Alabama Contractor License Types
| License Type | Application Fee | Annual Renewal | Bond |
|---|---|---|---|
| Building Construction (LBGC) LBGC prime classification for general building construction — including structures, excavation, and foundations. Requires passing a Business and Law exam (administered by PSI) and a trade exam for each classification requested. | |||
| Building Construction Under Four Stories (LBGC) LBGC prime classification for building construction limited to structures not exceeding three stories in height. | |||
| Highways & Streets (LBGC) LBGC prime classification covering roads, streets, bridges, and related transportation infrastructure work. | |||
| Municipal & Utility (LBGC) LBGC prime classification covering sewer, water, gas, electric, and telecommunications utility work. | |||
| Heavy / Railroad (LBGC) LBGC prime classification covering railroad construction, tunnels, pile driving, marine work, and similar heavy civil projects. | |||
| Specialty / Subcontractor (LBGC) LBGC also licenses subcontractor specialties including Swimming Pools (SP), Mechanical (M), Electrical (E), Demolition (D), Environmental (EV), and other specialty classifications. Subcontractors working under a licensed prime must be licensed when their portion of the contract is $100,000 or more (or $5,000 or more for swimming pools), per Act 2024-277 effective October 1, 2024. | |||
| Unlimited Home Builder (HBLB) HBLB residential license required for any residential work costing more than $10,000 that involves multiple trades or affects the structural integrity of the dwelling. Unlimited licensees may also perform residential roofing work. Applicants must pass the Alabama Home Builders exam (administered by Prov). | |||
| Limited Home Builder (HBLB) HBLB residential license for residential work costing more than $10,000 that involves a single trade and does not affect structural integrity. No state exam required, but applicants must hold a current (or held within the past year) municipal or county business/occupational contractor license. | |||
| Roofers License (HBLB) HBLB residential license required for any residential roofing project with a total cost exceeding $2,500. Requires a $10,000 surety bond naming the HBLB as obligee. No state exam required. |
Alabama (AL) splits contractor licensing between two separate state boards. The Alabama Licensing Board for General Contractors (LBGC) regulates commercial, industrial, and public-works contractors on projects of $100,000 or more (or $5,000 or more for swimming pools), per Act 2024-277 (HB418), effective October 1, 2024. The Alabama Home Builders Licensure Board (HBLB) regulates residential home builders on any residential project costing $10,000 or more (or $2,500 or more for roofing). Before hiring in Alabama, consumers should identify which board regulates their project and verify the license on that board's public roster. The LBGC licenses roughly 8,000+ commercial contractors statewide; the HBLB maintains a separate digital registry of residential builders and roofers.
Step 1: Identify Which Board Regulates Your Project
Alabama has two separate contractor licensing boards. For commercial, industrial, or public-works projects of $100,000 or more (or $5,000 or more for swimming pools), per Act 2024-277 effective October 1, 2024, verify through the Alabama Licensing Board for General Contractors (LBGC). For residential projects of $10,000 or more (or $2,500 or more for roofing), verify through the Alabama Home Builders Licensure Board (HBLB). A contractor licensed by one board is not automatically licensed by the other.
Step 2: Get the Contractor's License Number and Board
Ask the contractor for their license number and which Alabama board issued it. Legitimate contractors should readily provide both. If a contractor claims to be 'general-purpose' licensed in Alabama, treat it as a red flag — Alabama does not issue a single universal contractor license.
Report an Unlicensed Builder (HBLB Hotline) →
Step 3: Search the Appropriate Public License Roster
Use the LBGC's License Roster Search to verify commercial contractors, or the HBLB's Licensee Search to verify residential builders and roofers. Both are official, searchable databases showing license number, classification, status, and expiration.
Step 4: Verify Bond, Insurance, and Workers' Compensation
Alabama's licensing statutes do not require a state-filed general liability policy, but residential home builders must disclose in writing prior to work whether they maintain liability insurance (signed by builder, homeowner, and witness). HBLB roofers are required to post a $10,000 surety bond. If the contractor has any employees, Alabama law requires workers' compensation coverage — ask for a current certificate of insurance (COI) naming you as a certificate holder.
