Under Business and Professions Code Section 7071.5, what is the minimum net worth requirement for a Class A general engineering contractor?
Correct Answer
B) $2,500,000
Class A contractors must maintain a minimum net worth of $2,500,000 according to B&P Code Section 7071.5.
Why This Is the Correct Answer
B&P Code Section 7071.5 sets the minimum net worth for a Class A general engineering contractor at $2,500,000. This higher threshold reflects the large-scale public infrastructure projects — highways, bridges, dams — that Class A contractors are licensed to perform.
Why the Other Options Are Wrong
Option A: $1,000,000
$1,000,000 is not the minimum net worth for a Class A contractor. This figure does not appear as a net worth threshold in the CSLB classification net worth schedule and may be confused with other financial thresholds in contractor law.
Option C: $5,000,000
$5,000,000 overstates the requirement. While Class A contractors handle large projects, the statutory minimum under Section 7071.5 is $2,500,000, not $5,000,000.
Option D: $10,000,000
$10,000,000 greatly overstates the requirement and does not appear as a net worth threshold in CSLB regulations. This figure may be confused with project dollar values or bonding amounts in other contexts.
Memory Technique
Class A = 'A' for Advanced engineering = $2.5 million. Think: 2.5 = two and a half million = massive infrastructure projects require massive financial backing.
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