A general contractor subcontracts plumbing work to an unlicensed individual. The general contractor may face:
Correct Answer
A) License suspension and civil penalties
B&P Code Section 7118 makes it a violation for licensed contractors to use unlicensed subcontractors, subject to both license disciplinary action and civil penalties.
Why This Is the Correct Answer
B&P Code Section 7118 prohibits licensed contractors from hiring unlicensed subcontractors for work that requires a license. Violations expose the general contractor to both license disciplinary action (suspension/revocation) and civil penalties, making option A the complete and correct answer.
Why the Other Options Are Wrong
Option C: A warning letter only
A warning letter alone is a grossly insufficient response under the code. B&P Code Section 7118 treats this as a substantive violation warranting license action and financial penalties, not merely an advisory notice.
Option D: No penalty if the work was under $500
The $500 threshold applies to the exemption from needing a contractor's license for very minor work — it does not create an exemption from the prohibition on using unlicensed subcontractors. A licensed contractor must use licensed subs regardless of dollar amount for licensed trades.
Memory Technique
Remember 'Two Punches for One Mistake': using an unlicensed sub hits you twice — (1) license action and (2) civil penalties. The CSLB does not give one-punch warnings for this violation.
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