Verify the License Before the Bid
Alabama’s Licensing Board for General Contractors regulates covered commercial and industrial prime contractors and subcontractors. Before hiring or bidding, verify the legal company, current status, classification and approved bid limit through the official roster.
Applicants can use this guide to choose the correct board, prepare financial and experience documents, understand PSI exams, request reciprocity, meet the 30-day Board deadline and renew without common filing mistakes.
Do Not Use the Old $50,000 Threshold
Alabama increased the covered commercial general-contractor and subcontractor threshold to $100,000, effective October 1, 2024. The cost calculation includes labor and materials. Swimming-pool contracting continues to use a separate $5,000 threshold.
When Is an Alabama General Contractor License Required?
A state general-contractor license is generally required when a person or business undertakes covered commercial or industrial construction and the total undertaking—including labor and materials—is $100,000 or more.
Prime contractor
A covered prime contractor generally must hold the appropriate Alabama license before qualifying to submit a bid or offer on a project at or above the threshold.
Subcontractor
A subcontractor performing a covered subcontract of $100,000 or more must generally be licensed before starting the work.
Swimming pools
Swimming-pool construction, repair or renovation uses a separate $5,000 threshold rather than the general $100,000 amount.
Residential homes
Covered home building, remodeling and residential roofing commonly route through the separate Alabama Home Builders Licensure Board.
Work commonly covered by the General Contractors Board
- Commercial building construction and major alterations.
- Highways, streets, grading, paving and bridges.
- Municipal, utility, sewer, water and infrastructure projects.
- Heavy, railroad, marine, pipeline and industrial construction.
- Commercial remediation, rehabilitation, demolition and reclamation.
- Swimming-pool contracting at the separate statutory threshold.
The official law page explains the current definition, the awarding authority’s duty to verify licensure and the risk of allowing an unlicensed prime or subcontractor to proceed.
Tool 1: Alabama Contractor License Route Finder
Choose the project type and enter the total labor-and-material amount. This provides planning help only; ownership, exemptions, trade credentials, local licenses and project facts can change the final route.
Alabama General Contractor License Lookup
Use the official Alabama roster before accepting a covered bid, signing a commercial contract, approving a subcontractor or allowing work to start. Search the exact legal business rather than trusting a logo, photocopy or number printed on an estimate.
Collect these details before searching
- Exact legal company name shown on the proposal.
- Alabama general-contractor license number.
- Qualifying party or principal name when available.
- Requested classification or specialty.
- Total project or subcontract amount.
- Name of the company that will sign the contract and receive payment.
Run two searches instead of one
Search by license number first, then search again using the exact business name. A second search can reveal a mistyped number, an expired record, a similar company name or a number belonging to another entity.
How to Read an Alabama Contractor License Result
A matching company name is not enough. The license must be current, belong to the contracting entity and cover both the type and financial size of the proposed work.
| Record item | What to verify | Warning sign |
|---|---|---|
| Legal company name | Match it with the proposal, contract, invoice and requested payment recipient. | The number belongs to a related company, former entity or different legal business. |
| Current status | Confirm the license is current before the bid deadline and again before work starts. | Expired, inactive, lapsed or unclear status. |
| Classification | Confirm the major classification, subclassification or specialty covers the work. | The company is licensed only for unrelated work. |
| Bid limit | Compare the proposed contract amount with the license’s monetary authority. | The bid or contract exceeds the approved limit. |
| Qualifying party | Confirm the qualifier remains properly connected with the licensed business. | The company claims to borrow another company’s qualifier or license. |
| Separate trade credentials | Check electrical, HVAC, plumbing, wastewater, security, environmental or other cards separately. | A general-contractor license is presented as authority for every regulated trade. |
Tool 2: License Result Decision Checker
Answer using the live state roster and written proposal. This tool identifies obvious issues but does not replace Board confirmation, legal review or project due diligence.
