Texas to Alabama: general contractor license reciprocity
Texas does not issue a statewide general contractor license, so there is nothing to transfer. Here is Alabama's standard path for out-of-state applicants.
Your origin state does not issue a statewide license at this level, so there is no license to transfer. The destination's standard out-of-state path is shown; expect to meet it in full.
Reference only, not legal advice. Rules change; confirm with the licensing board before you apply. Full disclaimer.
Prime contractor license, including the NASCLA Accredited Examination route (states without a reciprocity agreement)
Your out-of-state credentials give no advantage. You meet the destination's requirements from scratch.
Alabama uses the NASCLA Accredited Examination for Commercial General Building Contractors as its own trade examination for the Building Construction (Commercial) classification: the Board's official PSI candidate bulletin states that for that examination PSI administers the NASCLA Accredited Examination, and prints the NASCLA content outline (115 questions, 330 minutes, 81 to pass, open book) as the Alabama commercial building trade exam. A contractor who already holds the NASCLA credential can release the transcript from NASCLA's National Examination Database instead of sitting the trade exam again; a contractor without it sits it through PSI like anyone else, and other classifications each have their own Alabama PSI trade exam. Nothing else is waived. Every applicant must pass the Alabama Business and Law examination, file the $300 prime application with a Qualifying Party Form, show a minimum net worth and working capital of $10,000 in an accountant-prepared financial statement, file proof of general liability insurance, register the entity with the Alabama Secretary of State, supply three commercial or industrial work references for each classification requested plus an organizational chart, and prove citizenship or lawful presence. The application must be complete and on file 30 days before one of the Board's quarterly meetings, and no one may book an examination until it is.
The trade examination is shown as waivable because Alabama's own commercial building trade exam is the NASCLA Accredited Examination; an applicant who has not passed it, or who wants a classification other than Building Construction (Commercial), still sits the relevant PSI trade examination, which is why it stays on the requirements list. Out-of-state experience is not converted into hours or years, because the Board sets no hour requirement; it counts through the work-experience section and the three reference forms, which the Board reviews to decide which classifications to grant. The Board does not publish a processing time or a bid-limit dollar table; ask the Board at (334) 272-5030. Licenses renew annually in a month set by the first letter of the company name, at $200 for a prime license and $100 for a subcontractor license, and a license left unrenewed for a year past its expiration date means a new application and retaking both the trade and business and law examinations. Amending a license to add a classification also requires that classification's trade examination.
At a glance
- Trade exam
- Waived
- Law / code exam
- Required
- Out-of-state hours
- Count toward eligibility
What you must already have
- You must have passed a licensing exam in Texas that the destination considers comparable.The NASCLA Accredited Examination for Commercial General Building Contractors is the examination Alabama itself uses for the Building Construction (Commercial) classification: the Board's PSI candidate bulletin says that for the Building Construction Examination (Commercial), PSI administers the NASCLA Accredited Examination, and prints its content outline as the Alabama exam. Candidates who have already passed it can send their transcript from NASCLA's National Examination Database at https://ned.nascla.org rather than repeating the exam. It is an examination credential and not a license: it waives no fee, no financial statement, no insurance, no reference and never the Alabama Business and Law examination. Because the Board does not publish a NASCLA policy statement of its own, confirm with the Board at (334) 272-5030 that a transcript will be accepted for the classification you want before relying on it.
- Documented commercial or industrial work experience in each classification requested, evidenced by three completed projects and three reference forms. The Board sets no minimum number of years or hours.
What you'll do to get licensed in Alabama
- 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..
- 2Trade exam. Pass the destination's trade exam. One PSI trade examination for each classification requested. For Building Construction (Commercial), PSI administers the NASCLA Accredited Examination for Commercial General Building Contractors as the Alabama trade exam: 115 questions, 330 minutes, 81 to pass, open book. An applicant who has already passed the NASCLA Accredited Examination elsewhere can release the transcript from NASCLA's National Examination Database rather than sitting it again. Other classifications have their own Alabama PSI trade examinations, and a complete application must be on file before anyone may register to test..
- 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..
- 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..
- 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..
- 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..
- 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..
- 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..
Published fees on this path total $396, excluding exam-vendor fees, bonds, and insurance.
What you'll need to buy or arrange
Exam preparation
Most boards contract PSI, Prov, or ICC for exams. Check which code edition the exam is written to before buying a prep course.
- Law / code exam
- Trade exam
- Exam fee · $96
Liability insurance
Some states require proof of general liability or workers' compensation coverage at licensing time.
- Insurance
Business registration
If you plan to contract in your own name, budget for a business license or entity registration on top of the trade license.
