General Contracting Companies in Alabama

Short answer: Exchange lists 8 general contractors in Alabama. Commercial and public general contractors are licensed by the Alabama Licensing Board for General Contractors under Title 34, Chapter 8 of the Code of Alabama, and a license is required when the cost of the undertaking is $100,000 or more, a threshold raised from $50,000 by Act 2024-277 on October 1, 2024. Residential work over $10,000 falls to the Home Builders Licensure Board instead. From January 1, 2027, residential builders must build to the new Alabama Residential Building Code.

Licensing board

The Alabama Licensing Board for General Contractors in Montgomery licenses prime contractors and subcontractors under Title 34, Chapter 8 of the Code of Alabama.

License threshold

An Alabama general contractor license is required when the cost of the undertaking, including labor and materials, is $100,000 or more, or $5,000 or more for swimming pool work.

Residential work

In Alabama, residential building, remodeling and repair over $10,000, and residential roofing over $2,500, require a license from the Home Builders Licensure Board under Title 34, Chapter 14A.

Financial qualification

Alabama prime contractor applicants need at least $10,000 in net worth and working capital, shown on a CPA-prepared financial statement no more than one year old, and the board sets each license's bid limit.

Building code

Alabama has no statewide code for private commercial buildings; the state code administered by the Division of Construction Management covers state-funded buildings, schools, hotels and movie theaters, using the 2021 IBC amended March 17, 2025.

Lien deadline

In Alabama an original contractor must file a verified statement of lien in probate court within six months of last work, and suit to enforce must follow within six months of the debt maturing.

Who licenses general contractors in Alabama, and when is a license required?

Alabama splits contractor oversight between two state boards, and the first job for any owner or developer is to work out which one governs the project. Commercial, industrial, institutional, public works, highway, utility and other non-residential construction falls under the Alabama Licensing Board for General Contractors, which sits in Montgomery and operates under Title 34, Chapter 8 of the Code of Alabama. Section 34-8-1 defines a general contractor as anyone who, for a fixed price, commission, fee or wage, undertakes to construct, superintend, alter, maintain, repair, rehabilitate, remediate, reclaim or demolish any building, highway, sewer, structure, site work, grading, paving or other improvement in Alabama where the cost of the undertaking is $100,000 or more.

That dollar figure changed recently. Act 2024-277, effective October 1, 2024, raised the minimum contract amount from $50,000 to $100,000, so a large share of small commercial tenant fit-outs and repair jobs that once needed a licensed contractor now fall below the line. Many older guides, bid templates and specifications still cite $50,000, so owners should update their documents. Swimming pool construction keeps a much lower trigger of $5,000. The same act clarified that labor brokers and temporary labor providers who supply workers to a general contractor, under that contractor's supervision and control, are exempt, but it does not let them take on a scope of work as a subcontractor.

A second change took effect on October 1, 2026. Act 2026-396 amended the exemptions in Section 34-8-7 to exempt the construction and repair of residential swimming pools and to add new exemptions for certain routine or regular maintenance, repair, cleaning and facility support services. The board has said the law does not define every situation that counts as routine maintenance, and it asks contractors to raise specific projects with the board before bidding or starting work. Facility managers who rely on maintenance contracts above $100,000 should confirm with the board whether the new exemption covers their scope rather than assuming it does.

Residential construction is handled separately by the Home Builders Licensure Board under Title 34, Chapter 14A. That board licenses anyone who builds, remodels, repairs or superintends work on residences of up to three floors and four units when the cost of the undertaking exceeds $10,000, and residential roofers when the job exceeds $2,500. A commercial general contractor license does not authorize home building, and a home builder license does not authorize commercial work above the $100,000 threshold.

How does the Alabama general contractor license application work?

A prime contractor application to the Alabama Licensing Board for General Contractors costs $300, payable by cashier's check or money order, and must be on file at least 30 days before one of the board's regularly scheduled meetings, which are held quarterly. Because approval depends on that calendar, an Alabama license usually takes a few months, and bidders new to the state should plan around the board meeting dates rather than the bid date. Subcontractors use a separate application that costs $150 and needs three references from general contractors, architects, engineers or awarding authorities.

