Alabama Contractor License Bond

Complete Guide to becoming a Bonded Alabama Contractor

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How Much Does an Alabama Contractor License Bond Cost?

The cost of an Alabama contractor license bond starts from $100. There are state, county and city license and bond requirements for different types of contractors. 

Residential roofers throughout Alabama are required to have a $10,000 bond and air conditioning and refrigeration contractors require a $15,000 bond. Cities and counties might require additional bonds. For example, Jefferson County requires contractors to have a $5,000 bond.

Rather than pay the full bond amount, license applicants can purchase a bond through an Alabama surety company. The bond premium amount for a contractor license ranges between 1% and 10% of the bond amount. 

The premium rate is based on the applicant’s business financials and experience, personal assets and credit scores.

A bond premium rate of 1% to 3% applies to those with a 700 credit score or higher. Bond applicants with a credit score between 600 to 699 will receive a premium rate of 3% to 5%. A 5% to 10% premium rate applies to applicants with a credit score below 599.

 

Surety Bond Cost Based on Credit Score

Surety Bond Name

Surety Bond Amount

Over 700

Between 600 - 699

Below 599

Alabama Heating and Air Conditioning or Refrigeration Contractor Bond

$15,000

$150 - $450

$450 - $750

$750 - $1,500

Alabama Residential Roofer License Bond

$10,000

$100 - $300

$300 - $500

$500 - $1,000

Jefferson County Contractor Bond

$5,000

$100 - $150

$150 - $250

$250 - $500

* This table provides a ballpark estimate of potential bond costs. Bond pricing can fluctuate over time due to a number of factors. For exact pricing, please complete an application.

How to Get an Alabama Contractor License Bond

1. Determine the Surety Bond You Need

The Alabama Licensing Board for General Contractors can provide details about general contractor licensing. HVAC contractors can contact the Board of Heating, Air Conditioning and Refrigeration Contractors. Residential roofers can reach out to the Home Builders Licensure Board for more information. 

For additional information regarding county or city licensing requirements, contact the local authority.

2. Apply for Your Bond

To apply for your contractor bond, complete the online application.  Numerous bond programs are available for contractors with a wide range of credit scores, allowing us to provide bonds to more than 99% of applicants.

3. Get a Quote

Most applicants receive an immediate quote from us. If your application is more complicated, you will receive a quote within 48 hours.

Albert recently contacted us to get a contractor bond for licensing in Auburn. After spending a few minutes applying for the bond online, he received a quote immediately. Albert paid the bond premium online and received the contractor license bond in his email without delay.

4. Purchase Your Bond

Pay your premium online, and your bond will be available immediately. We’ll send your bond directly to your email account. Upon request, we can mail your bond to you as well. 

If you have any questions or encounter any difficulties, our surety bonds experts are here to help you – contact us or call us at (877) 514-5146.

Contractor License Bond Requirements in Alabama

Statewide, heating, air conditioning and refrigeration contractors are required to have a $15,000 bond. The obligee is the State Board of Heating, Air Conditioning and Refrigeration Contractors.

Residential roofers across the state must have a $10,000 bond. The obligee is the Home Builders Licensure Board.

The obligee, bond amount and term length for county and city-specific licenses vary by location. Contractors should be aware of the bond and licensing requirements for each county and municipality where they do business.

Contractors in Alabama must act to renew their bond before the surety bond’s expiration date. A lapse may result in the suspension of the contractor license. We will notify you prior to the expiration date of your bond with updated premium pricing and instructions for the bond renewal. 

Alabama cities and counties that have additional contractor license bond requirements include:

 

