What is the minimum bond amount 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's bond for B-General Building contractors. This bond protects consumers and ensures compliance with licensing laws. The bond must be maintained throughout the license period and filed with CSLB as a condition of licensure.
Why This Is the Correct Answer
Business and Professions Code Section 7071.6 sets the contractor's bond at $25,000 for all license types, including the B-General Building classification. The bond must be filed with and approved by CSLB before the license is issued and must stay current throughout the license period to protect consumers from contractor misconduct.
Why the Other Options Are Wrong
Option A: $50,000
$50,000 is the amount of the disciplinary bond sometimes required by the CSLB as an additional condition when a license has violations — it is not the standard contractor bond amount.
Option B: $15,000
$15,000 was the required bond amount prior to a legislative increase. Many study guides still show the old figure, making this a common wrong answer. The current statutory amount is $25,000.
Option D: $100,000
$100,000 is not a figure tied to the standard contractor bond. It may be confused with general liability insurance minimums sometimes discussed in the industry, but it has no statutory basis as the bond amount.
Memory Technique
Picture a $25 bill — 'twenty-five thousand' — and think 'B for Bond, B for $25K.' The letter B lines up with the number 25 as a mnemonic anchor.
More law-business Questions
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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?
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