The prime application asks for a current financial statement no more than one year old. It must be audited, reviewed or compiled under generally accepted accounting principles by a certified public accountant or a licensed public accountant the board approves, and the Alabama Department of Transportation booklet is also accepted. Cash-basis or tax-basis statements are not accepted, and deficits are not acceptable. Every applicant must show a minimum net worth and working capital of $10,000. The board then assigns a bid limit based on that financial picture, and a bank line of credit, or a personal or parent company guaranty, can raise the limit within the rules described in the instructions.

Applicants must also send proof of current liability insurance naming the board as certificate holder, a registration printout from the Alabama Secretary of State for entities, a qualifying party form, an organizational chart, and three reference forms from licensed general contractors, registered architects, registered professional engineers or other people the board accepts. The references must cover commercial or industrial work completed in prior years in each classification requested. All prime applicants must pass the Alabama business and law examination administered by PSI, and since 2008 applicants have also had to pass trade examinations where the board requires them.

Alabama offers reciprocity to contractors licensed for at least one year in the same classification with the Arkansas, Louisiana, Mississippi, North Carolina or Tennessee boards, and the qualifying party must be the same person in both states. Licenses renew yearly on a staggered schedule set by the first letter of the company name, at $200 for primes and $100 for subcontractors. A contractor who lets a license lapse for more than a year must reapply and sit the trade and business examinations again. The license is also separate from the state and county privilege license that businesses need.

Which licenses, permits and registrations apply in Alabama?

How do I check a general contractor in Alabama before I sign?

7 checks, in order, using the Alabama registers and rules described on this page:

1. Search the contractor on the Alabama Licensing Board for General Contractors license search and confirm the license is active, in the company's exact legal name, before any bid of $100,000 or more is opened.
2. Compare the license classification (for example BC, BCU4, HS, MU or H/RR) and the board-assigned bid limit against the project scope and the engineer's estimate.
3. For residential work over $10,000, or residential roofing over $2,500, check the Home Builders Licensure Board licensee search and ask to see the builder's license card.
4. Get the written liability insurance disclosure required by Code of Alabama Section 34-14A-19 signed and witnessed before a home builder starts, and get an insurance certificate naming you as additional insured.
5. Require every subcontractor with a subcontract of $100,000 or more to show its own Alabama license before mobilizing, since under Section 34-8-7 the prime becomes an awarding authority.
6. Ask the original contractor for the list of suppliers, laborers and employees under Section 35-11-219, and collect lien waivers before each payment, given the six-month and four-month lien filing windows in Section 35-11-215.
7. Confirm with the local building department which code edition will apply to the permit, and for homes finishing after January 1, 2027, whether the Alabama Residential Building Code or a local residential code governs.

What license classifications and bid limits apply to Alabama general contractors?

Alabama does not issue a single all-purpose general contractor license. Under the board's rules, including Administrative Code 230-X-1-.27 on major classifications, each license lists the types of work the contractor has shown experience in. The major classifications are Building Construction (BC), Highways and Streets (HS), Municipal and Utility (MU) and Heavy and Railroad (H/RR). There is also a Building Construction Under Four Stories (BCU4) classification, plus specialty classifications for swimming pools, mechanical, electrical, environmental and demolition work, and a long list of narrower specialties such as concrete, fencing, irrigation, cell towers and energy retrofit.

To get a classification, an applicant generally has to document at least three projects completed in prior years in that category, backed by the three references. A contractor who cannot meet a major classification can ask for subclassifications that match its record. For an owner, this matters more than the license number itself. A firm licensed only for Municipal and Utility work is not qualified to act as prime on a mid-rise building, and a BCU4 holder should not be leading a five-story project. Before shortlisting, check the classification printed on the license and compare it with the scope.

