Alabama general contractor licensing: the $100,000 threshold and what the LBGC covers

Commercial and public contractors in Alabama are licensed by the Alabama Licensing Board for General Contractors (LBGC). The Home Builders Licensure Board licenses residential home builders separately.

The threshold

Act 2024-277, effective Oct. 1, 2024, raised the threshold in Ala. Code § 34-8-1 from $50,000 to $100,000. A "general contractor" is someone who, for a fixed price, commission, fee or wage, undertakes to build, supervise, alter, maintain, repair, rehabilitate, remediate, reclaim or demolish any building, highway, sewer, structure, site work, grading, paving or other improvement in Alabama when the cost of the undertaking is $100,000 or more.

Subcontractors

The same section defines a "subcontractor" as someone doing that work at $100,000 or more under contract to a general contractor or another subcontractor. In Alabama, subcontractors above the threshold also need an LBGC license.

Labor brokers

The 2024 act also clarified an exemption in § 34-8-7(a)(8). Temporary labor supplied to a general contractor, working under that contractor's supervision and control, falls under the general contractor's license. The exemption does not let a labor broker act as a subcontractor.

Classifications

LBGC licenses carry classifications for the type of work. Examples include building (BC), highway (H and HS), municipal and utility (MU), railroad (RR) and many specialty classifications. A license also carries a bid limit.

What the directory shows

This site's Alabama directory lists the LBGC licensees with an Alabama address on the board's full roster report. Firms whose classifications include building, highway, municipal/utility or railroad work are shown as general contractors (1,346). The others are shown as specialty contractors (3,629).

Summary for general information, reviewed 2026-11-13. Not legal advice; check the source before relying on a deadline or threshold.