VA CONTRACTOR 2026 CORE EXAM TIPS QUESTIONS AND
ANSWERS RATED A+
✔✔Role of the Responsible Management in a license application - ✔✔To manage
finances and legal compliance
✔✔Business Plan - ✔✔A business plan helps secure funding and guide operations.
✔✔Balance Sheet - ✔✔A balance sheet shows financial health.
✔✔Profit and Loss Statement - ✔✔It shows income vs. expenses.
✔✔Overhead in Construction - ✔✔Overhead includes indirect costs like rent and
utilities.
✔✔Cost Estimate - ✔✔Cost estimates help forecast expenses.
✔✔Depreciation - ✔✔Depreciation reduces asset value over time.
✔✔W-9 Form - ✔✔W-9 reports income for tax purposes.
✔✔Fiscal Year - ✔✔A fiscal year is a 12-month accounting cycle.
✔✔Fixed vs. Variable Costs - ✔✔Fixed costs remain constant; variable costs fluctuate.
✔✔Accountant's Role in Construction - ✔✔Accountants manage financials and
compliance.
✔✔Surety Bond - ✔✔Surety bonds ensure project completion.
✔✔Sole Proprietorship - ✔✔Sole proprietorship is the simplest structure.
✔✔Limited Liability - ✔✔Corporations offer limited liability.
✔✔Cash Flow Management - ✔✔Tracking finances helps manage cash flow.
✔✔Lien - ✔✔A lien secures payment for work performed.
✔✔General Liability Insurance - ✔✔It protects against damage and injury.
✔✔Gross vs. Net Income - ✔✔Gross is total income before deductions.
✔✔Change Order - ✔✔Change orders modify scope.
, ✔✔Project Manager's Role - ✔✔Project managers oversee construction.
✔✔Retainage - ✔✔Retainage ensures completion before full payment.
✔✔Legally Binding Contract - ✔✔Contracts require offer, acceptance, and
consideration.
✔✔Indemnification - ✔✔Indemnification protects one party from liability.
✔✔Subcontractor Agreement - ✔✔It defines scope and payment terms.
✔✔Mechanic's Lien - ✔✔It secures payment for work performed.
✔✔Contract Clause - ✔✔Clauses define contract terms.
✔✔Termination Clause - ✔✔It defines how contracts can be ended.
✔✔Proposal vs Bid - ✔✔Proposals are more detailed.
✔✔Specific Performance - ✔✔It enforces contract terms.
✔✔Liquidated Damages - ✔✔It's a penalty for breach or delay.
✔✔Statute of Limitations in Virginia - ✔✔Virginia allows 5 years to file.
✔✔Warranty Period - ✔✔It covers defect repairs.
✔✔Mediation vs Arbitration - ✔✔Mediation is voluntary; arbitration is binding.
✔✔Breach of Contract - ✔✔Breach means failure to meet terms.
✔✔Construction Attorney - ✔✔They handle legal matters.
✔✔Bid Bond - ✔✔It ensures job acceptance.
✔✔Indemnity Insurance - ✔✔It protects against legal claims.
✔✔Scope of Work Document - ✔✔It defines project scope.
✔✔Contract Administrator - ✔✔They manage contract records.
✔✔Payment Schedule in a Contract - ✔✔It sets payment timing.
ANSWERS RATED A+
✔✔Role of the Responsible Management in a license application - ✔✔To manage
finances and legal compliance
✔✔Business Plan - ✔✔A business plan helps secure funding and guide operations.
✔✔Balance Sheet - ✔✔A balance sheet shows financial health.
✔✔Profit and Loss Statement - ✔✔It shows income vs. expenses.
✔✔Overhead in Construction - ✔✔Overhead includes indirect costs like rent and
utilities.
✔✔Cost Estimate - ✔✔Cost estimates help forecast expenses.
✔✔Depreciation - ✔✔Depreciation reduces asset value over time.
✔✔W-9 Form - ✔✔W-9 reports income for tax purposes.
✔✔Fiscal Year - ✔✔A fiscal year is a 12-month accounting cycle.
✔✔Fixed vs. Variable Costs - ✔✔Fixed costs remain constant; variable costs fluctuate.
✔✔Accountant's Role in Construction - ✔✔Accountants manage financials and
compliance.
✔✔Surety Bond - ✔✔Surety bonds ensure project completion.
✔✔Sole Proprietorship - ✔✔Sole proprietorship is the simplest structure.
✔✔Limited Liability - ✔✔Corporations offer limited liability.
✔✔Cash Flow Management - ✔✔Tracking finances helps manage cash flow.
✔✔Lien - ✔✔A lien secures payment for work performed.
✔✔General Liability Insurance - ✔✔It protects against damage and injury.
✔✔Gross vs. Net Income - ✔✔Gross is total income before deductions.
✔✔Change Order - ✔✔Change orders modify scope.
, ✔✔Project Manager's Role - ✔✔Project managers oversee construction.
✔✔Retainage - ✔✔Retainage ensures completion before full payment.
✔✔Legally Binding Contract - ✔✔Contracts require offer, acceptance, and
consideration.
✔✔Indemnification - ✔✔Indemnification protects one party from liability.
✔✔Subcontractor Agreement - ✔✔It defines scope and payment terms.
✔✔Mechanic's Lien - ✔✔It secures payment for work performed.
✔✔Contract Clause - ✔✔Clauses define contract terms.
✔✔Termination Clause - ✔✔It defines how contracts can be ended.
✔✔Proposal vs Bid - ✔✔Proposals are more detailed.
✔✔Specific Performance - ✔✔It enforces contract terms.
✔✔Liquidated Damages - ✔✔It's a penalty for breach or delay.
✔✔Statute of Limitations in Virginia - ✔✔Virginia allows 5 years to file.
✔✔Warranty Period - ✔✔It covers defect repairs.
✔✔Mediation vs Arbitration - ✔✔Mediation is voluntary; arbitration is binding.
✔✔Breach of Contract - ✔✔Breach means failure to meet terms.
✔✔Construction Attorney - ✔✔They handle legal matters.
✔✔Bid Bond - ✔✔It ensures job acceptance.
✔✔Indemnity Insurance - ✔✔It protects against legal claims.
✔✔Scope of Work Document - ✔✔It defines project scope.
✔✔Contract Administrator - ✔✔They manage contract records.
✔✔Payment Schedule in a Contract - ✔✔It sets payment timing.