Each license also carries a bid limit, which is the largest single contract the contractor may bid or perform, set from the net worth and working capital in the financial statement on file. Contractors whose finances grow can file updated statements to raise their limit. An Alabama contractor with a modest bid limit may be well qualified for small projects but not legally able to take a large one, so check the bid limit against the engineer's estimate before issuing an invitation to bid, not after bids are opened.

The board's specialty classifications for mechanical work, with subclassifications such as HVAC, plumbing, gas piping and refrigeration, are marked with an asterisk on the application because other state boards also license those trades in Alabama. A general contractor license in a mechanical or electrical specialty does not replace the separate trade licenses those boards require, and the board's own instructions say a general contractor license does not exempt a company from any other laws, boards or commissions.

What duties do Alabama owners, architects and awarding authorities have when hiring a contractor?

Alabama puts real obligations on the people who award contracts, not only on contractors. Under Section 34-8-8, it is the duty of the awarding authority to confirm that a contractor is licensed before letting it bid on, or offer to build, a project of $100,000 or more ($5,000 for swimming pools). Architects, engineers and awarding authorities must state in their bid specifications that a general contractor license is required before a prime contractor can qualify to bid in Alabama. Public owners such as cities, counties and school boards normally include this notice already, but private owners and their design teams are covered too.

The rule passes down the contracting chain. A prime contractor that awards a subcontract becomes an awarding authority itself. Section 34-8-7 lets a prime receive bids from unlicensed subcontractors, but the subcontractor must be licensed before it starts work when its subcontract is $100,000 or more. If a contract at or above the threshold goes to an unlicensed contractor, or an unlicensed subcontractor is allowed to start, the board treats the awarding authority, the contractor and the subcontractor as all being in violation and subject to penalties.

Building officials are part of the system too. Section 34-8-9 of the chapter governs the issuance of building permits to contractors, so owners should expect the local permit office to look at the state license on commercial permits above the threshold. For an owner, the simplest protection is to check the license, classification and bid limit on the board's online license search when bids come in, and again before contract signing, keeping a dated printout in the project file.

Contracts should also be written with Alabama's statutes of limitation in mind. Section 6-5-221 sets a two-year period for claims against architects, engineers and builders over defective design or construction, which runs from discovery for latent defects, and a statute of repose that generally bars claims more than seven years after substantial completion. Owners who expect to rely on long warranties should spell them out in the contract rather than counting on the statutory periods.

How is residential construction regulated in Alabama, and what changes in 2027?

The Home Builders Licensure Board offers three main license types: unlimited, limited and roofer. An unlimited license requires passing the Alabama Home Builders business and law examination with a score of 70 and the skills examination with a score of 66, both run by the testing provider Prov. Limited and roofer applicants instead show a current or recent contractor business license issued by an Alabama municipality or county. Unlimited and limited applicants must have a credit report sent directly to the board, and roofer applicants must file a $10,000 license and permit bond naming the board as obligee. Every licensee must complete six hours of continuing education before a renewal license is issued.

Chapter 14A also gives homeowners specific protections. Under Section 34-14A-19, before work begins, a residential home builder must disclose in writing whether it carries liability insurance, and the builder and homeowner must sign the disclosure, witnessed by a person the homeowner chooses. The board runs a Homeowners' Recovery Fund, paid for by an annual fee of up to $60 per licensee, which can pay homeowners who file a complaint with the board and win a judgment, though consent judgments are excluded. The board advises consumers to check the licensee search before signing any contract over $10,000.

The biggest change for Alabama builders is the new statewide residential code. House Bill 198 of the 2024 session, effective October 1, 2024, abolished the Alabama Energy and Residential Codes Board within the Department of Economic and Community Affairs and gave the Home Builders Licensure Board sole authority to adopt an Alabama Residential Building Code based on published editions of the International Residential Code and the residential chapters of the International Energy Conservation Code. An advisory council was required to propose the code to the board by October 1, 2025.