Commercial General Contractor vs Residential Home Builder
Alabama separates most commercial or industrial general contracting from residential home-building regulation. Searching or applying through the wrong board can produce a valid record that does not cover the actual project.
| Work category | Main state route | Common threshold | Important distinction |
|---|---|---|---|
| Commercial or industrial prime work | Alabama Licensing Board for General Contractors | $100,000 including labor and materials | Classification and bid limit must fit the contract. |
| Commercial subcontract | Alabama Licensing Board for General Contractors | $100,000 subcontract | The subcontractor may bid to a prime but must be licensed before starting covered work. |
| Swimming-pool contracting | Alabama Licensing Board for General Contractors | $5,000 | Pool work has a much lower statutory threshold. |
| Residential building or remodeling | Alabama Home Builders Licensure Board | More than $10,000 | Residential structures of qualifying size use a separate licensing system. |
| Residential roofing | Alabama Home Builders Licensure Board | More than $2,500 | A residential roofer or appropriate home-builder license may be required. |
Older general-contractor residential exemption
The Home Builders Board states that Alabama general-contractor licenses numbered 18907 or below may qualify for a statutory residential exemption. Do not assume a newer commercial license covers residential home building.
How to Apply for an Alabama General Contractor License
The prime application is a financial, experience and business-qualification review. Prepare the legal entity and requested classification before paying the nonrefundable application fee.
Choose the applicant entity and license classification
Apply under the exact legal entity that will contract in Alabama. Identify every major classification, subclassification or specialty supported by completed commercial or industrial experience.
Register the business in Alabama
Corporations, LLCs, LPs, LLPs and similar domestic or foreign entities must provide a current-year Alabama Secretary of State entity-details printout. This requirement does not apply in the same way to individuals and general partnerships.
Obtain current liability insurance
The insured name must match the applicant. The certificate holder must list the Alabama Licensing Board for General Contractors at its current Montgomery address.
Prepare an acceptable current financial statement
The Board accepts audited, reviewed or compiled GAAP financial statements prepared by an approved CPA or licensed public accountant. The information must generally be no more than one year old.
Document commercial or industrial experience
Provide three work-reference forms from separate qualified parties. The references should document different completed projects that support the classifications requested.
Complete the qualifying-party and ownership documents
Submit the Qualifying Party Form, organizational information, principal details, required signatures, notarization and citizenship or lawful-presence evidence.
Submit the correct $300 payment
The prime application fee is nonrefundable and nontransferable. Use a cashier’s check or money order payable to the Alabama Licensing Board for General Contractors. Personal and company checks are returned.
Meet the 30-day Board filing deadline
The application and fee must be received at least 30 days before a regularly scheduled Board meeting. Treat the date as a received-by deadline rather than a mailing date.
Complete the required examinations
A complete application must be on file before exam registration. Prime applicants generally complete Alabama Business and Project Management and any required trade examination.
Tool 3: Board Application Deadline Planner
Choose the scheduled Board meeting date. The calculator subtracts 30 calendar days to provide a planning deadline. The Board must receive a complete application and fee, so aim earlier for mailing and correction time.
Financial Statement, Net Worth and Alabama Bid Limit
The statutory $100,000 threshold tells you when a license is generally required. The Board’s approved bid limit tells you how large a contract the individual licensee may undertake.
$10,000 minimum net worth
The current prime instructions require at least $10,000 in net worth before an applicant can qualify for a bid limit.
$10,000 working capital
The applicant must also meet the minimum working-capital requirement. An eligible bank line of credit may help within Board rules.
Financials determine the limit
The accepted financial statement and approved guarantees affect the maximum bid limit assigned to the license.
Financial statements the Board may accept
- Audited financial statement prepared under generally accepted accounting principles.
- Reviewed financial statement prepared by an approved CPA or licensed public accountant.
- Compiled financial statement that otherwise satisfies Board requirements.
- Alabama Department of Transportation financial booklet where applicable.
Common financial-document mistakes
- Submitting information more than one year old.
- Using cash-basis or tax-basis statements.
- Submitting a deficit financial statement.
- Using a parent or personal statement without the required guaranty document.
- Assuming the statutory threshold and the approved bid limit are identical.
Alabama General Contractor Exams and License Classes
Prime applicants generally take Alabama Business and Project Management plus the trade examination connected with the requested classification. Testing does not replace the application, financial or experience review.
Building Construction
Commercial buildings, additions, foundations and incidental work within the approved scope.
Building Under Four Stories
A narrower building classification with height and supervision limits described in the application.
Highways and Streets
Roads, bridges, paving, grading, drainage and related transportation work.
Municipal and Utility
Water, sewer, gas, underground utility and related civil construction.
Heavy and Railroad
Railroad, marine, runway, pipeline, tunnel, pile-driving and heavy infrastructure work.
