LicensebyState

Moving to Alabama as a general contractor: every state's rule

Alabama has reciprocity agreements with 5 states. Everyone else follows its standard out-of-state path: endorsement.

Alabama general contractor · “General Contractor (Prime) license, by major classification such as Building Construction (BC)”

Statewide license

Verified September 17, 2026· 5 sources

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.

States Alabama reciprocates with

Every origin state

Reciprocity 5Endorsement 25No credit 20
Every state's path into Alabama
StateMechanismNoteVerified
AlaskaEndorsement2026-09-17
ArizonaEndorsement2026-09-17
ArkansasReciprocityexplicit agreement2026-09-17
CaliforniaEndorsement2026-09-17
ColoradoNo creditno state license to transfer2026-09-17
ConnecticutNo creditno state license to transfer2026-09-17
DelawareEndorsement2026-09-17
District of ColumbiaEndorsement2026-09-17
FloridaEndorsement2026-09-17
GeorgiaEndorsement2026-09-17
HawaiiEndorsement2026-09-17
IdahoEndorsement2026-09-17
IllinoisNo creditno state license to transfer2026-09-17
IndianaNo creditno state license to transfer2026-09-17
IowaEndorsement2026-09-17
KansasNo creditno state license to transfer2026-09-17
KentuckyNo creditno state license to transfer2026-09-17
LouisianaReciprocityexplicit agreement2026-09-17
MaineNo creditno state license to transfer2026-09-17
MarylandEndorsement2026-09-17
MassachusettsEndorsement2026-09-17
MichiganNo creditno state license to transfer2026-09-17
MinnesotaEndorsement2026-09-17
MississippiReciprocityexplicit agreement2026-09-17
MissouriNo creditno state license to transfer2026-09-17
MontanaEndorsement2026-09-17
NebraskaEndorsement2026-09-17
NevadaEndorsement2026-09-17
New HampshireNo creditno state license to transfer2026-09-17
New JerseyNo creditno state license to transfer2026-09-17
New MexicoEndorsement2026-09-17
New YorkNo creditno state license to transfer2026-09-17
North CarolinaReciprocityexplicit agreement2026-09-17
North DakotaEndorsement2026-09-17
OhioNo creditno state license to transfer2026-09-17
OklahomaNo creditno state license to transfer2026-09-17
OregonEndorsement2026-09-17
PennsylvaniaNo creditno state license to transfer2026-09-17
Rhode IslandEndorsement2026-09-17
South CarolinaEndorsement2026-09-17
South DakotaNo creditno state license to transfer2026-09-17
TennesseeReciprocityexplicit agreement2026-09-17
TexasNo creditno state license to transfer2026-09-17
UtahEndorsement2026-09-17
VermontNo creditno state license to transfer2026-09-17
VirginiaEndorsement2026-09-17
WashingtonEndorsement2026-09-17
West VirginiaEndorsement2026-09-17
WisconsinNo creditno state license to transfer2026-09-17
WyomingNo creditno state license to transfer2026-09-17

Getting licensed in Alabama from scratch

No license yet, or nothing that transfers? This is how Alabama issues a general contractor license to a first-time applicant.

Verified September 23, 2026· 11 sources

Prime contractor license by examination (Building Construction classification)

The license is issued to the business (an individual, partnership, corporation or LLC) and qualified by a named qualifying party: the individual contractor, a partner, a corporate officer or LLC member, or a full-time employee of at least 90 days holding a limited written power of attorney. No residential license and no set number of years are required; the business proves experience for each classification it wants with three completed commercial or industrial projects and three references. After the Board reviews the complete $300 application at a quarterly meeting and approves testing, the qualifying party passes the Alabama Business and Law exam and a trade exam through PSI; for Building Construction (Commercial) the trade exam is the NASCLA Accredited Examination for Commercial General Building Contractors. The business must also show at least $10,000 in net worth and working capital in an accountant-prepared financial statement, carry general liability insurance and register with the Alabama Secretary of State.

A license is needed for commercial or public work costing $100,000 or more, or swimming pools costing $5,000 or more. The Business and Law exam has 50 questions in 120 minutes and a 70% pass mark. The NASCLA commercial building exam has 115 questions in 330 minutes and needs 81 correct; the Building Construction Under Four Stories exam has 90 questions in 230 minutes and needs 70%. Other major classifications (Highways and Streets, Municipal and Utility, Heavy and Railroad, Mechanical, Electrical) and their subclassifications have their own PSI trade exams, and some specialty subclassifications without a written trade exam are judged on references alone. Someone who has already passed the NASCLA Accredited Examination can send the transcript from NASCLA's National Examination Database instead of retaking it; confirm with the Board at (334) 272-5030 before relying on that. The application must be on file 30 days before a Board meeting, and approval and passing scores must be completed within one year of the application date. The financial statement sets the license's bid limit; the Board does not publish its bid-limit table. A subcontractor license ($150 application, three references) covers subcontract work of $100,000 or more. Residential homebuilding needs a separate license from the Home Builders Licensure Board.

