Under California Business and Professions Code, what is the minimum net worth requirement for a Class A general engineering contractor license?
Correct Answer
C) $2,500,000
Class A contractors must maintain a minimum net worth of $2,500,000 as specified in B&P Code Section 7067.5.
Why This Is the Correct Answer
B&P Code Section 7067.5 sets the minimum net worth requirement for a Class A general engineering contractor license at $2,500,000. This high threshold reflects the large-scale, high-value nature of general engineering projects such as highways, bridges, and major infrastructure work, where financial stability is critical to project completion.
Why the Other Options Are Wrong
Option A: $1,000,000
$1,000,000 is below the statutory requirement. While it may seem like a substantial amount, it falls short of the $2,500,000 minimum mandated for Class A licenses.
Option B: $5,000,000
$5,000,000 exceeds the statutory requirement. This figure is a distractor that may seem plausible for large infrastructure contractors but is not what B&P Code 7067.5 specifies.
Option D: $10,000,000
$10,000,000 is far above the statutory requirement. This number might apply to very large public works bonding requirements in certain contexts but is not the net worth threshold for a Class A license.
Memory Technique
Remember '$2.5M for Class A.' The letter A is the first and highest class—pair it with 2.5 million. Think: 'A-grade projects need A-grade finances: $2,500,000.'
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A homeowner discovers that an unlicensed contractor performed $25,000 worth of work on their property. Under B&P Code Section 7031, what remedy is available to the homeowner?
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