Alabama Contractor License Exam Guide (2026)

How Alabama licenses contractors

The Licensing Board for General Contractors licenses Building (BC), Heavy/Railroad (H/RR), Highway, and Specialty contractors. HVAC, refrigeration, and gas fitters are licensed through the Board of Heating, Air Conditioning & Refrigeration Contractors. Applicants pass PSI trade exams (NASCLA accepted for Building), pass the Business & Law exam, submit financials, and carry insurance.

Expect hurricane surge, 140-degree rooftop heat, limestone sinkholes, and tornado debris fields. Exams highlight wind uplift, floodproofing, OSHA heat plans, and red-clay erosion control.

Official source: Alabama Licensing Board for General Contractors

Alabama contractor license types

General contractors must show a net worth of at least $10,000 and provide a $10,000 bond. Home builders carry $10k bonds and $100k liability insurance.

What's on the Alabama contractor exam

PSI centers operate in Birmingham, Huntsville, Montgomery, Mobile, Dothan, and via remote proctoring.

What Alabama exam questions emphasize

• International Building/Residential Codes with Alabama amendments
• Wind and flood-resistant construction per ASCE 7 and FEMA requirements
• Lien law (Title 35-11) and prompt-pay statutes
• OSHA storm cleanup and heat illness programs

Exam-day logistics

• Bring two IDs, approval letter, and reference manuals
• NASCLA transcripts must be sent directly to the Board
• Scores post immediately; submit financial statements, insurance, and bond for licensing

Trade-specific exam guides

If you're licensing in a single trade rather than the Alabama general contractor classification, the dedicated trade hub will get you to the right code book and exam structure faster.

• General contractor exam guide — IBC/IRC, NASCLA acceptance, and Business & Law.
• Electrical contractor exam guide — NEC (NFPA 70) calculations and grounding/bonding.
• Plumbing contractor exam guide — IPC/UPC drainage sizing, venting, and backflow.
• HVAC contractor exam guide — IMC ventilation, refrigerant management, and load calcs.

Alabama code books & approved references (2026)

Always confirm the exact editions and tab rules in your candidate bulletin before exam day. Editions can change between license cycles.

• International Building Code 2018
• International Residential Code 2018
• NASCLA Business, Law & Project Management - Alabama Edition
• Alabama lien statutes (Title 35-11)
• OSHA 29 CFR 1926

Fees & timeline for the Alabama contractor license

• $150 application fee
• $96 PSI trade exam fee and $96 Business & Law fee
• $10,000 bond and $100k liability insurance for home builders
• CPA financial statement preparation
• Annual license renewal fees ($200 average)

Use the All States hub for budgeting; confirm fees with the Board.

Alabama Business & Law focus

The Alabama Business & Law exam covers licensing statutes, lien law, payroll, unemployment insurance, and safety.

• Know Title 34 licensing rules and penalties
• Understand lien filing deadlines (6 months) and subcontractor notices
• Register with the Department of Revenue for sales/use tax and withholding
• Maintain workers-comp and general liability insurance

Practice with our national Business & Law exam hub for cross-state baseline rules.

A focused 4-week study plan for the Alabama exam

Because expect hurricane surge, 140-degree rooftop heat, limestone sinkholes, and tornado debris fields, this four-week outline targets what Alabama field inspectors and your licensing board exam items actually test—not generic national prep.

1. Week 1 — Map the exam. Pull your current candidate bulletin, list every reference, and confirm the modules you have to pass. Start a one-page error log. Spend extra time on: International Building/Residential Codes with Alabama amendments.
2. Week 2 — Code book navigation. Drill open-book lookups (or memorisation drills if your module is closed-book) until you can find any answer in under 60 seconds. Anchor practice around: Wind and flood-resistant construction per ASCE 7 and FEMA requirements.
3. Week 3 — Business & Law. The Alabama Business & Law exam covers licensing statutes, lien law, payroll, unemployment insurance, and safety. Layer in scenario-based questions on contracts, lien notice, payroll, and insurance.
4. Week 4 — Full simulations. PSI centers operate in Birmingham, Huntsville, Montgomery, Mobile, Dothan, and via remote proctoring. Run two full-length timed simulations. Review every miss with a one-sentence rule statement.