Under Alabama contractor licensing law, a Class B contractor wants to bid on a $175,000 project. What limitation applies?
Correct Answer
D) Cannot bid - exceeds Class B limit of $150,000
Alabama Class B contractors are limited to projects under $150,000. A $175,000 project exceeds this limit and requires a Class A license.
Why This Is the Correct Answer
Cannot bid — exceeds Class B limit of $150,000 is correct. Alabama law restricts Class B contractors to projects with a cost under $150,000. A $175,000 project exceeds this ceiling and requires a Class A license.
Why the Other Options Are Wrong
Option A: Can bid but needs Class A qualifier
Can bid but needs Class A qualifier is incorrect. A Class B license cannot be supplemented by adding a qualifier to reach Class A project limits. The contractor must hold the appropriate license class for the project size.
Option B: Can bid with additional bonding requirements
Can bid with additional bonding requirements is incorrect. Additional bonding does not expand the Class B project dollar limit. Bonding and licensing limits are separate requirements; neither substitutes for the other.
Option C: No limitation - can bid on any project
No limitation — can bid on any project is incorrect. All Alabama contractor license classes have associated project value limitations. Class B is not an unlimited license.
Memory Technique
Class B = Below $150,000. The 'B' in Class B stands for 'Below the $150,000 threshold.' If the project is above $150K, the contractor needs to 'step up' to Class A.
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