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AlabamaAL Supplementmedium100% of exam part

Under Alabama Title 34-8, what is the maximum monetary limit for Class C contractor licenses?

Correct Answer

B) $50,000 per project

Class C contractor licenses in Alabama are limited to projects not exceeding $50,000 per individual project.

Answer Options
A
$150,000 per project
B
$50,000 per project
C
$100,000 per project
D
$75,000 per project

Why This Is the Correct Answer

Option B is correct. Alabama Title 34-8 establishes a tiered licensing system. Class C licenses are limited to projects with a total cost not exceeding $50,000 per individual project. This threshold determines which class of license a contractor must hold based on the size of the work they undertake.

Why the Other Options Are Wrong

Option A: $150,000 per project

$150,000 per project exceeds the Class C limit. A contractor working on projects up to $150,000 would need a higher classification than Class C.

Option C: $100,000 per project

$100,000 per project is above the Class C threshold of $50,000. This figure might be confused with limits in other states or other license tiers in Alabama.

Option D: $75,000 per project

$75,000 per project is also above the $50,000 Class C cap. It is a plausible distractor but does not match the statutory limit.

Memory Technique

Class C = $50,000. Remember: 'C is the third letter = the smallest/lowest tier = $50K.' Alternatively, think of a 'C' note β€” in currency, C = 100, but cut it in half and you get $50K for Class C contractor work.

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