California Contractors License Law Practice Exam 2025 - Free Contractor License Practice Questions and Study Guide.

The penalty for failing to list a subcontractor on a public works job is 10% of the amount of the subcontract involved. This penalty serves as a deterrent to ensure transparency and compliance in public contracting. It reflects the importance of properly disclosing subcontractor information in order to maintain the integrity of the bidding process and project execution.

When contractors fail to list subcontractors, it can undermine the mechanisms put in place to ensure that work is delegated to qualified parties, which is crucial in public projects. The penalty emphasizes the responsibility of contractors to adhere to legal requirements regarding disclosure and helps to protect the interests of public agencies as well as the competitive bidding process.

This policy aims to encourage contractors to provide complete and accurate information related to all parties involved in the project. Such stipulations ultimately contribute to the effectiveness and accountability of public works projects.