Tennessee to Alabama: general contractor license reciprocity

1. 1Law / code exam. Pass a law, rules, or code exam. Alabama Business and Law examination (formerly the General Contractor examination) through PSI: 50 questions, 120 minutes, 70% to pass, open book against the NASCLA Contractors Guide to Business Law and Project Management, Alabama General edition. It is required of all general contractors and the Board says it is never waived, including on reciprocity..
2. 2Trade exam. Pass the destination's trade exam (if applicable). The trade portion is what the reciprocity waiver removes. The Board waives it only for a comparable classification certified in writing by the reciprocal state, so an applicant asking for an Alabama classification that the out-of-state license does not cover still sits that classification's PSI trade examination..
3. 3Exam fee. Pay the exam fee ($96). $96 for each PSI examination, rising to $106 for AL Building Construction (Commercial), AL Highways and Streets Contractor, AL Municipal and Utility Contractor and AL Heavy Railroad Construction. Paid to PSI when the examination is booked, after the Board determines eligibility..
4. 4Application fee. Pay the application fee ($300). Prime contractor application fee of $300, paid by cashier's check or money order only; personal and company checks are returned and Alabama law does not allow refunds. A subcontractor application is $150. The fee gives the applicant one year from the date the Board receives it to complete the requirements..
5. 5Financial responsibility. Show financial responsibility of at least $10,000. Minimum net worth and working capital of $10,000, shown in an audited, reviewed or compiled financial statement prepared under generally accepted accounting principles by a CPA or a licensed public accountant approved by the Board, dated no more than one year before submission. The Alabama Department of Transportation booklet is also accepted. Cash-basis and tax-basis statements are not accepted and deficits are not accepted. The figures submitted set the license's bid limit; a bank line of credit can raise working capital to the level of net worth, and a personal or parent-company statement plus the Board's Guaranty Agreement can raise the bid limit one step. The Board does not publish the dollar table that converts financial figures into bid limits..
6. 6Insurance. Carry the required insurance. Proof of current general liability insurance filed with the application, in the exact name of the applicant, showing the Alabama Licensing Board for General Contractors at 445 Dexter Ave, Suite 3060, Montgomery, AL 36104 as certificate holder..
7. 7Business license. Obtain a business license. The license is issued to a legal entity, so every entity, Alabama or out-of-state, must be registered with the Alabama Secretary of State before the license issues, and a dated print screen of the Entity Details record goes in the application. Individuals and general partnerships are exempt from this step. The state and county privilege license is a separate obligation from the Board's license..
8. 8Other. Qualifying Party Form for each named qualifier, three work or job reference forms from three separate licensed general contractors, registered architects, registered professional engineers or Board-qualified persons covering commercial or industrial projects in each classification requested, a Principal Individual Questionnaire for anyone whose experience is being counted, an organizational chart for the applicant entity, a notarized affidavit, and proof of United States citizenship or lawful presence..
9. 9Other. Out of State License Verification form from page 17 of the prime application: the applicant fills in the top, the origin licensing board completes and returns it, and it is filed with the application. The origin board states the classification, license number, dates, current status, disciplinary history and how the license was obtained, including exam type and score..

Published fees on this path total $396, excluding exam-vendor fees, bonds, and insurance.