Public WorksQuestion 495 of 1605
The payment bond required on a public works contract over $25,000 must be issued by:
a.Any bank chosen by the contractor
b.The contractor's own insurance agent personally
c.An admitted surety insurer authorized to do business in California
d.The awarding public agency itself
Explanation
The payment bond on public works must be furnished by an admitted surety insurer — a surety company licensed and authorized to transact surety business in California. This ensures the bond is backed by a financially responsible, regulated guarantor.
Law Reference: Civil Code §9554Practice all 1605 questions free — no signup required.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)