C33 - C-33 California Painting Contractor License California Painting Contractor Business Financial 1

Question 1

What is the required contractor's license bond amount that a C-33 Painting and Decorating contractor must maintain with the CSLB?

Accepted Answer

$25,000

Answer

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?

Accepted Answer

$500

Answer

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?

Accepted Answer

90 days

Answer

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?

Accepted Answer

Upon hiring even one employee, whether full-time or part-time

Answer

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?

Accepted Answer

$15,000

Answer

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.

C33 - C-33 California Painting Contractor License Practice Test

C33 - C-33 California Painting Contractor License Practice Test

C33 - C-33 California Painting Contractor License California Painting Contractor Business Financial 1