How to Become a General Contractor in Alabama (2026)

If you are an Alabama contractor wanting to construct or oversee a project where the cost of materials and labor is greater than $100,000, you need a general contractor license according to the ALBGC.

Put simply: to become a licensed general contractor in Alabama, applicants generally need to establish an eligible business, meet the Board's experience and financial requirements, submit the required application and documentation, and pass the required Business & Law and trade examinations. The Alabama Licensing Board for General Contractors currently charges a $300 prime contractor application fee, and applications must be submitted at least 30 days before a quarterly Board meeting.

Here's what you will need to get an Alabama general contractor license:

• Proof of US citizenship or lawful residence
• Up-to-date general liability insurance coverage
• Proof of work experience
• Your business' organizational chart
• Proof your business is registered with the state of Alabama
• A professionally prepared financial statement no older than one year
• At least $10,000 of net worth or working capital
• 3 references from a licensed general contractor, registered architect, registered professional engineer, and/or someone who supervised you on a project
• Complete the application and pay the application fee
• Submit your application prior to the Board deadline
• Pass the Business & Law exam
• Pass your required Trade exam
  

Owning your own business as a general contractor in Alabama (also called prime contractor) comes with many benefits. And, getting your general contractor's license as efficiently as possible is the best way to go about it. This article will discuss the basic steps to getting your license, what the future for construction looks like, and what you can earn.

Why You Should Get a General Contractor License in Alabama Now

In Alabama, construction ranks #8 in the state for business volume, and contractors are in great demand. Although 2020 was a bad year for everyone, construction in Alabama has seen an average of 3.2% annualized growth, and contractor employment has increased 1.8% every year since 2014.

The Associated Contractors of America recently reported that one-third of all businesses are back to, or ahead of, where they were a year ago. Meanwhile, another 12% say they expect to be back to pre-pandemic levels within six months.

So, almost half of all contractors have or will soon resume normal operations. According to ZipRecruiter, Alabama general contractors earn an average of $57,122 a year, with some reaching as much as $101,543. Below, we look at the steps you must take to get your general contractor’s license.

Steps to Getting Your Alabama Contractor's License

General contractors must be licensed to work on residential projects of more than $10,000 or commercial projects of more than $50,000. Being licensed in Alabama means you are automatically authorized to work in Arkansas, Louisiana, Mississippi, and Tennessee.

This gives you a lot of flexibility, and you can reap great rewards if one of those neighboring states suddenly has an immediate need for new construction or repair work.

Set Up and Register Your Business

Start by registering your business with the Alabama Secretary of State. Decide what sort of business entity you want. You may decide to register as a sole contractor, go into partnership with someone, or set up a particular type of corporation.

This link to the Small Business Administration explains the differences for you.

Once you decide, you need to register with the Secretary of State, followed by the IRS who will provide you with an Employment Identification Number (or EIN).

Arrange Insurance Coverage

You must have general liability insurance as a general contractor to protect your business if any property damage or injuries occur. You need to have a minimum coverage of $2 million dollars per project.

If you have employees, you’ll also need worker's comp insurance for employees who are hurt or contract an illness on the job. You might also need commercial auto insurance if you use any vehicles as part of your business.

You must prove you have the appropriate coverage when you register with the state. Your insurance carrier will let you know whether you also need to be bonded. Alabama only requires you to be bonded in certain situations.

Get Your Documents Together

General contractors must send in a financial statement signed by a CPA or other Board-approved professional. You need working capital of at least $10,000 and a line of credit to cover this requirement.

You also need to show that you have construction experience, specifically, you need to have evidence that you've worked on at least three completed projects for each classification you are applying for. So be sure to list contracts you’ve worked on, the locations of projects, and the dates of completion. 

Also include three letters of reference. If you already have projects under contract, include their details.

Complete the General Contractor Application Form

You can get a copy here. Complete the form, have it notarized, and send it in with your $300 application fee. You must submit the form at least 30 days before the Board's quarterly meeting. Here’s a calendar with the filing deadlines to help you plan accordingly.

We offer a full service to complete and submit your application accurately and correctly.

Take Your Exam. Pass Your Exam

Passing the General Contractor exam is a must. As well as passing the National Accredited NASCLA Commercial Builder exam, you must also pass the Business and Law exam. Once you pass, the Board will issue your general contractor’s license.

The most efficient way to pass is to follow a detailed plan and do the proper exam prep. At Contractor Training Center, we provide:

• In-person classes.
• Online live-streamed classes.
• Online, pre-recorded exam prep classes, which include practice exam questions to maximize your success.
• Executive 1-on-1 training sessions.

Every course we offer includes online videos, reference manuals, and exam prep books to help you every step of the way.

AL General Contractor Reciprocity

Alabama has a reciprocity program with contractors in good standing in other states. Alabama general contractors who have held their license for at least a year can apply for reciprocity with the boards of following states:

• Arkansas
• Mississippi
• Louisiana
• Tennessee General Contractors Board
• North Carolina State Board of Electrical Contractors

How much does an Alabama General Contractor License cost?

Your application fee alone will cost you $300. The Business and Law exam is $96, and your annual renewal cost is $200.

Additional costs include hiring a CPA or LP to prepare your financial statement and annual premiums for your insurance.

How long does it take to get my license?

You should expect the process to take a few month, including your exam prep and the time it takes for the board to meet.

The general contractor board meets each quarter. For your application to be considered by the board, it needs to have been on file for at least 30 days prior to their quarterly meeting. If you fail to meet this window, you will need to wait until the following quarter.

NB: Alabama Act 2026-396

Effective October 1, 2026, Alabama is expanding the exemptions from its general contracting licensing requirements under Act 2026-396. The update specifically adds exemptions for certain routine maintenance and repair work—including existing security/access systems, lighting and filter systems, plumbing, HVAC and electrical systems—as well as painting, routine cleaning/janitorial services, pressure washing, and certain temporary-labor arrangements.

It also clarifies that residential construction and residential swimming pools are exempt, while swimming-pool contractors generally remain subject to licensing. The law retains specific requirements for subcontractors, including licensing before beginning work, but subcontractors will not be required to take an examination.

We Can Help You Become a General Contractor in Alabama

At Contractor Training Center, our goal is for every one of our clients to pass with flying colors — the first time. Visit our Alabama Contractor license courses page here to select the exact course you need.

We look forward to hearing from you and helping you get your general contractor’s license in Alabama!