Swimming Pools
Pool construction, renovation, spas, splash pads and related work.
Mechanical and Electrical
Board classifications may be required together with separate Alabama certification cards.
Environmental and Demolition
Remediation, tanks, abatement, waste-treatment and demolition specialties.
Specialty Construction
Specific commercial or industrial trades supported by documented prior experience.
Experience and reference preparation
The application requires three separate reference parties and different completed projects supporting the classifications requested. A strong reference identifies the project, location, contract amount, date completed, work performed and applicant’s role.
Separate trade cards can still be required
Electrical, HVAC, plumbing, gas fitting, onsite wastewater, fire-marshal, environmental and other work can require credentials from separate Alabama boards or agencies. Local cards are not automatically accepted as state certification cards.
For separately regulated electrical work, review the site’s Alabama Electrical Contractors Board guide before relying only on the general-contractor record.
Alabama Subcontractor License Application
A subcontractor may submit a bid to a licensed general contractor, but a subcontractor performing a covered $100,000-or-more subcontract must generally be licensed before beginning work.
$150 application fee
The official subcontractor application requires a nonrefundable and nontransferable cashier’s check or money order.
Three work references
References should come from eligible general contractors, architects, engineers, awarding authorities or another qualified person accepted by the Board.
A useful subcontractor reference should identify
- Prime contractor or awarding authority.
- Physical project location.
- Commercial or industrial work performed.
- Contract amount and completion date.
- Applicant’s role and performance.
- Classification supported by the completed work.
Alabama General Contractor License Reciprocity
Reciprocity may waive a comparable trade examination, but it does not automatically issue an Alabama license or authorize immediate bidding and work.
Listed reciprocity states
Arkansas, Louisiana, Mississippi, Tennessee and North Carolina are listed on the Board’s current reciprocity page.
Comparable license in good standing
The applicant must hold a comparable classification and satisfy the Board’s current verification requirements.
Same qualifying individual
The proposed Alabama qualifying party must be the same individual who qualified the reciprocal-state license.
| Requirement | Reciprocity effect |
|---|---|
| Comparable trade examination | May be waived after acceptable written verification from the reciprocal board. |
| Alabama business-law examination | Not waived under the current Board guidance. |
| Alabama application and fee | Still required. |
| Financial and experience review | Still part of Alabama’s licensing process. |
| Thirty-day filing period | Application must still be in the Board office for the required period. |
Alabama Prime and Subcontractor License Renewal
Renewal forms are provided online and are no longer automatically mailed. Do not send a renewal package more than 45 days before the current license expiration because the Board may return it.
Prime renewal: $200
Use a money order or cashier’s check. The prime package also requires current financial information, insurance and applicable state certification cards.
Subcontractor renewal: $100
Use a money order or cashier’s check and include the current entity, certification, citizenship and notarized renewal information required by the packet.
Prime renewal checklist
- Current Alabama Secretary of State entity-details printout when applicable.
- Current liability-insurance certificate with the correct certificate holder.
- Copies of required Alabama certification cards.
- Current audited, reviewed or compiled GAAP financial statement.
- Citizenship or lawful-presence evidence.
- Original signature, notarization and updated entity information.
- $200 money order or cashier’s check.
Renewal timing warnings
- Packages received more than 45 days early may be returned.
- Information submitted 90 days after expiration is assessed a late penalty.
- Changes in name, ownership, composition or business structure may require a new application.
- After renewal, the updated expiration date should appear in the roster by the next business day.
- A prime contractor failing to renew within one year may need a new application and both trade and business-law examinations.
Before Hiring, Bidding or Awarding an Alabama Contract
The safest process is to check the exact business, project classification, monetary limit, trade cards, insurance, permits and written contract before the bid becomes an award.
Pre-award checklist
- Search the exact company in the official roster.
- Confirm current status and expiration date.
- Match the classification to the project scope.
- Compare the contract value with the bid limit.
- Verify separate state trade credentials.
- Confirm city or county permits and privilege licenses.
- Request current liability and workers’ compensation evidence when applicable.
Red flags
- The bidder refuses to provide a license number.
- The number belongs to another legal company.
- The proposed amount exceeds the listed bid limit.
- The classification does not cover the work.
- The company plans to obtain its license after beginning.
- A Secretary of State filing or local business license is presented as the contractor license.
- Payment is requested to a person or entity not named in the contract.
