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Overview & Benefits
Obtaining a Contractor's License in Alabama
Alabama has separate boards that oversee the licensing of general contractors, electrical contractors, and residential home builders. The Alabama Licensing Board for General Contractors oversees commercial and public construction. The Alabama Electrical Contractors Board regulates the licensing of electrical contractors, while residential roofers and home builders fall under the Alabama Home Builders Licensure Board. Each board has specific licensing requirements, including examinations and often proof of experience or insurance.
General Contractor
To become a licensed general contractor in Alabama, you must first determine your business structure (sole proprietorship, partnership, corporation) and register your business with the Secretary of State.
Next, secure the mandatory general liability insurance, as well as workers' compensation insurance if you employ workers. You must provide proof of insurance during registration. Your insurance provider will advise on the need for a bond, which is only required in specific situations in Alabama.
You’ll then submit a financial statement signed by a CPA or approved professional, demonstrating at least $10,000 in working capital and a credit line. Document your construction experience with previous contracts, including locations and completion dates. Include three letters of reference and details of any current projects. Complete the General Contractor Application Form, have it notarized, and submit it with the $300 application fee at least 30 days before the Alabama Licensing Board for General Contractors (ALBGC) quarterly meeting.
Finally, take and pass an accepted trade exam, such as the National Accredited NASCLA Commercial Builder exam, and the Alabama General Contractors Business and Law exam. Once you pass, the Alabama Licensing Board for General Contractors will issue your general contractor’s license.
Electrical Contractor
To become an electrical contractor in Alabama, an applicant must prove a minimum of 8,000 hours of electrical supervisory experience in design, planning, layout, and direct supervision of electrical contracting activities and the installation of electrical components and pass the electrical contractor’s exam.
A minimum of four (4) years or 8,000 hours of supervisory electrical construction experience showing design, planning, and supervisory experience installing electrical components is required. One year of approved electrical education or apprenticeship training can be substituted for 1,000 hours of experience, up to a maximum of 2,000 hours, towards the 8,000-hour requirement. A diploma, certificate, or transcripts are required.
Once you meet the experience requirements, you can apply to take the Alabama Electrical Contractor Business and Law exam and an accepted technical exam. Candidates have a choice between the NASCLA National Electrical Contractor Exam and the Alabama Electrical Contractor Exam through the Alabama Electrical Contractors' Board. Once approved, pay the exam fee and schedule your exam.
After passing the exam, you’re required to pay the AECB registration fee. Alabama does not require proof of liability insurance, but that does not mean it’s not highly recommended. However, if you employ more than five people, the state requires worker’s compensation insurance.
Electrical Journeyman
To become an electrical journeyman in Alabama, applicants must document at least 8,000 hours of relevant work experience through affidavits. This experience must demonstrate your proficiency in installing electrical wiring, apparatus, equipment, and systems for light, heat, or power.
Alternatively, one year of approved electrical education or apprenticeship training can be substituted for 1,000 hours of experience, up to a maximum of 2,000 hours, towards the 8,000-hour requirement.
All applicants must also pass a technical exam. Candidates have a choice between the NASCLA National Electrical Journeyman Exam and the Alabama Electrical Journeyman Exam through the Alabama Electrical Contractors' Board. These exams assess knowledge of electrical codes, safety practices, and standards, ensuring that aspiring journeyman electricians possess the necessary competence and comply with all relevant laws and regulations within the state of Alabama.
Roofing Contractor
Unlike some states, Alabama requires a license for roofing work. For commercial roofing work, you will need at least a Specialty License for Alabama Roofing & Sheet Metal or a Major Classification of Building Contractor or Building Contractor Under 4 Stories obtained through the Alabama Licensing Board for General Contractors, after successful completion of the Alabama Business & Law exam for General Contractors and other requirements as required by the board.
To perform residential roofing, Alabama requires an Unlimited Home Builders License or Roofing License from the Alabama Home Builders Licensure Board (HBLB). The HBLB requires applicants for the Unlimited license to also pass the Alabama Home Builder Skill Exam.