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For new construction, alteration, installation, demolition, or repair, the DIR small-project threshold is $25,000. A repair contract is $30,000. Is it above that threshold?

Correct Answer

B) Yes; it exceeds the threshold by $5,000.

The contract exceeds the $25,000 small-project threshold by $5,000.

Answer Options
A
No; it is $5,000 below the threshold.
B
Yes; it exceeds the threshold by $5,000.
C
No; the threshold applies only to maintenance.
D
Yes; every contract over $1,000 exceeds it by $25,000.

Why This Is the Correct Answer

The contract exceeds the $25,000 small-project threshold by $5,000.

Why the Other Options Are Wrong

Option A: No; it is $5,000 below the threshold.

No; it is $5,000 below the threshold. is not aligned with the supported result for small project exemption; it has the wrong label or classification even if the number looks close.

Option C: No; the threshold applies only to maintenance.

No; the threshold applies only to maintenance. skips the written authority, scope, price, notice, or release control needed for small project exemption.

Option D: Yes; every contract over $1,000 exceeds it by $25,000.

Yes; every contract over $1,000 exceeds it by $25,000. is below the supported result for small project exemption; it likely omits part of the approved scope, cap, credit, or holdback.

Memory Technique

Small Project Exemption gate for Deciding Whether: paper opens before money moves.

Reference Hint

Study anchor (closed-book): memorize Small project exemption from California Labor Code Sections 1725.5, 1771.1, and 1771.4; DIR Public. / DIR Public Works FAQ small project exemption; know the rule or calculation trigger without relying on exam-room lookup.

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