Virginia Contractor License Exam — All Questions

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

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.'

In a general partnership, how are the general partners liable for the debts of the business?

• a.Only up to the amount each partner originally invested
• b.Personally and jointly liable for all partnership debts✓
• c.Not liable at all, because the partnership pays its own debts
• d.Liable only for debts they personally signed for

A general partnership does not shield its owners. Each general partner has unlimited personal liability and is jointly liable for the partnership's debts and obligations — a creditor can pursue any partner's personal assets. This unlimited exposure is a key reason many contractors instead form an LLC or corporation, which provide limited liability.

Which statement best describes a limited liability company (LLC) for a contracting business?

• a.It gives owners limited liability while normally allowing profits to pass through to owners' personal tax returns✓
• b.It requires the business to pay corporate income tax and forbids pass-through taxation
• c.It makes every member personally liable for all company debts
• d.It can be owned by only one person and never by a group

An LLC combines the liability protection of a corporation with the tax flexibility of a partnership. Members are generally shielded from personal liability for business debts, and by default the LLC's profits and losses 'pass through' to the members' individual tax returns, avoiding the double taxation of a standard C corporation. An LLC may have one member or many.

A contractor's total direct cost for a job is $18,000. The contractor adds a 15% markup to cover overhead and profit. What is the bid price?

• a.$18,150
• b.$18,270
• c.$20,700✓
• d.$21,150

Markup is a percentage added on top of cost. Multiply the cost by (1 + markup): $18,000 x 1.15 = $20,700. The markup dollars are $18,000 x 0.15 = $2,700, which is added to the $18,000 cost to reach the bid price. Markup covers both company overhead and profit.

A job costs the contractor $8,000. The contractor wants a 20% gross profit MARGIN (profit as a percentage of the selling price). What must the selling price be?

• a.$9,600
• b.$10,000✓
• c.$9,800
• d.$10,400

Margin is measured against the selling price, not the cost, so you cannot simply add 20% to cost. Price = cost / (1 - margin) = $8,000 / (1 - 0.20) = $8,000 / 0.80 = $10,000. Check: profit is $2,000, and $2,000 / $10,000 = 20% margin. Adding 20% to cost ($9,600) would only give a 16.7% margin — a common and costly estimating error.

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✓

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.

On a project where the exact quantities of excavation and fill are not yet known, which bidding method best protects both owner and contractor from large quantity surprises?

• a.A unit-price contract, paying a set price per unit for the actual quantity installed✓
• b.A lump-sum contract with no measurement of quantities
• c.A verbal handshake agreement
• d.A cost-plus contract with no cost records kept

Unit pricing sets a fixed price per unit (for example, per cubic yard of excavation), and the contractor is paid for the actual measured quantity. This fairly handles uncertain quantities: the owner pays only for work performed, and the contractor is protected if quantities grow. A lump sum forces the contractor to guess and gamble on the quantity, which is risky when the amount is genuinely unknown.

Which set of elements is generally required for a contract to be legally valid and enforceable?

• a.A notary stamp, a witness, and a deposit
• b.A blueprint, a permit, and a bond
• c.Offer, acceptance, consideration, legal capacity, and a lawful purpose✓
• d.A handshake, a logo, and an invoice

A valid contract requires an offer, acceptance of that offer (mutual assent), consideration (something of value exchanged by each side), parties with legal capacity to contract, and a lawful purpose. If any element is missing — for example, no consideration or an illegal objective — the agreement may be void or unenforceable. Notaries, permits, and bonds are sometimes useful but are not the core elements of contract formation.

A construction contract states that the contractor will pay the owner $500 for each day the project finishes late, agreed in advance as a reasonable estimate of the owner's loss. This clause is best described as:

• a.A performance bond
• b.A liquidated damages clause✓
• c.A mechanic's lien
• d.A punitive penalty that courts always strike down

Liquidated damages are a dollar amount the parties agree to IN ADVANCE as compensation for a breach (commonly late completion) when the actual loss would be hard to calculate. To be enforceable the amount must be a reasonable pre-estimate of the harm, not a punishment. A performance bond is a surety guarantee, and a mechanic's lien secures payment for labor and materials — different tools entirely.

