A construction business is organized as a corporation. If the corporation is sued and cannot pay a judgment, what is generally at risk?

The assets owned by the corporation itself, not the shareholders' personal assets

The personal homes and bank accounts of every shareholder

The personal assets of the highest-paid officer only

Nothing, because corporations cannot be sued

Under the Statute of Frauds, which of the following is generally required to be in writing to be enforceable?

A contract for the sale of land or an interest in real property

A one-hour verbal agreement to sweep a job site

A casual promise to lend a friend a hammer

An agreement to buy lunch for the crew

According to the hierarchy of controls, which method of protecting workers from a hazard is MOST effective and should be considered first?

Eliminating the hazard entirely

Providing personal protective equipment (PPE)

Writing the hazard into a safety manual

What is the purpose of Form I-9 that a contractor completes for each new hire?

To verify the employee's identity and legal authorization to work in the United States

To calculate the employee's overtime rate

To register the employee with the local building department

To order the employee's personal protective equipment

A contractor holds a Class C license and is offered a single project valued at $60,000. What is the situation?

The project exceeds Class C limits; the contractor needs at least a Class B license

Class C authorizes the work because it is under $150,000

No upgrade is needed because Class C has no dollar limit

The contractor needs a Class A license for a $60,000 job

Where are the detailed regulations of the Virginia Board for Contractors found?

In the Virginia Administrative Code at 18VAC50-22

In the International Building Code

In Title 40.1 of the Code of Virginia only

Which pairing of Virginia license class to minimum net worth is correct under the current limits?

Class B requires $15,000 net worth; Class A requires $45,000 (or a $50,000 bond)

Class C requires $15,000 net worth

Class A requires $15,000 net worth; Class B requires $45,000

All classes require $45,000 net worth

Virginia Contractor License Exam Practice Test

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Sample practice questions

A few real questions from this free bank, with full explanations. Use the practice tool above for the whole set.

