Alabama regulates contractors through multiple state licensing boards, each governing a specific trade or project type. Unlike states that use a single licensing authority, Alabama splits oversight across five primary boards: the Licensing Board for General Contractors, the Home Builders Licensure Board, the Electrical Contractors Board, the Board of Heating, Air Conditioning & Refrigeration Contractors, and the Plumbers & Gas Fitters Examining Board.
Each board sets its own licensing thresholds, experience requirements, exams, fees, and renewal schedules. For general contractors, the licensing threshold is $100,000 for commercial and industrial projects. For residential home builders, the threshold drops to $10,000. Electrical, HVAC, and plumbing trades require licensure regardless of project value.
This guide covers every major Alabama contractor license type, the requirements for each, application procedures, exam details, fees, insurance and bonding, renewal, reciprocity, and penalties for unlicensed work.
Types of Contractor Licenses
Alabama does not issue a single "contractor license." Instead, five separate state boards regulate different trades. Here is what each board covers and when a license is required.
General Contractors (Commercial & Industrial)
The Alabama Licensing Board for General Contractors licenses contractors performing commercial and industrial work statewide. A license is required when the cost of the undertaking is $100,000 or more. For swimming pool projects, the threshold is $5,000 or more. Subcontractors working under a licensed prime contractor on contracts of $100,000 or more must also be licensed.
The Board issues licenses under two application paths:
- Prime Contractor — For contractors who bid and contract directly with project owners.
- Subcontractor — For contractors working under a licensed prime contractor.
Major classifications for prime contractors include:
- Building Construction (BC)
- Building Construction Under Four Stories (BCU4)
- Highways & Streets (HS)
- Municipal & Utility (MU)
- Heavy & Railroad (H/RR)
Additional subclassifications and specialty classifications are available. See the Prime Contractor Application (PDF) for the full list.
Residential Home Builders
The Home Builders Licensure Board (HBLB) licenses residential home builders under Title 34, Chapter 14A. A license is required when the cost of the undertaking exceeds $10,000. For residential roofers, the threshold is $2,500. The statute applies to residential structures not over three floors and not more than four residential units.
HBLB issues three license types:
- Unlimited — Full residential homebuilding authority. Holders of an Unlimited license may also perform residential roofing without a separate roofer license.
- Limited — Restricted scope of residential work.
- Roofers — Residential roofing only.
Application packets for each type are available on the HBLB New Application Package page.
Electrical Contractors
The Alabama Electrical Contractors Board (AECB) licenses anyone engaged in the business of soliciting, installing, or repairing electrical power or control systems. No monetary threshold applies — all electrical contracting work requires licensure. The Board also advises contractors to check with their city or county for any additional local license requirements.
The AECB issues the following license types:
- Electrical Contractor — Unlimited in voltage and bid requirements.
- Journeyman Electrician — For individuals performing electrical work under a licensed contractor.
- Provisional and Inactive statuses are also available.
HVAC & Refrigeration Contractors
The Board of Heating, Air Conditioning & Refrigeration Contractors (HACR) licenses HVAC and refrigeration contractors statewide. Certification is required for heating, air conditioning, or refrigeration installation, service, or repair work — including air duct cleaning, filter changing, test-and-balance services, and work on preowned manufactured or modular homes. No monetary threshold applies.
The Board issues:
- Heating & Air Conditioning licenses
- Refrigeration licenses
- Duct Air Tightness Testing (DATT) Contractor registrations
Plumbers & Gas Fitters
The Plumbers & Gas Fitters Examining Board (PGFB) licenses plumbing and gas fitting professionals statewide. You must hold a valid certification to contract, offer to engage in, or engage in plumbing or gas fitting in Alabama. A board-issued certificate is accepted statewide, and no local governmental entity may require a separate competency certification or exam.
The Board's license structure includes:
- Apprentice
- Journeyman Plumber
- Journeyman Gas Fitter
- Master Plumber
- Master Gas Fitter
- Medical Gas Pipe Fitter
- Business Registration (required for plumbing/gas fitting businesses)
Licensing Requirements
Each Alabama licensing board has its own experience, financial, and background requirements. Here is a board-by-board breakdown.
