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Alabama Contractor License Bond Guide

If you are applying for a contractor license or construction permit in Alabama, you'll likely need to purchase a surety bond. Learn about the various bond types and bonding process in this guide.

Bond Overview

  • Purpose: To ensure contractors adhere to contracts, regulations and local laws
  • Who Needs It: General, specialty, and sub-contractors for statewide licensing plus contractors working in certain Alabama municipalities
  • Regulating Body: The Alabama Licensing Board for General Contractors and local licensing authorities
  • Required Coverage: $1,000–$350,000, based on the license or bond type
  • Premium Rates: Typically $100, varies by bond type

What Is an Alabama Contractor License Bond?

An Alabama contractor license bond is a financial guarantee that a contractor will comply with state or local licensing laws when working on a job. Filing a surety bond is a requirement for various types of contractor licenses and provides a means for reimbursement if a contractor fails to perform.

How Much Do Alabama Contractor Bonds Cost?

Nearly all Alabama contractor license bonds cost $100 and are available for instant online purchase. This includes the $20,000 HVACR bond, the $10,000 residential roofer bond and most city-specific bonds. 

If your bond requires an application, submit a quick quote request form to receive your personalized rate. Some bonds may also be eligible for a 25% multi-year discount.

Bond Type
$1,000-$350,000General Contractor Bond
$20,000Heating and Air Conditioning or Refrigeration Contractor Bond
$10,000Residential Roofer Bond
$1,000-$100,000Alabama Power Company Electric Service and/or Steam Heat Bond
$10,000City of Mobile Contractor Bond
$10,000City of Mountain Brook Contractor Bond
$2,500Termite Eradication and Pest Control Contractor Bond
$5,000City of Alexander Electrical Contractor Bond
$5,000City of Auburn Electrical Contractor Bond
$1,000City of Auburn General Contractor Bond
$5,000City of Auburn General Contractor Bond
$5,000City of Auburn Plumbing Contractor Bond
$10,000City of Chickasaw Contractor Bond
$5,000City of Dothan Commercial Refrigeration Bond
$5,000City of Dothan Electrical Contractor Bond
$5,000City of Dothan Fire Sprinkler Installer Bond
$10,000City of Dothan General Contractor Bond
$5,000City of Dothan Heating and Cooling Installer Bond
$10,000City of Dothan Homebuilding Contractor Bond
$2,000City of Dothan Lawn Sprinkler Installer Bond
$5,000City of Dothan Plumbing Contractor Bond
$2,000City of Dothan Subcontractor Bond
$1,000City of Dothan Tree Cutting or Stump Grinding Contractor Bond
$5,000City of Fairfield Plumbing and Gasfitter Contractor Bond
$5,000City of Gulf Shores Contractor Bond
$5,000City of Hueytown Contractor Bond
$5,000City of Montgomery Electrical License Bond
$100,000City of Mountain Brook Blasting Contractor Bond
$1,000Mountain Brook Demolition Contractor Bond
$5,000City of Opelika Electrical Contractor Bond
$5,000City of Opelika Plumbing Contractor Bond
$10,000City of Ozark Tree Cutting/Stump Grinding Contractor Bond
$10,000City of Prichard General Contractor Bond
$2,500City of Russellville Contractor Bond
$10,000City of Saraland Contractor Bond
$5,000City of Satsuma Contractor Bond
$1,000City of Tuscaloosa Contractor Bond
$2,500City of Tuscumbia Electrical Contractor Bond
$5,000City of Wetumpka Contractor Bond
$10,000Baldwin County Contractor Bond
$2,500Cullman County Contractor Bond
$5,000Jefferson County Heating Contractor Bond
$5,000City of Montgomery Gasfitters and Plumbers Bond
$10,000City of Birmingham Plumber and Gas Fitter Bond
$10,000City of Birmingham Electrician's Bond
$1,000-$50,000Highway Permit Bond
$5,000Jefferson County Plumber Bond
$5,000City of Dothan Gasfitter Bond
$10,000City of Dothan Residential Roofing Bond
$10,000City of Homewood Electrician's Bond
$5,000City of Bessemer Electrical Bond
$5,000City of Homewood Clearing, Earthwork and Other Land Disturbing Activity Bond
$2,000-$10,000City of Birmingham Building Wrecker BondThe liability of the surety shall be a minimum $2,000 for each single family residence.
$10,000-$30,000City of Birmingham Building Wrecker Bond

Who Needs an Alabama Contractor Bond? 

Purchasing a surety bond is a requirement before a contractor can receive or renew their license in many Alabama cities and statewide for certain industries such as:

  • Heating, ventilation, air-conditioning and refrigeration systems (HVACR)
  • Termite and pest control
  • Residential roofing 

You may also need a bid bond, payment bond, performance bond, or other type of contract bond for large projects in Alabama. These protect construction project owners from contractors who default in any way.

If you work outside of Alabama, we also offer contractor license bonds nationwide.

How to Get an Alabama Contractor Bond 

You can purchase your Alabama contractor license bond online 24/7. Simply select the bond you need from the dropdown or table above and checkout using our secure, online payment portal. 

Typically, you’ll need to provide the following information for filing approval: 

  • Company name
  • Business address
  • Contractor license type 

Once you purchase, we’ll process and email your official bond form. If your licensing authority requires the original bond form with wet signatures, we’ll mail your bond via FedEx. Overnight shipping is available. 

How Fast Can I Get My Bond? 

If you place your Alabama contractor bond order by 4 PM CST Monday–Friday, we can typically deliver it same-day via email. Some exceptions may apply. 

How Do Alabama Contractor Bonds Work?

Alabama contractor license bonds protect consumers who could be harmed by defective construction or other license noncompliance. If a contractor breaks the bond terms, the surety company will pay valid claims to harmed parties up to the full bond amount. Then, the contractor must reimburse the surety in full.

Who Regulates Alabama Contractor Licensing? 

The Alabama Licensing Board for General Contractors (LGBC) regulates contractor licensing at the state level. If you have questions about LBGC surety bond requirements, licensing rules or your license status, you can call the board at 1 (334) 272-5030. 

Local regulatory agencies also enforce their own license and bond requirements for contractors. If you have questions about local construction contractor licensing, contact your government office. 

How to Get a Contractor License in Alabama  

To become a licensed contractor in Alabama, you must apply for the specific license type you want. File your application at least 30 days before a quarterly Alabama Contractor Licensing Board meeting (held in January, April, July and October). 

  • Prime general contractor applicants must apply with the licensing board and pass a business and law exam. 
  • Subcontractor applicants need to complete a separate application including three references for commercial/industrial work completed in the specific classification.  
  • Residential roofers must apply with the Home Builders Licensure Board. Learn how to get an Alabama residential roofer license with our step-by-step guide.

City and county contractor licensing requirements vary depending on the following variables:

  • Working location
  • Type of work to be performed
  • The issuing government licensing office 

For more information, contact your local regulatory agency. 

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