The owner asks the contractor to add a bathroom that was not in the original signed contract. What is the correct way to authorize and price this added work?

• a.A written change order signed by both parties before the work proceeds✓
• b.A verbal 'go ahead' with no documentation
• c.An adjustment made quietly on the final invoice
• d.A new lawsuit filed against the owner

A change order is a written amendment that documents a modification to the scope, price, or schedule and is signed by both parties. Handling changes in writing before performing the work protects the contractor's right to be paid for the extra work and prevents disputes about what was authorized. Relying on verbal approvals is a leading cause of payment disputes.

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✓

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.

In a Critical Path Method (CPM) schedule, the 'critical path' is:

• a.The path with the most expensive activities
• b.The longest sequence of dependent activities, which determines the shortest possible project duration✓
• c.The path that uses the newest equipment
• d.Any path that has the most float

The critical path is the longest chain of dependent activities through the network. Because it is the longest path, it sets the minimum time in which the whole project can finish. Activities on the critical path have zero float — delaying any one of them delays the entire project. It is about time and dependency, not cost or equipment.

'Float' (also called slack) for a scheduled activity means:

• a.The amount of time an activity can be delayed without delaying the project's completion date✓
• b.The amount of money left in the activity's budget
• c.The number of extra workers assigned to the activity
• d.The percentage of the activity that is already complete

Float (slack) is the scheduling flexibility of an activity — how long it can slip before it pushes out the project finish date. Activities on the critical path have zero float. Understanding float lets a manager shift non-critical work and reallocate crews without harming the overall completion date. It is a measure of time flexibility, not money or manpower.

During construction the contractor finds the plans and specifications conflict and needs clarification from the architect. The standard document used to formally ask this question is a:

• a.Certificate of occupancy
• b.Lien waiver
• c.Request for Information (RFI)✓
• d.Notice to proceed

A Request for Information (RFI) is the formal, written channel a contractor uses to ask the design team to clarify or resolve gaps, conflicts, or ambiguities in the drawings and specifications. Documenting questions and answers through RFIs creates a paper trail, avoids guesswork, and supports later claims if the answer changes the cost or schedule.

What is the primary purpose of a Gantt (bar) chart on a construction project?

• a.To calculate payroll taxes for each employee
• b.To show project activities as bars along a timeline so start dates, durations, and overlaps are easy to see✓
• c.To record the exact chemical composition of the concrete
• d.To replace the need for any building permits

A Gantt chart displays each task as a horizontal bar positioned and sized along a time axis, making it easy to communicate when activities start and finish, how long they take, and where they overlap. It is a scheduling and communication tool. It does not perform payroll, material testing, or permitting functions.

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

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.

Working capital is calculated as:

• a.Current assets minus current liabilities✓
• b.Total revenue minus total expenses for the year
• c.The value of all equipment the company owns
• d.The owner's original cash investment

Working capital = current assets - current liabilities. It measures the short-term funds available to run daily operations, buy materials, meet payroll, and absorb delays before receivables come in. Positive working capital is essential in construction because contractors often pay costs long before the owner pays them. It is different from annual net profit and from equipment value.

On a project, the owner withholds 10% from each progress payment until the work is satisfactorily completed. This withheld amount is called:

• a.A liquidated damage
• b.Retainage (retention)✓
• c.A change order
• d.Overhead

Retainage (retention) is a portion of each progress payment the owner holds back — commonly 5% to 10% — and releases after the contractor satisfactorily completes the work and addresses punch-list items. It gives the owner leverage to ensure completion, but it also strains the contractor's cash flow, so contractors must plan for it and pass appropriate retainage terms down to subcontractors.

Why do contractors use job costing (tracking costs to each specific project)?

