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Contractor License in Alabama

State license

Alabama uses two separate state boards. Commercial and larger general construction is licensed by the Alabama Licensing Board for General Contractors, while residential work is licensed by the Alabama Home Builders Licensure Board. There is no single statewide 'contractor' license; the board depends on whether the work is commercial/general or residential.

Quick facts

When a license is neededGeneral Contractors board: license required for projects of $50,000 or more (and swimming pool projects of $5,000 or more). Home Builders board: residential home builder license required when the cost including labor and materials exceeds $10,000.
ExperienceGeneral Contractors board: applicant must demonstrate experience and financial responsibility (working capital/net worth requirement). Home Builders board: an Unlimited license requires passing the state exams with no prior authorization needed; a Limited or Roofers license requires proof of a current or recently held (within one year) municipal/county business or occupational contractor license.
ExamYes for both. General Contractors board requires trade and business/law examination. Home Builders board Unlimited license requires passing the Alabama Home Builders Business & Law exam (passing score 70) and Skills exam (passing score 66), administered through Prov (provexam.com); scores are valid for three years.
BondGeneral Contractors board: no standard surety bond, but financial responsibility (minimum working capital/net worth, commonly cited at $10,000) must be shown. Home Builders board: no bond for Unlimited/Limited licenses, but a Roofers license requires a $10,000 License/Permit Bond naming the Board as obligee.
InsuranceGeneral Contractors board requires general liability and workers' compensation coverage. The Home Builders Licensure Law does not address insurance (no state insurance mandate for residential home builders).
FeesGeneral Contractors board: Prime Contractor application $300, renewal $200; Subcontractor application $150, renewal $100. Home Builders board: $100 non-refundable processing fee, optional $25 mailed application package; specific license issuance fee amounts not published on the board FAQ.
RenewalGeneral Contractors licenses renew annually. Home Builders licenses renew annually; continuing education is not required for most general contractor renewals. Specific CE hour requirements were not confirmed on the official boards' pages.
ReciprocityHome Builders board offers limited exam reciprocity: applicants from Tennessee, South Carolina, Mississippi, Louisiana, or North Carolina may skip the Skills exam section but must still take and pass the Business and Law section.
Main agencyAlabama Licensing Board for General Contractors
Official sitehttps://hblb.alabama.gov/how-to-get-licensed/
Requirements, thresholds, and fees change, and local rules can be stricter than the state. Always confirm directly with the board and your local building department before you bid or pull a permit. This page is a starting point, not legal advice.
Apply / official Alabama board →

License classifications

How to get licensed in Alabama

  1. Determine which board applies: General Contractors board for commercial/general work $50,000+ (pools $5,000+); Home Builders board for residential work over $10,000
  2. For residential: download the free application package from hblb.alabama.gov (or pay $25 for a mailed package)
  3. Register for and pass the required exams through Prov (provexam.com) for an Unlimited license, or provide a local business/occupational contractor license for a Limited or Roofers license
  4. Submit financial responsibility documentation (credit report sent directly from a credit-reporting agency), or a $10,000 bond for a Roofers license
  5. Provide entity documents if a corporation/LLC/partnership (Certificate of Compliance from the Alabama Department of Revenue and notarized minutes naming the qualifying representative) plus proof of citizenship/lawful presence
  6. Submit the completed application with the $100 processing fee and applicable license fee; allow approximately 3 to 4 weeks for review and Board consideration

Frequently asked questions

Do I need a state license to build homes in Alabama?

Yes. A residential home builder license from the Alabama Home Builders Licensure Board is required whenever the cost of construction, remodeling, repair, or improvement of a residence (labor and materials) exceeds $10,000.

What is the difference between the two Alabama contractor boards?

The Alabama Licensing Board for General Contractors handles commercial and general construction (projects of $50,000 or more, or pools of $5,000 or more). The Home Builders Licensure Board handles residential home building over $10,000. Which license you need depends on the type of work.

Do I have to take an exam for a home builder license?

For an Unlimited residential license, yes: you must pass the Alabama Home Builders Business & Law exam (score of 70) and Skills exam (score of 66) through Prov. A Limited or Roofers license does not require the exams if you provide a qualifying local contractor license.

How much does the home builder application cost?

There is a $100 non-refundable processing fee, and a mailed application package costs $25 (or you can download it free). The board's FAQ does not list a separate flat license issuance fee amount.

Is there insurance or bonding required for residential home builders?

The residential home builder law does not require insurance. No bond is required for Unlimited or Limited licenses, but a Roofers license requires a $10,000 License/Permit Bond naming the Board as obligee.

Sources

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Guide compiled from official Alabama licensing-board sources. Verify current details with the board before acting; licensing rules change.