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How to sell to Alabama counties

Alabama counties take sealed bids on goods and services of $30,000 or more and award to the lowest responsible bidder. Public works over $100,000 follow Title 39: newspaper notice, 5% bid security capped at $10,000, a 100% performance bond and retainage capped at 5%. Alabama has no state prevailing wage law.

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Alabama has 67 counties. Purchases of goods and services follow the competitive bid law (Ala. Code Title 41, Chapter 16, Article 3, sections 41-16-50 and following). Construction follows the public works law (Title 39). The official Code of Alabama site could not be read for this guide, so most statute details below come from Alabama League of Municipalities and Alabama State Bar summaries, plus official enrolled bills and a Division of Construction Management memo. Thresholds rose in 2023, and many county guides still show the old $15,000 and $50,000 figures.

At a glance

Topic Rule Source
Who buys County Commission under the competitive bid law and Title 39 Ala. Code 41-16-50; Title 39
Goods and services Sealed bids at $30,000 or more; CPI adjustment from Oct. 1, 2027 41-16-50
Construction Sealed bids over $100,000 39-2-2
Notice Goods: bulletin board, no newspaper; public works: newspaper at least once 41-16-54; 39-2-2
Award Goods: lowest responsible bidder; public works: lowest responsible and responsive 41-16-50; Title 39
Bid security Public works: 5%, capped at $10,000; goods: optional Title 39 (ALM)
Bonds 100% performance, 50%+ payment; not under $100,000 39-1-1
Prevailing wage None; repealed 1980 U.S. DOL
Retainage Max 5%; none after 50% complete 39-2-12
Prompt payment Public works: partial payments within 35 days; final 40 days after completion 39-2-12; 39-1-1
Cooperative purchasing State contracts, GSA and approved cooperatives exempt from bidding 41-16-51
Preferences and certifications Local preference within 5%; reciprocal on public works; E-Verify 41-16-50; 39-3-5; 31-13-9
Architects and engineers Professional services exempt from bidding; no QBS mandate found 41-16-51

Who buys

Each county is governed by an elected County Commission, which awards contracts under the competitive bid law (secondary: Alabama State Bar). Public works by counties fall under Title 39 (Division of Construction Management). Larger counties have a purchasing department. How purchasing agents are set up under general law versus local acts was not confirmed.

Goods and services

Rule Detail
Threshold $30,000 or more: sealed competitive bids for labor, services, work, and purchases or leases of goods (41-16-50)
Below threshold No statutory quote count; set by county policy
Splitting Splitting purchases to avoid bidding is barred, and such contracts are void (41-16-54)
Future changes Threshold adjusted by the consumer price index every three years from Oct. 1, 2027 (41-16-50)

Sources: Alabama League of Municipalities (2023, secondary); 2023 SB 108.

Emergencies. Emergency purchases need two or more documented quotes plus a resolution (41-16-53, as amended by Act 2023-135, per Alabama League of Municipalities). See emergency procurement.

Vehicle repairs. From Oct. 1, 2026, counties may repair vehicles of 12,000 lb gross weight or less, up to $15,000 per repair, without bidding if they get two documented price estimates (new 41-16-52.1, 2026 SB 115).

Bid security on goods is optional. If used, it must apply to all bidders and appear in the specifications (Alabama League of Municipalities).

Construction and public works

Construction contracts follow Title 39, not the competitive bid law.

  • Threshold: sealed bids for public works over $100,000, raised from $50,000 by Act 2023-497 effective Sept. 1, 2023 (39-2-2; Division of Construction Management). Since June 1, 2026, playground equipment purchase, design and installation is bought as goods, not public works (2026 SB 196).
  • Bid security: a cashier's check on an Alabama bank or a surety bid bond of at least 5% of the estimate or bid, capped at $10,000 (Title 39, per Alabama League of Municipalities 2026).
  • Bonds: a performance bond of 100% of the contract and a payment bond of at least 50%. Not required under $100,000 (39-1-1, per Alabama League of Municipalities 2026). The winning contractor furnishes bonds within 15 days of award (secondary: Alabama State Bar, 2021).
  • Retainage: no more than 5% of work completed and materials stored, and no further retainage after the project is 50% complete (39-2-12, per Alabama League of Municipalities and Alabama State Bar).
  • Electronic bids are allowed if the county adopts secure procedures (Act 2023-497; Division of Construction Management).

County-specific road and bridge thresholds were not confirmed.

Notice and award

Goods and services. No newspaper notice is required. Proposed purchases over the threshold are posted on a bulletin board outside the purchasing office and by other means the county sets, with no minimum posting period. Notices are mailed to vendors who asked in writing (41-16-54). A vendor that doesn't respond to three solicitations may be dropped from the list. Award goes to the lowest responsible bidder, considering quality, specifications, purpose and delivery. Reasons for passing over the low bidder are documented (41-16-50, per Alabama League of Municipalities).

Public works. Notice runs at least once in a newspaper of general circulation. If there is none, the county uses a bulletin board and sends notice to the Department of Finance for its central website. A notice that runs 7 consecutive days on the Finance website is a safe harbor (39-2-2, per Alabama League of Municipalities 2026). A 2021 State Bar summary says projects over $500,000 are also advertised in three statewide newspapers; confirm in the solicitation. Award goes to the lowest responsible and responsive bidder. If all bids exceed available funds, the county may negotiate with the low bidder (39-2-6, Act 2023-497).

