A contractor operates as a sole proprietorship with annual revenue of $150,000. What is the minimum bond amount required for license renewal in Georgia?
Correct Answer
A) $15,000
Georgia requires a minimum $15,000 bond for contractors with annual revenue between $100,000 and $200,000.
Why This Is the Correct Answer
Georgia's contractor licensing rules establish a tiered bond requirement based on annual revenue. For contractors with annual revenue between $100,000 and $200,000, the minimum bond is $15,000. At $150,000 in annual revenue, this sole proprietorship falls squarely within that tier, making $15,000 the correct minimum bond amount for license renewal.
Why the Other Options Are Wrong
Option B: $10,000
$10,000 corresponds to a lower revenue tier (typically under $100,000 annually). Since this contractor earns $150,000 — which is above $100,000 — the $10,000 minimum does not apply; the contractor must meet the higher $15,000 requirement.
Option C: $50,000
$50,000 is the bond requirement for a higher revenue tier (typically contractors with substantially larger annual revenues). Applying the $50,000 bond to a $150,000-revenue contractor would be incorrect and impose an unnecessarily high financial burden.
Option D: $25,000
$25,000 does not correspond to the $100,000–$200,000 revenue tier under Georgia's schedule. This figure may appear in bond schedules for other states or other Georgia tiers but is not the applicable minimum for this contractor's revenue level.
Memory Technique
For Georgia bonds, think in tiers: Under $100K → $10K bond; $100K–$200K → $15K bond. The bond is roughly 10% of the tier's lower bound. At $150K revenue, you're in the second tier: $15,000.
More Georgia Questions
A contractor discovers that a building permit was issued in error and the project violates setback requirements. According to Georgia regulations, what is the contractor's primary obligation?
A contractor employs workers in both construction and office roles. The construction rate is 11.2 per $100 and office rate is 0.8 per $100. Construction payroll is $85,000 and office payroll is $45,000. What is the total workers compensation premium?
Which situation would require a Georgia contractor to obtain workers' compensation insurance?
A contractor receives a stop work order from the local building official. The contractor continues working despite the order. What is the typical penalty range?
A contractor's license expires on June 30th. They submit a renewal application on July 15th. What additional requirement must they meet?
A Georgia contractor completes work valued at $15,000 on March 1st. The property owner fails to pay. What is the deadline for filing a materialman's lien?
A contractor fails to pay workers' compensation premiums and coverage lapses. An employee is injured the next day. What is the contractor's liability?
A contractor discovers that the local building official is interpreting a code provision differently than expected. What is the proper appeal process in Georgia?
A contractor's annual payroll is $450,000. If the workers compensation rate is 8.5 per $100 of payroll, what is the annual premium?
What is the threshold amount above which a contractor must be licensed in Georgia?
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