ALABAMA GENERAL CONTRACTOR EXAMINATION
WITH COMPLETE DETAILED 100 QUESTIONS AND
CORRECT VERIFIED ANSWERS WITH RATIONALES
PLUS ANSWER KEY 2026-2027 Q&A GRADED A+
SUCCESS
Q1. Which Alabama agency is responsible for issuing general contractor licenses?
A) Alabama Department of Revenue
B) Alabama Licensing Board for General Contractors
C) Alabama Secretary of State
D) Alabama Department of Insurance
Correct Answer: B) Alabama Licensing Board for General Contractors
Rationale: The Alabama Licensing Board for General Contractors is responsible for
issuing licenses, enforcing regulations, and ensuring compliance with contractor
licensing requirements under Title 34, Chapter 8 of the Alabama Code.
Q2. Under Alabama law, what is the cost threshold that requires a general
contractor to be licensed for non-residential construction?
A) $10,000*
*B) $25,000
C) $50,000*
*D) $100,000
Correct Answer: D) $100,000
Rationale: Alabama law defines a general contractor as one who undertakes
construction where the cost of the undertaking including labor and materials is
,$100,000 or more. Swimming pool construction of $5,000 or more also requires
licensure.
Q3. What is the minimum experience requirement for an Alabama General
Contractor license applicant?
A) Six months of verifiable construction experience
B) One year of verifiable construction experience
C) Two years of verifiable construction experience
D) Five years of verifiable construction experience
Correct Answer: C) Two years of verifiable construction experience
Rationale: Alabama law requires applicants to demonstrate at least two years of
verifiable construction experience; the other items are optional or not required.
Q4. According to Alabama Code § 34-8-2, what is the new application fee for a
general contractor license?
A) $100*
*B) $200
C) $300*
*D) $500
Correct Answer: C) $300
Rationale: Alabama Code § 34-8-2 requires a three hundred dollar ($300) fee for a
new application. Renewal applications require two hundred dollars ($200).
Q5. What is the late penalty if a licensee fails to renew within 90 days following
expiration?
A) $25*
*B) $50
C) $100*
*D) $200
Correct Answer: B) $50
Rationale: Alabama Code § 34-8-2 provides that if a licensee fails to renew his or
her license within 90 days following expiration of the previous license, a late
,penalty of fifty dollars ($50) shall be collected, upon renewal, in addition to the
renewal fee.
Q6. A Class A General Contractor license in Alabama permits the holder to:
A) Perform only residential work up to two stories
B) Undertake projects without regard to dollar limit
C) Perform only specialty trades
D) Perform work only on projects under $100,000
Correct Answer: B) Undertake projects without regard to dollar limit
Rationale: Class A licenses are unrestricted and allow general contractors to
undertake any project without dollar limit. The classification "U" (Unlimited) is the
highest classification.
Q7. Which license classification in Alabama authorizes a contractor to perform
only residential frame work up to two stories?
A) Class A – General Contractor
B) Class B – Residential Contractor
C) Class C – Specialty Contractor
D) Class D – Limited Residential Contractor
Correct Answer: D) Class D – Limited Residential Contractor
Rationale: Class D (Limited Residential) permits work on residential structures not
exceeding two stories and limited to specific trades such as framing.
Q8. Under Alabama Code § 34-8-2, the maximum bid limit for a contractor with
classification "E" is:
A) $500,000*
*B) $1,000,000
C) $3,000,000
D) Unlimited
Correct Answer: C) $3,000,000
Rationale: The following letter symbols indicate the maximum amount bid limits
allowed: A - Not to exceed $100,000; B - Not to exceed $250,000; C - Not to
, exceed $500,000; D - Not to exceed $1,000,000; E - Not to exceed $3,000,000; U –
Unlimited.
Q9. Which of the following is a required document when applying for an Alabama
general contractor license?
A) Proof of home ownership
B) A copy of the applicant's driver's license only
C) Proof of liability insurance meeting the Board's minimum limits
D) A letter of recommendation from a former client
Correct Answer: C) Proof of liability insurance meeting the Board's minimum
limits
Rationale: The Alabama Licensing Board requires proof of liability insurance that
meets its minimum coverage limits as part of the license application.
Q10. According to Alabama law, how often must a general contractor renew their
license?
A) Every 12 months
B) Every 24 months
C) Every 36 months
D) Every 48 months
Correct Answer: A) Every 12 months
Rationale: The certificate of authority to engage in the business of general
contracting in the State of Alabama shall expire 12 months following its issuance
or renewal and shall become invalid on that date unless renewed.
Q11. How many hours of continuing education must a general contractor
complete every two years to maintain their license in Alabama?
