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How to pass the Alabama general contractor exam

A $100,000 license threshold, bid limits tied to your financial statement, and two open-book exams. Here’s how the Alabama prime contractor license works and how to study for it, checked against the board’s, the Code of Alabama’s and PSI’s own documents.

At a glance

The exams

Question counts, times and passing scores are from PSI’s Alabama General Contractors candidate bulletin (updated 1/23/26). The board decides which exams you take. The Alabama bulletin says up to ten unscored experimental questions may be added and count against exam time. PSI’s own NASCLA bulletin says the NASCLA exam’s 10 pretest questions have time added for them. PSI charges $96 per exam, or $106 for Building Construction (Commercial).

Before you apply

• Citizenship: a U.S. citizen, or legally present in the U.S. with federal documentation.
• Application and fee: a $300 application fee (non-refundable), filed at least 30 days before a regular board meeting. The board meets quarterly.
• Financial statement: an audited, reviewed or compiled statement prepared by a CPA (or a board-approved licensed public accountant), no more than one year old. Cash-basis and tax-basis statements and deficits aren’t accepted.
• Minimum financials: net worth and working capital of at least $10,000 each. A bank line of credit can raise working capital up to your net worth after you meet the minimums.
• Experience and references: the board reviews your work experience in each classification you request. You also need three reference forms from licensed general contractors, registered architects or engineers, or other persons the board accepts, covering commercial or industrial work you completed.
• Insurance and registration: proof of current liability insurance with the board listed as certificate holder, and (for entities) current Alabama Secretary of State registration.

Step by step

1. Pick your classificationDecide which types of work you’ll bid. You can’t be classified for work you didn’t request on the application.
2. Get your financial statement readyHave a CPA prepare an audited, reviewed or compiled statement. Your bid limit comes from it, so the numbers matter.
3. File the prime applicationSend the application and $300 fee (cashier’s check or money order) at least 30 days before a board meeting. A complete application must be on file before you can register for an exam.
4. Schedule with PSIOnce the board approves you to test, pay and schedule at test-takers.psiexams.com/alcon or call (855) 257-1619. Your eligibility lasts 1 year from the date the state received your application, with unlimited attempts in that year.
5. Pass Business & Law and the trade examBring the NASCLA Alabama Contractors Guide for Business and Law and the NASCLA reference list for the commercial trade exam. Cancel at least 2 days ahead to keep your fee.
6. Get licensed and renew every yearThe license runs 12 months. Renewal is $200, with a $50 late penalty if you renew more than 90 days after expiration. Put your license number on every bid, proposal and contract.

The reference books

Business and Law (50 questions): Licensing 8; Payroll and Taxes 6; Contracts 6; Estimating and Bidding 5; Financial 5; Personnel and Labor 5; Risk Management 4; Safety, Recordkeeping and Environmental 4; Project Management 3; Liens 2; Business Organization 2. The one reference is the NASCLA Contractors Guide to Business, Law and Project Management, Alabama General (3rd edition).

Building Construction (Commercial): PSI gives the NASCLA Accredited Examination for Commercial General Building Contractors. Its 115 questions cover Procurement and Contracting Requirements 31, General Requirements 25, Site Construction 15 and nine smaller trade areas. The reference list includes the 2021 or 2024 IBC, ICC A117.1-2017, ACI 318, OSHA 29 CFR 1926, the NASCLA Basic 14th edition guide and about 18 more books.

Building Contractor Under Four Stories: a separate 90-question exam with its own older reference list, including the 2021 IBC and IRC, the 2018 IECC and OSHA 1926. Check with the board which classification fits your work.

What you can bring: the listed references, highlighted, underlined and tabbed with permanent tabs only. No writing in them and no loose or attached papers. Post-it notes must come out before the exam starts. PSI doesn’t provide the books at the center.

A 6-week study plan

On test day

• Arrive at least 30 minutes early with one valid, government-issued photo ID with your signature. The name must match the name you scheduled under.
• Bring every book on your exam’s reference list, with permanent tabs only. Pull any Post-it notes and loose papers before you go.
• Calculators must be silent, battery-operated, non-programmable, non-printing and without an alphabet keyboard.
• Phones, smart watches, bags and heavy coats go in storage. Close-fitting jackets or sweatshirts are allowed under the Alabama bulletin.
• The tutorial (up to 15 minutes) doesn’t count against your time. You can go back and change answers until time runs out.
• You get your result on screen right away. If you don’t pass, you get a report showing your weak areas, so you know what to study before you retake.

Quick answers