Alabama Contractor License Bond

Alabama Contractor License Bond

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What is an Alabama Contractor License Bond? 

Alabama Contractor License Bond's are required by Alabama's General Contractors Board to obtain your Alabama Contractor License Bond. The Alabama Contractor License Bond amount is set at $1,000. 



The State requires a Contractor License bond for :  


a $1,000 surety bond


Different parts of a bond:


 There are 3 parts to a Contractor License surety bond. The Principal "YOU", The Surety Company, and the Obligee. The Principal is the business or individual applying for the Contractor License Surety Bond. The Obligee is the individual or entity requiring the Surety Bond and the Surety Company is the company who provides the Surety Bond coverage.


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Alabama Contractor License Bond Information and Requirements:

The condition of the foregoing obligation is such, however, that WHERE AS, the said Principal is engaged in the business of electrical construction, installation, repair or electrical contracting in the City of Opelika, Alabama, now if the said Principal shall faithfully observe all ordinances and laws of the said City pertaining to said business or businesses, whether now or hereafter enacted together with all rules and regulations, established under the authority of said laws and ordinances; and shall perform in a workman-like manner all work undertaken by said Principal in the prosecution of said business or businesses; and shall indemnify and save harmless the said City from all liability occasioned or arising from acts done or omitted by said Principal, its servants or agents, in doing said work or from any unfaithful. or inadequate work done by the Principal, his agents or employees; and shall defend all suits brought against said City based in whole or in part, upon any act or default for which said Principal is responsible, and pay the cost and expenses thereof, and shall pay all such damages as any person, firm or corporation may sustain by reason of violation of said laws, ordinances, or regulations by said Principal, its servants, or agents, or by reason of the negligence of said Principal, its servants or agents, in the prosecution of said business or businesses, and shall pay all licenses and permit fees accruing under any applicable laws. ordinances or regulations, and shall restore to condition found any street, alley, sidewalk or other property disturbed in the prosecution of said business and maintain the same in good repair for a period of one year, then this bond is to be void, otherwise to remain in full force and effect.


Any person, firm or corporation injured in person or property by reason of violation of said laws, ordinances or regulations by said Principal, or by any act, default or omission constituting a breach of any of the conditions of this bond, may maintain a suit or action. Hereon for such injury. Several recoveries may be had hereon, the amounts thereof in the aggregate not to exceed the amount of this bond.

It is FURTHER UNDERSTOOD AND AGREED between all parties hereto that if the


Surety shall so elect, this bond may be canceled by giving thirty (30) days’ notice in writing to the City of Opelika. Alabama, and this bond shall be deemed canceled at the expiration of the said thirty (30) days, and said Surety remaining liable for all or any act or acts covered by this bond, which may have been committed by the Principal up to the date of such cancellation, under the terms, conditions, and the provisions of this bond.

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