A contractor license is required when the total project cost exceeds which of the following amounts?

A contractor license is required when the total project cost exceeds $1,000. This threshold is established to ensure that individuals performing construction work are qualified and adhere to necessary regulations and standards. By requiring a license for projects exceeding this amount, it helps to protect consumers and ensure that contractors have the requisite skills and knowledge to complete the work in compliance with applicable laws. This helps maintain safety standards and quality in construction practices.

The other amounts listed do not align with the regulatory requirement, as they either signify projects that are minor and wouldn't typically necessitate licensed oversight or are excessive thresholds that could allow untrained individuals to undertake significant projects without proper licensing or oversight.