GC Laws — Alabama contractor-law checklist preview (free) Sources reviewed 2026-09-30. Public summaries remain free on gclaws.com. [ ] Licensing - The Board states that its general-contractor license applies when the undertaking costs $100,000 or more including labor and materials; swimming-pool construction has a $5,000 threshold. Qualifying subcontractors under a licensed prime also require licensure. - Awarding authorities must verify the prime is licensed before accepting a qualifying bid. A prime may receive an unlicensed subcontractor’s bid, but that subcontractor must be licensed before beginning qualifying work. [ ] Mechanic's liens - File a verified lien statement with the probate judge in the property county, stating the credited amount, identifying the property and naming its owner, as required by §35-11-213. - Section 35-11-215 requires original contractors to file within six months, journeymen and day laborers within 30 days, and other claimants within four months after the last covered labor or furnishing. - Before filing, claimants other than the original contractor must give the owner the written amount, basis and debtor notice under §35-11-218; that section excepts materials already covered by the advance notice in §35-11-210. - Section 35-11-221 generally requires enforcement within six months after maturity of the entire secured debt, subject to exceptions in the division. [ ] Retainage - Under §8-29-3(i)–(k), retainage is capped at 10% of properly performed work and eligible stored materials, with no further retainage after 50% completion. Downstream percentages also cannot exceed the applicable upstream percentage under (f)–(g). - Under §8-29-3(l), the owner releases retainage no later than the earlier of 60 days after completion of the contractor’s defined work or 60 days after substantial completion, with all necessary certificates of occupancy issued in either case. Substantial completion has the definition in (l)(2). - The cap does not eliminate contractual or statutory withholding for unperformed or unearned work. Excess retention under the cited provisions bears 1% monthly interest. [ ] Prompt payment - For performance and requests satisfying §8-29-3(a), the owner pays according to the payment terms specified in the contract documents, or within 30 days after receipt if no terms are agreed. - Sections 8-29-3(b)–(c) address agreed downstream terms and a seven-day receipt-based default. Section 8-29-3(e) separately requires a contractor receiving owner payment to pass each subcontractor its attributable share, including attributable interest, by the seventh day after receipt. - Noncompliant late payment bears interest of 1% per month on the unpaid balance due. Statutory and contractual grounds for withholding remain relevant. [ ] Prevailing wage - Workers on covered CDBG construction must receive at least the applicable prevailing wages for similar work in the area. Match the project to the governing wage determination and the program’s labor-standards coverage. - The program manual requires weekly worker payment and weekly payroll submissions; wage deductions must be permissible. - 42 U.S.C. section 5310(b) exempts volunteers who meet the statute’s compensation and employment conditions. Apply that exception to the individual’s actual role. [ ] Davis-Bacon (federal) - Under 40 U.S.C. section 3142, covered contracts require payment to laborers and mechanics employed directly on the site of the work at least weekly, at rates no lower than the applicable prevailing wage determination. The required compensation includes the basic hourly rate and required fringe benefits, which may be provided through qualifying benefits or cash as the statute permits. - Qualifying apprentices may receive a lower registered-program rate only when the applicable registration and program conditions are met. The Department of Labor’s apprenticeship rules govern those exceptions. - The Department of Labor determines the prevailing rates for the work classifications and locality. Contractors and subcontractors must use the wage determination applicable to their covered contract. - Federal assistance alone does not establish coverage: many, but not all, construction-assistance statutes include Davis-Bacon requirements. Identify the funding program and its governing Related Act. - SAM.gov publishes Davis-Bacon wage determinations. Search by the wage-determination number or the Davis-Bacon public-buildings-or-works category, and match the decision to the contract, locality, and work classification. This preview lists the topics and rules covered in the full state pack. The paid pack adds the complete source URLs, citations, review dates, and the three editable tools. GC Laws is owned and operated by GCExperts LLC, a Texas corporation.