Do Subcontractors need a License in Alabama?
This article explains why you need a subcontractor license to work and what you would need to do to Obtain one for Alabama. A Subcontractor is a person who is awarded a portion of an existing contract by a principal or general contractor. Subcontractors perform work under a contract with a General Contractor rather than the employer who hired the general contractor.
When is a License Required ?
General contractors must be licensed to work on commercial or industrial work over $50,000, or residential work over $10,000. As for subcontractors, in order perform any work for a General Contractor over $50,000, they must also be licensed.
Every contractor or subcontractor is required to have General Liability Insurance coverage. If you plan to have employees, you’ll also need Worker’s Compensation Insurance. Proof of both types of insurance should be submitted along with the application.
To become a Subcontractor
Subcontractors must get letters of reference, while the General Contractor application actually includes forms that must be filled out. Each application requires three work experience references. These should come from either a licensed General Contractor, a Registered architect, a registered Professional Engineer, or any other qualified person as determined by the Board. For more information, please review the subcontractor application.