1. Business Organization & Licensing
A construction business is organized as a corporation. If the corporation is sued and cannot pay a judgment, what is generally at risk?
- a.The personal homes and bank accounts of every shareholder
- b.The personal assets of the highest-paid officer only
- c.The assets owned by the corporation itself, not the shareholders' personal assets
- d.Nothing, because corporations cannot be sued
Answer: c
Explanation: A corporation is a separate legal entity from its owners (shareholders). This separation creates limited liability: creditors and judgments generally reach only the assets the corporation owns, and shareholders risk losing only what they invested — not their personal homes or savings. That protection can be lost only in unusual cases such as fraud or 'piercing the corporate veil.'
2. Estimating & Bidding
How many cubic yards of concrete are needed for a slab 27 ft long, 30 ft wide, and 4 inches thick?
- a.3.3 cubic yards
- b.6.7 cubic yards
- c.8.5 cubic yards
- d.10 cubic yards
Answer: d
Explanation: First convert thickness to feet: 4 in / 12 = 0.3333 ft. Volume in cubic feet = 27 x 30 x 0.3333 = 270 cubic feet. Convert to cubic yards by dividing by 27 (there are 27 cubic feet in a cubic yard): 270 / 27 = 10 cubic yards. Getting units consistent — feet for all three dimensions — is the key step.
3. Contracts & Contract Law
Under the Statute of Frauds, which of the following is generally required to be in writing to be enforceable?
- a.A one-hour verbal agreement to sweep a job site
- b.A casual promise to lend a friend a hammer
- c.An agreement to buy lunch for the crew
- d.A contract for the sale of land or an interest in real property
Answer: d
Explanation: The Statute of Frauds requires certain categories of contracts to be in writing and signed to be enforceable — most notably contracts for the sale of land or interests in real property, and agreements that cannot be performed within one year. This is why construction and real-property agreements are documented in writing. Minor, short, everyday arrangements are not covered.
4. Financial Management & Accounting
A contracting company has current assets of $240,000 and current liabilities of $120,000. What is its current ratio?
- a.0.5 to 1
- b.1.2 to 1
- c.2.0 to 1
- d.12 to 1
Answer: c
Explanation: Current ratio = current assets / current liabilities = $240,000 / $120,000 = 2.0. A ratio of 2.0 means the company has $2 of short-term assets for every $1 of short-term debt, which generally indicates healthy short-term liquidity. Sureties and lenders watch this ratio closely; a ratio below 1.0 signals the company may struggle to pay near-term obligations.
5. Safety & OSHA
According to the hierarchy of controls, which method of protecting workers from a hazard is MOST effective and should be considered first?
- a.Eliminating the hazard entirely
- b.Providing personal protective equipment (PPE)
- c.Posting a warning sign
- d.Writing the hazard into a safety manual
Answer: a
Explanation: The hierarchy of controls ranks protections from most to least effective: elimination, substitution, engineering controls, administrative controls, and finally PPE. Removing the hazard entirely is best because it does not depend on worker behavior or equipment holding up. PPE is the last line of defense — it only reduces exposure and relies on correct, consistent use, so it is the least reliable control on its own.
6. Employment & Labor Law
What is the purpose of Form I-9 that a contractor completes for each new hire?
- a.To calculate the employee's overtime rate
- b.To register the employee with the local building department
- c.To order the employee's personal protective equipment
- d.To verify the employee's identity and legal authorization to work in the United States
Answer: d
Explanation: The federal Form I-9 is used to verify each new employee's identity and their authorization to work in the United States, as required by immigration law. Employers must complete and retain an I-9 for every employee and review acceptable documents. It is separate from tax forms (like the W-4) and from any safety, permitting, or payroll-rate functions.
7. topics.ctva_classes
Under current Virginia law, a contractor license is required once a person undertakes a project (or a total value in a 12-month period) of at least:
- a.$500
- b.$750
- c.$1,000
- d.$5,000
Answer: c
Explanation: Va. Code §54.1-1100 defines a contractor by reference to work valued at $1,000 or more. Work under $1,000 generally does not, by itself, require a Virginia contractor license, while a single project of $1,000 or more does.
Source: Va. Code §54.1-1100 (definition of contractor)
8. topics.ctva_classes
A contractor holds a Class C license and is offered a single project valued at $60,000. What is the situation?
- a.The project exceeds Class C limits; the contractor needs at least a Class B license
- b.Class C authorizes the work because it is under $150,000
- c.No upgrade is needed because Class C has no dollar limit
- d.The contractor needs a Class A license for a $60,000 job
Answer: a
Explanation: Class C is limited to single projects under $30,000. A $60,000 project falls in the Class B range ($30,000 to less than $150,000), so the contractor must upgrade to at least Class B to perform it legally.
Source: Va. Code §54.1-1100; 18VAC50-22
9. topics.ctva_law
Where are the detailed regulations of the Virginia Board for Contractors found?
- a.In the International Building Code
- b.In IRS Publication 15
- c.In Title 40.1 of the Code of Virginia only
- d.In the Virginia Administrative Code at 18VAC50-22
Answer: d
Explanation: The Board for Contractors' regulations are codified at 18VAC50-22 in the Virginia Administrative Code, implementing the statute at Va. Code Title 54.1, Chapter 11. These regulations cover classifications, monetary limits, exam content, and standards of practice and conduct.
Source: 18VAC50-22 (Board for Contractors regulations)
10. topics.ctva_requirements
Which pairing of Virginia license class to minimum net worth is correct under the current limits?
- a.Class C requires $15,000 net worth
- b.Class B requires $15,000 net worth; Class A requires $45,000 (or a $50,000 bond)
- c.Class A requires $15,000 net worth; Class B requires $45,000
- d.All classes require $45,000 net worth
Answer: b
Explanation: Under the current §54.1-1100 figures, Class C has no net worth requirement, Class B requires $15,000, and Class A requires $45,000 (or a $50,000 bond). Net worth requirements rise with the size of the projects a class may undertake.
Source: Va. Code §54.1-1100 (net worth by class)