General Contractors
Prime contractor applicants must demonstrate commercial or industrial work experience in each requested classification. The application requires:
- 3 completed projects for each classification requested
- 3 work/job references
- An organizational chart
- A current CPA/LPA financial statement showing minimum net worth and working capital of $10,000
- Proof of current liability insurance
The qualifying employee registering for the exam must have been in full-time employment for 90 consecutive days before the exam date. Maximum bid limit is generally 10x the lesser of net worth or working capital (except for unlimited licenses). A bank line of credit may be used to increase working capital after minimum requirements are met. See the Prime Contractor Application (PDF) for full details.
Home Builders
HBLB requires applicants to demonstrate the experience and ability to engage in residential homebuilding. Key requirements for an Unlimited license include:
- A Designated Qualifying Representative (DQR) for entity applicants
- A business-related credit report including a public-records search, sent directly to the Board
- Disclosure of felony convictions within 7 years, bankruptcies, disciplinary history, liens, and prior identification as an unlicensed builder
Full requirements are listed in the Unlimited Application Packet (PDF).
Electrical Contractors
Both electrical contractor and journeyman applicants must document 8,000 hours of qualifying experience. Up to 2,000 hours may be substituted by approved education or apprenticeship training. For electrical contractors, qualifying experience includes design, planning, layout, direct supervision, and soliciting/installing electrical systems. See Admin Rule 303-X-3-.02 and Admin Rule 303-X-2-.02 for details.
HVAC & Refrigeration
The person in responsible charge of an HVAC or refrigeration business must be a real employee (not an independent contractor), receive a W-2, and work an average of 30+ hours per week — unless that person is an owner, partner, or officer. The Board may require a background check before allowing an individual to apply for examination. See the HACR How to Get Licensed page for details.
Plumbers & Gas Fitters
Experience requirements follow a tiered progression:
- Journeyman Plumber/Gas Fitter: 2 years of current apprentice work experience, or completion of a board-approved apprentice program
- Master Plumber/Gas Fitter: 1 year of current work experience as a journeyman
Citizenship or lawful-presence documentation is required for all applicants. See the PGFB licensing page for full details.
Application Process
Each board has its own application forms, submission deadlines, and processing timelines. Below are the key steps for each.
General Contractors
Applications are available on the Board's Forms page. Required documents for a prime contractor application include:
- Notarized application form with application fee
- Liability insurance certificate
- Secretary of State print screen (proof of business registration)
- Qualifying party form
- Current CPA/LPA financial statement
- 3 work/job references
- Organizational chart
- Exam test scores
Applications must be on file 30 days before a regularly scheduled Board meeting. The Board meets quarterly. See the How to Apply page for current meeting dates.
Home Builders
HBLB publishes downloadable application packets for Unlimited, Limited, and Roofers licenses. The Unlimited packet requires:
- Notarized application with fee
- Credit report order
- Proof of citizenship
- Secretary of State and Department of Revenue documents (for entities)
- DQR documentation (for entities)
An application pending more than 90 days may require an updated credit report.
Electrical Contractors
Step-by-step instructions are on the AECB Forms & Testing page. Exam applications require a completed form, fee, personal identification, and supporting documents. After passing the exam, contractor licensing uses forms EC-1 and EC-2. All submissions must be received by 4:00 PM, 14 days before the next Board meeting. Check the AECB Calendar for meeting dates.
HVAC & Refrigeration
Application materials are on the New License Application page and the Forms and Notices page. Required forms include AL-1, AL-2, and BF-1. For reciprocity applicants, additional forms VL-1 and VL-2 apply. Materials must be received by 4:00 PM, ten full working days before the next Board meeting.
Plumbers & Gas Fitters
Applicant packets and forms are available on the Applicants page, Exams page, and Forms page. The Board requires the appropriate application, proof of experience, citizenship/lawful-presence declaration, and payment. Businesses must file a separate business registration form. The Board conducts at least 4 exams per year, and a person who passes must become certified within 90 calendar days or must retest.
Examination Requirements
Every Alabama contractor license type requires passing one or more examinations. Each board uses a different exam administrator and has its own fee structure.
