Virginia Contractor License Exam — All Questions

Which body licenses and regulates contractors in Virginia?

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

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.$750
• b.$1,000✓
• c.$5,000
• d.$500

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

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

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

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 A✓
• b.Class C
• c.Class B
• 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.No upgrade is needed because Class C has no dollar limit
• b.Class C authorizes the work because it is under $150,000
• c.The contractor needs a Class A license for a $60,000 job
• d.The project exceeds Class C limits; the contractor needs at least a Class B license✓

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

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

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 provide low-interest loans to new contractors
• d.To reimburse eligible consumers who obtain an unpaid judgment against a licensed contractor for improper or dishonest conduct✓

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.Only the company's outside attorney
• b.Every field worker on the payroll
• c.A designated employee (the qualified individual) who represents the firm✓
• 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 IRS Publication 15
• b.In the International Building Code
• 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.The National Electrical Code only
• b.A different building code adopted separately by each locality
• c.OSHA 29 CFR 1926 only
• d.The Virginia Uniform Statewide Building Code (USBC)✓

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

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

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

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.All classes require $45,000 net worth
• d.Class A requires $15,000 net worth; Class B requires $45,000

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.There is no exam; only experience is verified
• c.A Virginia portion and a General portion, plus an Advanced portion required for Class A✓
• d.An oral interview only

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

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

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

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.10 or more
• c.3 or more✓
• d.2 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)