A) 8 hours
B) 12 hours
C) 16 hours
D) 24 hours
Correct Answer: B) 12 hours
Rationale: To maintain their license, general contractors in Alabama are required
WITH COMPLETE DETAILED 100 QUESTIONS AND
CORRECT VERIFIED ANSWERS WITH RATIONALES
PLUS ANSWER KEY 2026-2027 Q&A GRADED A+
SUCCESS
Q1. Which Alabama agency is responsible for issuing general contractor licenses?
A) Alabama Department of Revenue
B) Alabama Licensing Board for General Contractors
C) Alabama Secretary of State
D) Alabama Department of Insurance
Correct Answer: B) Alabama Licensing Board for General Contractors
Rationale: The Alabama Licensing Board for General Contractors is responsible for
issuing licenses, enforcing regulations, and ensuring compliance with contractor
licensing requirements under Title 34, Chapter 8 of the Alabama Code.
Q2. Under Alabama law, what is the cost threshold that requires a general
contractor to be licensed for non-residential construction?
A) $10,000*
*B) $25,000
C) $50,000*
*D) $100,000
Correct Answer: D) $100,000
Rationale: Alabama law defines a general contractor as one who undertakes
construction where the cost of the undertaking including labor and materials is
,$100,000 or more. Swimming pool construction of $5,000 or more also requires
licensure.
Q3. What is the minimum experience requirement for an Alabama General
Contractor license applicant?
A) Six months of verifiable construction experience
B) One year of verifiable construction experience
C) Two years of verifiable construction experience
D) Five years of verifiable construction experience
Correct Answer: C) Two years of verifiable construction experience
Rationale: Alabama law requires applicants to demonstrate at least two years of
verifiable construction experience; the other items are optional or not required.
Q4. According to Alabama Code § 34-8-2, what is the new application fee for a
general contractor license?
A) $100*
*B) $200
C) $300*
*D) $500
Correct Answer: C) $300
Rationale: Alabama Code § 34-8-2 requires a three hundred dollar ($300) fee for a
new application. Renewal applications require two hundred dollars ($200).
Q5. What is the late penalty if a licensee fails to renew within 90 days following
expiration?
A) $25*
*B) $50
C) $100*
*D) $200
Correct Answer: B) $50
Rationale: Alabama Code § 34-8-2 provides that if a licensee fails to renew his or
her license within 90 days following expiration of the previous license, a late
,penalty of fifty dollars ($50) shall be collected, upon renewal, in addition to the
renewal fee.
Q6. A Class A General Contractor license in Alabama permits the holder to:
A) Perform only residential work up to two stories
B) Undertake projects without regard to dollar limit
C) Perform only specialty trades
D) Perform work only on projects under $100,000
Correct Answer: B) Undertake projects without regard to dollar limit
Rationale: Class A licenses are unrestricted and allow general contractors to
undertake any project without dollar limit. The classification "U" (Unlimited) is the
highest classification.
Q7. Which license classification in Alabama authorizes a contractor to perform
only residential frame work up to two stories?
A) Class A – General Contractor
B) Class B – Residential Contractor
C) Class C – Specialty Contractor
D) Class D – Limited Residential Contractor
Correct Answer: D) Class D – Limited Residential Contractor
Rationale: Class D (Limited Residential) permits work on residential structures not
exceeding two stories and limited to specific trades such as framing.
Q8. Under Alabama Code § 34-8-2, the maximum bid limit for a contractor with
classification "E" is:
A) $500,000*
*B) $1,000,000
C) $3,000,000
D) Unlimited
Correct Answer: C) $3,000,000
Rationale: The following letter symbols indicate the maximum amount bid limits
allowed: A - Not to exceed $100,000; B - Not to exceed $250,000; C - Not to
, exceed $500,000; D - Not to exceed $1,000,000; E - Not to exceed $3,000,000; U –
Unlimited.
Q9. Which of the following is a required document when applying for an Alabama
general contractor license?
A) Proof of home ownership
B) A copy of the applicant's driver's license only
C) Proof of liability insurance meeting the Board's minimum limits
D) A letter of recommendation from a former client
Correct Answer: C) Proof of liability insurance meeting the Board's minimum
limits
Rationale: The Alabama Licensing Board requires proof of liability insurance that
meets its minimum coverage limits as part of the license application.
Q10. According to Alabama law, how often must a general contractor renew their
license?
A) Every 12 months
B) Every 24 months
C) Every 36 months
D) Every 48 months
Correct Answer: A) Every 12 months
Rationale: The certificate of authority to engage in the business of general
contracting in the State of Alabama shall expire 12 months following its issuance
or renewal and shall become invalid on that date unless renewed.
Q11. How many hours of continuing education must a general contractor
complete every two years to maintain their license in Alabama?
A) 8 hours
B) 12 hours
C) 16 hours
D) 24 hours
Correct Answer: B) 12 hours
Rationale: To maintain their license, general contractors in Alabama are required
