Alabama
Contractor Bonds

Alabama Contractor Bond License Guide

Alabama requires contractors to obtain a contractor bond to become licensed. The amount for these bonds varies depending on the type of contractor, location, and project. Some of these bonds can be issued instantly online for a set premium, while others are prorated for the bond term’s end date.

Why are contractor bonds required in Alabama?

Some cities require contractors in Alabama to post surety bonds prior to starting work. These bonds ensure the principal (contractor) will abide by all applicable rules and legislation outlining the classification-specific work, in addition to protecting consumers from damages caused by negligent or faulty work. Obligees (Alabama government entities requiring the bond) place the liability on the principal.

Affected contractors can file a claim against the surety bond; if found to have validity, the surety (the company that financially backs the bond) will pay the claim up to the bond’s full amount. However, the principal is required to reimburse the surety in full for any money paid out.

Alabama contractor classification-specific bonds

Alabama holds contractor bond requirements for contractors of various classifications operating within the state. Find your licensing bond requirement below.

Heating Air and Conditioning or Refrigeration Contractor Bond

• Post a $15,000 contractor license bond. This bond can be purchased instantly online for a $100 premium for a one-year term; however, a 25% multi-year discount is available for customers who purchase this bond for a multiple-year term upfront.

• Applicants must get their license by following one of the required methods

  • Licensure by Examination

    • Step 1:

      • Apply for the examination (application fee of $150 made payable to the State of Alabama).

      • Submit an apprentice certificate from the past two years or graduated from an approved curriculum with transcripts.

      • If the applicant does not have either certificate, proof of at least 3,000 hours working under an HACR licensee.

      • Submit Tax Form W-2.

    • Step 2:

      • (Active Status) Apply for an active certification by turning in the AL-1, AL-2, and BF-1 forms.

      • (Inactive Status) An applicant may put his or her license on inactive status. Applicants may not work while it is inactive. To do this, applicants must turn in the AL-1 form only.

  • Licensure by Reciprocity

    • Applicants may bypass the exam and apply for reciprocity if they currently hold a license through Mississippi (at least one year), Tennessee (at least three years), the South Carolina Residential Building Commission (at least five years), the West Virginia Contractor Licensing Board (no waiting period), or Louisiana (no waiting period).

      • Applicants must submit the AL-1, AL-2, VL-1, VL-2 and BF-1 forms.

      • Applicants must pay the processing fee ($190 annually for active contractors and $95 annually for inactive contractors).

      • A separate application must be submitted for companies based in a foreign country.

• More information can be found on the Alabama Board of Heating, Air Conditioning & Refrigeration Contractors website.

Residential Roofer Bond

• Post a $10,000 contractor license bond. For a one-year term expiring December 31, the cost of this bond is $10 for every $1,000, or $100.

• Submit a license application (for Individual or Corporation) with a $250 fee made payable to Home Builders Licensure Board

• Provide a Certificate of Compliance with the Alabama Department of Revenue (for corporation, limited liability company, or limited partnership).

• Supply a Certificate of Existence with the Alabama Secretary of State (for out-of-state corporation, limited liability company, or limited partnership).

• Provide proof of citizenship.

• Submit a Designated Qualifying Representative (for corporation, limited liability company, or limited partnership).

• Provide proof of a current or recent business contractor licensure.

• More information can be found on the State of Alabama Home Builders Licensure Board website.

City of Dothan contractor bonds

Contractors must possess the following to obtain a City of Dothan building permit:

• City of Dothan Business License

  • These can be obtained from the Planning and Development Department, Business License Division. The ownership of the property must be verified before being permitted (if the building is for the contractor's own property, a license is not required).

• Valid E-911 address for the permitted property

  • The address can be obtained from the Public Works Department, Engineering Services Division.

• Homeowner submittal package

  • This can be obtained from the Planning and Development Department, Permits and Inspections Division.

City of Dothan Electrical Contractor Bond

• Post a $5,000 bond for $100 for a one-year term; however, a 25% multi-year discount is available for customers who purchase this bond for a multiple-year term upfront.

• Provide the total cost of electrical work.

• Comply with inspection card display/posting requirements for electrical (rough-in, final-temporary, and final inspection).

City of Dothan Gasfitter Contractor Bond

• Post a $5,000 bond for $100 for a one-year term; however, a 25% multi-year discount is available for customers who purchase this bond for a multiple-year term upfront.

• Provide the total cost of gas work.

• Comply with inspection card display/posting requirements for gas (rough-in and final inspection).

City of Dothan Heating and Cooling Installer Contractor Bond

• Post a $5,000 bond for $100 for a one-year term; however, a 25% multi-year discount is available for customers who purchase this bond for a multiple-year term upfront.

• Provide the total of the heated and non-heated areas of the house.

City of Dothan Lawn Sprinkler Installer Contractor Bond

• Post a $2,000 bond for $100 for a one-year term; however, a 25% multi-year discount is available for customers who purchase this bond for a multiple-year term upfront.

City of Dothan Plumbing Contractor Bond

• Post a $5,000 bond for $100 for a one-year term; however, a 25% multi-year discount is available for customers who purchase this bond for a multiple-year term upfront.

• Provide the total cost of plumbing work.

• Comply with inspection card display/posting requirements for plumbing (under-slab, stack-out, sewer, and final inspection).

For more information on getting a contractor bond in various Alabama cities such as Auburn, Mobile, Mountain Brook, and Tuscaloosa, see our full list of Alabama contractor bonds.