Beginning January 1, 2027, every licensed residential home builder in Alabama must build, renovate and repair to the applicable residential code, which is either the state code or a local code adopted under Chapter 14A. Local residential codes already in effect on January 1, 2027 are not displaced, but any local code adopted or amended after that date must meet the state code as a minimum and may not exceed its energy provisions except where a federal mandate requires it. The law also directs the council to consider sealed roof deck standards from the coastal and inland construction code supplements. Owners planning homes for completion in 2027 should ask their builder which code edition the permit will cite.

Which building and energy codes apply to commercial projects in Alabama?

Alabama has no single mandatory building code for private commercial construction statewide. Counties and cities adopt and enforce their own codes, usually recent International Code Council editions with local amendments, so the governing edition can differ between neighboring jurisdictions. Owners should ask the local building department which edition of the International Building Code, fire code and mechanical code applies when the permit is filed, because that sets requirements for design, fire protection and inspections.

The Alabama Department of Finance, Division of Construction Management, keeps a state building code for buildings on state property or paid for with state funds, public and private K-12 schools, public post-secondary schools, hotels and motels, and movie theaters. That code uses the 2021 International Building Code with exceptions and parts of the 2024 edition, amended March 17, 2025, together with the 2021 International Mechanical Code and International Fire Code under the same amendment. It also includes the 2021 International Plumbing Code, International Fuel Gas Code and International Existing Building Code from July 1, 2022, the 2020 National Electrical Code, and ANSI/ASHRAE/IES Standard 90.1-2013 for energy, with listed exceptions. The division has said it has no jurisdiction over other private commercial or residential property.

Commercial energy code authority has also moved. The same 2024 law created an Alabama Commercial Energy Code Division and an advisory committee under the Licensing Board for General Contractors. Proposed editions of the Alabama Commercial Energy Code must be based on the most recent versions of the International Energy Conservation Code or ASHRAE Standard 90.1, and the board publishes the final version. Contractors bidding commercial work should check whether the board has published an updated commercial energy code before relying on an older edition in their envelope and mechanical pricing.

Weather drives much of the code work in Alabama. Coastal Mobile and Baldwin counties face Gulf hurricane wind and storm surge, the rest of the state sees frequent spring tornado outbreaks, and long, humid summers shape roofing, moisture control and HVAC choices. On coastal projects especially, owners should confirm that the contractor has handled design wind loads, impact-rated openings and sealed roof decks, and should ask whether the local jurisdiction applies additional wind provisions.

What are Alabama's mechanic's lien and prompt payment rules for contractors?

Alabama's mechanic's lien statute, in Title 35, Chapter 11, Article 5, gives original contractors in direct contract with the owner a full price lien. Under Section 35-11-215, an original contractor must file a verified statement of lien in the probate court of the county where the property sits within six months after the last work or materials. Suppliers and lower-tier subcontractors without a direct contract have an unpaid balance lien. They must file within four months, after first giving written notice to the owner under Section 35-11-218, and their lien is limited to what the owner still owes under the prime contract when that notice arrives.

Filing on time is not enough. Under Section 35-11-221, a lien claimant must also bring a lawsuit to enforce the lien within six months after the whole debt matures, or the lien is lost. Section 35-11-219 can cost an original contractor its lien if it does not give the owner, on request, a list of all suppliers, laborers and employees on the job. Owners can use that list to track who might later claim a lien and to collect lien waivers from each before releasing payment.

Liens cannot be enforced against state, county or municipal property, so Alabama protects workers and suppliers on public jobs through bonds. Section 39-1-1 requires contractors on public works to give performance and payment bonds. A claimant on the payment bond generally may not sue until 45 days after giving the surety written notice, and must sue within one year of final settlement of the contract.

Alabama's Prompt Pay Act, in Title 8, Chapter 29, sets default payment timing on private construction contracts. Unless the contract says otherwise, the owner must pay the contractor within 30 days of receiving an invoice, and the contractor must pay its subcontractors and suppliers within seven days of being paid. Late payments earn interest at 1 percent per month, and the prevailing party can recover attorney's fees and costs. Because so much of this is set by default and can be changed by contract, owners and contractors should state payment, retainage and dispute terms clearly, along with any pay-if-paid clause.

