Alabama General Contractor License Requirements
Alabama requires a general contractor license for any project valued at $50,000 or more, or a swimming pool project valued at $5,000 or more. Below those thresholds, the Licensing Board for General Contractors (ALBGC) doesn’t require a license for that specific job, though local permitting rules can still apply.
The two-exam structure is what sets Alabama apart from a neighboring state like Georgia. Every applicant sits two separately sealed exams administered through Block Exams, not one combined test, and each part carries its own fee and its own 30-day retake wait if you fail it.
What are the two required exams?
The Alabama Business and Law Examination and the Alabama Trade Examination (or the NASCLA Accredited Examination as a substitute) for your requested classification. The Business and Law exam is open-book, covers Title 34 Chapter 8, lien law, payroll, and safety, and runs 50 questions in 120 minutes with a 70% passing score. The Trade Examination is closed-scope to your classification, runs 115 questions in 330 minutes, and also requires 70% to pass.
Can I substitute the NASCLA exam for Alabama’s own trade exam?
Yes, for the trade-exam portion. Alabama accepts the NASCLA Accredited Examination as a substitute for its own state-specific trade exam, which is useful if you’re already licensed (or pursuing licensure) in another NASCLA-participating state and don’t want to sit a second trade exam from scratch. The Alabama Business and Law exam is still required separately regardless of which trade exam path you take.
| Alabama exam | Format | Length | Passing score | Fee |
|---|---|---|---|---|
| Business and Law | Open-book | 50 questions / 120 min | 70% | $215 per part |
| Trade Exam (or NASCLA) | Closed-scope | 115 questions / 330 min | 70% | $215 per part |
Source: Alabama Licensing Board for General Contractors, accessed 2026-07-19. Exam fees are paid to Block Exams, the board’s testing vendor; a failed part can be retaken individually after a 30-day wait, for a new $215 fee.
How much experience do I need to qualify?
Three years of documented supervisory experience for the person designated as your qualifying individual. This is lower than California’s four-year requirement but tied specifically to supervisory experience, not just general labor in the trade, so document the supervisory portion of your work history clearly when you apply.
What does the application itself cost?
$300 for a prime contractor application, separate from the $215-per-part exam fees. Applications must be on file at least 30 days before the Board’s quarterly meeting, so filing right before a meeting date can push your review to the following quarter. Budget the calendar time, not just the dollar amount, when planning around a specific project start date.
Do subcontractors need their own Alabama license?
Yes, if their own contract value is $50,000 or more, regardless of whether the general contractor on the job is already licensed. According to the Alabama Department of Revenue’s own FAQ, a subcontractor’s licensing obligation is tied to that subcontractor’s individual contract value, not to the prime contractor’s license status. A $30,000 electrical subcontract under a licensed general contractor doesn’t require the subcontractor to hold an ALBGC license on that job; a $60,000 subcontract does. See our subcontractor general contractor license guide for how this plays out in other states.
Our general contractor license bond page explains bonding requirements that may apply alongside Alabama’s licensing rules, and nascla exam guide breaks down the multi-state exam program Alabama accepts as a trade-exam substitute.
Run a diagnostic round on the GC License Hub free contractor license practice quiz before your first $215 exam sitting, since a free diagnostic costs nothing and can flag weak areas before you pay for the real thing. Grab the GC License Hub exam prep cheat sheet for the exam structure and fee table above on one page.
FAQ
What’s the dollar threshold for needing an Alabama contractor license? $50,000 for most projects, or $5,000 for swimming pool projects specifically, below which ALBGC licensing isn’t required for that job.
How many exams does Alabama require? Two, always separate and sealed: the Alabama Business and Law Examination and either the Alabama Trade Examination or the NASCLA Accredited Examination for your classification.
What happens if I fail one part of the exam? You can retake that specific part after a 30-day wait, for a new $215 fee; you don’t have to retake the part you already passed.
Do I need three years of any construction experience, or specifically supervisory experience? Specifically supervisory experience for your designated qualifying individual, not just general labor time in the trade.
Is the $300 application fee refundable if my application is denied? Confirm current refund policy directly with ALBGC before applying, since this research pass did not independently verify a refund policy on genconbd.alabama.gov.
Bottom line: Alabama’s $50,000 project threshold and two-part sealed exam structure, with a NASCLA substitute option for the trade portion, make it a distinctive system worth understanding before you schedule with Block Exams. Confirm current fees and the quarterly Board meeting calendar directly with ALBGC.