Bond and insurance clarification
The standard prime application requires liability insurance and acceptable financial information. It does not present one universal statewide general-contractor surety bond as a standard application item. Public projects, owners, lenders and individual contracts can still require bid, payment, performance or other bonds.
For work outside Alabama, use the site’s all-state contractors license board directory before assuming reciprocity or an Alabama license authorizes another state.
File an Alabama General Contractor Complaint
The General Contractors Board can investigate licensing-law concerns involving commercial general contractors and subcontractors. A Board complaint does not automatically recover private damages or pause a lien, payment or court deadline.
| Problem | Likely starting point |
|---|---|
| Commercial general contractor or subcontractor | Alabama Licensing Board for General Contractors complaint route. |
| Suspected unlicensed commercial work | General Contractors Board concern or complaint form. |
| Residential building, remodeling or roofing | Alabama Home Builders Licensure Board. |
| Electrical, HVAC, plumbing or gas fitting | The separate state trade board may also have jurisdiction. |
| Permit or code violation | City or county building department. |
| Payment, contract or damage dispute | Preserve legal deadlines and consider qualified legal advice in addition to a board complaint. |
Complaint evidence checklist
- Proposal, bid and signed contract.
- Company name and license number used.
- Project address, county and total contract amount.
- Payment records, invoices and change orders.
- Photos, videos and inspection reports.
- Emails, text messages and written correction requests.
- Permit records and subcontractor information.
- A dated timeline explaining the alleged violation.
Alabama General Contractors Board Phone and Address
Have the company name, application or license number, requested classification and project value ready before calling. The contact page does not guarantee walk-in service hours, so confirm availability before making a special trip.
Telephone
Ask for licensing, renewal, compliance or administrative assistance based on the issue.
Office and mailing address
445 Dexter Avenue
Suite 3060
Montgomery, AL 36104
Fax
334-395-5336
Confirm that fax is accepted for the specific document before sending sensitive information.
Alabama General Contractor License FAQs
When is an Alabama general contractor license required?
A license is generally required for covered commercial or industrial construction when the total undertaking, including labor and materials, is $100,000 or more. Swimming-pool contracting uses a separate $5,000 threshold.
How do I search an Alabama general contractor license?
Use the official Alabama general-contractor license roster. Search by license number and business name, then confirm current status, legal company identity, classification and bid limit before awarding work.
How much is the Alabama prime contractor application fee?
The current prime contractor application fee is $300. The fee must be paid by cashier’s check or money order and is nonrefundable and nontransferable.
How much is the Alabama subcontractor application fee?
The official subcontractor application fee is $150. The subcontractor application also requires three qualifying commercial or industrial work references.
What exams are required for an Alabama general contractor license?
Prime applicants generally must pass Alabama Business and Project Management and the trade examination required for the requested classification. A complete application must be on file before exam registration.
What financial statement does the Alabama Contractors Board require?
The current prime instructions call for a financial statement no more than one year old, prepared on an audited, reviewed or compiled GAAP basis by an acceptable CPA or licensed public accountant. Deficit, cash-basis and tax-basis statements are not accepted.
What are Alabama’s minimum net-worth and working-capital requirements?
Prime applicants generally must show at least $10,000 in net worth and $10,000 in working capital. The accepted financial information is also used to establish the applicant’s bid limit.
Does Alabama offer general contractor license reciprocity?
Yes. The Board currently lists Arkansas, Louisiana, Mississippi, Tennessee and North Carolina. Reciprocity may waive a comparable trade examination, but the Alabama business-law exam and other application requirements still apply.
How much is Alabama general contractor license renewal in 2026?
The 2026 renewal fee is $200 for a prime contractor and $100 for a subcontractor. The Board requires a money order or cashier’s check and may return renewal packages sent more than 45 days early.
Does an Alabama general contractor license cover residential home building?
Not automatically. Most covered residential construction is regulated by the Alabama Home Builders Licensure Board. That system generally applies above $10,000 for residential home building or remodeling and above $2,500 for residential roofing.
Verify the Company, Scope and Monetary Limit
Before hiring or awarding: search the exact business, confirm current status, match the classification, compare the contract amount with the bid limit, and verify separate trade and local requirements.
Before applying: prepare the entity record, insurance, acceptable financial statement, qualifying-party documents, commercial experience, three references and correct payment before the Board’s 30-day deadline.