A payment-bond threshold is $25,000 in the study problem, and the contract is $41,200. How far above threshold is it?
Correct Answer
C) $16,200.
The contract exceeds the threshold by $41,200 - $25,000 = $16,200.
Why This Is the Correct Answer
The contract exceeds the threshold by $41,200 - $25,000 = $16,200.
Why the Other Options Are Wrong
Option A: $15,950.
$15,950. is below the supported result for payment bond; it likely omits part of the approved scope, cap, credit, or holdback.
Option B: $11,200.
$11,200. is below the supported result for payment bond; it likely omits part of the approved scope, cap, credit, or holdback.
Option D: $21,200.
$21,200. is above the supported result for payment bond; it likely adds scope or money the rule does not allow.
Memory Technique
Checking Threshold contract math: approved scope is the ruler for payment bond.
Reference Hint
Study anchor (closed-book): memorize Payment bond from California Public Contract Code public works payment and retention. / California Civil Code public works payment bond concepts; know the rule or calculation trigger without relying on exam-room lookup.
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