• a.Because the law forbids one combined company bank account
• b.To avoid ever having to file a tax return
• c.Only to make the paperwork look more professional
• d.To compare actual costs against the estimate for each job and see which jobs are profitable✓

Job costing assigns labor, materials, equipment, and subcontractor costs to each individual project. This lets the contractor compare actual costs to the original estimate in real time, catch overruns early, price future work more accurately, and identify which types of jobs actually make money. Without job costing, a company can be busy and still lose money without knowing which project caused the loss.

Under OSHA construction standards, at what height above a lower level does fall protection generally become required for workers on a construction site?

• a.2 feet
• b.4 feet
• c.6 feet✓
• d.20 feet

OSHA's construction fall-protection rule (29 CFR 1926.501) generally requires protection — such as guardrails, safety nets, or personal fall-arrest systems — when a worker is exposed to a fall of 6 feet or more to a lower level. (Note the general-industry trigger is 4 feet, but on construction sites the 6-foot rule applies.) Falls are consistently a leading cause of construction fatalities, which is why this threshold is heavily tested and enforced.

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

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.

OSHA requires that a trench or excavation be protected by sloping, shoring, or a protective (trench) box once it reaches what depth?

• a.3 feet
• b.5 feet✓
• c.10 feet
• d.15 feet

Under OSHA's excavation standard (29 CFR 1926.652), a protective system — sloping/benching, shoring, or a trench box (shield) — is generally required for trenches 5 feet deep or greater (unless the excavation is entirely in stable rock). A registered professional engineer must design protection for trenches deeper than 20 feet. Cave-ins are frequently fatal, so a competent person must inspect excavations daily.

Who is responsible for providing a safe workplace and requiring the use of appropriate personal protective equipment on a job site?

• a.Only the individual workers themselves
• b.Only the equipment manufacturer
• c.Only OSHA inspectors
• d.The employer✓

Under the OSH Act's General Duty Clause and OSHA standards, the employer has the primary legal duty to furnish a workplace free from recognized hazards, to assess the job for hazards, and to provide and require appropriate PPE (often at no cost to the employee). Workers must follow safety rules and use provided equipment, but the core obligation to create a safe workplace rests with the employer.

An employee is injured while framing a house during work hours. Which system is designed to cover the employee's medical bills and lost wages regardless of who was at fault?

• a.The employee's personal auto insurance
• b.Workers' compensation insurance✓
• c.A performance bond
• d.The building permit fee

Workers' compensation is a no-fault system: an employee injured on the job receives medical care and partial wage replacement without having to prove the employer was negligent, and in exchange the employer is generally protected from most injury lawsuits. Carrying required workers' compensation coverage is a fundamental legal obligation for contractors with employees. A bond and a permit serve entirely different purposes.

Under the federal Fair Labor Standards Act (FLSA), a covered nonexempt employee must generally be paid overtime for hours worked beyond:

• a.8 hours in a single day, in every state
• b.35 hours in a week
• c.40 hours in a workweek, at one-and-one-half times the regular rate✓
• d.60 hours in a week, at the regular rate

The FLSA sets the federal overtime rule: covered nonexempt employees must receive at least 1.5 times their regular rate for hours worked over 40 in a workweek. The federal standard is weekly, not daily (some states add their own daily-overtime rules, but the nationwide FLSA baseline is the 40-hour workweek). Misclassifying workers to dodge overtime is a common and costly violation.

Which factor most strongly suggests a worker should be classified as an EMPLOYEE rather than an independent contractor?

• a.The business controls how, when, and where the work is done and provides the tools✓
• b.The worker runs an independent business serving many clients and sets their own methods
• c.The worker supplies their own tools and can profit or lose based on their own decisions
• d.The worker is free to accept or reject jobs from many different companies

The central test for classification is the degree of control and independence. When the business directs how, when, and where the work is performed and supplies the tools, the worker looks like an employee. Independent contractors typically control their own methods, invest in their own tools, serve multiple clients, and bear the risk of profit or loss. Misclassifying employees as contractors to avoid taxes, overtime, and workers' comp is a serious and heavily penalized violation.

