A Class C-10 electrical contractor wants to bid on a project worth $850,000. What additional requirement must they meet?
Correct Answer
A) File an additional bond
Under B&P Code Section 7071.5, specialty contractors must file an additional bond when contracting for amounts exceeding $500,000.
Why This Is the Correct Answer
Under B&P Code Section 7071.5, specialty contractors (Class C license holders) must file an additional bond when their contract amount exceeds $500,000. Since $850,000 is above this threshold, the C-10 electrical contractor must file this additional bond before bidding on or undertaking the project. This requirement reflects the increased financial risk associated with large contracts.
Why the Other Options Are Wrong
Option B: No additional requirements
There are indeed additional requirements—specifically the filing of an additional bond under Section 7071.5. A specialty contractor cannot simply proceed without meeting the bond threshold requirement for contracts over $500,000.
Option C: Obtain special permit from CSLB
There is no requirement to obtain a special permit from the CSLB for large-value contracts. The mechanism is a bond requirement, not a permit process. This distractor confuses licensing/bonding requirements with permit requirements.
Option D: Upgrade to Class B license
Upgrading to a Class B (General Building) license is not required to bid on large electrical contracts. A C-10 specialty license is appropriate for electrical work regardless of contract size—the contractor just needs to meet the additional bond requirement above $500,000.
Memory Technique
500K = Bond Up: any specialty contractor (Class C) bidding above $500,000 must bond up with an additional bond. Think of it as a 'high-value surcharge' on the bond.
More ca-license-law Questions
A Class C-10 electrical contractor has annual gross receipts of $3.2 million. What is the required bond amount under current California law?
Under B&P Code Section 7125.4, what is the fee for initial Home Improvement Salesperson registration?
According to B&P Code Section 7125, what is the maximum penalty the CSLB can impose for contracting without a license?
A home improvement contract for $8,500 requires a 3-day right to cancel notice. The contract is signed on Tuesday at 2 PM. When does the cancellation period expire?
A contractor employs 15 workers across multiple job sites. The total annual payroll is $850,000 with a workers' comp rate of 4.1%. If they self-insure with a deposit requirement of 125% of estimated annual premium, what deposit is required?
A C-10 electrical contractor wants to perform plumbing work valued at $8,000 as part of a larger electrical project. Is this permissible under CSLB regulations?
A homeowner discovers that an unlicensed contractor performed $25,000 worth of work on their property. Under B&P Code Section 7031, what remedy is available to the homeowner?
A Class B general building contractor wants to perform electrical work valued at $750. According to the B&P Code, this contractor:
A contractor's qualifying individual leaves the company. How many days does the contractor have to replace them before the license becomes invalid?
According to B&P Code Section 7031, what happens to a contractor's right to payment if they perform work while unlicensed?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Contract Administration
60 questions · 70% to pass
Project Management
60 questions · 70% to pass
Related Study Resources
Previous Question
Under California Business and Professions Code, what is the minimum net worth requirement for a Class A general engineering contractor license?
Next Question
A C-36 plumbing contractor wants to install a solar water heating system. The system includes plumbing connections and electrical components. What licenses are required?