What is the minimum amount of the contractor bond required for a California B-General Building contractor license?
Correct Answer
C) $25,000
Business and Professions Code Section 7071.6 requires a $25,000 contractor bond for B-General Building contractor licenses. This bond protects consumers and must be maintained throughout the license period. The bond amount was increased from $15,000 to $25,000 in recent years.
Why This Is the Correct Answer
Business and Professions Code Section 7071.6 requires a $25,000 contractor's bond for all California contractor licenses, including the B-General Building classification. This bond must be executed by an admitted surety insurer and filed with CSLB. It protects consumers if the contractor causes financial harm or fails to comply with licensing laws.
Why the Other Options Are Wrong
Option A: $20,000
$20,000 is not a recognized bond threshold in CSLB statutes. It sits between the old $15,000 amount and the current $25,000 amount, making it a plausible-sounding but incorrect distractor.
Option B: $15,000
$15,000 was the required bond amount before a legislative increase raised it to $25,000. Older study materials may still cite $15,000, so this is the most tempting wrong answer.
Option D: $50,000
$50,000 is associated with the disciplinary bond — an additional bond CSLB can require from contractors with violations — not the standard contractor bond all applicants must file.
Memory Technique
Anchor $25,000 to a quarter: 'A quarter of $100,000 is $25,000.' Every California contractor pays a 'quarter bond' to stay licensed.
More law-business Questions
Under B&P Code Section 7071.9, a contractor may deposit cash or securities instead of obtaining a surety bond. If a contractor chooses this option, where must the deposit be maintained and what happens to interest earned?
Under California's AB 5 law (Dynamex decision), which factor is NOT part of the ABC test for determining independent contractor status?
According to Business and Professions Code Section 7031, what is required when a licensed contractor supervises work performed by unlicensed employees on a construction project?
Under California Building Standards Code Title 24, which entity has the authority to issue building permits for most residential and commercial construction projects?
According to B&P Code 7159.5, service and repair contracts must include specific provisions. Which statement is correct regarding these contracts?
Which of the following activities is exempt from California contractor licensing requirements under Business and Professions Code Section 7048?
Under Cal/OSHA regulations in Title 8 CCR Section 5192, Safety Data Sheets (SDS) for hazardous chemicals used on construction sites must be readily accessible to employees during which hours?
Under California Business and Professions Code Section 7071.9, in lieu of a surety bond, what alternative security may a contractor provide to satisfy the contractor license bond requirement?
According to Cal/OSHA regulations, which of the following is NOT a required element of a written Injury and Illness Prevention Program (IIPP)?
A homeowner requests that a B-General Building Contractor provide a certificate of insurance naming the homeowner as an additional insured on the contractor's general liability policy. Under California law, what is the contractor's obligation?
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