- HBLB Roofers: $10,000 license/permit bond naming HBLB as obligee (required)
- HBLB Unlimited/Limited: liability insurance disclosure required (coverage itself not state-mandated)
- LBGC: classification-specific financial statement required at higher bid limits
- Workers' compensation: required for any contractor with employees under Alabama law
Step 5: Check Complaint and Disciplinary History
For residential contractors, file or research complaints with the HBLB at 1-800-304-0853. For commercial contractors, file concerns with the LBGC at (334) 272-5030 or download the Concern/Complaint Form from the LBGC website. For either board, ask whether pending investigations or prior disciplinary action exists before you sign a contract.
Alabama Contractor Insurance Requirements
| Insurance Type | Requirement |
|---|---|
| General Liability (Residential) | Not mandated by HBLB statute, but residential home builders must disclose in writing — signed by builder, homeowner, and witness — prior to starting work whether they maintain liability insurance. Failure to disclose is a violation punishable by the Board. |
| Workers' Compensation | Required under Alabama law for contractors with employees. Verify the contractor's certificate of insurance before work begins. |
| Roofers Bond (HBLB) | HBLB Roofers license applicants must file a $10,000 license/permit bond naming the Home Builders Licensure Board as obligee, valid from issuance through December 31 of the licensure year and renewed annually. |
| LBGC Commercial Threshold | Per Act 2024-277 (HB418), effective October 1, 2024, the LBGC licensing threshold rose from $50,000 to $100,000 for both general contractors and subcontractors under Ala. Code §§ 34-8-1(a) and 34-8-1(c). The swimming-pool threshold remains $5,000. |
Alabama Contractor Bond Requirements
Alabama bond requirements vary by which board licenses the contractor. HBLB Roofers license applicants must post a $10,000 surety bond with the Home Builders Licensure Board named as obligee. HBLB Unlimited and Limited license applicants are not required to post a state surety bond but must submit a credit report demonstrating financial responsibility. LBGC commercial contractors (required for projects of $100,000 or more per Act 2024-277, effective October 1, 2024) are not required to post a blanket state bond; instead, their authorized bid limit is tied to a reviewed financial statement, and specific public-works projects require project-level performance and payment bonds under Alabama's public-works statutes.
Alabama Consumer Protections for Home Improvement
Alabama law provides several important protections for homeowners hiring contractors:
- Alabama maintains two separate public license lookup systems — LBGC for commercial contractors and HBLB for residential builders and roofers.
- Only the original homeowner may file a consumer complaint with the HBLB, and the complaint must be filed within six (6) years of substantial completion or of taking possession of the residence.
- The HBLB maintains a Homeowners' Recovery Fund to reimburse actual economic damages suffered by homeowners from licensee violations. Per Ala. Admin. Code r. 465-X-7-.01 (effective March 17, 2025), payouts are capped at $30,000 per transaction and $90,000 per licensee. Roofers licensees are excluded from the Fund.
- Residential home builders must disclose liability insurance status in writing to the homeowner prior to starting work.
- The HBLB operates a Builder Watch Hotline at 1-800-304-0853 for reporting unlicensed residential builders.
- LBGC can pursue criminal charges, civil fines, and license revocation against commercial contractors who violate Alabama Code Title 34, Chapter 8.
What Happens if You Hire an Unlicensed Contractor?
Hiring an unlicensed contractor in Alabama puts you at risk:
- Unlicensed contractors cannot legally enforce payment on contracts requiring state licensure in Alabama (projects of $100,000 or more on the commercial side under Act 2024-277, or $10,000 or more on the residential side).
- Homeowners lose access to the HBLB Homeowners' Recovery Fund if they hire unlicensed residential builders.
- LBGC can refer unlicensed commercial contracting for criminal prosecution under Alabama Code § 34-8-7 and § 34-8-8.
- Your homeowner's insurance may deny claims tied to work performed by unlicensed contractors.
- Mechanics lien rights and bond-claim rights may be unavailable to unlicensed contractors, which complicates any payment disputes.
