Business & LicensingQuestion 523 of 1632
Which of the following parties is NOT a permissible claimant against a contractor's $25,000 license bond under B&P §7071.5?
a.A homeowner damaged by the contractor's willful violation of construction laws
b.A material supplier furnishing materials directly to the licensed contractor on a residential job
c.An employee for unpaid wages earned in the course of contracting business
d.A competing contractor seeking lost-profit damages for being underbid on a public job
Explanation
B&P §7071.5 limits bond claims to specified categories: homeowners injured by violations of the contractor law, persons damaged by failure to complete a construction project, employees for unpaid wages, and certain express trust fund contributions. A competitor's lost-profit claim is not a covered category.
Law Reference: Bus. & Prof. Code §7071.5This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)