What is the minimum bond amount required for a California Class B General Building Contractor license under Business and Professions Code Section 7071.6?
Correct Answer
D) $25,000
Business and Professions Code Section 7071.6 requires Class B General Building Contractors to maintain a contractor's bond in the amount of $25,000. This bond serves as protection for consumers and must be maintained throughout the license period. The bond amount was increased from $15,000 to $25,000 effective January 1, 2019.
Why This Is the Correct Answer
BPC §7071.6 requires a contractor's bond of $25,000 for all California contractor licenses, including Class B General Building Contractors. This amount was increased from $15,000 to $25,000 effective January 1, 2019. The $25,000 bond protects consumers against contractor misconduct, unlicensed work, or failure to pay wages/subcontractors.
Why the Other Options Are Wrong
Option A: $50,000
$50,000 is not the bond requirement for a standard contractor license. This figure might be confused with other surety or financial requirements, but it exceeds the BPC §7071.6 amount.
Option B: $15,000
$15,000 was the previous bond requirement before January 1, 2019. This is a classic exam distractor — candidates who studied older materials may select this outdated figure.
Option C: $100,000
$100,000 is not required under BPC §7071.6. A $100,000 bond might be associated with certain specialty licenses or additional consumer protection bonds, but it is not the standard contractor license bond.
Memory Technique
Bond = $25,000. Think: '25 grand to be a licensed contractor in California.' Or: a quarter of $100K = $25K bond. The '25' number also appears elsewhere in California contractor law (e.g., the $25 CSLB consumer complaint threshold for bond claims).
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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