Prevailing wage

Alabama has no state prevailing wage law; it was repealed in 1980 (U.S. Department of Labor). Federally funded projects may still carry Davis-Bacon rates.

Getting paid

On public works, monthly partial payments are due within 35 days of an accepted estimate. Final payment is due 40 days after the contractor completes its requirements, with interest at the Department of Revenue rate if late. The completion notice runs 3 weeks (39-2-12 and 39-1-1, as amended by Act 2023-497; Division of Construction Management). We did not confirm a prompt payment statute for county goods and services; check the contract.

Cooperative purchasing and state contracts

These purchases are exempt from bidding (41-16-51, per Alabama League of Municipalities):

  • Alabama state contracts (Alabama Buys).
  • National or regional cooperatives approved by the Examiners of Public Accounts, if the item is not cheaper on the state program and an Alabama vendor is used when one exists.
  • GSA contracts at or below the GSA price.

2026 SB 75, which would let cooperatively bought materials and equipment be used in public works contracts, passed the Senate but is only proposed. See cooperative purchasing.

Preferences and required certifications

  • Local preference (goods). A local bidder in the county or its metro area may win if within 5% of the low bid. If the low bidder is from outside the U.S., the county may award to a local or in-state small, minority, woman, veteran or disadvantaged business within 10%. Alabama products get preference at equal price and quality (41-16-50 and 41-16-57, per Alabama League of Municipalities).
  • Public works. A reciprocal preference applies against out-of-state contractors whose home state favors its own (39-3-5), and domestic iron and steel is required (39-3-4) (Alabama League of Municipalities 2026).
  • E-Verify. Counties require contractors to enroll in and comply with E-Verify under Ala. Code 31-13-9 (secondary: Baldwin County).
  • Boycott. A 2016 law on public contracts with entities that boycott (Ala. Code 41-16-5) exists; its thresholds and coverage were not confirmed.

Iran divestment and debarment certifications were not confirmed; check the solicitation.

Architects and engineers

Professional services, including architects and engineers, are exempt from competitive bidding (41-16-51, per Alabama League of Municipalities). We did not find a state law requiring qualifications-based selection for counties.

Recent changes

  • April 27, 2023: Goods and services bid threshold doubled from $15,000 to $30,000 (2023 SB 108).
  • 2023: Emergency purchases require two documented quotes and a resolution (Act 2023-135).
  • Sept. 1, 2023: Public works threshold raised from $50,000 to $100,000; electronic bids and negotiation with the low bidder allowed (Act 2023-497).
  • 2025: Notice on the Department of Finance website for 7 consecutive days became a safe harbor for public works (39-2-2).
  • June 1, 2026: Playground equipment moved out of Title 39 (2026 SB 196).
  • Oct. 1, 2026: Vehicle repairs up to $15,000 allowed with two estimates (2026 SB 115).

Practical tips for Alabama

  • Ask to be put on the county's notice list in writing. Counties mail bid notices to vendors who asked, and may drop you after three missed solicitations.
  • Check the purchasing office's bulletin board and website; newspaper ads aren't required for goods.
  • Price your bid bond at 5%, but no more than $10,000, on public works.
  • Get on Alabama Buys or an approved cooperative contract; counties can buy from them without bidding.
  • Check Alabama counties for each county's bid platform, contacts and agendas.

Questions

What is the bid threshold for Alabama counties?

Sealed competitive bids for labor, services, work, and purchases or leases of goods of $30,000 or more (Ala. Code 41-16-50, as raised by 2023 SB 108). From October 1, 2027, the amount is adjusted every three years by the consumer price index (Alabama League of Municipalities, secondary).

How are Alabama county purchases advertised?

The competitive bid law doesn't require newspaper ads. Proposed purchases are posted on a bulletin board outside the purchasing office and by other means the county sets, and mailed to vendors who asked to be notified (Ala. Code 41-16-54, per Alabama League of Municipalities).

Who wins an Alabama county bid?

For goods and services, the lowest responsible bidder, considering quality, specifications, purpose and delivery. For public works, the lowest responsible and responsive bidder (Ala. Code 41-16-50; Title 39, per Alabama League of Municipalities).

What is the public works threshold in Alabama?

$100,000. Act 2023-497 raised it from $50,000, effective September 1, 2023 (Ala. Code 39-2-2; Division of Construction Management).

What bonds do Alabama county public works need?

Bid security of at least 5% of the bid, capped at $10,000; a 100% performance bond; and a payment bond of at least 50%. Bonds are not required under $100,000 (Ala. Code 39-1-1, per Alabama League of Municipalities).

Does Alabama have a prevailing wage law?

No. Alabama repealed its state prevailing wage law in 1980 (U.S. Department of Labor). Federally funded projects may still carry Davis-Bacon rates.

Can Alabama counties buy off state or cooperative contracts?

Yes. Purchases from Alabama state contracts, GSA contracts at or below GSA price, and national cooperatives approved by the Examiners of Public Accounts are exempt from bidding (Ala. Code 41-16-51, per Alabama League of Municipalities).

Sources

Last reviewed Oct 31, 2026. This is general information, not legal advice. Laws and thresholds change; check the current statute and the bid documents.

How to sell to Alabama counties | FactWise