Need a Commercial Services Contract in Alabama? AroundWire Can Help

In Alabama, contracts for commercial services—covering areas such as facility maintenance, janitorial, landscaping, and other business support services—are typically governed by both state procurement statutes and specific agency requirements. Key contract features include clear scopes of work, defined deliverables, and performance standards, with preference for fixed-price or unit-rate agreements. Contractors must comply with the Alabama State Bid Law (Code of Alabama §41-16-20 et seq.) for public sector contracts, which mandates competitive bidding above certain thresholds. Licensing is critical; service providers often need a valid state business license and, depending on the service, may require specialty or municipal permits. Insurance obligations are stringent: general liability and workers’ compensation coverage are generally required, with minimum limits specified in the contract. Indemnity clauses are common, favoring the contracting entity. Payment terms frequently stipulate net 30 days, but may extend based on agency or project needs. Alabama enforces prompt payment statutes for public contracts, though private sector terms are negotiable. Risk factors include liquidated damages for non-performance and strict termination clauses for convenience or cause. Dispute resolution typically favors Alabama state courts, with contracts often specifying venue in the county of service delivery. Prevailing wage requirements are rare outside of federally funded projects. Contractors should pay close attention to E-Verify compliance and background check requirements for personnel, especially when services are performed on government property.