Alabama Contractor License Exam — All Questions
9 questions
Which Alabama board licenses commercial and public-works general contractors?
- a.The Home Builders Licensure Board
- b.The State of Alabama Licensing Board for General Contractors (ALBGC)✓
- c.The Alabama Department of Labor
- d.Each county commission, with no statewide board
Commercial and public-works general contractors are licensed by the State of Alabama Licensing Board for General Contractors (ALBGC) under the Code of Alabama, Title 34, Chapter 8. Residential home building is handled separately by the Home Builders Licensure Board.Code of Ala. Title 34, Ch. 8
As of October 1, 2024, an Alabama commercial general-contractor license is required for a public or private project costing at least:
- a.$25,000
- b.$50,000
- c.$100,000✓
- d.$250,000
Act 2024-277 raised the commercial general-contractor threshold from $50,000 to $100,000, effective October 1, 2024. Study material still citing $50,000 is out of date; the current trigger is a project cost of $100,000 or more.Code of Ala. Title 34, Ch. 8; Act 2024-277
In Alabama, building or improving a residence for more than what amount requires a home builder license from the Home Builders Licensure Board?
- a.$10,000✓
- b.$1,000
- c.$50,000
- d.$100,000
Residential home building or improvement for more than $10,000 requires a home builder license from the Home Builders Licensure Board. This residential threshold is separate from the $100,000 commercial general-contractor threshold set under Title 34, Chapter 8.Home Builders Licensure Board; Code of Ala. Title 34, Ch. 14A
Swimming-pool construction in Alabama is licensed at a lower dollar threshold than general building work. That pool threshold is:
- a.$100,000
- b.$50,000
- c.$25,000
- d.$5,000✓
Swimming-pool construction is licensed at a $5,000 threshold, well below the $100,000 commercial general-building threshold. The lower figure reflects the specialty pool scope regulated by the board.Code of Ala. Title 34, Ch. 8 (swimming pools)
What minimum net worth must an applicant demonstrate to the Alabama Licensing Board for General Contractors?
- a.$150,000
- b.$10,000✓
- c.$50,000
- d.No net worth is required
The ALBGC sets a minimum net worth of $10,000, shown on a submitted financial statement. The monetary tier the board grants scales with the financial strength demonstrated.ALBGC financial-responsibility rules; Code of Ala. Title 34, Ch. 8
The Alabama Licensing Board for General Contractors assigns a monetary limit to each license. Which set of tiers does it use?
- a.Class A, Class B, and Class C
- b.Group I through Group V financial groups
- c.Unlimited, Major, and Minor monetary tiers✓
- d.Residential-Basic and Residential-Light-Commercial
The ALBGC grants a monetary limit described as Unlimited, Major, or Minor, based on the applicant's demonstrated financial strength. The A/B/C and Group I–V systems belong to other states, not Alabama.ALBGC monetary-limit classifications
A candidate seeks an Alabama commercial general building contractor license. Which exam satisfies the trade/technical portion for that scope?
- a.The NASCLA Accredited Commercial General Building Contractor examination✓
- b.The Alabama bar examination
- c.No trade exam exists in Alabama
- d.The Georgia Residential-Basic trade exam
For the commercial general building scope, Alabama accepts the NASCLA Accredited Commercial General Building Contractor examination for the trade portion. The separate Alabama Business and Law examination is still required.NASCLA Accredited Examination; Code of Ala. Title 34, Ch. 8
Which statement correctly describes how Alabama structures contractor regulation?
- a.A single board licenses both residential and commercial work
- b.Only counties license contractors; there is no state board
- c.The Department of Labor issues all contractor licenses
- d.One board (ALBGC) licenses commercial work while a separate board (HBLB) licenses residential home building✓
Alabama uses two boards: the ALBGC for commercial and public-works general contracting and the Home Builders Licensure Board for residential home building. A contractor doing both types of work may need credentials from both boards.Code of Ala. Title 34, Ch. 8
A contractor plans a private commercial project with a construction cost of $90,000. Under the current Alabama threshold, does the work require a commercial general-contractor license on that basis alone?
- a.Yes, because any commercial work requires the license
- b.Not on cost alone, because the current commercial threshold is $100,000 and $90,000 is below it✓
- c.Yes, because the threshold is $50,000
- d.No, because commercial work is never licensed in Alabama
Because Act 2024-277 set the commercial general-contractor threshold at $100,000 effective October 1, 2024, a $90,000 project falls below the cost trigger. Candidates should still confirm that no other license (such as a specialty or pool license) applies to the specific scope.Code of Ala. Title 34, Ch. 8; Act 2024-277