ALABAMA CONTRACTOR LICENSING EXAMINATION NEWEST EVALUATED
EXAM PRACTICE 100 QUESTIONS 2026-2027|ORIGINAL QUESTIONS &
ANSWERS |DETAILED RATIONALES |HINTED COMPLETE EXAM PREP GRADED
A+*INSTANT DOWNLOAD PDF*
1. Under Alabama general contractor licensing law, which project generally
requires a general contractor license when the total undertaking,
including labor and materials, reaches the statutory threshold?
A. $50,000 commercial project
B. $75,000 commercial project
C. $100,000 commercial project
D. $125,000 residential project
Answer: C. $100,000 commercial project
Alabama generally defines a general contractor as one undertaking
construction or related work where the total cost, including labor and
materials, is $100,000 or more, subject to statutory exemptions and
classifications.
2. A prime contractor receives a bid from an unlicensed subcontractor for a
project exceeding $100,000. Which statement is correct?
A. The subcontractor may begin work immediately because the prime
contractor is licensed
B. The subcontractor may never submit a bid
C. The subcontractor may submit the bid but must be licensed before
beginning work
D. The subcontractor is automatically considered licensed by the prime
contractor
Answer: C. The subcontractor may submit the bid but must be licensed
before beginning work
Alabama permits an unlicensed subcontractor to submit a bid to a licensed
general contractor, but the subcontractor must obtain the required license
before starting the work.
3. When a licensed prime contractor awards a qualifying subcontract, the
prime contractor is considered which of the following for purposes of
the subcontract?
,A. An employee
B. An awarding authority
C. A qualifying party
D. A surety
Answer: B. An awarding authority
Alabama law treats a prime contractor awarding a subcontract as an awarding
authority for applicable licensing requirements.
4. Which entity has a duty to ascertain that a contractor is properly
licensed before permitting the contractor to submit a bid on a qualifying
project?
A. The project architect only
B. The contractor's surety
C. The awarding authority
D. The subcontractor's supplier
Answer: C. The awarding authority
Alabama law places this responsibility on the awarding authority, including
applicable architects and engineers involved in qualifying projects.
5. A contractor performs a qualifying project without the license required
by Alabama law. Which consequence is most directly associated with
such conduct?
A. The contractor automatically receives a temporary license
B. The contractor may be subject to statutory penalties
C. The contract automatically becomes tax-exempt
D. The contractor is automatically granted reciprocity
Answer: B. The contractor may be subject to statutory penalties
Unlicensed contracting in circumstances requiring licensure is prohibited and
may result in penalties under Alabama law.
6. Which Alabama Code chapter primarily governs general contractor
licensing?
A. Title 32, Chapter 5
B. Title 34, Chapter 8
,C. Title 40, Chapter 12
D. Title 41, Chapter 20
Answer: B. Title 34, Chapter 8
General contractor licensing is governed primarily by Chapter 8 of Title 34,
Code of Alabama 1975, as amended.
7. Which section of Alabama law defines “General Contractor”?
A. §34-8-1
B. §34-8-3
C. §34-8-7
D. §34-8-9
Answer: A. §34-8-1
Section 34-8-1 contains the statutory definition of a general contractor.
8. Which section addresses Alabama general contractor licensing
classifications?
A. §34-8-1
B. §34-8-2
C. §34-8-5
D. §34-8-27
Answer: B. §34-8-2
Section 34-8-2 addresses licensure and classification of contractors.
9. Which section addresses the method of examination for general
contractors?
A. §34-8-3
B. §34-8-6
C. §34-8-8
D. §34-8-20
Answer: A. §34-8-3
Section 34-8-3 addresses the method of examination.
, 10. Which section addresses prohibited acts and penalties?
A. §34-8-4
B. §34-8-5
C. §34-8-6
D. §34-8-10
Answer: C. §34-8-6
Section 34-8-6 addresses prohibited acts and penalties.
11. Which section specifically addresses exemptions and subcontractor
requirements?
A. §34-8-5
B. §34-8-7
C. §34-8-8
D. §34-8-9
Answer: B. §34-8-7
Section 34-8-7 addresses exemptions and subcontractor requirements.
12. Which section addresses awarding authorities, architects, and
engineers?
A. §34-8-6
B. §34-8-7
C. §34-8-8
D. §34-8-10
Answer: C. §34-8-8
Section 34-8-8 establishes requirements concerning awarding authorities,
architects, and engineers.
13. An awarding authority allows an unlicensed subcontractor to begin
qualifying work. Who may potentially be in violation?
