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.
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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