What workforce, insurance and storm-resilience programs affect Alabama construction?

The Alabama Licensing Board for General Contractors requires proof of current liability insurance with every application and keeps that information on file, but the statute does not set a single minimum policy amount for all classifications. Owners should set their own requirements in the contract. Typical items include commercial general liability, workers' compensation, auto and umbrella limits sized to the project, with the owner named as additional insured and certificates checked against the license holder's exact legal name.

On the residential side, the state invests directly in the trades. Section 34-14A-20 sets up the Alabama Construction Trade Academy Fund in the State Treasury, run by the Home Builders Licensure Board, to expand construction trade education through grants for tools, program incentives, supplies, mobile demonstration units and adult education. Contractors who train apprentices or work with high school and community college construction programs can look to these grants, and owners on long programs may want to ask bidders how they find and train skilled labor in a tight market.

Storm resilience is a practical selling point for Alabama builders and roofers. Strengthen Alabama Homes, a program of the Alabama Department of Insurance funded by the insurance industry rather than the state general fund, gives grants that pay up to $10,000 of the cost of wind mitigation on eligible owner-occupied single-family homes in listed counties, built to the FORTIFIED standard. Homeowners pick three contractors to bid from the program's list of qualified and trained contractors. The contract is between the homeowner and the contractor, and the program pays the grant directly to the contractor once the FORTIFIED certificate is issued.

For commercial owners, the lesson from Alabama's hurricane and tornado record is to pick contractors who have handled storm recovery and know the insurance claim process. Chapter 14A lets a county's newly adopted building code take effect on its adoption date, instead of the usual 120 days, when insurance claim work needs a license. The Home Builders Licensure Board also issues notices around declared storm emergencies, and after any major storm owners should check licenses again before letting anyone start emergency repair work.

What has changed recently, or is about to change, for general contractors in Alabama?

Last reviewed October 19, 2026 against the primary sources listed below. Dates are effective dates unless marked otherwise.

• January 1, 2027 — Scheduled: Alabama licensed residential home builders must build to the new Alabama Residential Building Code or a qualifying local residential code.
• October 1, 2026 — In force: Alabama Act 2026-396 amended Section 34-8-7 to exempt residential swimming pools and certain routine maintenance and facility support services from general contractor licensing.
• March 17, 2025 — In force: Alabama's state building code for state-funded buildings, schools, hotels and theaters was amended, using the 2021 IBC with parts of the 2024 edition.
• October 1, 2024 — In force: Alabama Act 2024-277 raised the general contractor licensing threshold from $50,000 to $100,000.
• October 1, 2024 — In force: Alabama HB 198 abolished the Energy and Residential Codes Board and gave the Home Builders Licensure Board authority to adopt a residential code.

Where can I verify a license and check the source in Alabama?

Every figure and rule on this page can be checked against the primary source. These are the offices that publish them. Confirm current requirements directly before you rely on any of them:

Alabama Licensing Board for General Contractors — Changes to the Code of Alabama (Act 2024-277); Alabama Licensing Board for General Contractors — New Contractor Licensing Exemptions Take Effect October 1, 2026; Alabama Licensing Board for General Contractors — Contractor Licensing Law; Alabama Home Builders Licensure Board — Title 34, Chapter 14A, Effective October 1, 2025; Alabama Legislature — HB198 Enrolled (2024), Alabama Residential Building Code and Commercial Energy Code; Alabama Division of Construction Management — State Building Code.

Nearby regions and related trades

General Contracting contractors in other regions: Alberta, Arizona, British Columbia, California, Colorado, Florida, Georgia, Illinois, Massachusetts, Michigan, Minnesota, Missouri, Nevada, New Jersey, New York, North Carolina, Ohio, Ontario, Pennsylvania, Texas, Virginia, Washington, Wisconsin.

Other trades in Alabama: Roofing & Waterproofing.

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