What is the minimum net worth requirement for a Class A contractor license in California?
Correct Answer
D) $2.5 million
Under B&P Code Section 7067.5, Class A contractors must maintain a minimum net worth of $2.5 million.
Why This Is the Correct Answer
Under B&P Code Section 7067.5, Class A contractors (general engineering contractors) must maintain a minimum net worth of $2.5 million. This high threshold reflects the large-scale, high-value infrastructure and engineering projects that Class A licensees undertake.
Why the Other Options Are Wrong
Option A: $500,000
$500,000 is far below the statutory requirement. This figure is not tied to any CSLB net worth threshold for Class A licensees.
Option B: $250,000
$250,000 is not a recognized CSLB net worth requirement for any license class. It is well below the Class A minimum.
Option C: $1 million
$1 million is a plausible-sounding round number but is less than half the actual $2.5 million requirement under B&P Code Section 7067.5.
Memory Technique
Think 'A is for Ambitious': Class A requires the biggest net worth — $2.5 million. Visualize a Class A highway project costing millions to anchor the number.
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