According to California regulations, when a general contractor submits a bid that includes work to be performed by specialty contractors, what percentage of the total project cost must the general contractor perform with their own workforce?
Correct Answer
C) At least 30% of the total contract amount
California Business and Professions Code Section 7028.15 requires that a general building contractor perform at least 30% of the work with their own workforce or be responsible for the performance of that work. This ensures that general contractors maintain substantial involvement in projects rather than simply acting as brokers for subcontracted work.
Why This Is the Correct Answer
California Business and Professions Code Section 7028.15 requires that a general building contractor perform at least 30% of the total contract value with their own forces. This prevents general contractors from acting solely as brokers who subcontract every scope of work while taking a management fee. The contractor must have meaningful, hands-on involvement in the project.
Why the Other Options Are Wrong
Option A: At least 25% of the total contract amount
25% is below the statutory minimum. A contractor who self-performs only 25% of the work would be in violation of B&P Code Section 7028.15 and could face license discipline.
Option B: No minimum percentage is required
There is a minimum percentage requirement under California law. Saying no minimum exists is factually incorrect and would expose a licensee to discipline if they subcontracted 100% of the work.
Option D: At least 15% of the total contract amount
15% is well below the 30% statutory minimum. This threshold is too low to satisfy the legislative intent of ensuring substantive contractor involvement.
Memory Technique
Think '30-30-30': a general contractor must do at least 30% themselves, must be responsible for 100% of the outcome, and the rule appears in B&P Code Section 7028 (ends in a number suggesting '30').
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