Alabama Contractor License Bond Information
The Alabama state boards governing heating, air conditioning, refrigeration, residential roofing and plumbing or gas fitting contractors, created by the provisions of Code of Alabama 1975,34-31-18, Et. Seq., require contractors to furnish surety bonds in the amount of ten thousand or fifteen thousand dollars. The bonds are conditioned upon the contractors faithful compliance with all ordinances and laws of the State of Alabama and any municipality or county of the state where the bonded principal engages in related work.
In addition to the state contractor bond requirements, many cities and counties also have bonding requirements including Birmingham, Dothan, Montgomery, Jefferson, Auburn, Chickasaw, Eufaula, Gulf Shores, Mobile, Mountain Brook, Opelika, Prichard, Saraland, and Satsuma. If this bond is for a job that you are bidding or a contract that has been awarded to you, the surety bond you need is a Contract/Construction Bond rather than a Contractor License Bond.
Alabama Contractor Bond Prices - Buy Online
Most Common Bonds
Bonds up to $25,000
1-Year Bond Starts at $100.00
1% of the Bond Amount
2-Year Bond Starts at $175.00
1.75% of the Bond Amount
What does a Contractor Bond Protect Against?
The surety bond guarantees compliance with all rules, regulations and building codes established under the authority of state laws or other ordinances requiring workmanlike standards for all work undertaken. The bond protects any person who is financially damaged by reason of the principal's negligence or violation of state laws, ordinances, rules, regulations or building codes. Other contractor bonds may be required by various counties or local municipalities throughout the state.