In Georgia, what is the minimum bond amount required for a residential contractor license?
Correct Answer
D) $10,000
Georgia requires residential contractors to post a minimum surety bond of $10,000 as part of the licensing requirements.
Why This Is the Correct Answer
Georgia's Residential and General Contractors licensing law (O.C.G.A. § 43-41) requires residential contractors to post a surety bond of at least $10,000 as part of their licensing requirements. This bond provides a financial backstop for homeowners who suffer losses due to the contractor's failure to perform, fraud, or other violations.
Why the Other Options Are Wrong
Option A: $5,000
$5,000 is below Georgia's statutory minimum of $10,000. While some states set a $5,000 bond requirement, Georgia's law specifically mandates $10,000 for residential contractors.
Option B: $25,000
$25,000 exceeds the statutory minimum. A contractor may voluntarily obtain a higher bond, but Georgia law only requires $10,000 at minimum for residential licensure.
Option C: $2,500
$2,500 is far below Georgia's statutory bond requirement and would be insufficient to protect homeowners adequately. This amount is not recognized as a valid bond level under Georgia licensing law.
Memory Technique
Bond = $10,000 (ten thousand, one zero after the comma). Insurance = $300,000 (three hundred thousand, two extra zeros). The bond is the smaller number, insurance is the larger. Think: 'Bond is a small safety net; insurance is a big safety net.'
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?
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