State Survey of P3 Authorizing Statutes: Alabama

Ala. Code § 23-1-81; § 23-1-92

Summary

The law authorizes county commissions and the state DOT to license private entities to establish or operate toll roads, toll bridges, free bridges, ferries, free ferries, or causeways.

Surety Bond Requirements:

County projects require performance bonds in an amount equal to double the amount of the contractor’s bid.

Excerpt:

“Section 23-1-92. Advertisement for contract bids – Requirement.

No contract where the estimated cost of the work will exceed $250.00 shall be made … only to the lowest reasonable and responsible bidder for such work, who shall enter into bond in double the amount of such bid, conditioned for the proper performance of such contract according to the plans and specifications and within the time prescribed by the order of the county commission of such work, which bond shall be approved by the judge of probate of said county.”

Ala. Code §§ 23-2-140 to 163

Summary

The law authorizes the Alabama Toll Road, Bridge and Tunnel Authority to enter into agreements for design-build, design-build-operate, design-build-own-operate or design-build-own-operate-maintain contracts, or other similar arrangements or agreements. The law also allows for leases, licenses, franchises, concessions or other agreements for the development, operation, management or undertaking of all or any part of a project.

No surety bond language.

Ala. Code § 23-1-40 (Effective Nov. 22, 2018)

Summary

The law authorizes the Department of Transportation to enter into P3s for constructing public improvements and repairing its buildings, offices, and other facilities.

No surety bond language.