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How to become a licensed general contractor in Alabama. State-level licensing required. Experience: 4 years. Total initial fees: $502+. Verified 2026-03-22. Data verified 2026-03-22. Source: LicenseMap (getlicensemap.com).
General Contractor
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
Description
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.
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+ |
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.
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.
Explore requirements for other professional licenses in Alabama.
How this state compares to 50 others for this profession
Timeline
#36 of 51
Salary
#50 of 51
Cost
#30 of 51
Processing
#1 of 51
Based on May 2024 Bureau of Labor Statistics OEWS data for First-Line Supervisors of Construction Trades and Extraction Workers (SOC 47-1011)
Entry Level
$52,430
25th percentile
Median
$64,030
-19% vs. national avg ($78,690)Experienced
$79,110
75th percentile
Wage Distribution (Annual)
13,810 employed in this state
Note: BLS category "First-Line Supervisors of Construction Trades" is broader than general contractors specifically. It includes supervisors across all construction specialties.
Source: BLS OEWS – First-Line Supervisors of Construction Trades and Extraction Workers (May 2024)
National employment projections for 2024-2034
Projected Growth
+5.5%
Average GrowthNew Jobs
+40,500
over 10 years
Annual Openings
55,200
per year (avg.)
729,900 currently employed nationwide (2024)
Source: BLS Employment Projections 2024-2034 (September 2025)
Electrical Career Ladder+22% salary growth potential
You are here
Electrical Contractor
$64,030
Master electrician license + contractor license
Apprenticeship (4-5 years) + journeyman exam
$52,420
You are here
Electrical Contractor
Master electrician license + contractor license
$64,030
Salary data from BLS OEWS May 2024 for this state. Career paths represent common advancement routes — actual progression may vary. Bureau of Labor Statistics — Occupational Outlook Handbook
Government fees and exam costs to obtain your initial license
Note: These are government licensing fees only. Education/training program costs (tuition, books, etc.) are not included as they vary widely by institution.
Estimated total: 216–230 weeks
Timeline estimated from licensing requirements on this page.
Source: Alabama Contractor Licensing
4–12 weeks
Estimated processing time
Source: Alabama Contractor Licensing
Study guides and practice tests for the general contractor licensing exam.
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Accessed 2026-03-06
Alabama requires state-level contractor licensing. 4 years of experience is required. All licensing is managed through the Alabama Licensing Board for General Contractors.
Requirements vary by state and local jurisdiction. Always verify current requirements with your state or local licensing authority.