California Contractors License Law Practice Exam

The correct answer states that a prime contractor cannot substitute a previously listed subcontractor. In California's construction law, once a subcontractor is listed in the bid documents and awarded the contract based on that bid, their substitution generally requires specific conditions to be met. This is to ensure that the contract is executed as originally agreed upon and to maintain the integrity of the bidding process.

Substitution of subcontractors without sufficient grounds, such as non-performance or mutual agreement, can lead to legal disputes and potential issues with contract compliance. There are legal provisions that define the circumstances under which a subcontractor may be substituted, primarily focusing on the need for consent from the project owner or a valid reason aligned with contractual obligations.

The other options imply scenarios where substitutions might occur without considering the necessary legal framework and the protections intended for both the parties and the integrity of the contract. Thus, the statement aligns with established regulations that govern contractor and subcontractor relationships in the state, emphasizing the importance of maintaining what was originally bid.