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the complete guide to the alabama home builders license

Your FREE Alabama Home Builders License Guide!

Alabama has several designated state agencies that govern the various areas of construction activity:


Residential construction above $10,000 falls under the jurisdiction of the Alabama Home Builders Board

Types of Home Builders Licenses

There are currently three license types:

  • Unlimited License 
  • Limited License 
  • Roofer's License 

Unlimited License

"A residential home builder who holds a current and valid residential home builders license without limitation may engage in the business of residential home building regardless of the scope of the construction"

  • Allows you to engage in repair or improvement projects over $10,000
  • Projects involving more than one trade
  • Projects affecting the structural integrity
  • Register for the Unlimited License

Limited License

"A residential home builder who holds a current and valid residential home builders license with limitation may only engage in the business of residential home building in the scope of repair, improvement, and re-improvement"

  • Allows you to engage in repair or improvement projects over $10,000
  • Projects involving no more than one trade
  • Projects that do not affect the structural integrity
  • Register for the Limited License

Roofing License

"Residential Roofing. The term “residential roofing” as used in these rules shall mean installing products or repairing surfaces on the external upper covering of a residence or structure that seals, waterproofs, or weatherproofs the residence or the structure, when the cost of the undertaking exceeds$2,500"

General Contractor License vs Home Builders License

In the state of Alabama any contractor taking on a project over $50,000 must register with the Alabama Board of General Contractors.

If your project is under the $50,000 mark than you fall under the jurisdiction of the Alabama Home Builders License Board

"Builders who construct or offer to construct more than four (4) residences on a single lot, including site-built homes, condominiums, duplexes, or multi-unit residential buildings consisting of more than four (4) residential units are subject to the jurisdiction of the Alabama Licensing Board for General Contractors"

complete guide to the Alabama Home builders license

Alabama Home Builders License Requirements

You must meet the following requirements:

  • 19 Years of Age
  •  Valid Drivers License OR USA Issued Identification
  •  Social Security Number

You must also:

  • Pass the Alabama Home Builder's Examination
  • Complete a Credit Report check (unlimited and limited license only)
  • $10,000 Bond required with application (roofing license only)
  • All applications must be notarized
  • Certificate of compliance with Dept of revenue (corporations only)

Fees & Insurance

  • $100 New license Application Fee (non-refundable)
  • $250 Annual license fee
  • Check or money order only

Completed Applications and fees can be sent to:

Home Builders License Board

445 Herron St 

Montgomery, Alabama 36104

Download Application

How To Pass The Home Builders License Test

All contractors must pass the Alabama home builders license law test. The exam will be:

  • 80 Questions Law & Business (2 hours allowed)
  • 80 Residential Construction Skills (4 hours allowed)

The law & business test covers the following topics:

  • Business Organization
  • Contract Management
  • Estimating & Bidding
  • Financial Management
  • Labor Laws
  • Project Management
  • Risk Management
  • Safety (Reporting)
  • Board Rules
  • Tax Laws

The Residential construction skills exam covers:

  • Plan Reading
  • Site-work & Foundations
  • Concrete and Reinforcement
  • Masonry
  • Carpentry
  • Roofing
  • Interior Finish
  • Exterior Finish
  • Associated Trades
  • OSHA

NASCLA

Alabama accepts the nascla electrical contractor license

Alabama currently uses the NASCLA Law & Project Management for Residential Construction Exam.

NASCLA stands for the National Association of State Contractor Licensing Agencies. NASCLA a non-profit organization whose purpose to establish license uniformity for state agencies that regulate the construction industry.

For more information, check out this complete guide to NASCLA

Exam site locations

  • Auburn University

112 SouthCollege 238 Biggin Hall

Auburn,AL 35848


  • Jefferson State Community College 

Jefferson Campus Lurleen WallaceHall - Room 3222601 

Birmingham, AL 35215


  • Jefferson State Community College Shelby

HooverCampus General Studies Building,Room110

4600 Valleydale Rd 

Birmingham,AL 35242


  • Enterprise State Community College

600 PlazaDrive Enterprise, AL 36331


  • University of Alabama in Huntsville 

301 Sparkman Drive Wilson Hall, Room202

Huntsville, AL 35899


  • University of South Alabama

555 UniversityBlvd.North AlphaHall East- Room 326

Mobile,AL 36688


  • Alabama State University

915 S.Jackson Street McGeHee Hall 105

Montgomery,AL36104


  • North Alabama Electrical JATC 1805 

E.17th Street Sheffield, AL 35660


  • University of Alabama Tuscaloosa 

3017th Avenue, Houser HallSuite 2000

Tuscaloosa, AL 35487

License Exemptions 

There are certain individuals who are exempt from licensing requirements, they are:

Subcontractors -

Anyone who is employed by a person holding either a general contractor license or builders license

Employees of Government Entities -

No residential home builders license is required for employees of the United States, the State of Alabama, or any municipality, county, or other political

General Contractors -

Those holding an Alabama general contractor license are exempt from the jurisdiction of the home builders board

Real Estate Agents, Architects, and Engineers -

No residential home builders license is required for real estate licensees, licensed engineers, and licensed architects when operating within the scope of their respective licenses on behalf of clients

Homeowners -

Owners of property when acting as their own contractor and providing all material supervision themselves, when building or improving one-family or two-family residences on such property for the occupancy or use of such owners and not offered for sale. Homeowners claiming this exemption may not sell their property within 1 year of project completion

Alabama Business License

If you are applying for an Alabama home builders license as anything other than an individual sole proprietorship, you will need to establish yourself as a business entity.