General Contractors
Prime contractor applicants must pass the Alabama Business and Project Management exam and any required trade examination(s) for their requested classifications. Exams are administered by PSI.
- Exam fee: $96 per exam (standard), or $106 per exam for Building Construction (Commercial), Highways & Streets, Municipal & Utility, and Heavy Railroad Construction
- Passing score: Many trade exams require 70%. The NASCLA-accredited Building Construction exam requires 81 out of 115.
Home Builders
Unlimited license applicants must pass the Alabama Home Builders Exams, administered by Prov. Applicants take 2 exams: a technical trade exam and a business/law exam.
- Exam fee: $130 if both exams are taken the same day, or $80 each if taken separately
- Passing score: Verify with Prov's Alabama Home Builders Candidate Information Bulletin for current passing score requirements.
Electrical Contractors
The AECB uses Prov as its exam administrator. NASCLA Electrical Contractor test takers must pass both the national electrical contractor theory test and the Business & Law exam.
- Electrical Contractor exam: $165
- Journeyman Electrician exam: $115
- Passing score: 75%
HVAC & Refrigeration
The HACR Board requires both a written and practical exam.
- Written exam: $175
- Practical exam: $375
- Passing score: The Board's reciprocity materials reference a minimum score of 70%. Verify the current in-state passing score with the HACR Board.
Plumbers & Gas Fitters
Exams are administered by an independent examining agency. Effective January 1, 2026, master-level applicants must pass both the plumbing/gas trade exam and an additional business law exam.
- Journeyman exam: $110
- Master written exam: $160
- Master business law exam: $100
- Passing score: Verify with the PGFB Exams page for current passing score requirements.
License Fees and Costs
Alabama's licensing fees vary significantly by board and license type. All fees listed below are verified from official board materials.
General Contractor Fees
| Fee Type | Amount |
|---|---|
| Prime Contractor Application | $300 |
| Subcontractor Application | $150 |
| Prime Contractor Renewal | $200 |
| Subcontractor Renewal | $100 |
| Late Penalty (after 90-day extension) | $50 |
| PSI Exam Fee (standard) | $96/exam |
| PSI Exam Fee (BC Commercial, HS, MU, H/RR) | $106/exam |
Source: How to Apply, Renewal Info, PSI Bulletin
Home Builder Fees
| Fee Type | Amount |
|---|---|
| Annual License Fee (Unlimited) | $250 |
| New Application Processing Fee (non-refundable) | $100 |
| Total New Unlimited License | $350 |
| Late Renewal Fee (Dec. 1–Dec. 31) | $50 |
| Expired License Application Processing Fee (on/after Jan. 1) | $350 |
| Prov Exam — Both Exams Same Day | $130 |
| Prov Exam — Single Exam | $80 |
Source: Unlimited Application Packet (PDF), Printable Renewals
Electrical Contractor Fees
| Fee Type | Amount |
|---|---|
| Contractor Exam | $165 |
| Journeyman Exam | $115 |
| Contractor License | $150 |
| Journeyman License | $35 |
| Contractor Renewal | $150 |
| Journeyman Renewal | $35 |
| Contractor Late Renewal/Restoration | $50/year |
| Inactive Contractor | $75 |
| Inactive Journeyman | $15 |
| Replacement Card | $25 |
| Provisional Renewal | $75 |
| Reciprocal Electrical Contractor License | $315 |
Source: AECB Fees, Admin Rule 303-X-2-.06
HVAC & Refrigeration Fees
| Fee Type | Amount |
|---|---|
| Written Exam | $175 |
| Practical Exam | $375 |
| Initial/Annual Active HVAC License | $220 |
| Initial/Annual Active Refrigeration License | $220 |
| Initial/Annual Inactive HVAC | $110 |
| Initial/Annual Inactive Refrigeration | $110 |
| Late Renewal | $250 |
| CE Deficiency Fee | $25 |
| DATT Registration | $50 |
| DATT Late Fee | $50 |
| Printed Certification Card | $25 |
Source: Admin Chapter 440-X-3
Plumber & Gas Fitter Fees
| Fee Type | Amount |
|---|---|
| Apprentice Initial/Renewal | $35 |
| Apprentice Late Penalty | $35 |
| Journeyman Exam | $110 |
| Journeyman Application Processing | $50 |
| Journeyman Initial Certificate | $75 |
| Journeyman Renewal | $75 |
| Journeyman Late Penalty | $75 |
| Master Written Exam | $160 |
| Master Business Law Exam | $100 |
| Master Application Processing | $50 |
| Master Initial Certificate | $175 |
| Master Renewal | $175 |
| Master Late Penalty | $175 |
| Medical Gas Pipe Fitter Renewal | $25 |
| Business Registration Initial/Renewal | $25 |
| Business Registration Late Penalty | $25 |
| Records Request | $15 + $0.25/page |
| License Verification | $15 |
Source: Rule 720-X-4-.01
Insurance and Bond Requirements
Alabama's insurance and bonding requirements vary by board. Unlike some states that mandate uniform bonding and insurance minimums across all trades, Alabama's requirements are board-specific.