How to Report an Unlicensed Contractor in Alabama
Alabama accepts reports of unlicensed contracting at the board that regulates the work. The HBLB operates a dedicated Builder Watch Hotline for unlicensed residential construction reports. Commercial work is now regulated at the $100,000-or-more threshold per Act 2024-277, effective October 1, 2024.
- HBLB Builder Watch Hotline (residential): 1-800-304-0853
- HBLB email: information@hblb.alabama.gov
- LBGC (commercial): (334) 272-5030 — submit the Concern/Complaint Form from genconbd.alabama.gov/Consumer_Complaints.aspx
- Alabama Attorney General Consumer Protection: alabamaag.gov/consumer-complaint/
How to File a Complaint Against a Registered Contractor in Alabama
Alabama routes complaints to whichever board licenses the contractor. Residential complaints go to the HBLB; commercial complaints go to the LBGC. Only the original homeowner can file HBLB complaints, and only within six years of completion or possession.
You can file a complaint by:
- HBLB (residential): Call 1-800-304-0853 or (334) 242-2230, or email information@hblb.alabama.gov. Mailing address: 445 Herron Street, Montgomery, AL 36104 (or P.O. Box 303605, Montgomery, AL 36130-3605).
- LBGC (commercial): Download the Concern/Complaint Form from genconbd.alabama.gov/Consumer_Complaints.aspx. Phone: (334) 272-5030. Mailing address: 445 Dexter Ave, Suite 3060, Montgomery, AL 36104.
- Alabama Attorney General Consumer Protection: alabamaag.gov/consumer-complaint/ for consumer-fraud matters outside direct board jurisdiction.
For residential matters, homeowners may pursue the HBLB Homeowners' Recovery Fund in addition to (or instead of) civil court, provided the statutory procedure under Alabama Code § 34-14A-8(b) is followed.
Alabama Contractor Bond Schedule
Alabama does not impose a single uniform contractor bond. Requirements depend on board, license type, and project.
| License Type | Bond Amount | Notes |
|---|---|---|
| HBLB Roofers License/Permit Bond | $10,000 | Required for all active Roofer licenses. Must name HBLB as obligee, cover issuance through December 31 of the licensure year, and be renewed annually (Alabama Admin. Code Rule 465-X-3-.04). |
| LBGC Financial Responsibility | Varies by bid limit | LBGC does not impose a blanket state surety bond; instead, prime contractors submit a financial statement and the Board sets an authorized bid limit accordingly. |
| Public-Works Performance & Payment Bonds | Project-based | Alabama's competitive bid and public-works statutes require project-specific performance and payment bonds on qualifying state and local public construction contracts. |
What Makes Alabama Contractor Licensing Unique
Two Separate Licensing Boards
Alabama is one of a minority of states that splits contractor licensing between two fully separate boards: the LBGC for commercial/industrial work (threshold $100,000 or more per Act 2024-277, effective October 1, 2024) and the HBLB for residential work. Holding a license with one board does not authorize work under the other's jurisdiction.
$100,000 Commercial Threshold, $10,000 Residential Threshold
Projects below $100,000 in commercial/industrial work (raised from $50,000 by Act 2024-277 / HB418, effective October 1, 2024) and below $10,000 in residential work generally fall outside state licensing. Swimming pools ($5,000+) and residential roofing ($2,500+) have lower thresholds.
Reciprocity with AR, LA, MS, NC, and TN
The LBGC has reciprocity agreements with Arkansas, Louisiana, Mississippi, North Carolina, and Tennessee. Applicants must have held the equivalent classification for at least one year in the other state.
Homeowners' Recovery Fund
The HBLB administers a Homeowners' Recovery Fund to reimburse actual economic damages suffered by homeowners from licensee violations. Funded by per-license assessments. Per Ala. Admin. Code r. 465-X-7-.01 (effective March 17, 2025), payouts are capped at $30,000 per transaction and $90,000 per licensee, and Roofers licensees are excluded from the Fund.
Six-Year Complaint Window (Residential)
HBLB complaints must be filed by the original homeowner within six (6) years of substantial completion of construction or of the date the original homeowner took possession. After that, HBLB cannot process the complaint or pay from the Recovery Fund.
