When two licensed California contractors form a joint venture for a specific project exceeding $500,000, what is required regarding the contractor license bond?
Correct Answer
D) The joint venture must obtain its own $25,000 contractor bond separate from the individual licenses
Under Business and Professions Code Section 7028, a joint venture between licensed contractors must obtain its own $25,000 contractor license bond. The individual bonds of the participating contractors do not cover work performed under the joint venture entity. This ensures proper financial protection for consumers hiring the joint venture.
Why This Is the Correct Answer
Under Business and Professions Code Section 7028, a joint venture between licensed contractors must obtain its own $25,000 contractor license bond. The individual bonds of the participating contractors do not cover work performed under the joint venture entity. This ensures proper financial protection for consumers hiring the joint venture.
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