General Contractors
Prime contractor applicants must submit proof of current liability insurance as part of the application. A current CPA/LPA financial statement is also required, with minimum net worth and working capital of $10,000. No board-posted workers' compensation minimum or surety bond requirement was verified in official General Contractors Board materials — verify directly with the Board for current requirements.
Home Builders
HBLB requires a business-related credit report sent directly to the Board as part of the application process. No HBLB-posted general liability minimum, workers' compensation minimum, or bond requirement was verified in official materials — verify with HBLB for current requirements.
HVAC & Refrigeration
New HVAC and refrigeration applicants must provide a $20,000 performance bond. This bond is also required for reciprocity applicants. No board-posted general liability or workers' compensation minimum was verified in official HACR materials.
Electrical Contractors and Plumbers/Gas Fitters
No board-posted bond, general liability minimum, or workers' compensation minimum was verified in official AECB or PGFB materials. Contact the Electrical Contractors Board or the Plumbers & Gas Fitters Examining Board directly for current insurance and bonding requirements.
General Guidance
Regardless of what each board requires for licensing, carrying general liability insurance and workers' compensation insurance (if you have employees) is standard industry practice and often required by clients and general contractors. Most Alabama contractors carry $1 million or more in general liability coverage.
License Renewal
Each Alabama licensing board has its own renewal schedule, continuing education requirements, and reinstatement rules.
General Contractors
- Renewal period: Licenses expire in the licensee's designated renewal month. Renewal is due 30 days before expiration.
- Renewal fee: $200 (prime), $100 (subcontractor)
- Grace period: A 90-day extension is available if financials are missing.
- Late penalty: $50 after the 90-day extension window.
- Expiration: Renewal can be filed up to 1 year after expiration. After 1 year, a new application and exam(s) are required.
- Continuing education: None required.
Source: Renewal Info
Home Builders
- Renewal period: Licenses expire December 31 each year. Renewal season begins October 1. Timely renewals are due by November 30.
- Late renewal: Renewals received December 1–December 31 incur a $50 late fee.
- Expiration: On or after January 1, the license is expired. Expired licenses can be renewed within 3 years; after 3 years, a new application, exam, and credit report are required.
- Continuing education: Licensees and DQRs under age 60 must complete 6 hours annually. At least 2 hours must be an Alabama-specific course. Exemptions apply to first-time renewals, inactive licensees, those age 60+ by October 1, and certain hardship/military situations.
Source: Continuing Education, FAQ Licensees
Electrical Contractors
- Renewal period: Annual. Late fees apply if not received before expiration.
- Renewal fee: $150 (contractor), $35 (journeyman)
- Continuing education: Electrical contractor licensees must complete 14 hours every 2 years. At least 7 hours must be NEC/NFPA instruction. Up to 6 carry-forward hours are allowed.
- Reinstatement: If not renewed for 1 year, renewal is no longer available. Licensees must apply for reinstatement if within 5 years of lapse.
Source: Admin Rule 303-X-5-.01, AECB Fees
HVAC & Refrigeration
- Renewal period: Licenses expire December 31 annually.
- Renewal fee: $220 (active HVAC or refrigeration), $110 (inactive)
- Continuing education: 4 hours each year. Up to 4 hours may carry over from an 8-hour year.
