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ALState License RequiredNASCLA Accepted

Alabama Contractor License

Alabama Licensing Board for General Contractors (LBGC)

Alabama requires a state-level contractor license for projects above $50,000 for commercial; $10,000 for residential. Exam required. NASCLA accepted. Administered by Alabama Licensing Board for General Contractors (LBGC).

Licensing & Bidding in Alabama

To bid and perform commercial work in Alabama, a general contractor must hold a license from the Alabama Licensing Board for General Contractors (LBGC) before submitting any bid on projects of $50,000 or more; the residential threshold is lower at $10,000. Because licensure is required at the bidding stage, an out-of-state firm pursuing Alabama work should secure its LBGC license early in the pursuit calendar. The board passes on applications quarterly (January, April, July, and October), so a missed cycle can push your qualification back months and force you to walk away from a solicitation. A qualifying exam is required, and Alabama accepts NASCLA accreditation, which is a meaningful advantage for contractors already carrying the NASCLA commercial credential in other states.

Reciprocity exists with Arizona, Arkansas, Louisiana, Mississippi, and Tennessee, so firms licensed in those states should ask the LBGC about a streamlined path rather than starting from scratch. Note that residential builders are regulated separately through the Home Builders Licensure Board, so confirm which credential your scope actually requires before you price the job.

Bidding unlicensed in Alabama is not a paperwork problem to fix later. Unlicensed contracting is a Class A misdemeanor with fines up to $500 per offense, and—most damaging to your bottom line—working without a license forfeits your mechanics lien rights. That means even if you complete the work, you may be unable to enforce payment. Build the cost and timeline of LBGC licensure into your bid decision up front, line up your qualifying party and exam, and confirm classification scope so your winning bid translates into work you can legally perform and get paid for.

Key Facts

GC License Required
Yes
Threshold
$50,000 for commercial; $10,000 for residential
Exam Required
Yes
NASCLA Accepted
Yes
Official Board Website

Fees

Application Fee
$300 (non-refundable)
License Fee
Included in application
Renewal Fee
$200 annually

Key Facts

  • Separate licensing for general contractors (LBGC) and residential builders (HBLB)
  • Board meets quarterly in January, April, July, and October
  • Unlicensed contracting is a Class A Misdemeanor
  • Working without a license forfeits mechanics lien rights

Insurance Requirements

General Liability
$300,000 minimum coverage required
Workers Comp
Required if you have 5 or more employees
Surety Bond
$10,000 surety bond typical

Continuing Education

No continuing education required for general contractors

Reciprocity States

AZARLAMSTN

Specialty Licenses Required

ElectricalPlumbingHVACRoofing

How to Apply

  1. 1Submit application to LBGC at least 30 days before a quarterly board meeting
  2. 2Pass the trade exam and business/law exam (NASCLA accepted)
  3. 3Provide proof of general liability insurance and workers comp (if applicable)
  4. 4Submit financial statement demonstrating required net worth
  5. 5Pay $300 non-refundable application fee
  6. 6Appear before the board if requested for interview

Penalties for Unlicensed Work

Class A Misdemeanor; loss of mechanics lien rights; fines up to $500 per offense

Related Templates

Pre-Qualification QuestionnaireCOI Request FormSubcontractor Agreement

Frequently Asked Questions

Yes. Alabama requires a state-level contractor license for projects above $50,000 for commercial; $10,000 for residential. The administering board is Alabama Licensing Board for General Contractors (LBGC).
Yes. Alabama requires a licensing exam. The state accepts the NASCLA standardized exam as an alternative to the state-specific exam.
General Liability: $300,000 minimum coverage required. Workers Comp: Required if you have 5 or more employees. Bond: $10,000 surety bond typical.
Class A Misdemeanor; loss of mechanics lien rights; fines up to $500 per offense
Yes. Alabama accepts NASCLA accreditation toward LBGC licensure, so contractors holding the NASCLA commercial credential can often shorten the exam path. You still complete the LBGC application and meet its other qualification requirements, but the accepted exam removes a common bottleneck for multi-state firms.
A general contractor license is required for commercial projects of $50,000 or more and residential projects of $10,000 or more. Below those thresholds licensure may not be triggered, but confirm the project type and scope, since residential builders fall under a separate licensing board.
The board meets quarterly—in January, April, July, and October. Because applications are acted on only at these meetings, submit complete materials well ahead of a meeting date. Missing a cycle can delay approval by roughly three months, which can cost you eligibility on a near-term bid.

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