Title 39 — Title 39

Notice of Completion of Project; Final Settlement. (a) Any person entering into a contract with an awarding authority in this state for the prosecution of any public works, before commencing the work, shall execute a performance bond, with penalty equal to 100 percent of the amou…

Plant Mix to Be Sold to State. All persons, to be eligible to bid on asphalt plant mix to be sold to the State of Alabama, shall have the asphalt plants inspected and certified by the Department of Transportation. The certification shall be made by the Bureau of Materials and Tes…

in Tax Rate During Performance of Contract. Any contractor performing a public works contract in which any state, county, or municipal funds are utilized shall be allowed reimbursement for any additional severance, sales, or use taxes incurred by the contractor as a result of an …

(a) No officer or employee of an awarding authority and no person acting or purporting to act on behalf of such officer or employee of an awarding authority, except a public agency or authority created pursuant to agreement or compact with another state, shall, with respect to an…

Notwithstanding any other laws to the contrary, this title shall control all public works contracts on the state, county, and municipal levels of government in the State of Alabama. History: (Acts 1997, No. 97-225, p. 348, §3; Act 2018-413, §1.)

As used in this title, the following words have the meanings ascribed to them as follows: (1) AWARDING AUTHORITY. Any governmental board, commission, agency, body, authority, instrumentality, department, or subdivision of the state, its counties and municipalities. This term incl…

A proceed order shall be issued by the awarding authority within 15 days after final execution of the contract by the awarding authority, and execution by the Governor if his or her signature on the contract is required by law, unless both parties agree in writing to a stipulated…

and Furnish Bonds, Etc.; Death of a Low Bidder; Effect of Failure of Awarding Authorities to Complete Execution of Contracts and Issue Proceed Orders; Withdrawal of Low Bid Upon Discovery of Mistake. (a) Should the successful bidder or bidders to whom a contract is awarded fail t…

(a) As used in this section the following words shall have the meanings ascribed to them as follows: (1) CONTRACTOR. Any natural person, partnership, company, firm, corporation, association, limited liability company, cooperative, or other legal entity licensed by the Alabama Sta…

For the purpose of carrying into effect the terms of this chapter and insuring to the state and its political subdivisions the award of all contracts to responsible and responsive bidders, the awarding authority may prepare and promulgate rules and regulations it deems proper, bu…

Bond. (a) Every nonresident contractor, as defined in Section 39-2-12 shall register with the Department of Revenue prior to engaging in the performance of a contract in this state. At the time of registration the contractor shall deposit with the Department of Revenue five per c…

Bids for Public Works Contracts; Violations; Exclusions; Emergency Actions; Sole Source Specification. [Effective until June 1, 2026.] AMENDED BY ACT 2026-254, EFFECTIVE JUNE 1, 2026. SEE ACT FOR REVISED LANGUAGE. (a)(1) Before entering into any contract for a public works involv…

Specifications; Deposit for Bid Documents; Furnishing of Plans and Specifications to Building Exchanges, Etc. (a) For contracts let by the Department of Transportation, proposals may be obtained only upon payment of a fee, to be determined by the Department of Transportation, not…

Criteria; Responsibility of Prequalified Bidders; Revocation of Prequalification; Rejection of Bidder. (a) The bidder shall be required to file with his or her bid either a cashier’s check drawn on an Alabama bank or a bid bond executed by a surety company duly authorized and qua…

Proposal Guaranty When Award Not Made Within 30 Days of Opening of Proposals. All bid guaranties, except those of the three lowest bona fide bidders, shall be returned immediately after bids have been checked, tabulated, and the relation of the bids established. The bid guarantie…

Etc.; Disqualifying Activities; Life Cycle Costs. (a) The contract shall be awarded to the lowest responsible and responsive bidder, unless the awarding authority finds that all the bids are unreasonable or that it is not in the interest of the awarding authority to accept any of…

In case of error in the extension of prices in bids, the unit price will govern. In case of discrepancy between the prices shown in the figures and in words, the words will govern. History: (Acts 1947, No. 492, p. 338, §6.)

Generally by Bidders Awarded Contracts. The bidder to whom the award is made shall, when required, enter into a written contract on the form included in the proposal, plans, and specifications, furnish a performance bond and payment bond executed by a surety company duly authoriz…

Awarding Authorities. The awarding authority shall approve the contractor’s bonds meeting the requirements of Section 39-2-8 and the contractor’s evidence of insurance meeting the requirements of the bid documents, as well as complete the execution of the contract, within 20 days…

Subdivisions Thereof to Provide for Use of Domestic Products If Available, Etc.; Penalty. (a) The awarding authority contracting for a public works project to be financed entirely by the State of Alabama or any political subdivision of the state, shall stipulate or cause to be st…

Subdivisions Thereof to Use Steel Produced in United States; Penalty. (a) Any contractor for a public works project, financed entirely by the State of Alabama or any political subdivision thereof, within this state shall use iron or steel produced within the United States when sp…

Contracts. (a) In the letting of public contracts in which any state, county, or municipal funds are utilized, except those contracts funded in whole or in part with funds received from a federal agency, preference shall be given to resident contractors, and a nonresident bidder …

Compliance; Rebuttable Presumption of Compliance. (a) No civil action shall be brought or maintained by a contractor in any court in this state to require any awarding authority to pay out public funds for work and labor done, for materials supplied, or on any account connected w…

Any awarding authority or its agents issuing a willfully false or fraudulent certificate as required by Section 39-5-1 shall be guilty of a felony and, on conviction thereof, shall be fined not less than five thousand dollars ($5,000) nor more than fifty thousand dollars ($50,000…

