The State of Alabama holds reciprocal licensing agreements for General Contractors in the following states:
- Mississippi
- Louisiana
- Arkansas
- Tennessee
General Contractors who hold a license in one of the above states may easily obtain a license to work on construction projects in Alabama. Reciprocity between Alabama and the states listed above provides a waiver of the Alabama Trade Examination.
Reciprocal License Classifications in Alabama
The Alabama State Licensing Board for General Contractors issues licenses to both Prime and Subcontractors. A license is needed to work on commercial and industrial projects of $50,000 or more; and residential projects over $10,000.
Reciprocal states are chosen because the General Contractor license offered are similar to the classifications offered in Alabama. To obtain a license you must file an application and meet all the Board’s requirements.
Reciprocal Requirements in Alabama
To obtain a reciprocal contractor license in the State of Alabama, contractors must meet the following requirements:
- Contractors must hold an active license for the past 3 years in a reciprocal state. The license must be current, active, in good standing and free from disciplinary actions.
- Contractors must provide written certification from their home state, proving that they hold a valid, active license.
- Contractors must meet the Alabama State Licensing Board’s requirement for net worth and working capital. All contractors must have a minimum net worth/working capital of $10,000.
- Contractors must complete and submit a license application to the Board, along with all the required documents and fees. For a copy of the application and additional required forms, please visit: Alabama Contractor Licensing Forms
- Contractors must take and pass the Alabama Business and Law Exam, administered by PSI Services.
- If the contractor is using a qualifying individual as a representative to take and pass the exam, they must choose the same person they used to obtain their original license in their home state.
*All applications must be on file at least 30 days before the scheduled Board meeting. The Board meets quarterly to review license applications. To view a list of scheduled Board meetings, please visit: Board Meeting Dates and Deadlines
Reciprocal Examinations in Alabama
Reciprocity agreements between Alabama and its reciprocal states allows contractors to obtain a license without having to take the Alabama Trade Exam. However, all applicants are required to register for and pass the Alabama Business and Law Exam.
The Alabama Business and Law Exam is administered by PSI Services. PSI provides a Candidate Information Bulletin which contains all the information needed to prepare for and take the exam, including a copy of the exam registration form and a list of suggested study materials.
View a copy of the Candidate Information Bulletin.
The Business and Law exam is an open-book test covering information about business management practices and construction laws in the State of Alabama. Contractors must pass this exam with a minimum score of 70%.
Further Information about Reciprocity in Alabama
For more information about obtaining a reciprocal contractor license from the Alabama State Board for Licensing Contractors, please visit the links below:
Alabama Licensing Board Reciprocity Information
OR
Call the Board at:
334-395-5336