Become an Alabama General Contractor
Construction contractor requirements differ in each of the United States. They often include exams, relevant experience, a surety bond and an application. In Alabama, general contractors working on industrial or commercial products worth over $50,000 require a license. General contractors working on residential projects over $10,000 require a home builders license which is not covered by a general contractors license. You will have to be licensed by the Alabama Home-builders Licensing Board to work on residential structures in excess of $10,000. Becoming a contractor in Alabama requires you to prove your assets are worth these amounts, pass examinations, provide references and more. The process can take a number of months to complete. This article will tell you how to become an Alabama General Contractor.
Contents
Steps
- Work in the field of construction for a few years. Your application to become a general contractor will depend upon having some experience in the field. If you also apply for a specialty license, you will be required to list your experience in that specialty.
- Establish a contracting business. If you have been doing business as a construction firm with quotes lower than $10,000, you may have already established a sole proprietorship, partnership or corporation. You will need to fill this out on the form, but each business is only required to have 1 licensed general contractor.
- Download the prime contractor form [genconbd.alabama.gov/Forms-Main.htm here]. You can also call 334-272-5030 if you would like an application to be mailed to you from the Alabama Licensing Board.
- Check if you are able to use the reciprocity agreement between Alabama, Tennessee, Mississippi, Arkansas and Louisiana. You must be licensed for 3 consecutive years in 1 of these states and you can use that license to work in Alabama.
- Check the schedule for the Alabama Licensing Board's quarterly meeting. Go to genconbd.alabama.gov/Deadlines.htm to find the schedule. You need to have submitted all documentation 30 days prior to this board meeting.
- Fill out the application using a typewriter or print in black ink. Include the following information with your application:
- Complete the "Confidential Financial Statements, Equipment Questionnaire and Experience Statement" booklet in its entirety. The financial statements will need to be completed by a certified public accountant (CPA). This should be signed, notarized, if necessary and returned with the form. This booklet is also available on the "Forms" section of the Alabama Licensing Board's website.
- Obtain proof of liability insurance from your insurance company and include it with your application.
- Provide a Bank Authorization Statement. This statement confirms all the assets and liabilities that are listed by your CPA in your Confidential Financial Statements, Equipment Questionnaire and Experience Statement.
- Print or type all business information. You must choose your type of business organization and provide the address, phone number and employee information for your business. Check off the type of work you will be doing as a general contractor, and list all major contracts you are currently performing.
- Provide references. You must provide 1 to 2 architect or engineer references from people who have used your services in the past. You must provide a bank reference letter, another general contractor reference and a material supply company reference.
- Fill out the section to register for the Business and Project Management for Contractors Examination and Skill Examination.
- Provide a $300 application fee in the form of a certified check, cashier's check or money order. Personal checks are not accepted. Make sure to fill out the application completely, sign it and notarize it when necessary.
- Send your application to the "Alabama Licensing Board for General Contractors, 2525 Fair lane Drive, Montgomery, AL 36116." Send by certified mail or with delivery confirmation to be sure it arrives.
- Wait to hear from the board about when you are required to take your contractor's and skill's examinations. Pass those examinations.
- Some people choose to take online study courses in order to prepare for their application. You should also read the following books: NASCLA Business and Project Management, Code of Federal Regulations (OSHA) and Carpentry and Building Construction.
- Receive your Alabama General Contractor license number. Place it on all your business related documents.
Tips
- If you are getting an Alabama general contractor's license for a company based outside of Alabama, you must first register your company with the Alabama Secretary of State and be approved to do business.
Things You'll Need
- Alabama Licensing Board application
- Work experience
- Contracting company
- Confidential Financial Statements, Equipment Questionnaire and Experience Statement
- Certified public accountant
- Bank statement
- Liability insurance
- $300 application fee
- References
- Business and Project Management for Contractors Examination
- Skill examination