How to Get a Contractor License in Alabama

• Education requirement: No formal pre-license education required. Applicants must demonstrate experience and pass a trade exam.. Many providers offer online options, giving you flexibility to study on your own schedule.
• The licensing exam: The Alabama General Contractor Exam is administered by PSI. You'll need to score at least 70% on each section to pass. Study materials and practice exams are available from most education providers.
• Background check required: Alabama requires a criminal background check as part of the application process. Plan for additional processing time and fees.
• Online application available: Alabama accepts online applications, which can speed up processing time.
• Ongoing requirements: Once licensed, you'll need no continuing education hours every 1 year. No continuing education required for renewal.

How Alabama Compares

Alabama does not require any pre-license education hours. The average total cost in Alabama is around $450, compared to the national average of $404. Alabama's 1-year renewal cycle is shorter than the national average of 1.5 years.

• Choose your education provider carefully: Compare prices, format (online vs. in-person), and reviews. Some providers offer exam prep materials bundled with the course, which can save you money. Check the Alabama Licensing Board for General Contractors website for a list of approved providers.
• Don't rush the exam: Since no pre-license education is required, you can focus directly on the application and exam process. Use practice exams to identify weak areas before scheduling your test date.
• Get your insurance and bonding lined up early: No sponsorship required, but must demonstrate financial responsibility General liability insurance and a surety bond are typically required. Shop multiple providers and consider joining a local contractors' association for group rates.
• Budget for startup costs beyond licensing: Beyond the $300-$600 licensing cost, plan for insurance premiums, bonding, tools and equipment, vehicle costs, and marketing. Most new contractors should budget an additional $5,000-$15,000 for their first year of business expenses.
• Budget approximately $600 for your Alabama license: This includes $150 in application fees, $100 for the exam, and education costs. Once licensed, plan for $150 in renewal fees every 1 year.