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General Contractor
Total cost: $502+
Yes
License Required?
4 years
Experience Required
No
Bonding Required?
$502+
Total Initial Fees
1 year
Renewal Period
HBLB: 6 hours/year; LBGC: unverified hrs
CE Hours
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Residential contractor license issued by the Home Builders Licensure Board (HBLB). Covers construction, remodeling, and repair of residential properties over $10,000.
Project Limit
HBLB license required for residential projects over $10,000
Additional Requirements
Description
Commercial/non-residential contractor license issued by the Licensing Board for General Contractors (LBGC). Covers construction of commercial, industrial, and institutional buildings. Classifications: A (≤$100K), B (≤$250K), C (≤$500K), D (≤$1M), E (≤$3M), U (Unlimited).
Project Limit
LBGC license required for commercial/non-residential projects ≥$100,000 (labor + materials)
Additional Requirements
Description
General contractor license issued by LBGC. Covers a broad range of commercial/non-residential construction activities ≥$100,000.
Project Limit
LBGC license required for commercial/non-residential projects ≥$100,000 (labor + materials)
Additional Requirements
Description
Specialty contractor license for Alabama. Covers specialized trades and construction activities. Categories: Building, highway, municipal, utility, and residential contractors.
Additional Requirements
Experience & Documentation
Verified4
Years Required
Required
Documented Project History
Journeyman/Trade Experience
Minimum 4 years of documented experience in the construction trade
Alternative Pathways (Education Substitutions)
Exam Requirements
VerifiedRequired
Trade Exam
Required
Business & Law Exam
Exam Provider
PSI
Passing Score
70%
Open Book
Yes
Trade Exam Details
LBGC: Business & Project Management exam + Trade exam(s) via PSI (psiexams.com / 855-257-1619). ~$202 per exam. Open-book, timed. Passing: 70%. Must be Board-approved BEFORE scheduling.
Business & Law Exam Details
LBGC: Included in Business & PM exam above. HBLB (residential): Residential Skills Exam + Business & Law Exam via Prov, Inc. (formerly DL Roope). $130 both same day or $80 each. Open-book, timed. Must be Board-approved BEFORE scheduling.
Retake Policy
Candidates may retake the exam after a waiting period. Contact the board for specific retake policies.
Overall licensing difficulty: 15/100
Study recommendation: 1–2 weeks of focused review is usually sufficient
Practice with realistic exam questions
Contractor Licensing Exam
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Difficulty rating based on education, exam, and experience requirements. Individual experience may vary.
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General Contractor Licensing Exam
Passing Score
70%
Administered By
PSI
How long should you study? Most candidates study 2–4 weeks before taking the General Contractor Licensing Exam.
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Bonding Requirements
VerifiedSurety Bond Not Required
Conditional — LBGC: required only to supplement insufficient financials (no mandatory bond for GCs meeting $10,000 net worth/working capital). HBLB Roofers License: mandatory $10,000 surety bond.
Surety Bond Amount
Bond Types
Surety bonds protect consumers by providing financial recourse if a contractor fails to complete a project or violates licensing regulations. Bond costs are typically 1-3% of the bond amount annually.
Insurance & Workers' Comp
VerifiedRequired
General Liability
Required
Workers' Compensation
Minimum Coverage
General liability insurance required per state regulations
Additional Insurance Requirements
Workers' Comp Threshold
Required for employers with 5 or more employees
Workers' Comp Details
Alabama requires workers' compensation insurance for employers with 5 or more employees. Sole proprietors may be exempt but coverage is recommended.
| Fee | Amount |
|---|---|
Application Fee LBGC Prime Contractor: $300; Subcontractor: $150. Cashier's check or money order only — no personal checks. Must be on file 30 days before quarterly Board meeting. | $300 |
Exam Fee LBGC Business & PM exam ~$202 via PSI (per StateRequirement Aug 2025). HBLB exams: $130 (both same day) or $80 each via Prov, Inc. | $202 |
License Fee | $200 |
Renewal Fee LBGC Prime: $200/year; Subcontractor: $100/year. Renewal months assigned by first letter of company name. | $200 |
Total Initial Fees LBGC Prime: $300 application + ~$202 exam = ~$502+. Subcontractor: $150 application + ~$202 exam = ~$352+. Does not include HBLB fees if residential work also needed. | $502+ |
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Renewal & CE Requirements
Verified1 year
Renewal Period
HBLB: 6 hours/year; LBGC: unverified hrs
CE Hours Required
Renewal Fee
$200
Regulatory Board
Contractor licenses must be renewed on schedule. Many states require continuing education covering building codes, safety practices, business law, and energy efficiency standards.
Out-of-State Reciprocity
VerifiedAccepts Out-of-State Credentials
ICC Certification Not Accepted
Reciprocity Type
Reciprocal with select states
Transfer Details
Alabama LBGC has reciprocity with Arkansas, Louisiana, Mississippi, and Tennessee (General Contractors Boards). North Carolina reciprocity is for State Board of Electrical Contractors only — not GC. Must hold license for 1 calendar year in good standing, same classification. Some sources cite '3 consecutive years' — this is incorrect per the official LBGC application.
General contractor license reciprocity varies significantly by state. Some states recognize ICC certifications, while others require passing the state exam regardless of prior credentials. Always verify current policies with the state licensing board.
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Compare Alabama with other states →
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Alabama has a dual-board system (LBGC for commercial, HBLB for residential) with completely separate licensing processes. Minimum age 19 (unusual). LBGC bond is conditional, not mandatory. Post-1992 LBGC licensees must also get HBLB license for residential work. Commercial threshold is $100,000 (raised from $50,000).
Alabama has TWO separate licensing boards: LBGC (commercial/non-residential ≥$100,000) and HBLB (residential >$10,000). These are completely separate applications, exams, fees, and renewals.
Commercial threshold raised from $50,000 to $100,000 by legislative change. Subcontractor threshold also $100,000.
LBGC bid classifications: A (≤$100K), B (≤$250K), C (≤$500K), D (≤$1M), E (≤$3M), U (Unlimited).
LBGC surety bond is CONDITIONAL — only required if net worth/working capital insufficient for bid classification. The old mandatory bond was repealed.
HBLB Roofers License requires mandatory $10,000 surety bond (separate from LBGC).
Post-1992 dual-license rule: LBGC licensees with license # ≥18908 (issued after Jan 1, 1992) must ALSO hold HBLB license for residential work >$10,000.
LBGC reciprocity: Arkansas, Louisiana, Mississippi, Tennessee. Must hold license 1 calendar year in good standing, same classification.
HBLB CE: 6 hours/year required. LBGC CE: unverified — official site does not confirm. Third-party sources cite 14-17 hrs but unconfirmed.
Workers' compensation required for 5+ employees.
Board address: 445 Dexter Ave, Suite 3060, Montgomery, AL 36104 (relocated from 2525 Fairlane Dr).
Lien Law Basics
Preliminary Notice: Required
Lien Deadline: 6 months after completion
Alabama construction lien law: Preliminary notice is required to preserve lien rights. Lien filing deadline: 6 months after completion.
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General Contractor requirements in Alabama verified against Alabama Licensing Board for General Contractors, March 2026.
Accessed 2026-03-06
General Contractor Schools in Alabama
Compare approved training programs, costs, and requirements.