Alabama Contractor Licensing, Boards & Thresholds
Alabama regulates contractors through two separate boards and licenses by the dollar value of the work. This chapter covers who issues each license, the commercial and residential thresholds, the monetary tiers, and the net-worth and examination requirements.
Two boards and the Code of Alabama, Title 34, Chapter 8
Alabama splits contractor regulation between two boards. The State of Alabama Licensing Board for General Contractors (ALBGC), authorized by the Code of Alabama, Title 34, Chapter 8, licenses commercial and public-works general contractors. The Home Builders Licensure Board (HBLB) separately licenses residential home builders. A contractor must know which board governs the work: a person building commercial or public projects looks to the ALBGC, while a person building or improving homes looks to the HBLB.
Dollar thresholds that trigger a license
The commercial general-contractor license is required for any public or private project costing $100,000 or more. This figure was raised from $50,000 to $100,000 by Act 2024-277, effective October 1, 2024, so older study material citing $50,000 is out of date. Swimming-pool construction is licensed at a lower threshold of $5,000. On the residential side, a home builder license is required to build or improve a residence for more than $10,000. Below these thresholds the specific license may not be required, but candidates should confirm the exact scope with the applicable board.
Monetary tiers, net worth, and the trade exam
The ALBGC assigns a monetary limit tier — commonly described as Unlimited, Major, or Minor — based on the applicant's demonstrated financial strength; the board sets a minimum net worth of $10,000. For the commercial general building scope, the trade/technical requirement is satisfied by the NASCLA Accredited Commercial General Building Contractor examination, but the Alabama Business and Law examination must also be passed. Passing NASCLA alone does not license a contractor in Alabama.