Alabama License Requirements
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A Brief Overview To Becoming A Concrete Contractor In Alabama
We want to begin by telling you that the Alabama Licensing Board for General Contractors regulates the process of obtaining a license. Alabama issues two types of licenses: a General Contractors License as well as a Subcontractor License. General contractors will have the approval of the state to provide services for commercial or industrial clients that exceed $50,000 in costs (or residential work over $10,000). For a subcontractor to perform any work for a general contractor that exceeds $50,000, they must also have the licensing.
You also have to apply for a specialty trade license for construction categories that include concrete, carpentry, or masonry. A General Contractors License in Alabama also carries over its validity in several other states, including Arkansas, Mississippi, Louisiana, and Tennessee. Now, let’s explore some of the general requirements of becoming a concrete contractor:
Registering Your
Business
The very first step in the process is to establish a business entity. If you plan on conducting business in Alabama, you will need to undergo registration with the Alabama Secretary of State. You will also need to determine your business structure for tax and liability purposes. Examples of the different types of business structures include LLC, Corp., Partnerships, etc.
Insurance
Coverage
Every general contractor will need to have liability insurance. If you plan on employing anyone, then you will need to obtain worker’s compensation insurance. During the application process, you will also need to submit proof that you have both types of insurance.
Gathering The
Required Documents
First and foremost, you need to provide your financial statements (this only applies to the General Contractors License). It must be no less than a year old and prepared by a Certified Public Accountant. To be eligible to receive the license, you must have a minimum net worth of $10,000. If you fail to meet this requirement, the licensing board will allow you to take out a line of credit to move forward with the process.
Proof of experience is also important when it comes to obtaining a license. You will need to submit information detailing previous projects you’ve worked on and any current projects that you may already have under contract. The information should contain a description of work performed, the location of the projects, the year they were completed, the owners’ or contractors’ names who hired you, and the contract amounts.
You also need to submit several professional references when applying for your license. The form will require that you fill out at least three references. You should write down either a licensed general contractor, or any qualified individuals who have relevant experience (e.g., engineers, architects).
Submitting
The AppLication
Having gathered all the relevant information, you will now need to complete the application and submit it. The application fee for general contractors will cost $300 and subcontractors will need to pay $150. Make sure you sign and notarize the application. Incomplete applications will be automatically rejected, and you should try to submit yours 30 days before quarterly board meetings. Pending review and approval, you will then need to undergo your exams.
Take And
Pass Your Exams
Once the review of your application is complete, you will then need to register for your exams. General contractors will need to pass the Alabama Business and Law exam in addition to any exams related to a special classification or category. The Alabama Business and Law Exams consists of 50 questions and you must score at least a %70 to pass it. The time it takes you to complete your exams will vary according to the classifications of the license. After you pass the exams, the Board will issue your license shortly thereafter.
We also want to emphasize how important it is to obtain your license. An unlicensed contractor will potentially face a Class-A misdemeanor charge and a $6000 fine for providing services. You can also be penalized for submitting false information to the Board. Furthermore, you are potentially putting other people in trouble who are contracting with
someone who doesn’t have a license. And perhaps the greatest consequence is that you can have your license suspended permanently if you fail to renew it. The penalties and financial drawbacks are not simply not worth it, which is why you need to take the necessary steps to obtain your license.
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