- General Contractors board: a license is needed when the job is $100,000 or more including labor and materials, or $5,000 or more for pool construction (residential pools are exempt from October 1, 2026). Home Builders board: a license is needed for residential work over $10,000, or roofing over $2,500.
- Plan for a trade exam and a business and law exam.
- General Contractors board: renewal month is based on the first letter of the company name, $200 prime or $100 sub. Home Builders board: licenses run by calendar year and need six hours of continuing education to renew.
Do you need a state license in Alabama?
Alabama licenses some general contractor work at the state level and leaves the rest alone. Which side of that line a job falls on decides whether you need the state license.
General Contractors board: a license is needed when the job is $100,000 or more including labor and materials, or $5,000 or more for pool construction (residential pools are exempt from October 1, 2026). Home Builders board: a license is needed for residential work over $10,000, or roofing over $2,500.
Commercial jobs under $100,000 and home jobs of $10,000 or less fall below the state thresholds.
Alabama license types for general contractor work
Alabama splits the work into 5 licenses. Pick the one that matches the jobs you take, since working outside its scope is the same as working without one.
| License | What it covers |
|---|---|
| Prime contractor | General contractor license for projects of $100,000 or more, or pool construction of $5,000 or more (residential pools exempt from October 1, 2026) |
| Subcontractor | Works under a licensed prime contractor; three references from contractors, architects, engineers or awarding authorities are required |
| Residential home builder, unlimited | Home work over $10,000 that affects structure or involves more than one trade (Home Builders board) |
| Residential home builder, limited | Single-trade home work over $10,000 that does not affect structure (Home Builders board) |
| Residential roofer | Residential roofing over $2,500 (Home Builders board) |
Steps to get licensed in Alabama
- Decide which board fits: commercial jobs of $100,000 or more go to the General Contractors board, home jobs over $10,000 go to the Home Builders board.
- For the General Contractors board, file the application and $300 fee at least 30 days before a quarterly meeting.
- Pass the PSI Business and Law exam and the trade exam for your classification.
- For the Home Builders board, download the application package and have a credit report sent directly to the board.
- Unlimited home builder applicants pass the Prov Business and Law and Skills exams.
- Pay the license fees and renew on time each year, with six hours of continuing education for home builders.
Experience and other requirements
Experience. The official pages we read do not say. Check with the board (official site).
The license to apply for. Prime contractor license (commercial) or Residential Home Builder license (residential).
Alabama general contractor exams
Trade exam. General Contractors board: a trade exam is required for prime contractors, given by PSI. Home Builders board: unlimited license applicants pass a skills exam (passing score 66) given by Prov.
Business and law exam. Yes. Prime contractors pass a Business and Law exam given by PSI. Unlimited home builder applicants pass an Alabama Business and Law exam (passing score 70) given by Prov.
What it costs in Alabama
The board lists 7 fees along the way. These are the state's own numbers. Insurance, any bond, exam prep and your business registration come on top.
| Fee | Amount |
|---|---|
| Prime contractor application | $300 |
| Subcontractor application | $150 |
| Prime contractor renewal | $200 |
| Subcontractor renewal | $100 |
| Home builder application processing (nonrefundable) | $100 |
| Home builder annual license fee, unlimited or limited | $235 |
| Homeowners' Recovery Fund fee, yearly | $15 |
Insurance and bond
Insurance. The Home Builders law does not require insurance, but a residential builder must tell the homeowner in writing, before work starts, whether they carry liability insurance. For the General Contractors board, check with the board.
Bond. The official pages we read do not say. Check with the board (official site).
Renewal and licenses from other states
Renewal. General Contractors board: renewal month is based on the first letter of the company name, $200 prime or $100 sub. Home Builders board: licenses run by calendar year and need six hours of continuing education to renew.
Reciprocity. General Contractors board: reciprocity with Arkansas, Louisiana, Mississippi, North Carolina and Tennessee after one year licensed in the same classification. Home Builders board: holders of a residential license in Tennessee, South Carolina, Mississippi, Louisiana or North Carolina can skip the skills section but still take Business and Law.
Good to know in Alabama
- Home Builders license applicants must have a credit report sent straight to the board and show financial responsibility.
- A prime contractor application must be on file 30 days before a quarterly board meeting.
- If a General Contractors license is not renewed within one year, you must reapply and retake the trade exam.
- From October 1, 2026, a state law change exempts residential pool construction and repair and some routine maintenance, repair and cleaning work from the General Contractors license. Ask the board about a specific job before you bid.
After you are licensed
The license lets you take the work. Getting the work is the next job.
- Register the business. If you work under a name other than your own, register it where your state asks (often the Secretary of State, sometimes the county), and keep the name the same on your license, your truck and your invoices.
- Claim your Google Business Profile. It is the listing people see when they search for a contractor near them. Fill in your service area, hours and real photos of your work.
- Put up a website that shows the license. Customers look for it before they call. Koira builds a contractor website for you and keeps it current.
- See where you stand. The free Koira report checks how your business shows up in search and on maps against shops near you.
Where this comes from
Every fact on this page comes from the Alabama Licensing Board for General Contractors and the official pages below, checked October 8, 2026. Fees and rules change, so confirm with the board before you file.
- General Contractors board, law summary
- General Contractors board, how to apply
- General Contractors board, testing
- General Contractors board, renewal information
- General Contractors board, exemptions news (October 1, 2026)
- Home Builders Licensure Board, applicant FAQ
- Home Builders Licensure Board, how to get licensed
- Home Builders Licensure Board, continuing education
- Home Builders law and rules (PDF)