What is the primary purpose of the $25,000 Contractor License Bond required by §7071.6?

Explanation

§7071.6(a) makes the $25,000 contractor's bond a condition precedent to issuing, reinstating, reactivating, renewing or maintaining a licence, and §7071.5 lists exactly who may claim on it: a homeowner damaged on home improvement to a personal family residence, the owner of a single-family dwelling not built for sale, any person damaged by a willful and deliberate violation of the licence law or by the licensee's fraud, an employee owed wages, and the funds owed employee fringe benefits. §7071.6(b) then reserves everything above $7,500 for the homeowners named in §7071.5(a). That list is why (b) is wrong: an unpaid subcontractor's remedies are the mechanics lien and the stop payment notice, and it reaches this bond only through the willful-violation or fraud door. (c) has the bond backwards — it protects others from the licensee, not the licensee's margin — and (d) confuses it with the coverage §7125 requires.