Alabama Financial, Renewal & Exam Requirements
Beyond the exams, an Alabama contractor must show financial responsibility, renew annually, and use the correct board. This chapter reviews the net-worth requirement, annual renewal, the two-board division, and the open-book exam format.
Net worth and financial responsibility
The ALBGC requires an applicant to submit a financial statement showing at least a $10,000 minimum net worth, and the monetary tier the board grants (Unlimited, Major, or Minor) scales with the financial strength shown. A contractor who wants a higher single-project limit must document stronger financials. These rules protect owners who rely on the contractor's solvency to finish a project.
Annual renewal
The Alabama general-contractor license is renewed annually, with the ALBGC license year ending December 31; the annual renewal fee is commonly reported at $200. A contractor must keep the license current to continue bidding and contracting on covered work. Letting the license lapse can interrupt the right to contract and to collect on covered projects.
Choosing the right board and the exam format
Residential home building is licensed by the Home Builders Licensure Board, while commercial and public work is licensed by the ALBGC, so a contractor doing both may need both credentials. The Business and Law examination is an open-book, multiple-choice test covering Alabama licensing law, business organization, estimating, contracts, project and financial management, labor, tax, risk, and safety. Because it is open book, candidates should be able to locate answers quickly in the approved references.