Trade exam
Required
Law / code exam
Required
Exam given by
PSI
Exam format
Open book
Passing score
70%
Renewal
Every year

Who can apply

  • Documented commercial or industrial work in each classification requested: at least three completed projects, backed by three reference forms from three separate licensed general contractors, registered architects, registered professional engineers or Board-qualified persons. No minimum years or hours are set.
  • The qualifying party must be the individual contractor, a general partner, a corporate officer or major stockholder, an LLC member or manager, or a full-time employee for the 90 consecutive days before the exam who holds a limited written power of attorney and supervises the business and construction work.

Steps to get licensed

  1. 1Law / code exam. Pass a law, rules, or code exam. Alabama Business and Law exam through PSI: 50 questions, 120 minutes, open book, 70% to pass. Required of every general contractor..
  2. 2Trade exam. Pass the destination's trade exam. PSI trade exam for each classification requested. For Building Construction (Commercial) it is the NASCLA Accredited Examination for Commercial General Building Contractors: 115 questions, 330 minutes, open book, 81 correct to pass. You may register only after the Board has the complete application and approves you to test..
  3. 3Exam fee. Pay the exam fee ($106). PSI fee for the Building Construction (Commercial), Highways and Streets, Municipal and Utility and Heavy Railroad trade exams, per attempt..
  4. 4Exam fee. Pay the exam fee ($96). PSI fee for the Business and Law exam and every other trade exam, per attempt..
  5. 5Application fee. Pay the application fee ($300). Prime contractor application fee, by cashier's check or money order only and not refundable. It covers one year from receipt to complete the requirements. The Board publishes no separate fee for issuing the first license..
  6. 6Financial 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 Board-approved licensed public accountant, no more than one year old; the Alabama Department of Transportation booklet is also accepted. Cash-basis or tax-basis statements and deficits are not accepted. The figures set the license's bid limit..
  7. 7Insurance. Carry the required insurance. Proof of current general liability insurance in the applicant's exact name, with the Alabama Licensing Board for General Contractors, 445 Dexter Ave, Suite 3060, Montgomery, AL 36104, as certificate holder..
  8. 8Business license. Obtain a business license. Registration with the Alabama Secretary of State for every entity, Alabama or out-of-state, with a print screen of the Entity Details record dated in the year of application. Individuals and general partnerships are exempt..
  9. 9Other. Notarized application, Qualifying Party Form for each qualifier, Principal Individual Questionnaire for anyone whose experience is counted, organizational chart and proof of United States citizenship or lawful presence. The Board may call the qualifying party, and an owner or officer if the qualifier is an employee, to an interview..

Published fees on this path total $502, excluding exam-vendor fees, bonds, and insurance.

Keeping it active

Every year and a $200 renewal fee.

Renewal month is set by the first letter of the company name, and each renewal includes a current financial statement, proof of liability insurance and a Secretary of State print screen. The Board's renewal rules and checklist list no continuing education. A license not renewed within a year of expiring means a new application and both exams again.

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 · $106
  • 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

Sources for this section

  1. Ala. Admin. Code r. 230-X-1-.01 - Renewal Procedures (Licensing Board for General Contractors) · Ala. Admin. Code r. 230-X-1-.01 · Alabama Legislative Services Agency, Administrative Code · Admin Rule · verified September 23, 2026
  2. Ala. Admin. Code r. 230-X-1-.34 - License And Examination (Licensing Board for General Contractors) · Ala. Admin. Code r. 230-X-1-.34 · Alabama Legislative Services Agency, Administrative Code · Admin Rule · verified September 23, 2026
  3. Ala. Admin. Code r. 230-X-1-.35 - Testing Requirements (Licensing Board for General Contractors) · Ala. Admin. Code r. 230-X-1-.35 · Alabama Legislative Services Agency, Administrative Code · Admin Rule · verified September 23, 2026
  4. Ala. Admin. Code r. 230-X-1-.36 - Qualifying Party (Licensing Board for General Contractors) · Ala. Admin. Code r. 230-X-1-.36 · Alabama Legislative Services Agency, Administrative Code · Admin Rule · verified September 23, 2026
  5. 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 23, 2026
  6. 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
  7. 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 23, 2026
  8. 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 23, 2026
  9. Alabama Licensing Board for General Contractors - Renewal Information (staggered renewal months and fees) · Alabama Licensing Board for General Contractors · Agency Page · verified September 23, 2026
  10. 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 23, 2026
  11. NASCLA Accredited Examination for Commercial General Building Contractors · National Association of State Contractors Licensing Agencies · Other · verified September 17, 2026

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