What is the minimum contractor license bond amount required for a California B-General Building Contractor license under Business and Professions Code Section 7071.6?
Correct Answer
C) $25,000
Business and Professions Code Section 7071.6 requires all licensed contractors to maintain a contractor license bond of $25,000. This bond protects consumers against contractor violations of the Contractors' State License Law. The $12,500 amount applies to qualifying individual bonds, while $15,000 and $50,000 are not statutory amounts.
Why This Is the Correct Answer
BPC Section 7071.6 requires ALL licensed California contractors (including B-General Building Contractors) to maintain a contractor license bond of $25,000. This bond protects consumers against violations of the Contractors' State License Law and must be maintained continuously for the license to remain active.
Why the Other Options Are Wrong
Option A: $12,500
$12,500 is the qualifying individual bond amount under BPC 7071.9, not the contractor license bond. It applies to a person, not the licensed entity.
Option B: $15,000
$15,000 is not a statutory contractor bond amount under California law. It is a distractor that falls between the two common amounts ($12,500 and $25,000).
Option D: $50,000
$50,000 is not the standard contractor license bond amount. It may appear as a distractor to represent a disciplinary bond scenario, but the standard license bond is $25,000.
Memory Technique
The contractor license bond = $25,000. Think of it as the '$25K handshake with the state' — every licensed contractor must have it. The qualifying individual's personal bond is half that ($12,500).
More law-business Questions
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Under California's AB 5 law (Dynamex decision), which factor is NOT part of the ABC test for determining independent contractor status?
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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?
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Under California's AB 5 legislation implementing the Dynamex decision, which factor is NOT part of the three-prong ABC test for determining independent contractor status?
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