Summary
Operating as a general contractor in Mobile, Alabama requires obtaining the appropriate class license from the Alabama Licensing Board for General Contractors, which involves demonstrating construction experience, passing a comprehensive exam, and maintaining annual renewals with continuing education. The licensing process is straightforward but requires proper preparation and ongoing compliance with state regulations. Contractors must also navigate Mobile County's permitting process, which varies significantly based on project scope and type. Most residential and commercial construction requires building permits with plan review periods of 1-2 weeks, and contractors should factor permit costs and timelines into project planning. Success in Mobile's construction market requires maintaining proper insurance coverage, working with qualified subcontractors, and staying current with local building codes and inspection requirements.
License Requirements
General contractors in Mobile, Alabama must obtain a license from the Alabama Licensing Board for General Contractors (ALGC). A Class A license allows unlimited dollar amounts, Class B is limited to $175,000 per project, and Class C is limited to $50,000. Requirements include 4 years of construction experience (or 2 years plus relevant education), passing the PSI examination covering business law, construction practices, and Alabama regulations. License fees are $300 for Class A, $200 for Class B/C. Licenses must be renewed annually by December 31st with continuing education requirements of 8 hours for Class A and 4 hours for Class B/C.
Permit Requirements
Building permits are required through Mobile County Building Inspections Department for most construction projects. Commercial permits typically cost $0.10-$0.15 per square foot with minimum fees around $100. Residential permits range from $50-$200 for minor work up to $500+ for major renovations. Applications require detailed plans, contractor license verification, and compliance with current building codes. Plan review takes 5-10 business days for residential, 10-15 days for commercial. Electrical, plumbing, and mechanical permits are separate and required for related work.
Insurance Requirements
General liability insurance minimum of $300,000 per occurrence is required by the state licensing board. Workers' compensation insurance is mandatory for contractors with employees, with rates varying by classification (typically 2-15% of payroll for construction trades). Mobile County may require additional liability coverage of $500,000-$1,000,000 for larger public projects. A surety bond of $12,500 is required for Class A licenses, $7,500 for Class B, and $5,000 for Class C contractors.
Typical Cost Ranges
Residential renovations: $15,000-$75,000 for kitchen/bath remodels, $25,000-$100,000 for room additions. New home construction: $100-$150 per square foot for standard builds, $150-$250+ for custom homes. Commercial projects: $80-$120 per square foot for office build-outs, $60-$100 for warehouse construction. Small commercial renovations typically range $20,000-$150,000. These ranges reflect Mobile's moderate cost market compared to larger Alabama cities.
Compliance Checklist
- ✓Obtain Alabama General Contractor license from ALGC with appropriate class designation
- ✓Secure general liability insurance ($300,000 minimum) and workers' compensation if employing workers
- ✓Post required surety bond with Alabama Licensing Board
- ✓Register business with Mobile County Revenue Department for local business license
- ✓Apply for specific building permits through Mobile County Building Inspections before starting work
- ✓Ensure all subcontractors are properly licensed and insured
- ✓Complete required continuing education hours annually to maintain license
- ✓Maintain accurate records of all projects and financial transactions for state board compliance
READYDOCS
These are the documents Iris tracks for you.
Store them in one place. Get alerts before anything expires. Ask Iris anything from the job site.
$19/month — First month free. No credit card required.
No credit card. Cancel anytime.