An action shall be brought by the Attorney General or may be brought by any interested citizen, in the name and for the benefit of the awarding authority, to recover paid public funds from the contractor, its surety, or any person receiving funds under any public works contract l…

Public Funds Thereunder. The Attorney General, a bona fide unsuccessful or disqualified bidder, or any interested citizen may maintain an action to enjoin the letting or execution of any public works contract in violation of or contrary to the provisions of this title or any othe…

Notice of Title. All persons or parties entering into contracts or agreements with an awarding authority for the construction of a public work shall be conclusively presumed to have notice of the provisions of this title. History: (Acts 1961, No. 868, p. 1361, §5; Acts 1997, No. …

The provisions of this title are mandatory, and shall be construed to require strict competitive bidding on contracts for public works. The courts shall not invoke or apply any principle of quantum meruit, estoppel, or any other legal or equitable principle which would allow reco…

Construction of Certain State Funded Public Buildings or Structures; Powers and Duties of State Building Commission as to Certification of Planning or Construction of Same and Granting of Exemptions from Provisions of Section. (a) Wherever used in this section, unless a different…

or Structures and Additions by Municipal Governing Bodies and County Commissions; Provisions of Section Cumulative. (a) Each municipal governing body and county commission in this state, may, by ordinance or resolution, require that all new public buildings or structures hereafte…

When used in this chapter, the following terms shall have the following meanings, respectively, unless the context clearly indicates otherwise: (1) AUTHORITY. A corporation created pursuant to this chapter. (2) MUNICIPALITY. Any city or town incorporated under the laws of the Sta…

Cast; Declaration of Incorporation of Improvement Authority. At the regular meeting of the governing body of the municipality next succeeding the completion of the canvass and the statement and proclamation of result, such governing body shall adopt a resolution setting forth the…

of Resolution, Etc., to Secretary of State; Secretary of State to Furnish Statement of Names, Etc., of Authorities Incorporated to Department of Finance; Publication of Statement and Effect Thereof. The citizens of the State of Alabama who are inhabitants of such territory shall …

(a) Each authority incorporated under this chapter shall be a public corporation in perpetuity under its corporate name and the same shall in that name be a body politic and corporate, with power of perpetual succession. (b) The power of each authority shall be vested in and exer…

Conveyance of Entire Water System to Public Corporation Authorized to Conduct Business of Water Distribution System. (a) An authority shall be incorporated for the purpose of conducting and developing the enterprise in which it may engage in such manner that the services afforded…

and Terms of Office of Members; Vacancies. (a) Each improvement authority shall have a board of trustees consisting of not more than five members that are qualified electors residing in the area serviced by the authority. (b) When the authority is composed of an incorporated city…

Under Municipality. The members of the board shall not hold any public office under the municipality. History: (Acts 1935, No. 40, p. 72; Code 1940, T. 50, §33.)

Officers. Promptly after their appointment the members of the board shall meet to organize. At such meeting and at the first meeting in each year thereafter, the members of the board shall choose from their number a president and a secretary. History: (Acts 1935, No. 40, p. 72; C…

and Duties to Employees, Etc. Each member of the board shall receive for his or her services compensation in an amount to be fixed by the board. The compensation to the members of the board shall be paid monthly from money received by the authority from its operations. The member…

The board of trustees shall have power to do all things necessary or convenient in conducting and developing the enterprise, including but not limited to the following powers: (1) To adopt and amend bylaws for the management and regulation of its affairs and the enterprise in whi…

Books, Papers, Etc., of Plant or System Owned by Municipality to Authority Generally; Continuation in Effect of Provisions of Law as to Powers and Duties of Municipal Officers and Employees. Jurisdiction, supervision, possession and control of all property, real and personal, tan…

The citizens of any city or town in the State of Alabama or the citizens of any area in the State of Alabama containing as many as 250 qualified electors may be incorporated as an authority under this chapter. History: (Acts 1935, No. 40, p. 72; Code 1940, T. 50, §18.)

Officers and employees of any board, commission or department in or of the municipality may be transferred to the authority and shall be eligible for such transfer and appointment without examination to offices and positions under such authority. The transfer and appointment of s…

Notes, Bonds or Other Obligations Issued by Municipality; Assumption of Municipal Contracts as to Plant or System by Authority. The obligations of contracts of the municipality shall not be impaired by this chapter. Moneys to provide for the payment of notes, bonds or other oblig…

Issuance or Sale of Bonds or Other Evidence of Indebtedness by Authority. (a) Subject only to the Constitution of the State of Alabama, each authority incorporated under this chapter shall have power: (1) To sue and be sued; (2) To have a seal and alter the same at pleasure; (3) …

Denominations, Sale, Redemption, Etc., of Bonds; Issuance of Interim Receipts, Certificates, Etc. Bonds of an authority shall be authorized by resolution of the board of trustees of such authority and may be issued in one or more series, may bear such date or dates, mature at suc…

The bonds and other obligations of an authority incorporated under this chapter shall not be a debt of the State of Alabama nor a debt of the municipality and neither the state nor the municipality shall be liable in any way whatsoever thereon nor may the holder of any such bonds…

In addition to all other rights and all other remedies any holder or holders of any bond or bonds of any authority incorporated under this chapter, including a trustee for bondholders, shall have, subject to any contractual limitations binding upon such bondholder or holders or t…

of Authorities and Rights and Remedies of Bondholders by State. The State of Alabama does hereby pledge to and agree with the holders of bonds issued by an authority pursuant to this chapter that the state will not limit or alter the rights and powers hereby vested in an authorit…

All moneys of an authority incorporated under this chapter from whatever source derived shall be paid to the treasurer of such authority and deposited by said treasurer in a depository designated by the board of trustees of such authority. The treasurer shall not commingle said m…