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✓

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.

What is the primary purpose of a building permit and the inspections that go with it?

• a.To generate extra tax revenue with no benefit to the public
• b.To confirm that the proposed work meets the applicable building codes for safety and to allow official inspection of the work✓
• c.To guarantee the contractor will make a profit on the job
• d.To replace the need for a written contract with the owner

A building permit is the jurisdiction's authorization to perform construction that meets the adopted building codes, and the required inspections verify that the work actually complies at key stages. The core purpose is protecting public health and safety — sound structures, safe electrical and plumbing systems, and proper egress. Permits are not a revenue trick, a profit guarantee, or a substitute for the owner-contractor contract.

Before a newly constructed building may be legally occupied, the building department typically must issue a:

• a.Certificate of occupancy✓
• b.Lien waiver
• c.Bid bond
• d.Change order

A certificate of occupancy (CO) is the document the building official issues after final inspections confirm the building complies with the code and is safe to occupy for its intended use. Occupying a building without a required CO can lead to fines and forced vacancy. A lien waiver relates to payment, a bid bond to the bidding process, and a change order to scope changes — none of them authorize occupancy.

A contractor must set a new house a minimum distance from the property line. Which type of rule most directly governs this required setback?

• a.The electrical code
• b.OSHA fall-protection standards
• c.Local zoning ordinances✓
• d.The workers' compensation statute

Setbacks — the minimum required distances between a structure and the property lines — are established by local zoning ordinances, which regulate how land may be used and where buildings may be placed. Building codes govern how a structure is built (its safety and construction), while zoning governs where and what may be built. Distinguishing zoning (land use) from building codes (construction standards) is a fundamental concept for contractors.

Which body licenses and regulates contractors in Virginia?

• a.The Virginia Department of Labor and Industry
• b.The Board for Contractors, within the Department of Professional and Occupational Regulation (DPOR)✓
• c.Each city or county building official, with no state board
• d.The State Corporation Commission

Virginia contractors are licensed by the Board for Contractors, part of the Department of Professional and Occupational Regulation (DPOR). Its authority comes from Va. Code Title 54.1, Chapter 11, and the board's regulations are codified at 18VAC50-22.Va. Code Title 54.1, Ch. 11; 18VAC50-22

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

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.Va. Code §54.1-1100 (definition of contractor)

Under the current §54.1-1100 monetary limits, a Class C contractor license authorizes single projects in what range?

• a.More than $1,000 but less than $30,000, with annual value under $250,000✓
• b.Up to $10,000, with annual value under $150,000
• c.$30,000 up to $120,000
• d.Any amount, with no upper limit

Under the current statute, Class C covers single projects of more than $1,000 but less than $30,000, and a total annual value under $250,000. Class C carries no minimum net worth requirement. (These figures replaced older $10,000/$120,000 limits, which candidates should not use.)Va. Code §54.1-1100 (Class C)

Under the current §54.1-1100 limits, a Class B contractor license covers single projects from $30,000 up to less than $150,000, with annual value from $250,000 to less than $1,000,000. What minimum net worth must a Class B applicant show?

• a.No net worth requirement
• b.$45,000
• c.$3,000
• d.$15,000✓

The current Class B limits are single projects of $30,000 to less than $150,000 and annual value of $250,000 to less than $1,000,000, and a Class B applicant must demonstrate a minimum net worth or equity of $15,000. Class C has no net worth requirement; Class A's is higher.Va. Code §54.1-1100 (Class B)

Under the current §54.1-1100 limits, a Class A contractor license (single projects of $150,000 or more, or annual value of $1,000,000 or more) requires the applicant to show:

• a.A minimum net worth of $15,000
• b.A minimum net worth of $45,000 (or, alternatively, a $50,000 bond)✓
• c.No financial requirement
• d.A minimum net worth of $250,000

Class A has no monetary limit on project size and requires the strongest financial showing: a minimum net worth or equity of $45,000, or alternatively a $50,000 bond. These are the current figures under §54.1-1100 and replace older, lower numbers.Va. Code §54.1-1100 (Class A)

A contractor wants to bid a single commercial project valued at $200,000. What is the minimum Virginia license class needed?

