What is the minimum net worth requirement for a Class A general engineering contractor license in California?
Correct Answer
D) $2,500,000
Per B&P Code Section 7067.5, Class A contractors must maintain a minimum net worth of $2,500,000.
Why This Is the Correct Answer
Per B&P Code Section 7067.5, a Class A General Engineering Contractor must demonstrate and maintain a minimum net worth of $2,500,000. This financial threshold reflects the large-scale, capital-intensive nature of general engineering projects such as highways, bridges, and major infrastructure.
Why the Other Options Are Wrong
Option A: $1,000,000
$1,000,000 is incorrect. While $1 million sounds substantial, the Class A net worth requirement is more than double that amount. This figure may be confused with bond or other financial thresholds.
Option B: $5,000,000
$5,000,000 is incorrect. This exceeds the actual statutory requirement. The B&P Code sets the threshold at $2.5 million, not $5 million.
Option C: $10,000,000
$10,000,000 is incorrect. This is far above the statutory requirement and is not a figure found in B&P Code Section 7067.5.
Memory Technique
Class A = A-grade = $2.5M. Think of an 'A' with two peaks — two and a half million. Class A contractors build the biggest projects, so they need serious capital behind them.
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