Surety Bond

Bond Amount

Premium

Alabama Heating and Air Conditioning or Refrigeration Contractor Bond

$15,000

From $150

Alabama Residential Roofer License Bond

$10,000

From $100

City of Alexander Electrical Contractor Bond

$5,000

From $100

City of Auburn Electrical Contractor Bond

$5,000

From $100

City of Auburn General Contractor Bond

$1,000-$5,000

From $100

City of Auburn Plumbing Contractor Bond

$5,000

From $100

City of Chickasaw Contractor Bond

$10,000

From $100

City of Dothan Commercial Refrigeration Bond

$5,000

From $100

City of Dothan Electrical Contractor Bond

$5,000

From $100

City of Dothan Fire Sprinkler Installer Bond

$5,000

From $100

City of Dothan General Contractor Bond

$10,000

From $100

City of Dothan Heating and Cooling Installer Bond

$5,000

From $100

City of Dothan Homebuilding Contractor Bond

$10,000

From $100

City of Dothan Lawn Sprinkler Installer Bond

$2,000

From $100

City of Dothan Plumbing Contractor Bond

$5,000

From $100

City of Dothan Subcontractor Bond

$2,000

From $100

City of Dothan Tree Cutting or Stump Grinding Contractor Bond

$1,000

From $100

City of Fairfield Plumbing and Gasfitter Contractor Bond

$5,000

From $100

City of Gulf Shores Contractor Bond

$5,000

From $100

City of Hueytown Contractor Bond

$5,000

From $100

City of Mobile Contractor Bond

$10,000

From $100

City of Montgomery Electrical License Bond

$5,000

From $100

City of Mountain Brook Blasting Contractor Bond

$10,000

From $100

City of Mountain Brook Contractor Bond

$10,000

From $100

Mountain Brook Demolition Contractor Bond

$1,000

From $100

City of Opelika Electrical and Plumbing Contractor Bond

$5,000

From $100

City of Ozark Tree Cutting/Stump Grinding Contractor Bond

$10,000

From $100

City of Prichard General Contractor Bond

$10,000

From $100

City of Russellville Contractor Bond

$2,500

From $100

City of Saraland Contractor Bond

$10,000

From $100

City of Satsuma Contractor Bond

$5,000

From $100

City of Tuscaloosa Contractor Bond

$1,000

From $100

City of Tuscumbia Electrical Contractor Bond

$2,500

From $100

City of Wetumpka Contractor Bond

$5,000

From $100

Baldwin County Contractor Bond

$10,000

From $100

Cullman County Contractor Bond

$2,500

From $100

Jefferson County Heating Contractor Bond

$5,000

From $100

City of Montgomery Gasfitters and Plumbers Bond

$5,000

From $100

City of Birmingham Plumber and Gas Fitter Bond

$10,000

From $100

City of Birmingham Electrician's Bond

$10,000

From $100

Jefferson County Plumber Bond

$5,000

From $100

City of Dothan Gasfitter Bond

$5,000

From $100

City of Dothan Residential Roofing Bond

$10,000

From $100

City of Homewood Electrician's Bond

$10,000

From $100

City of Bessemer Electrical Bond

$5,000

From $100

City of Homewood Clearing, Earthwork and Other Land Disturbing Activity Bond

$5,000

From $100

City of Birmingham Building Wrecker Bond

$2,000 - $30,000

From $100

How to Get Your Alabama Contractor License

You can get full details about becoming a licensed contractor through this Alabama contractor license guide. There may be additional requirements for city-specific licensing.

At the state level, Alabama offers general contractor license reciprocity with Mississippi, Louisiana and Arkansas. Reciprocity is also offered with the Tennessee General Contractors Board and North Carolina State Board of Electrical Contractors

To qualify, out-of-state contractors must have had a license for at least one calendar year and be in good standing. Contractors should contact city authorities to learn about their reciprocity rules.

The specific licensure documentation required varies by license type and authority. For a contractor application for a new roofer's license in Alabama, you must submit:

  • A signed and notarized application.
  • Check, cashier’s check, certified check, or money order in the amount of $250.00 ($150 license fee plus $100 application processing fee) made payable to Home Builders Licensure Board enclosed.
  • Surety bond form
  • Attach Certificate of Compliance from the Alabama Department of Revenue if a corporation, limited liability company, or limited partnership.
  • Attach proof of citizenship
  • Designated Qualifying Representative of a corporate application
  • Attach Certificate of Existence from the Alabama Secretary of State if a foreign (out-of-state) corporation, limited liability company, or limited partnership.
  • Attach current or recent business license as a contractor. The license must list the applicant's name or listed trade name.

 

Specific trade authorities, municipalities and counties have their own requirements.

 

Additional information is available by contacting:

Office of the Board
445 Dexter Avenue, Suite 3060
Montgomery, AL 36104


About Us

Lance Surety Bonds
Lance Surety Bond Associates, Inc. is a Pennsylvania-based surety bond agency that offers bonding at competitive rates in all 50 states. Established in 2010, our company has grown to become one of the top online bond producers in the country. Working exclusively with A-rated and T-listed bonding companies gives us the confidence to offer a 100% money-back guarantee. read more

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Andrew Poincot

Long story short, these guys cut through the B.S. and get the job done. Responsiveness, excellent! Communication, excellent! Respect for their industry partners, excellent! John, Collette, Ryan, you're all-stars! Thank you!

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