Virginia Contractor License Exam — All Questions

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)