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Tuesday, May 26, 2026

Alabama Legislature Makes Changes to Public Works Law - The National Law Review

The Alabama Legislature recently made several changes to requirements for public works projects that go into effect September 1, 2023. Here’s a summary of the notable changes:

Section 39-1-1

Section 39-1-1 mandates that a contractor performing public works furnish a performance bond equal to 100% of the contract price and a payment bond equal to at least 50% of the contract price. Prior to the recent amendment, this requirement applied to all contracts valued at $50,000 or greater. The new law increases the minimum contract requiring bonds to $100,000.

Section 39-1-1 previously required a contractor to give public notice of completion of a public works project in “a newspaper of general circulation published within the city or county in which the work has been done” for four consecutive weeks. The new law requires publication for only three weeks and expands the acceptable methods of publication to the websites of (1) the local newspaper and (2) the website utilized by the awarding authority for publishing notices.

The amended law also clarifies that completion notices on contracts for “road resurfacing materials that are awarded on an annual basis” and include options for unit prices need not be given for each proceed order and may instead be given annually.

Section 39-2-2

In Section 39-2-2, the amended statute increases the minimum threshold for requiring competitive bids to contracts greater than $100,000, removes the requirement to advertise for sealed bids in three...



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