Business & LicensingQuestion 1401 of 1605

Who must be named on the contractor's license bond as the principal?

a.The licensee (contractor)
b.The customer
c.The surety company only
d.The CSLB Registrar

Explanation

Under B&P Code section 7071.6, the licensee is the principal on the bond, the surety company is the guarantor, and the public is the beneficiary. The bond runs to the benefit of those harmed by the contractor's violations.

Law Reference: B&P Code §7071.6

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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen Licensed California General Contractor (CSLB License #1101856 verify)
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