SB50 Alabama 2015 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Gerald H. AllenSenator
Republican
Session: Regular Session 2015
Title: Competitive bids, public works Transportation Department and other agencies, bid guarantee, amounts increased, Secs. 23-1-2, 39-2-4 am'd.
Summary: SB50 raises the maximum bid guarantee for Department of Transportation public works bids from $10,000 to $50,000, while non-DOT authorities keep a $10,000 cap, with a required 5% minimum guarantee.
What This Bill Does
If enacted, bidders on DOT public works contracts would need to post a bid guaranty (cashier's check or bid bond) of at least 5% of the bid, with a cap of $50,000. For non-DOT awarding authorities, the cap remains at $10,000. The guarantee continues to be payable to the awarding authority and forms part of bidding prerequisites; the bill also preserves existing prequalification procedures where applicable. The act becomes effective immediately after governor approval.

Who It Affects
Bidders/contractors bidding on Department of Transportation public works projects (and related highway/bridge work) who will now face a bid guaranty up to $50,000 for large bids, with a 5% minimum.
Bidders on public works projects awarded by authorities other than the DOT (such as counties) where the bid guaranty cap remains $10,000.

Key Provisions
Section 23-1-2 increases the bid guaranty cap to $50,000 for certified checks or bid bonds, while requiring at least 5% of the bid.
Section 39-2-4 sets the bid guaranty at not less than 5% of the cost or bid for all bidders; the DOT cap is $50,000, while non-DOT awards stay capped at $10,000.
The bid guaranties must be payable to the awarding authority (cashier's check or bid bond) and count as the required qualifications to bid.
The act takes effect immediately after it is approved by the Governor.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Competitive Bids