Alabama Contractor License Fees
Frequently Asked Questions: Alabama Contractor Licensing
Does Alabama require a contractor license?
Yes, but it depends on the project. Commercial and industrial work of $100,000 or more (or $5,000 or more for swimming pools) requires a license from the Alabama Licensing Board for General Contractors (LBGC), per Act 2024-277 (HB418), effective October 1, 2024. Residential work of $10,000 or more (or $2,500 or more for roofing) requires a license from the Alabama Home Builders Licensure Board (HBLB). Projects under these thresholds generally do not require a state license, though local city or county licensing may still apply.
What's the difference between the LBGC and the HBLB?
The Alabama Licensing Board for General Contractors (LBGC) regulates commercial, industrial, and public-works contractors — offices at 445 Dexter Ave, Suite 3060, Montgomery, AL 36104, phone (334) 272-5030. The Alabama Home Builders Licensure Board (HBLB) regulates residential home builders and residential roofers — offices at 445 Herron Street, Montgomery, AL 36104, phone (334) 242-2230 or 1-800-304-0853. A contractor licensed by one board is not automatically authorized to perform work under the other board's jurisdiction.
How do I check an Alabama contractor's license?
For commercial contractors, use the LBGC License Roster Search at genconbd.alabama.gov/database-sql/roster.aspx. For residential builders and roofers, use the HBLB Licensee Search at hblb.alabama.gov. Both are official, free, and searchable by license number or name. If you cannot find a contractor in either database, call the relevant board to confirm licensure status before signing a contract.
Do Alabama residential contractors need a bond?
Only HBLB Roofers are required to post a $10,000 surety bond naming the Home Builders Licensure Board as obligee. HBLB Unlimited and Limited license applicants are not required to post a state surety bond but must submit a credit report to demonstrate financial responsibility. LBGC commercial prime contractors do not post a blanket state bond; their authorized bid limit is based on a financial statement reviewed by the Board.
What is the minimum project amount that requires a licensed contractor in Alabama?
Commercial/industrial: $100,000 in labor and materials ($5,000 for swimming pools), per Act 2024-277 (HB418) effective October 1, 2024, which raised the threshold from the prior $50,000 figure. Residential: $10,000 in labor and materials ($2,500 for roofing). Splitting a larger project into multiple smaller contracts to avoid licensing is not permitted.
How much does an Alabama contractor license cost?
LBGC Prime Contractor application: $300. LBGC Subcontractor application: $150. HBLB Unlimited new license: $350 total ($250 annual license fee + $100 non-refundable application processing fee). HBLB Limited new license: $350 total (same breakdown). HBLB Roofers new license: $250 total ($150 annual license fee + $100 non-refundable application processing fee). Exam fees are paid separately to PSI (LBGC) or Prov (HBLB).
Does Alabama have reciprocity with other states?
Yes — the LBGC has reciprocity with Arkansas, Louisiana, Mississippi, North Carolina, and Tennessee for commercial contractors. Applicants must have been licensed for at least one year in the other state in the same classification being requested in Alabama. The HBLB does not have formal residential-license reciprocity agreements.
How do I file a complaint against an Alabama contractor?
For residential: file with HBLB at 1-800-304-0853, (334) 242-2230, or information@hblb.alabama.gov. Only the original homeowner can file, and the complaint must be within six (6) years of substantial completion or of taking possession. For commercial: file with LBGC by submitting the Concern/Complaint Form at genconbd.alabama.gov/Consumer_Complaints.aspx or calling (334) 272-5030. You can also file a general consumer complaint with the Alabama Attorney General's office at alabamaag.gov/consumer-complaint/.
What happens if I hire an unlicensed contractor in Alabama?
Unlicensed contracting is a violation under Alabama Code § 34-8-7 and § 34-8-8 (commercial) and § 34-14A (residential), subject to civil fines and criminal penalties. An unlicensed contractor cannot legally enforce payment for work requiring a license (projects of $100,000 or more on the commercial side under Act 2024-277, or $10,000 or more on the residential side), and you may lose access to the HBLB Homeowners' Recovery Fund or LBGC enforcement tools if something goes wrong. The HBLB runs a Builder Watch Hotline at 1-800-304-0853 specifically for reporting unlicensed residential builders.
