According to Business and Professions Code Section 7071.17, what is the minimum bond amount required for a California B-General Building contractor license?
Correct Answer
B) $25,000
Business and Professions Code Section 7071.17 requires B-General Building contractors to maintain a $25,000 contractor license bond. This bond protects consumers and must be maintained throughout the license period. The bond amount was increased from $15,000 to $25,000 in recent years.
Why This Is the Correct Answer
Business and Professions Code Section 7071.17 requires B-General Building contractors to maintain a $25,000 contractor's license bond. This is the same minimum bond amount applicable to other contractor license classifications under the current California law, updated in recent years from the previous $15,000 requirement. The bond must remain active throughout the license period to protect consumers.
Why the Other Options Are Wrong
Option A: $15,000
$15,000 was the previous bond amount before California raised the requirement. It is frequently used as a distractor because candidates who studied older materials may still associate this number with the contractor bond. The current requirement is $25,000.
Option C: $20,000
$20,000 does not correspond to any current bond threshold under BPC Section 7071.17. It is an intermediate distractor meant to catch candidates who are unsure whether the amount was raised to $20,000 or $25,000.
Option D: $50,000
$50,000 is significantly higher than the required bond. While some performance bonds, payment bonds, or disciplinary bonds in public works or specialty contexts may be higher, the standard license bond for a B-General contractor is $25,000.
Memory Technique
B-General bond = $25K. Both start with a 'B' — B-bond = $25K. Or connect it with the other bond question: all standard California contractor license bonds (Sections 7071.6 and 7071.17) are $25,000. One number to know for bonds: 25.
More law-business Questions
Under B&P Code Section 7071.9, a contractor may deposit cash or securities instead of obtaining a surety bond. If a contractor chooses this option, where must the deposit be maintained and what happens to interest earned?
Under California's AB 5 law (Dynamex decision), which factor is NOT part of the ABC test for determining independent contractor status?
According to Business and Professions Code Section 7031, what is required when a licensed contractor supervises work performed by unlicensed employees on a construction project?
Under California Building Standards Code Title 24, which entity has the authority to issue building permits for most residential and commercial construction projects?
According to B&P Code 7159.5, service and repair contracts must include specific provisions. Which statement is correct regarding these contracts?
Which of the following activities is exempt from California contractor licensing requirements under Business and Professions Code Section 7048?
Under Cal/OSHA regulations in Title 8 CCR Section 5192, Safety Data Sheets (SDS) for hazardous chemicals used on construction sites must be readily accessible to employees during which hours?
Under California Business and Professions Code Section 7071.9, in lieu of a surety bond, what alternative security may a contractor provide to satisfy the contractor license bond requirement?
According to Cal/OSHA regulations, which of the following is NOT a required element of a written Injury and Illness Prevention Program (IIPP)?
A homeowner requests that a B-General Building Contractor provide a certificate of insurance naming the homeowner as an additional insured on the contractor's general liability policy. Under California law, what is the contractor's obligation?
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