Under B&P Code Section 7044, what is the maximum amount a Class C contractor can contract for on a single project without additional licensing requirements?
Correct Answer
D) No limit specified
There is no monetary limit specified in B&P Code Section 7044 for Class C contractors' project values, only scope of work limitations.
Why This Is the Correct Answer
B&P Code Section 7044 defines the scope of specialty (Class C) contractors by trade classification and type of work, not by a dollar threshold. There is no statutory monetary ceiling imposed on the contract value for a single project — the limitation is on the nature and scope of work within the licensed specialty, not the dollar amount.
Why the Other Options Are Wrong
Option A: $1,500,000
$1,500,000 is not a threshold mentioned in B&P Code Section 7044. This figure does not appear in California contractor licensing law as a cap for Class C contractors.
Option B: $1,000,000
$1,000,000 is not established by B&P Code Section 7044 as a project value limit for specialty contractors. No such monetary ceiling exists under this section.
Option C: $500,000
$500,000 is not the correct threshold. While various financial thresholds exist elsewhere in licensing law (e.g., for owner-builder exemptions), Section 7044 does not set a $500,000 cap on Class C contractors.
Memory Technique
Think 'C = Classification, not Cash.' Class C contractors are constrained by their trade Classification — what they can build — not by the Cash value of the project. No dollar cap = 'No limit specified.'
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A contractor employs 15 workers across multiple job sites. The total annual payroll is $850,000 with a workers' comp rate of 4.1%. If they self-insure with a deposit requirement of 125% of estimated annual premium, what deposit is required?
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