This article is for California Contractors
Plumtree & Associates is a boutique construction law firm "Helping Construction Contractors Navigate the Legal System"
California contractors need to be careful so as to not have their CSLB license bond pay out on a claim. This is because a contractor's license will become suspended until the liscence bond is paid back in full!!! Below are some of the most common reasons a contractor's license bond will pay.
California Business and Professions Code
B&P Code *7107: Abandonment of a construction project or operation without legal excuse.
B&P Code *7108: Diversion or misapplication of funds or property received for prosecution or completion of a construction project or operation.
B&P Code *7108.5: Failure to pay a subcontractor not later than 7 days after receipt of each progress payment, unless otherwise agreed to in writing or in the absence of a good faith dispute over the amount due.
B&P Code *7109: Willful departure from or disregard of accepted trade standards or plans and specifications.
B&P Code *7113: Failing to complete a construction project or operation for the price stated in the contract or in any modification to the contract.
B&P Code *7114: Aiding or abetting an unlicensed person with an intent to evade the License Law.
B&P Code *7117.6: Acting in the capacity of a contractor in a classification other than a classification currently held.
B&P Code *7118: Entering into a contract with an unlicensed contractor.
B&P Code *7119: Willful failure or refusal to to diligently prosecute a construction project or operation without legal excuse.
B&P Code *7120: Willful or deliberate failure to pay money when due for materials or services rendered or false denial of any amount due or the validity of a claim with intent to secure a discount or delay.
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