- Business license
How Alabama licenses general contractors
Alabama general contractor · “General Contractor (Prime) license, by major classification such as Building Construction (BC)”
Statewide license
Issued by Alabama Licensing Board for General Contractors
Alabama licenses commercial and public general contracting statewide through the Alabama Licensing Board for General Contractors in Montgomery; residential homebuilding is licensed separately by the Home Builders Licensure Board. A license is required for any undertaking, including labor and materials, costing $100,000 or more, and for swimming pool construction of $5,000 or more; subcontractors working under a licensed prime at or above those figures must also be licensed, and an awarding authority must confirm licensure before accepting a bid. The license belongs to the business rather than the person: it is issued to an individual, partnership, corporation, LLC or LLP and is qualified by a named qualifying party on the Board's Qualifying Party Form, so an inbound contractor applies as or for the entity that will sign contracts. Licenses are granted by classification, with major classifications including Building Construction, Building Construction Under Four Stories, Highways and Streets, Municipal and Utility, Heavy and Railroad, Mechanical and Electrical, each with named subclassifications, and at least three completed projects must be documented for every classification requested. Every license also carries a bid limit set by the financial statement the applicant files rather than by skill. The Board names five states whose licensees may have the trade examination waived; the business law examination is never waived.
Why Texas has nothing to transfer
Texas general contractor
Licensed by cities and counties
Texas has no statewide general, commercial or building contractor license and no state board that examines or qualifies builders, so there is nothing at the state level for an out-of-state general contractor's license to transfer into. The trades are licensed instead: the Texas Department of Licensing and Regulation licenses electricians and electrical contractors, air conditioning and refrigeration contractors, elevator and boiler work, water well drillers and industrialized housing and buildings; the Texas State Board of Plumbing Examiners licenses plumbers; and the Texas Department of Insurance State Fire Marshal's Office licenses fire alarm and fire sprinkler contractors. Commercial building is controlled through city permitting: Dallas registers general contractors and says its category expressly includes commercial general contractors, Fort Worth requires a Building Contractor registration for any building permit, El Paso requires a general contractor registration with a blanket construction bond and liability insurance for new commercial work and tenant improvements, and Austin requires the general contractor named on a building permit to register with Building and Trade Contractor Services first. Houston and San Antonio require nothing at all of a commercial general contractor: San Antonio states that 'there are no license or registration requirements for commercial general contractors', and Houston's permitting guides state that general contractors are not required to be licensed. None of these city registrations involves a trade or business-law exam, a qualifying party, a financial statement or an experience review, and none of them recognizes a license from another state, so a general contractor arriving in Texas registers city by city, carries the insurance and bonds each city demands, and makes sure the electrical, HVAC and plumbing work is performed under the correct state trade licenses.
How local licensing works in Texas
How it works in Texas. No Texas agency issues a general, commercial, building or unlimited contractor license, and there is no Texas equivalent of a qualifying party, a NASCLA route or a business-and-law exam. Cities control commercial construction through the building permit. Where a city registers contractors, registration is an annual (or biennial) filing backed by insurance, bonding and identity documents - never a competency exam - so out-of-state experience, an out-of-state license and a NASCLA Accredited Examination score all carry the same weight in Texas, which is none. What does matter is holding, or employing, the state trade licenses for any electrical, HVAC or plumbing scope, and registering those licenses with the city as well.
Dallas. Building Inspection's contractor registration form covers General Contractor and notes that the category 'includes, but is not limited to, the following: residential general contractor, commercial general contractor, roofing contractor, fence contractor, foundation contractor, demolition contractor and pool contractor.' The form prints an annual registration or renewal fee of $120.00. A company with a Dallas address must supply a Certificate of Occupancy number or have a home office form on file. The responsible party lists and assigns PINs to the staff who may sign permit applications, and registrations are suspended or revoked under Chapter 52 of the Dallas City Code, the Administrative Procedures for the Construction Codes. Renewals go through DallasNow or any Building Inspection office; (214) 948-4480.
Fort Worth. 'Any firm, business, individual or organization obtaining a permit related to the building, mechanical, plumbing or electrical provisions' of the city codes must have a valid Contractor Registration on file with Development Services. A commercial builder registers as a Building Contractor for $168.75, submitting the application and a copy of a valid driver's license; 'the Contractor Registration, unless revoked or suspended, shall expire one year from the date of issuance.' The Mechanical, Electrical and Plumbing registration types require the matching Texas state license; the Building type does not require any license or exam. Parkway and Utility contractors are the exception that carries a bond ($25,000 commercial or $10,000 residential) and a certificate of liability insurance naming the City as additional insured, at $562.50. Call 817-392-2222.
El Paso. Planning and Inspections registers a General Contractor for 'New Commercial & Tenant Improvements'. The filing is an Assumed Name Certificate or corporate documents, the Contractor Registration Application, a certificate of general liability insurance of at least $100,000 with the City of El Paso as certificate holder, and a blanket building construction bond; the city's current application states $50,000 for general contractors while its requirements sheet lists $25,000, so confirm the figure with the One Stop Shop before buying the bond. Stated minimum liability limits are $250,000 bodily injury per person, $500,000 aggregate, and $100,000 property damage per occurrence and in the aggregate. The requirements sheet lists a $102.00 annual fee, and the application 'must be filed annually to be eligible to obtain permits from the City of El Paso in accordance with Section 18.02.104.5 of the El Paso City Code.' Electrical, mechanical, plumbing, irrigation and fire contractors register on their state licenses at no annual fee. One Stop Shop, 811 Texas Avenue, 915-212-0104.
