Alabama

Contractor License Bond in Alabama

Requirements, filing process, and what you should expect to pay, without the broker pitch.

What this bond requires in Alabama

Alabama splits contractor oversight between two boards. The Alabama Licensing Board for General Contractors (Ala. Code Title 34, Ch. 8) licenses commercial GCs on projects of $50,000 or more and verifies financial responsibility through audited financial statements and net worth rather than a fixed statewide license bond. The Home Builders Licensure Board (Ala. Code Title 34, Ch. 14A) licenses residential builders; Unlimited and Limited residential builder licenses require a credit report, not a bond. The only Alabama contractor license category with a statewide statutory surety bond requirement is the Residential Roofer license, which requires a $10,000 License/Permit Bond naming the Board as obligee, renewed annually.

Who requires it

The contractor license bond is required by the Alabama Home Builders Licensure Board (residential roofers); Alabama Licensing Board for General Contractors (commercial) under Ala. Code §§ 34-14A-5, 34-14A-7, 34-14A-11; Ala. Admin. Code r. 465-X (Home Builders Licensure Board). Commercial GCs governed by Ala. Code Title 34, Chapter 8 (no statewide bond mandate)..

How to file in Alabama

Residential Roofer applicants obtain a $10,000 License/Permit Bond from an authorized surety naming the Alabama Home Builders Licensure Board as obligee. The surety mails the original bond directly to the Board with the application packet; the bond must bear the principal original signature and be effective through December 31 of the current license year. The bond is renewed annually alongside the roofer license. Unlimited/Limited residential builders submit a credit report in lieu of a bond, and commercial GC applicants file financial statements with the General Contractors Board rather than a license bond.

Official filing form →

Get a real contractor license bond quote for Alabama

Your bond type and state will be pre-filled. No upsell, no pressure.

FAQ

Common questions

Is a contractor license bond required in Alabama?

Alabama does not require a statewide surety bond for the commercial general contractor license (Title 34, Ch. 8) or for an unlimited/limited residential builder license. The only statewide statutory contractor bond is the $10,000 License/Permit Bond required of Residential Roofers by the Home Builders Licensure Board, renewed annually.

How much is the bond in Alabama?

Alabama does not publish a single flat amount. See the state-specific notes for how it is determined.

Who requires the bond?

The bond is required by the Alabama Home Builders Licensure Board (residential roofers); Alabama Licensing Board for General Contractors (commercial).

How is the bond filed?

Residential Roofer applicants obtain a $10,000 License/Permit Bond from an authorized surety naming the Alabama Home Builders Licensure Board as obligee. The surety mails the original bond directly to the Board with the application packet; the bond must bear the principal original signature and be effective through December 31 of the current license year. The bond is renewed annually alongside the roofer license. Unlimited/Limited residential builders submit a credit report in lieu of a bond, and commercial GC applicants file financial statements with the General Contractors Board rather than a license bond.

What does the bond cover?

Surety bonds protect the obligee, not the principal. If you fail to meet the obligation the bond guarantees, the surety pays the claim and recovers from you.

Is a surety bond the same as insurance?

No. Insurance protects you. A surety bond protects whoever required the bond. You repay the surety for any claim they pay.

Related

Keep reading

Same bond, other states

Other bonds in Alabama