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When two licensed California contractors form a joint venture for a specific project, which requirement must be met regarding the contractor's license bond?

Correct Answer

C) Each contractor must maintain their individual $25,000 bond

Business and Professions Code Section 7071.6 requires each licensed contractor in a joint venture to maintain their individual contractor's license bond. Joint ventures do not create a separate licensing entity, so each contractor must continue to meet all individual licensing requirements including the $25,000 bond.

Answer Options
A
Only the lead contractor needs to maintain a bond
B
A combined $25,000 bond covering both contractors is sufficient
C
Each contractor must maintain their individual $25,000 bond
D
The joint venture must obtain a separate $50,000 bond

Why This Is the Correct Answer

Business and Professions Code Section 7071.6 requires each licensed contractor in a joint venture to maintain their individual contractor's license bond. Joint ventures do not create a separate licensing entity, so each contractor must continue to meet all individual licensing requirements including the $25,000 bond.

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