• a.Class C
• b.Class B
• c.Class A✓
• d.No license, because it is a commercial job

A single project of $150,000 or more requires a Class A license. Because $200,000 exceeds the $150,000 threshold, only a Class A license authorizes the work. Class B tops out below $150,000 and Class C below $30,000.Va. Code §54.1-1100; 18VAC50-22 (monetary limits)

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

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.Va. Code §54.1-1100; 18VAC50-22

A Class A candidate passes the Virginia portion and the General portion of the business exam but fails the Advanced (Class A) portion. What is the typical result?

• a.The application is denied entirely and must be restarted
• b.The candidate is licensed as Class C
• c.The candidate must retake all three portions
• d.The candidate may be licensed at the Class B level instead✓

A Class A applicant who passes the Virginia and General portions but not the Advanced portion generally qualifies at the Class B level rather than being denied outright. The Advanced portion is what distinguishes the unlimited Class A financial and management scope.18VAC50-22 (examination; Class A Advanced)

A Class A applicant cannot meet the $45,000 net worth requirement. What alternative does Virginia allow?

• a.Nothing; net worth is the only option
• b.Post a $50,000 bond in lieu of the net worth requirement✓
• c.Downgrade automatically to Class C
• d.Pay a $45,000 fee to the board

Virginia allows a Class A applicant to satisfy the financial requirement with a $50,000 bond as an alternative to the $45,000 minimum net worth. This gives applicants who are short on equity a path to the top classification.Va. Code §54.1-1100 (net worth vs. bond)

What is the purpose of Virginia's Contractor Transaction Recovery Fund?

• a.To pay contractors when owners fail to pay them
• b.To fund the Board for Contractors' operating budget
• c.To reimburse eligible consumers who obtain an unpaid judgment against a licensed contractor for improper or dishonest conduct✓
• d.To provide low-interest loans to new contractors

The Contractor Transaction Recovery Fund reimburses eligible consumers who win a judgment against a licensed contractor for improper or dishonest conduct but cannot collect it. It is funded by assessments on licensees and is a frequently tested Virginia-specific topic.Va. Code §§54.1-1118 to 54.1-1127 (Contractor Transaction Recovery Fund)

For a Virginia contracting business, who must sit for and pass the licensing examination?

• a.A designated employee (the qualified individual) who represents the firm✓
• b.Every field worker on the payroll
• c.Only the company's outside attorney
• d.No one; passing an exam is not required in Virginia

A Virginia contracting firm qualifies through a designated employee, the qualified individual who takes the licensing examination on behalf of the business. That person is responsible for the firm's compliance with the board's rules.18VAC50-22 (designated employee / qualified individual)

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✓

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.18VAC50-22 (Board for Contractors regulations)

Which code governs building construction statewide in Virginia and is tested on the exam's building-code content?

• a.A different building code adopted separately by each locality
• b.The Virginia Uniform Statewide Building Code (USBC)✓
• c.The National Electrical Code only
• d.OSHA 29 CFR 1926 only

Virginia adopts a single Virginia Uniform Statewide Building Code (USBC) that applies across all localities, based on the model International Codes. Because the USBC is statewide, a contractor faces one consistent building-code framework rather than varying local codes.Va. Code §36-98 (Virginia Uniform Statewide Building Code)

The Virginia portion of the business exam includes questions on erosion and sediment control. Why is this a contractor's concern?

• a.It is only an issue for farmers, not contractors
• b.It applies only to federal projects
• c.Land-disturbing construction activity must control erosion and sediment to protect water quality, and contractors must comply with state and local requirements✓
• d.It has been repealed and is no longer tested

Construction that disturbs land can send sediment into waterways, so Virginia requires erosion and sediment control on qualifying land-disturbing activities. Contractors must follow approved plans and state and local requirements, which is why the exam's Virginia portion tests it.Va. Code Title 62.1, Ch. 3.1 (erosion and sediment control); exam VA portion

A person contracts for and performs a $12,000 remodeling project in Virginia without holding any contractor license. What best describes this conduct?

