A Class B general building contractor wants to bid on a public works project valued at $3.2 million. What is the minimum license bond amount required?
Correct Answer
B) $100,000
For public works projects over $500,000, Class B contractors must have a bond of at least $100,000 per B&P Code Section 7071.9.
Why This Is the Correct Answer
Business and Professions Code Section 7071.9 requires contractors on public works projects exceeding $500,000 to carry a contractor's license bond of at least $100,000. The $3.2 million project value clearly exceeds the $500,000 threshold, triggering the $100,000 bond requirement.
Why the Other Options Are Wrong
Option A: $50,000
A $50,000 bond does not meet the elevated requirement for public works projects over $500,000. This amount may be confused with bond thresholds under other statutes or with smaller project tiers.
Option C: $25,000
A $25,000 bond is below the standard residential contractor bond requirement and does not apply to a multi-million dollar public works project. This amount is far too low for the project scale described.
Option D: $15,000
A $15,000 bond reflects an outdated or incorrect threshold and does not satisfy CSLB requirements for any active license category bidding on public works projects of this size.
Memory Technique
Public works over 500K = Bond of 100K. Associate the half-million threshold with a six-figure bond: '500 triggers 100.' Both numbers end in three zeros, making the pairing memorable.
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