Alabama Contractor License Bond – Fast, Quotes
Alabama Contractor License Bond Requirements
Alabama doesn’t have a mandatory bonding requirement for contractors. However, if you are planning to work on any project estimated at $50,000 or more, you will need to obtain a license from the State Licensing Board for General Contractors.
One of the requirements of the Board is that when they apply for a license, contractors need to have a minimum net worth (or working capital) of at least $10,000. If an applicant’s working capital is insufficient, they will not be able to bid on projects unless they post a surety bond in the sufficient amount.
The purpose of the Alabama contractors license bond is to protect project owners and the state from prohibited activities contractors may engage in. The bond can serve to provide financial compensation if they have suffered losses due to the contractor’s actions.
Where do Alabama contractors need to get bonded?
The following locations have some sort of bonding requirement for contractors:
- Wetumpka
- Dothan
- Russellville
- Opelika
- Tuscumbia
- Tuscaloosa
- Mountain Brook
- Hueytown
- Gulf Shores
- Florence
- Satsuma
- Saraland
- Cullman
- Alexander City
- Auburn
Determine the Type of Contractor License You Need
There are two main contractor licenses available in the State of Alabama:
- General Contractor License: If a project’s value is over $50,000, you will need to obtain a license as a general contractor.
- Subcontractor License: If you carry out work for a licensed general contractor, and the work is valued at over $50,000, you are legally required to hold a subcontractor license.
Access Alabama Contractor License Application Forms
General contractor license applications are available online via the Alabama Licensing Board for General Contractors:
You can also request a mailed application by calling (334) 272-5030. Both general contractor and subcontractor license applications include a detailed list of requirements.