor license requirements:

1. Huntsville
2. Hoover
3. Auburn
4. Tuscaloosa
5. Madison
6. Vestavia Hills

3. Fill Out The Forms and Submit Supporting Documents

For the general contractor license:

1. Fill the application;
2. Proof of current liability insurance;
3. Register your business with the Secretary of State;
4. Provide proof of citizenship;
5. Provide three work/job references;
6. Provide financial statements no less than one year old (prepared by a CPA or LPA approved by the Board);
7. Proof of net worth and working capital of at least $10,000.

Here you can check all the Prime Contractor instructions and subcontractor application instructions needed to apply with Alabama Licensing Board for General Contractors.

For residential contractor licenses:

1. Fill the Unlimited License Application, Limited License Application or Roofers License Application (signed and notarized, roofers only);
2. Order a business-related credit report;
3. Attach proof of citizenship;
4. Attach current or recent Alabama business license as a contractor (limited and roofers only).

4. Pass Your Exam & Pay Fees

General Contractor:

For a Prime Contractor Application there is a $300.00 fee, and the application must be on file 30 days prior to a board meeting.

As for the Subcontractor Application there is a $150.00 fee, three references from General Contractors, Architects, Engineers, or awarding authorities that you have completed work for must be submitted with your application.

General Contractors need to pass a trade exam as well as a business and law exam. These are conducted by PSI Exams.

Residential Contractors requiring an Unlimited license need to take the Alabama Home Builders Exams. Limited and Roofers licenses do not require an exam. 

For the Limited and Unlimited application there is a $350 fee, same amount for a renewal and $250 for the Roofer application, $150 for the renewal.

5. Get Your Contractor License Bond

Surety bond requirements vary across counties and cities in Alabama, with bond amounts ranging from $2,500 to $10,000, being commonly set around $5,000. However, in Alabama, this requirement is not universal for all contractors. The exception is HVAC and refrigeration contractors, who must fulfill a statewide bond requirement of $15,000.

We recently assisted a client who found the process of applying for a contractor license both tiresome and stressful, particularly with gathering the necessary documents. Contrastingly, securing his contractor license bond with us was a breeze thanks to our streamlined application process and quick approval. His relief and gratitude, upon successfully completing the application, were a reminder of the value of our support.

Ready to simplify your bonding process? Get your Alabama Contractor License Bond with us today!

Still have questions about the Alabama contractors license and the bonding process? We’re here to help. Just call us at 877.514.5146.