Austin. Development Services states plainly that 'in Texas, anyone can be a General Contractor, including homeowners, and a state license is not required.' The general contractor named on a building permit must still register with Building and Trade Contractor Services before the permit is activated: create an Austin Build + Connect (AB+C) portal account, submit the registration web form and a Letter of Authorization. General contractors register once and update only on a change of name, address or authorized agents, while trade contractors must hold the state license and refresh their registration annually with the license information. Austin publishes no fee for general contractor registration.
San Antonio. Development Services registers residential builders and home improvement contractors under Chapter 10-115 of the Code of Ordinances, but for commercial work it states: 'There are no license or registration requirements for commercial general contractors.' A commercial builder in San Antonio pulls permits without any city credential; the electrical, mechanical and plumbing subcontractors must be registered with Development Services on their state licenses before permits are issued.
Houston. Houston requires no general contractor credential of any kind. Its Commercial Permitting 101 guide states that 'the building permit may be purchased by the owner, agent, contractor. General Contractors are not required to be licensed', and the city's plan review page repeats that 'a general contractor's license is not required to obtain building permits.' The city instead registers the licensed trades: a TDLR Master Electrician, a TDLR Class A or B air conditioning contractor, a TSBPE Master Plumber, and fire alarm and fire sprinkler contractors licensed by the Texas Department of Insurance State Fire Marshal's Office, each of whom must also be registered with the City of Houston to buy a trade permit. Commercial projects over $50,000 additionally need a TDLR project registration under the Architectural Barriers Act.
Everywhere else. Other Texas cities set their own rules, and outside city limits and extraterritorial jurisdictions there is usually no building permit authority at all. Ask each city's building or development services department what it registers before you bid work there.
- Dallas (Building Inspection - General Contractor registration, includes commercial general contractors)
- Fort Worth (Development Services - Building Contractor registration)
- El Paso (Planning and Inspections - General Contractor registration, new commercial and tenant improvements)
- Austin (Development Services - Building and Trade Contractor Services registration)
- San Antonio (Development Services - no registration for commercial general contractors)
- Houston (Houston Permitting Center - no general contractor license required; trade registration only)
Common questions
- Do I have to take the Alabama general contractor exam if I'm licensed in Texas?
- The trade exam is waived, but Alabama requires a law or code exam.
- What does it cost to get a Alabama general contractor license from Texas?
- Published fees on this path total $396, not counting exam vendor fees or bonds.
- Do my Texas work hours count in Alabama?
- Yes. Documented out-of-state experience counts toward Alabama's eligibility requirements.
- Does it work the other way, from Alabama to Texas?
- Not necessarily. Reciprocity is directed. Going from Alabama to Texas, the mechanism is not applicable.
Sources
- Alabama Licensing Board for General Contractors - How to Apply for a License (fees, reciprocity, references) · Alabama Licensing Board for General Contractors · Agency Page · verified September 17, 2026
- Alabama Licensing Board for General Contractors - Contractor Licensing Law (definition and thresholds) · Ala. Code §§ 34-8-1, 34-8-2, 34-8-7, 34-8-8, 34-8-9 · Alabama Licensing Board for General Contractors · Agency Page · verified September 17, 2026
- Prime Contractor Application and Instructions - Alabama Licensing Board for General Contractors (rev. 02/2022) · Ala. Admin. Code r. 230-X-1-.33; Ala. Code § 34-8-2(b) · Alabama Licensing Board for General Contractors · Form · verified September 17, 2026
- State of Alabama General Contractors - Candidate Information Bulletin (PSI, updated 1/23/26) · PSI Services LLC for the Alabama Licensing Board for General Contractors · Other · verified September 17, 2026
- Alabama Licensing Board for General Contractors - Reciprocity (reciprocal states and exam waiver) · Alabama Licensing Board for General Contractors · Agency Page · verified September 17, 2026
- Alabama Licensing Board for General Contractors - Renewal Information (staggered renewal months and fees) · Alabama Licensing Board for General Contractors · Agency Page · verified September 17, 2026
- Alabama Licensing Board for General Contractors - Testing (PSI bulletin and trade exam requirement) · Ala. Admin. Code r. 230-X-1-.27, 230-X-1-.34 · Alabama Licensing Board for General Contractors · Agency Page · verified September 17, 2026
- NASCLA Accredited Examination for Commercial General Building Contractors · National Association of State Contractors Licensing Agencies · Other · verified September 17, 2026
Verified dates are when a person last opened each source and confirmed the facts above. Cite the board, not us.