A. Only the subcontractor
B. Only the awarding authority
C. Only the architect
D. The awarding authority and the unlicensed contractor or subcontractor
EXAM PRACTICE 100 QUESTIONS 2026-2027|ORIGINAL QUESTIONS &
ANSWERS |DETAILED RATIONALES |HINTED COMPLETE EXAM PREP GRADED
A+*INSTANT DOWNLOAD PDF*
1. Under Alabama general contractor licensing law, which project generally
requires a general contractor license when the total undertaking,
including labor and materials, reaches the statutory threshold?
A. $50,000 commercial project
B. $75,000 commercial project
C. $100,000 commercial project
D. $125,000 residential project
Answer: C. $100,000 commercial project
Alabama generally defines a general contractor as one undertaking
construction or related work where the total cost, including labor and
materials, is $100,000 or more, subject to statutory exemptions and
classifications.
2. A prime contractor receives a bid from an unlicensed subcontractor for a
project exceeding $100,000. Which statement is correct?
A. The subcontractor may begin work immediately because the prime
contractor is licensed
B. The subcontractor may never submit a bid
C. The subcontractor may submit the bid but must be licensed before
beginning work
D. The subcontractor is automatically considered licensed by the prime
contractor
Answer: C. The subcontractor may submit the bid but must be licensed
before beginning work
Alabama permits an unlicensed subcontractor to submit a bid to a licensed
general contractor, but the subcontractor must obtain the required license
before starting the work.
3. When a licensed prime contractor awards a qualifying subcontract, the
prime contractor is considered which of the following for purposes of
the subcontract?
,A. An employee
B. An awarding authority
C. A qualifying party
D. A surety
Answer: B. An awarding authority
Alabama law treats a prime contractor awarding a subcontract as an awarding
authority for applicable licensing requirements.
4. Which entity has a duty to ascertain that a contractor is properly
licensed before permitting the contractor to submit a bid on a qualifying
project?
A. The project architect only
B. The contractor's surety
C. The awarding authority
D. The subcontractor's supplier
Answer: C. The awarding authority
Alabama law places this responsibility on the awarding authority, including
applicable architects and engineers involved in qualifying projects.
5. A contractor performs a qualifying project without the license required
by Alabama law. Which consequence is most directly associated with
such conduct?
A. The contractor automatically receives a temporary license
B. The contractor may be subject to statutory penalties
C. The contract automatically becomes tax-exempt
D. The contractor is automatically granted reciprocity
Answer: B. The contractor may be subject to statutory penalties
Unlicensed contracting in circumstances requiring licensure is prohibited and
may result in penalties under Alabama law.
6. Which Alabama Code chapter primarily governs general contractor
licensing?
A. Title 32, Chapter 5
B. Title 34, Chapter 8
,C. Title 40, Chapter 12
D. Title 41, Chapter 20
Answer: B. Title 34, Chapter 8
General contractor licensing is governed primarily by Chapter 8 of Title 34,
Code of Alabama 1975, as amended.
7. Which section of Alabama law defines “General Contractor”?
A. §34-8-1
B. §34-8-3
C. §34-8-7
D. §34-8-9
Answer: A. §34-8-1
Section 34-8-1 contains the statutory definition of a general contractor.
8. Which section addresses Alabama general contractor licensing
classifications?
A. §34-8-1
B. §34-8-2
C. §34-8-5
D. §34-8-27
Answer: B. §34-8-2
Section 34-8-2 addresses licensure and classification of contractors.
9. Which section addresses the method of examination for general
contractors?
A. §34-8-3
B. §34-8-6
C. §34-8-8
D. §34-8-20
Answer: A. §34-8-3
Section 34-8-3 addresses the method of examination.
, 10. Which section addresses prohibited acts and penalties?
A. §34-8-4
B. §34-8-5
C. §34-8-6
D. §34-8-10
Answer: C. §34-8-6
Section 34-8-6 addresses prohibited acts and penalties.
11. Which section specifically addresses exemptions and subcontractor
requirements?
A. §34-8-5
B. §34-8-7
C. §34-8-8
D. §34-8-9
Answer: B. §34-8-7
Section 34-8-7 addresses exemptions and subcontractor requirements.
12. Which section addresses awarding authorities, architects, and
engineers?
A. §34-8-6
B. §34-8-7
C. §34-8-8
D. §34-8-10
Answer: C. §34-8-8
Section 34-8-8 establishes requirements concerning awarding authorities,
architects, and engineers.
13. An awarding authority allows an unlicensed subcontractor to begin
qualifying work. Who may potentially be in violation?
A. Only the subcontractor
B. Only the awarding authority
C. Only the architect
D. The awarding authority and the unlicensed contractor or subcontractor
