What is the minimum bond amount required for an Alabama Class A general contractor license?
Correct Answer
D) $15,000
Alabama Code Title 34-8 requires Class A general contractors to post a minimum bond of $15,000 as part of their licensing requirements.
Why This Is the Correct Answer
Alabama Code Title 34-8 specifies that Class A general contractors must post a minimum surety bond of $15,000 as a condition of licensure. This bond protects the public by ensuring funds are available if a contractor fails to fulfill obligations.
Why the Other Options Are Wrong
Option A: $20,000
$20,000 exceeds the required minimum for a Class A license. This figure may reflect bond amounts in other states or for higher Alabama license classifications.
Option B: $25,000
$25,000 is above the Class A minimum. Candidates who guess upward when unsure often land on this figure, but it is not what the statute requires.
Option C: $10,000
$10,000 falls below the required amount. While a lower bond might seem plausible for a basic license class, Alabama sets the floor at $15,000.
Memory Technique
'Class A bonds at $15K' — associate the letter A with the number 15 (A is the 1st letter, 5 = five, together: 15). It is a lightweight mnemonic but anchors the pairing.
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