This can be set up through the Alabama Secretary of State

You will choose a name and then select the type of entity you want. Typically, construction companies choose either:

  • Sole Proprietor - License held through an individual
  • Partnership - License held through a partnership
  • LLC - License held through a company that exists as its own entity
  • S-Corporation - License held through a corporate entity
if you are looking to become an electrical contractor in alabama, you may want to look at establishing yourself as a business entity

For a deeper look at the advantages and disadvantages of each business entity, check out this free guide!

Worker's Compensation laws for Alabama Contractors

Alabama requires all construction companies with 1 or more employees to hold workers compensation insurance.

This also includes LLC's. However, If you apply as a sole proprietorship and have no employees you may be exempt.

Contractors must be insured through a commercial provider, self insured carrier or through the Alabama Department of Labor

Alabama home builders search

The Alabama Home Builders License Board's number one responsibility is protecting the consumer public.

The agency exists not only to enforce rules on construction contractors, but also to ensure that homeowners are not being over charged by unlicensed contractors.

If you are looking to verify a builders license in the state of Alabama, you can check a license here

License renewal

Once your builders license is active, you will be responsible for renewing it on an annual basis between October 1st and December 31st.

You can learn more about the renewal process below

Alabama home builders license renewal portal

Apprenticeships in Alabama

If you are entering the construction industry without any experience, you should absolutely explore starting out in an apprenticeship!

One of the best ways to build a solid foundation and position yourself to earn an excellent living in a short time frame is by investing in your education.

Apprenticeships can provide you with valuable training in a variety of different trades including: Electrical, Plumbing, Concrete, Landscaping, Painting, HVAC, Roofing, Carpentry and much more!

If you are one day looking to get the Alabama General Contractors license, you must demonstrate skillsets beyond just your specific trade. 

Check out our online course library:

alabama home builders license courses that include trade study components can be especially helpful on exam day

If you are new to construction industry and have heard the term “journeyman” or “apprentice” and are not sure what these terms mean, or perhaps where to even start.

Each state may have different requirements and standards for what is considered a journeyman, check your state laws.

To Learn more about the step by step path from an Apprentice to Journeyman!

What You Need To Know About Contractor License Schools

if you are looking to get an alabama contractors license, you may want to enroll in contractors classes

If you are looking to prepare for your Alabama home builders license test, taking contractor classes could be a huge help.

Schools typically provide

  • Home study materials
  • Online classes taught by industry professionals
  • Application assistance 
  • Insurance and Business services

Many tradesman find themselves a bit confused when faced with questions about construction accounting, balance sheets, workers compensation, employee rights, job site safety and Alabama home builders license law. 

These topics can be learned quickly. Studying consistently on the weeks leading up to your exam day will help you greatly.

Practice exams and study guides breaking down everything you need to know can be found here.

Blueprint Reading Course

blueprint reading is an essential skill for alabama home builders

For anyone looking to become a licensed general contractor, learning how to read blueprints is critical...

Blueprints communicate important information about the way in which a structure is built as well as what materials are necessary or have been used for its construction.

Being comfortable with construction blueprints is an invaluable skill especially for those looking to get into engineering or architecture.

See our Free Blueprint Reading Course!

Alabama OSHA

Statistically, 21% of all work-related fatalities are in construction.

That equals about 1 and 5 worker deaths on average.

In the construction industry, the leading cause of worker deaths is reported as falls, struck by an object, electrocution, and caught-in/between.

having a solid understanding of osha safety practices is very important for residential construction builders in alabama

Safety is taken very seriously by construction authorities in Alabama.

Whether it be HVAC, roofing, painting, landscaping, carpentry, electrical or any other trade.

If your workers are not properly trained, it can place unnecessary risk to not only your personal safety but your bottom line as a business. 

For employment with a licensed general contractor, you may be asked to complete some level of Alabama OSHA Training

Alabama Contractor's License Reciprocity

If you plan on taking on projects over $50,000 you would then qualify for an Alabama contractors license. If you want to work out of state, you may qualify for reciprocity:

If you have had a license for three (3) consecutive years, which is still in good standing, with any of the following Boards, you may qualify for reciprocity: 

  • Arkansas 
  • Louisiana 
  • Mississippi  
  • Tennessee  
  • North Carolina State Board of Electrical Contractors

The Qualifying Party for Alabama must be the same as the Qualifying Party for the reciprocal state.

Applications for Reciprocity in Alabama must be on file, with a completed Out of State License Verification formApplicants must also meet all of the basic licensing requirements

Learn more about Contractor License Reciprocity

Get Started on Your Construction Career

Applying to the Alabama Home Builders License Board can be a huge first step up in starting your own business.

The construction industry is very lucrative. There will be more and more opportunities for skilled tradesman in the future.

The key is to use the information you have now and take action from beginning to end. 

If you have found this article, be sure to let us know! and check back for more updates in the future.

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