Chapter 10 of 1135% of exam

West Virginia Contracting Law, the $2,500 Threshold & Liens

West Virginia sets a $2,500 licensing threshold, bars unlicensed contractors from enforcing contracts, and requires the license number on all documents. This chapter covers §30-42-6, the Contractor Licensing Act's enforcement provisions, §30-42-12, and the mechanics' lien timeline.

The $2,500 licensing threshold (WV Code §30-42-6)

West Virginia requires a contractor license whenever the cost of the construction work — labor and materials combined — is $2,500 or more (WV Code §30-42-6; the $2,500 figure is set by the definition of "contractor" in §30-42-3). Work below $2,500 may fall outside the definition of contractor, but as soon as a single project meets or exceeds $2,500, the person performing it for compensation must be licensed. This dollar trigger is one of the most frequently tested West Virginia facts.

Unlicensed contractors cannot enforce a contract (WV Code Chapter 30, Article 42)

Because West Virginia courts generally will not enforce a contract for construction work the contractor was required to be licensed to perform, an unlicensed contractor generally cannot maintain an action to collect (Contractor Licensing Act, WV Code Chapter 30, Article 42). In practice, this is the strongest civil deterrent to unlicensed work. Separately, West Virginia requires the contractor to display its license number on all contracting advertisements and fully executed contracts (WV Code §30-42-6) and on bid submissions (WV Code §30-42-12), so consumers and the state can verify licensure.

West Virginia mechanics' liens (WV Code Chapter 38, Article 2)

West Virginia's mechanics' lien law is in WV Code Chapter 38, Article 2. A general contractor who furnishes labor or materials must record the lien within 100 days after ceasing work on the project, and must then bring suit to enforce the lien within six months of recording. Because an unlicensed contractor cannot maintain an action to enforce a contract, licensure underpins the practical ability to pursue payment and lien remedies. Contractors calendar the completion date to protect these rights.

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