C33 - C-33 California Painting Contractor License California Painting Contractor Business Financial 1 — Questions and Answers
Question 1: What is the required contractor's license bond amount that a C-33 Painting and Decorating contractor must maintain with the CSLB?
- $5,000
- $15,000
- $25,000 (Correct answer)
- $50,000
Correct answer: $25,000
California Business and Professions Code requires all licensed contractors, including C-33 holders, to maintain a $25,000 contractor's license bond with the CSLB. This bond protects consumers and employees from financial harm caused by the contractor's failure to comply with licensing laws.
Question 2: Under California Business and Professions Code Section 7159, a C-33 contractor must provide a written home improvement contract when the total project price (labor and materials combined) equals or exceeds what amount?
- $200
- $500 (Correct answer)
- $1,000
- $2,500
Correct answer: $500
California law requires a written contract for residential home improvement projects valued at $500 or more in combined labor and materials. This threshold is intentionally low and applies to the vast majority of residential painting jobs.
Question 3: A C-33 painting contractor completes a private residential project but the owner refuses to pay. Within how many days after project completion must the contractor record a mechanic's lien to preserve the right to payment?
- 30 days
- 60 days
- 90 days (Correct answer)
- 180 days
Correct answer: 90 days
Under California Civil Code, a direct (prime) contractor must record a mechanic's lien within 90 days after completion or cessation of the work. Missing this deadline permanently extinguishes the contractor's lien rights on that project.
Question 4: At what point is a C-33 painting contractor in California legally obligated to carry workers' compensation insurance?
- When annual payroll exceeds $50,000
- When the contractor employs three or more workers
- Upon hiring even one employee, whether full-time or part-time (Correct answer)
- Only for employees working more than 20 hours per week
Correct answer: Upon hiring even one employee, whether full-time or part-time
California Labor Code requires employers to obtain workers' compensation coverage immediately upon hiring their first employee, with no minimum headcount exemption. Even a single part-time or seasonal worker triggers the requirement, and operating without coverage is a criminal offense.
Question 5: A C-33 contractor estimates total direct job costs (labor and materials) at $12,000 and applies a 25% markup to cover overhead and profit. What is the correct total bid price?
- $13,500
- $14,400
- $15,000 (Correct answer)
- $16,200
Correct answer: $15,000
A 25% markup on $12,000 in direct costs adds $3,000 (0.25 × $12,000), yielding a total bid price of $15,000. Applying the markup to direct costs — rather than to the final price — is the standard method for pricing painting contracts.
Question 6: Under California Civil Code Section 8812, once a general contractor receives payment from a property owner on a private project, within how many days must the general contractor pay subcontractors such as a C-33 painting sub?
- 3 days
- 7 days (Correct answer)
- 14 days
- 30 days
Correct answer: 7 days
California's Prompt Payment Act requires general contractors on private works to pass payment down to subcontractors within 7 days of receiving funds from the owner. Failure to pay on time entitles the subcontractor to 2% monthly interest penalties on the overdue amount.
C33 - C-33 California Painting Contractor License California Painting Contractor Business Financial 1
What is the required contractor's license bond amount that a C-33 Painting and Decorating contractor must maintain with the CSLB?