Insurance & LiensQuestion 1531 of 1605
Which of the following is TRUE about the difference between the CSLB contractor's license bond and a project performance bond?
a.The license bond is a statewide licensing requirement; a performance bond is project-specific and guarantees completion of that job
b.The performance bond protects consumers statewide from license-law violations
c.The license bond guarantees completion of a specific project
d.They are the same thing
Explanation
The contractor's license bond is a licensing prerequisite protecting the public from license-law violations across all of the contractor's work. A performance bond is tied to one specific project and guarantees that job's completion. They serve different purposes.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)