Page 1 of 182
Alabama (AL) Municipal and Utility Contractor
Practice Exam Questions & Rationales
VERIFIED SOLUTIONS LATEST UPDATE THIS
YEAR
Alabama (AL) Municipal and Utility Contractor Practice Exam
Exam Coverage Summary
• Licensing & Regulatory Authority – Issued by the Alabama Licensing Board for General
Contractors (ALBGC) . Licensure required for municipal/utility work over $50,000 .
Maximum bid determined by financial capacity (10x lesser of net worth or working
capital); $10,000 minimum required .
• Application & Exam – Application fee $300 plus $100 construction education fee;
applications due 30 days before Board meetings (Jan, Apr, Jul, Oct) . Exam administered
by PSI; 90 questions, 220 minutes, 70% passing score (63 correct); fee $202 . Open-
book; permanent tabs allowed, no Post-Its .
• Business Structures & Financials – LLC required to register with AL Secretary of State;
offers limited liability and pass-through taxation . Accrual accounting records revenue
when earned . Balance sheet shows assets/liabilities/equity .
• Contract Types & Legal – Lump sum (fixed price), unit price (per unit), cost-plus;
performance/payment bonds required for public projects . Change orders document
modifications . Mechanic's lien must be filed within 180 days . Substantial compliance
with licensing may allow contract enforcement (AL Supreme Court) .
• Excavation & Trenching – OSHA 29 CFR 1926 Subpart P requires competent person
inspections . Type A soil most stable; Type C requires 1.5:1 slope . Spoil piles minimum 2
ft from edge; trench boxes protect workers . 811 required before digging .
• Utility Piping & Installation – PVC common for water distribution . Ductile iron for force
mains . Haunching = granular support material around pipe . Invert elevation = lowest
interior point of pipe . Pressure test: 100 psi for 2 hours for potable water .
• Stormwater & Environment – SWPPP (Storm Water Pollution Prevention Plan) required
for erosion control . Detention ponds store stormwater . Clean Water Act regulates
NPDES permits .
• Concrete & Materials – Shotcrete application methods . Design and Control of Concrete
Mixtures . Guide to Shotcrete .
• Safety & Compliance – OSHA 29 CFR 1926 . PPE required; confined space monitoring .
MUTCD traffic control standards .
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• Specialized Construction – Jacked tunnel design ; HDD preferred for minimal surface
disruption . NESC for electrical utilities; Lineman's Handbook .
QUESTIONS 1-150
Question 1
Which Alabama agency is responsible for issuing the General Contractor license for Municipal
and Utility work?
A) Alabama Department of Revenue
B) Alabama Licensing Board for General Contractors (ALBGC)
C) Alabama Department of Transportation
D) Alabama Secretary of State
Answer: B
The Alabama Licensing Board for General Contractors (ALBGC) is the state agency that regulates
and issues licenses for general contractors, including the Municipal and Utility classification .
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Question 2
According to Alabama law, what is the maximum bid amount for a Municipal/Utility contractor
with a minimum net worth of $10,000?
A) $50,000
B) $100,000
C) $250,000
D) No limit
Answer: B
Alabama law ties the maximum bid to ten times the lesser of net worth or working capital; with
a $10,000 minimum, the maximum bid is $100,000 .
Question 3
What is the primary purpose of excavation in municipal and utility construction?
A) To level the ground for aesthetic purposes
, Page 4 of 182
B) To remove soil to create space for construction projects
C) To add soil to an area for better drainage
D) To test soil bearing capacity
Answer: B
Excavation is primarily conducted to remove soil and create space necessary for installing
utilities, foundations, and other infrastructure components .
Question 4
Which business structure requires filing a Certificate of Formation with the Alabama Secretary
of State?
A) Sole proprietorship
B) General partnership
C) Limited Liability Company (LLC)
D) Independent contractor
Alabama (AL) Municipal and Utility Contractor
Practice Exam Questions & Rationales
VERIFIED SOLUTIONS LATEST UPDATE THIS
YEAR
Alabama (AL) Municipal and Utility Contractor Practice Exam
Exam Coverage Summary
• Licensing & Regulatory Authority – Issued by the Alabama Licensing Board for General
Contractors (ALBGC) . Licensure required for municipal/utility work over $50,000 .
Maximum bid determined by financial capacity (10x lesser of net worth or working
capital); $10,000 minimum required .
• Application & Exam – Application fee $300 plus $100 construction education fee;
applications due 30 days before Board meetings (Jan, Apr, Jul, Oct) . Exam administered
by PSI; 90 questions, 220 minutes, 70% passing score (63 correct); fee $202 . Open-
book; permanent tabs allowed, no Post-Its .
• Business Structures & Financials – LLC required to register with AL Secretary of State;
offers limited liability and pass-through taxation . Accrual accounting records revenue
when earned . Balance sheet shows assets/liabilities/equity .
• Contract Types & Legal – Lump sum (fixed price), unit price (per unit), cost-plus;
performance/payment bonds required for public projects . Change orders document
modifications . Mechanic's lien must be filed within 180 days . Substantial compliance
with licensing may allow contract enforcement (AL Supreme Court) .
• Excavation & Trenching – OSHA 29 CFR 1926 Subpart P requires competent person
inspections . Type A soil most stable; Type C requires 1.5:1 slope . Spoil piles minimum 2
ft from edge; trench boxes protect workers . 811 required before digging .
• Utility Piping & Installation – PVC common for water distribution . Ductile iron for force
mains . Haunching = granular support material around pipe . Invert elevation = lowest
interior point of pipe . Pressure test: 100 psi for 2 hours for potable water .
• Stormwater & Environment – SWPPP (Storm Water Pollution Prevention Plan) required
for erosion control . Detention ponds store stormwater . Clean Water Act regulates
NPDES permits .
• Concrete & Materials – Shotcrete application methods . Design and Control of Concrete
Mixtures . Guide to Shotcrete .
• Safety & Compliance – OSHA 29 CFR 1926 . PPE required; confined space monitoring .
MUTCD traffic control standards .
,Page 2 of 182
• Specialized Construction – Jacked tunnel design ; HDD preferred for minimal surface
disruption . NESC for electrical utilities; Lineman's Handbook .
QUESTIONS 1-150
Question 1
Which Alabama agency is responsible for issuing the General Contractor license for Municipal
and Utility work?
A) Alabama Department of Revenue
B) Alabama Licensing Board for General Contractors (ALBGC)
C) Alabama Department of Transportation
D) Alabama Secretary of State
Answer: B
The Alabama Licensing Board for General Contractors (ALBGC) is the state agency that regulates
and issues licenses for general contractors, including the Municipal and Utility classification .
,Page 3 of 182
Question 2
According to Alabama law, what is the maximum bid amount for a Municipal/Utility contractor
with a minimum net worth of $10,000?
A) $50,000
B) $100,000
C) $250,000
D) No limit
Answer: B
Alabama law ties the maximum bid to ten times the lesser of net worth or working capital; with
a $10,000 minimum, the maximum bid is $100,000 .
Question 3
What is the primary purpose of excavation in municipal and utility construction?
A) To level the ground for aesthetic purposes
, Page 4 of 182
B) To remove soil to create space for construction projects
C) To add soil to an area for better drainage
D) To test soil bearing capacity
Answer: B
Excavation is primarily conducted to remove soil and create space necessary for installing
utilities, foundations, and other infrastructure components .
Question 4
Which business structure requires filing a Certificate of Formation with the Alabama Secretary
of State?
A) Sole proprietorship
B) General partnership
C) Limited Liability Company (LLC)
D) Independent contractor
