A Class B contractor wants to subcontract electrical work exceeding $500 to a Class C-10 electrical contractor. What is required under California law?
Correct Answer
A) The subcontractor must have an active C-10 license and workers' compensation insurance
Under B&P Code Section 7059, subcontractors performing work over $500 must be properly licensed and carry workers' compensation insurance as required by law.
Why This Is the Correct Answer
Under B&P Code Section 7059, subcontractors performing work over $500 must be properly licensed and carry workers' compensation insurance as required by law.
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A Home Improvement Salesperson sells a $15,000 roofing contract. The salesperson's registration expires during the 3-day cancellation period. What is the legal status of the contract?
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A contractor's license bond costs $450 annually for $15,000 coverage. If the contractor needs to increase coverage to $25,000 due to a claim, and the rate increases proportionally, what is the new annual cost?