- Late renewal: Late-renewing contractors have until December 31 of the following year to renew with a $250 late fee. After that, the license is expired and the person must re-test as a new applicant.
Source: HACR FAQ, Admin Chapter 440-X-3
Plumbers & Gas Fitters
- Renewal period: Renewals for 2026 were open October 1–December 31, 2025.
- Continuing education: Beginning January 1, 2025, master and journeyman certificate holders generally need 4 hours annually. A CE Deficiency Plan plus deficiency fee applies if CE is late.
- Reinstatement: Delinquent individuals must pay back fees and penalties and complete CE before being made active again.
Source: PGFB CE page, CE Chapter 720-X-21
Reciprocity with Other States
Alabama has reciprocity agreements through several of its licensing boards, primarily with neighboring Southern states. Reciprocity requirements vary by board.
General Contractors
The General Contractors Board has reciprocity with:
- Arkansas
- Mississippi
- Louisiana
- Tennessee
- North Carolina
Reciprocity may waive the trade portion of the exam for comparable classifications, but does not waive the Business/Law exam. The Alabama qualifier must be the same qualifier used in the reciprocal state, and the application must be on file for 30 days. PSI administers the NASCLA-accredited commercial building exam for Alabama Building Construction (Commercial).
Electrical Contractors
The AECB has reciprocity with:
- Mississippi
- Tennessee
- North Carolina
- South Carolina
- Virginia
- Ohio
- Louisiana
- Georgia (agreement terminates May 25, 2026)
Reciprocity requires passing the Alabama Electrical Contractors Board Business and Law Exam, a completed reciprocity application, the reciprocal-state verification form, and the $315 reciprocal license fee. The Board also accepts the NASCLA Electrical Contractors Exam for reciprocal licensing.
HVAC & Refrigeration
The HACR Board has reciprocity with:
- Mississippi
- Tennessee
- Ohio
- South Carolina (Residential Building Commission and Contractor's Board)
- West Virginia
- Louisiana
Reciprocity is available only if the applicant passed an equivalent exam with a score of at least 70%, holds a current valid license in a listed reciprocal jurisdiction, and provides the reciprocity packet and $20,000 bond. Verify with HACR whether any Alabama-specific exam is still required for reciprocity applicants.
Plumbers & Gas Fitters
Effective January 1, 2026, the PGFB has a reciprocal agreement with the Mississippi Board of Contractors only. No other active reciprocal agreements were listed. Reciprocal certification requires proof of current good standing, citizenship/lawful-presence documentation, payment of fees, and a passing score on the business law exam.
Home Builders
No HBLB reciprocity agreement was verified in official materials. Verify with HBLB before relying on reciprocity for a residential home builder license.
How to Verify a Contractor's License
Alabama provides license verification through each individual licensing board. If you are a homeowner hiring a contractor or a general contractor verifying subcontractor credentials, use the appropriate board's verification tool.
License Lookup Tools
| Board | Verification Method |
|---|---|
| General Contractors | "Search License Roster" on the Board's homepage |
| Home Builders | HBLB License Lookup |
| Electrical Contractors | "Licensee Search" on the AECB homepage |
| HVAC & Refrigeration | Contact the HACR Board directly |
| Plumbers & Gas Fitters | Contact the PGFB directly |
Board Contact Information
| Board | Address | Phone | Website |
|---|---|---|---|
| General Contractors | 445 Dexter Ave, Suite 3060, Montgomery, AL 36104 | (334) 272-5030 | genconbd.alabama.gov |
| Home Builders | 445 Herron Street, Montgomery, AL 36104 | (334) 242-2230 | hblb.alabama.gov |
| Electrical Contractors | 100 N. Union Street, Suite 986, Montgomery, AL 36104 | (334) 679-1020 | aecb.alabama.gov |
| HVAC & Refrigeration | 100 N. Union Street, Suite 986, Montgomery, AL 36104 | See website | hacr.alabama.gov |
| Plumbers & Gas Fitters | 216 Aquarius Dr, Suite 319, Homewood, AL 35209 | (205) 945-4857 | pgfb.alabama.gov |
Penalties for Working Without a License
Working without a license in Alabama carries legal consequences that vary by trade. Each board has enforcement authority, and penalties can include fines, criminal charges, and the inability to enforce contracts.
