Alabama Performance BondAla. Code § 39-1-1
Bond threshold: $100,000 (raised from $50,000, eff. 9/1/2023).
Alabama's $100,000 trigger is lower than the federal Miller Act's $150,000; state and local jobs are bonded at a smaller size than federal ones.
- Who requires it: Alabama public owners awarding covered public works contracts (Ala. Code § 39-1-1).
- Amount: Performance bond: 100% of contract price. Payment bond: Not less than 50% of contract price.
- Typical cost (estimate): about $1,000-$2,000 on a $100,000 contract with excellent credit, up to $5,000-$10,000 below 620. The surety sets the final price.
- Timing: We submit complete applications to the carrier promptly; most quotes within one business day.
Alabama public works bonding at a glance
- Bond threshold
- $100,000 (raised from $50,000, eff. 9/1/2023)
- Controlling statute
- Ala. Code § 39-1-1
- Performance bond amount
- 100% of contract price
- Payment bond amount
- Not less than 50% of contract price
- Claim notice (sub-tier claimants)
- No preliminary notice and no separate notice to the prime contractor required, including for claimants without a direct contract with the prime. The only prerequisite is written notice to the surety of the amount claimed and the nature of the claim at least 45 days before suing. Notice by registered or certified mail to any of the surety's places of business is sufficient.
- Deadline to sue on the payment bond
- Suit must be filed no later than 1 year from the date of final settlement of the contract. It cannot be filed until 45 days after the written notice to the surety.
- Federal jobs in Alabama
- Miller Act (40 U.S.C. § 3131): bonds on federal contracts over $150,000
Source: Ala. Code § 39-1-1 and the sources cited below.
For license bonds and every other bond a contractor may need, start with our hub: All contractor bond types.
Getting paid: Alabama payment bond claims
On Alabama public work, Ala. Code § 39-1-1 makes the payment bond, not a lien on public property, the security for unpaid labor and materials.
Notice
No preliminary notice and no separate notice to the prime contractor required, including for claimants without a direct contract with the prime. The only prerequisite is written notice to the surety of the amount claimed and the nature of the claim at least 45 days before suing. Notice by registered or certified mail to any of the surety's places of business is sufficient.
Lawsuit deadline
Suit must be filed no later than 1 year from the date of final settlement of the contract. It cannot be filed until 45 days after the written notice to the surety.
Sources: source 1, source 2. General information, not legal advice.
What a Alabama performance bond costs
Premium on a $100,000 Alabama contract (the trigger size):
Alabama performance bond cost by credit profile
Based on a $100,000 Contract bond amount
- Excellent (750+)Rate: 1-2%$1,000-$2,000
- Good (680-749)Rate: 2-3%$2,000-$3,000
- Fair (620-679)Rate: 3-5%$3,000-$5,000
- Below 620Rate: 5-10%$5,000-$10,000
Illustrative ranges; the carrier sets final pricing.
How to get bonded for public work in Alabama
Bid bond at bidding, performance and payment bonds at award: required on contracts over $100,000 under Ala. Code § 39-1-1.
Alabama performance bond questions
Does Alabama require a performance bond on public projects?
Yes, on covered public works contracts (Ala. Code § 39-1-1). The trigger: $100,000 (raised from $50,000, eff. 9/1/2023). Owners, lenders and bid documents can also require one by contract.
What is the Alabama Little Miller Act threshold?
$100,000 (raised from $50,000, eff. 9/1/2023).
How much does a performance bond cost in Alabama?
On a $100,000 Alabama contract, typical ranges run about $1,000-$2,000 for excellent credit up to $5,000-$10,000 below 620. The issuing carrier sets the final price.
What is the deadline to sue on a Alabama payment bond?
Suit must be filed no later than 1 year from the date of final settlement of the contract. It cannot be filed until 45 days after the written notice to the surety. See Ala. Code § 39-1-1. Confirm the deadline against the statute and your contract before relying on it.
Do subcontractors have to give notice before a Alabama payment bond claim?
No preliminary notice and no separate notice to the prime contractor required, including for claimants without a direct contract with the prime. The only prerequisite is written notice to the surety of the amount claimed and the nature of the claim at least 45 days before suing. Notice by registered or certified mail to any of the surety's places of business is sufficient. See Ala. Code § 39-1-1.
Who needs an Alabama performance bond?
Contractors on public works projects in Alabama above the statutory threshold. It is required by Alabama public owners awarding covered public works contracts (Ala. Code § 39-1-1). The bond amount is performance bond: 100% of contract price; payment bond: Not less than 50% of contract price.
How do I get an Alabama performance bond?
Use the form on this page with the contract amount and the public owner.
What happens after I apply for a performance bond in Alabama?
The carrier decides approval and the final premium; you pay only when the bonds are issued.
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Other Alabama Bonds
Additional surety bonds available in Alabama
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FMCSA broker authority
Nearby States
Performance bonds in neighboring states
All content is researched from official state and federal sources (.gov). BuySuretyBonds.com works with Treasury-listed surety carriers.
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Performance bonds in other states
- Alaska performance bond
- Arizona performance bond requirements
- Performance bond rules in Arkansas
- California performance bond amount
- Colorado performance bond guide
- Washington DC performance bond
- Florida performance bond requirements
- Performance bond rules in Georgia
- Idaho performance bond amount
- Illinois performance bond guide
- Indiana performance bond
- Louisiana performance bond requirements
- Performance bond rules in Maine
- Maryland performance bond amount
- Massachusetts performance bond guide
- Michigan performance bond
- Mississippi performance bond requirements
- Performance bond rules in Missouri
- Nevada performance bond amount
- New Jersey performance bond guide
- New York performance bond
- North Carolina performance bond requirements
- Performance bond rules in North Dakota
- Ohio performance bond amount
- Oklahoma performance bond guide
- Pennsylvania performance bond
- South Carolina performance bond requirements
- Performance bond rules in Tennessee
- Texas performance bond amount
- Virginia performance bond guide
- Washington performance bond
- Wyoming performance bond requirements