Is an Alabama general contractor license valid for residential work?
Only for older licenses. Per HBLB rules, anyone holding an Alabama General Contractors license issued before the 1992 statute that created the HBLB — specifically LBGC license numbers 1 through 18907 — may engage in residential construction without a separate HBLB license. Anyone holding LBGC license number 18908 or higher must also hold an HBLB license to perform residential construction over $10,000.
Sources
Facts on this page were verified against the following primary sources on April 20, 2026. Licensing laws, fees, and bond amounts change — always confirm with the official board before acting.
- Alabama Licensing Board for General Contractors — Home — Primary regulator for commercial/industrial contractors in Alabama; board established 1935. (retrieved 2026-04-20)
- LBGC — Board Information (address, phone) — LBGC: 445 Dexter Ave, Suite 3060, Montgomery, AL 36104. Phone (334) 272-5030. (retrieved 2026-04-20)
- LBGC — How to Apply (fees, reciprocity, exam) — Prime application $300; Subcontractor application $150; reciprocity with AR, LA, MS, NC, TN; Business & Law exam via PSI. (retrieved 2026-04-20)
- LBGC — License Roster Search (public lookup) — Official public license verification for commercial contractors. (retrieved 2026-04-20)
- LBGC — Classification of License — Enumerates prime classifications BC, BCU4, HS, MU, H/RR and specialty categories. (retrieved 2026-04-20)
- LBGC — Rules and Regulations (PDF) — LBGC rules; specialty licensing thresholds ($5,000 for swimming pools). Commercial/GC threshold raised to $100,000 by Act 2024-277 effective October 1, 2024. (retrieved 2026-04-20)
- LBGC — Law (statute references) — Links to Alabama Code Title 34, Chapter 8 and penalty provisions §§34-8-7 and 34-8-8. (retrieved 2026-04-20)
- LBGC — Consumer Concerns / Complaints — Concern/Complaint Form and commercial complaint process. (retrieved 2026-04-20)
- Alabama Home Builders Licensure Board — Home — Primary regulator for residential home builders and roofers in Alabama. (retrieved 2026-04-20)
- HBLB — How to Get Licensed (fees and application packages) — Unlimited/Limited/Roofers license application packages and payment instructions. (retrieved 2026-04-20)
- HBLB — FAQ: Time Limit for Filing a Consumer Complaint — Six-year complaint window from substantial completion or homeowner possession; original homeowner only. (retrieved 2026-04-20)
- HBLB — Building Officials (Builder Watch Hotline) — Builder Watch Hotline 1-800-304-0853 for reporting unlicensed residential builders. (retrieved 2026-04-20)
- HBLB — Applicant FAQs (exam provider, license types) — Exam administered by Prov; three license types (Unlimited, Limited, Roofers); grandfathering rule for LBGC licenses <=18907. (retrieved 2026-04-20)
- Alabama Administrative Code Rule 465-X-3-.04 — HBLB Licensing — Official rule text requiring $10,000 Roofer bond, financial responsibility documentation, and license thresholds. (retrieved 2026-04-20)
- Alabama Attorney General — Consumer Complaint — Alabama AG consumer complaint portal for fraud matters outside direct board jurisdiction. (retrieved 2026-04-20)
- Alabama Act 2024-277 (HB418) raising commercial threshold to $100,000 — Enrolled text of Act 2024-277 (HB418), amending Ala. Code §§ 34-8-1(a) and 34-8-1(c) to raise the GC and subcontractor thresholds from $50,000 to $100,000, effective October 1, 2024. (retrieved 2026-04-20)
- LBGC News Release on $100,000 Threshold Change — LBGC news release announcing the Act 2024-277 threshold increase effective October 1, 2024. (retrieved 2026-04-20)
- HBLB Homeowners' Recovery Fund (consumer overview) — Human-readable HBLB page confirming Recovery Fund caps: $30,000 per transaction, $90,000 per licensee; Roofers licensees excluded. Implements Ala. Admin. Code r. 465-X-7-.01 (effective March 17, 2025). (retrieved 2026-04-20)
Other States
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