General Contractors
Under Ala. Code § 34-8-6, the Board identifies prohibited acts and penalties for unlicensed contracting. An awarding authority, contractor, or subcontractor that awards or starts work with an unlicensed contractor on a covered project is in violation and subject to penalties. Verify exact criminal classification and fine amounts directly in Ala. Code § 34-8-6.
Home Builders
Unlicensed residential homebuilding is a Class A misdemeanor. The Home Builders Licensure Board may:
- Impose fines of up to $5,000
- Stop the work on a project
- Pursue criminal charges
An unlicensed builder may not sue to enforce a residential construction contract. Alabama also maintains a Homeowners' Recovery Fund with a $30,000 maximum per transaction and $90,000 maximum based on one licensee's actions.
Plumbers & Gas Fitters
The Board's fee rule sets minimum administrative fines of $500 for violations not related to gas work and $1,000 for violations related to gas work. Maximum fine limits are determined by state law. Valid certification is required to contract, offer, or engage in plumbing or gas fitting in Alabama.
Electrical Contractors and HVAC/Refrigeration
Both the AECB and HACR Board have enforcement and complaint processes for unlicensed activity. Exact fine and criminal penalty amounts were not verified in official board materials. Verify penalty details directly with AECB (Ala. Code Chapter 34-36) and HACR (Ala. Code Chapter 34-31 and Admin Chapter 440-X-6).
Frequently Asked Questions
Do I need a contractor license for small projects in Alabama?
It depends on the project type and value. General contractor licenses are required for commercial/industrial projects of $100,000 or more. Residential home builder licenses are required when the project exceeds $10,000 (or $2,500 for roofing). Electrical, HVAC, and plumbing work requires licensure regardless of project value.
Which board do I apply to for residential construction?
Residential construction (structures not over 3 floors and not more than 4 units) falls under the Home Builders Licensure Board. Commercial and industrial projects of $100,000+ fall under the Licensing Board for General Contractors.
Does Alabama have reciprocity with other states?
Yes, but reciprocity varies by board. General Contractors have agreements with Arkansas, Mississippi, Louisiana, Tennessee, and North Carolina. Electrical Contractors have agreements with seven states plus Georgia (terminating May 25, 2026). HVAC has agreements with six states. Plumbers/Gas Fitters have an agreement with Mississippi only. In all cases, the Alabama Business/Law exam is still required.
What are the continuing education requirements?
CE requirements vary by board: Home Builders require 6 hours annually (with 2 Alabama-specific hours). Electrical Contractors require 14 hours every 2 years (7 hours NEC/NFPA). HVAC contractors require 4 hours annually. Plumbers and Gas Fitters require 4 hours annually. General Contractors have no CE requirement.
How long does it take to get licensed as a general contractor?
The General Contractors Board meets quarterly, and applications must be on file 30 days before the meeting. Combined with exam scheduling and document preparation, the process can take several months. Plan ahead and check the Board's meeting schedule for current dates.
What happens if I let my license expire?
Consequences vary by board. General Contractors can renew up to 1 year after expiration; after that, a new application and exams are required. Home Builders can renew within 3 years of expiration. Electrical Contractors who lapse more than 1 year must apply for reinstatement within 5 years. HVAC contractors who miss the late-renewal deadline must re-test as new applicants. In all cases, you may not perform contracting work while your license is expired.
Conclusion
Alabama's multi-board licensing system means you need to identify the correct board for your trade, meet its specific requirements, and stay current with renewal and continuing education obligations. The process is manageable if you start with the right application packet and prepare your documentation in advance.
For general contractors working on commercial projects of $100,000+, start at the General Contractors Board. For residential builders, visit the Home Builders Licensure Board. For trade-specific licenses, contact the Electrical Contractors Board, the HACR Board, or the Plumbers & Gas Fitters Examining Board.
This article is provided for informational purposes and was last updated in April 2026. Licensing requirements, fees, and regulations are subject to change. Always verify current requirements directly with the appropriate Alabama licensing board.