• a.It is unlawful unlicensed contracting, because the project exceeds the $1,000 licensing threshold✓
• b.It is permitted because residential remodeling is exempt
• c.It is permitted because the amount is under $30,000
• d.It is permitted as long as the person later applies for a license

Because the $12,000 project exceeds the $1,000 threshold that defines a contractor under §54.1-1100, the person needed at least a Class C license. Performing it unlicensed is unlawful unlicensed activity under §54.1-1115, exposing the person to penalties.Va. Code §54.1-1115 (unlicensed activity)

Before a consumer can recover from the Contractor Transaction Recovery Fund, what must generally happen first?

• a.The consumer must simply file a complaint with the board
• b.The contractor must voluntarily agree to pay
• c.The consumer must wait five years
• d.The consumer must obtain a court judgment against the licensed contractor and be unable to collect it✓

A Recovery Fund claim generally requires the consumer to first obtain a court judgment against the licensed contractor based on improper or dishonest conduct, then show the judgment cannot be collected. The Fund is a payer of last resort, not a substitute for suing.Va. Code §§54.1-1120, 54.1-1123 (Recovery Fund claims)

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

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.Va. Code §54.1-1100 (net worth by class)

How is the Virginia contractor licensing examination structured for a Class A applicant?

• a.A single 200-question closed-book test
• b.An oral interview only
• c.A Virginia portion and a General portion, plus an Advanced portion required for Class A✓
• d.There is no exam; only experience is verified

Virginia's exam has a Virginia portion (state law and regulation) and a General portion (business and project management), and Class A applicants must also pass an Advanced portion. Class B applicants take the Virginia and General portions; Class C requires no business/law exam.18VAC50-22 (examination structure)

Regarding the business/law examination, how does the requirement differ for a Class C license?

• a.Class C does not require the business/law examination that Class A and Class B require✓
• b.Class C requires the hardest, Advanced examination
• c.Class C requires two extra examinations
• d.Class C and Class A have identical exam requirements

Class C applicants are not required to sit the business/law examination that Class A and Class B applicants must pass. This reflects Class C's smaller project limits (single projects under $30,000).18VAC50-22 (Class C exam)

How does the NASCLA Accredited Commercial General Building Contractor exam relate to Virginia licensure?

• a.NASCLA replaces the entire Virginia licensing process
• b.NASCLA is never accepted in Virginia for any purpose
• c.NASCLA only satisfies the Virginia state-law portion
• d.NASCLA can satisfy the trade/technical portion for the commercial building classification, but the Virginia business/law requirements still apply✓

NASCLA can be used toward the trade/technical requirement for Virginia's commercial building classification, but a candidate must still meet Virginia's business and law and financial requirements. Candidates should confirm current acceptance with DPOR, since acceptance details can change.NASCLA acceptance (verify with DPOR)

What is the ongoing role of the designated employee after a Virginia firm is licensed?

• a.The role ends once the license is issued
• b.The designated employee remains the qualified individual responsible for the firm's compliance with board rules✓
• c.The designated employee must personally perform all the physical work
• d.The designated employee becomes a board member

The designated employee is not a one-time exam-taker; that person continues as the qualified individual responsible for the firm's compliance with the Board for Contractors' regulations. If the designated employee leaves, the firm must qualify a new one to keep its license.18VAC50-22 (designated employee responsibilities)

Under the Virginia Workers' Compensation Act, an employer is generally required to carry coverage once it regularly employs how many workers?

• a.1 or more
• b.2 or more
• c.3 or more✓
• d.10 or more

Virginia generally requires workers' compensation coverage for employers that regularly have three or more employees (Va. Code §65.2-101). Contractors must count part-time and subcontracted workers carefully when determining whether they cross the three-employee line.Va. Code §65.2-101 (Virginia Workers' Compensation Act)