Alabama Contractor License Bonds

An Alabama contractor license bond is required for residential roofing, HVAC, and refrigeration contractors. The Board of Heating, Air Conditioning & Refrigeration Contractors requires a $15,000 bond and the Home Builders Licensure Board a $10,000 bond to become a licensed contractor. These boards regulate these classifications and ensure each licensee has proper bonding.

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Jet has a streamlined process to swiftly provide the contractor license bond. We offer same-day bonding with over 50 years of bonding knowledge and expertise.

Alabama Contractor Bond Prices

The price at its lowest is $113 for the $15,000 Alabama HVAC license bond, and at the highest $150, regardless of credit. The $10,000 Alabama residential roofer bond starts at $100 and ranges up to $500.

*Preferred Price
Bond Type Annual | Monthly
Bond Type: $15,000 HVAC and Refrigeration Bond Annual | Monthly $113 | $10   
Bond Type: $10,000 Residential Roofer Bond Annual | Monthly $100 | $9     

Apply Now $15,000 HVAC and Refrigeration Bond

Apply Now $10,000 Residential Roofer Bond

These bonds are based on several underwriting factors including: personal credit, years in business, and license/bonding history.

Contractor Licensing in Alabama

There is no central entity that handles licensing for all contractors. Five license boards regulate contractors in Alabama: Plumbers and Gas Fitters Board, Electrical Contractors Board, Board of Heating, Air Conditioning & Refrigeration Contractors, Licensing Board for General Contractors, and Home Builders Licensure Board.

License Requirements in Alabama

HVAC and Refrigeration Contractor

The State of Alabama Board of Heating, Air Conditioning & Refrigeration requires licensed HVAC and refrigeration contractors to carry a $15,000 contractor’s performance bond per Code of Alabama 1975, 34-31-18, Et. Seq. The state separates the license in three parts: HVAC, refrigeration, or a combination of both trades. This is the most common bond requirement in the state. The board increased the bond amount in 2009 from $10,000 to $15,000 and another increase can be expected in the future. Licensees renew their licenses on December 31st each year.

Apply Now $15,000 HVAC and Refrigeration Bond

Residential Builder and Roofing Contractor

The Home Builders Licensure Board requires residential roofers to carry a license if the cost of undertaking a job exceeds $2,500. License holders must carry a $10,000 bond to demonstrate proof of financial responsibility. This license was recently required by law on January 1, 2019 and is only permitted to perform residential roofing. (Ala. Admin. Code r. 465-X-1-.01(10); 465-X-3-.04(2) and (5)). License renewals are on December 31st each year.

Apply Now $10,000 Residential Roofer Bond

General Contractor

A general contractor, also called prime contractors by the License Board for General Contractors, does not require a bond, but if the company cannot meet the minimum net worth and working capital of $10,000, then a licensee can get a $10,000 bond to satisfy the requirement.

This is the only license required to carry a general liability policy; the minimum limit is $2 million. Licenses come up for renewal on different months based on the first letter of the business name.

Plumbing and Gas Fitting Contractor

Plumbing and gas fitting contractors were once required to carry a bond, but that requirement was repealed in 2015. License holders will renew every year from October 1st to December 31st.

Electrical Contractor

There is no license requirement to obtain a license as an electrical contractor. Contractors renew around when the license started, making it the most variable renewal time for any contractor in the state.

Why is the Bond Required?

For a contractor it is easy to look at the bond as simply a requirement made by the state, however the bond serves a good purpose for the industry as a whole. The bond financially protects consumers from contractors in the event that work causes a monetary loss. This could result from a myriad of things, including but not limited to: faulty workmanship, breaking code, and/or departing from the contract.