VIRGINIA HOME IMPROVEMENT CONTRACTOR
(HIC) EXAMINATION
Actual Exam 2026 | Complete Questions and Correct
Detailed Answers
Question 1 According to Virginia Code §54.1-1100 et seq., what is the minimum net worth
requirement for a Class A contractor license?
A. $15,000 B. $45,000 [CORRECT] C. $75,000 D. $150,000
Correct Answer: B
Rationale:
• Virginia Code Reference: §54.1-1101 and 18VAC50-22-30 (Board for Contractors
Regulations)
• Why B is correct: Class A contractors must demonstrate a minimum net worth of
$45,000 or provide a $45,000 surety bond. This reflects the unlimited project value
capacity of Class A licenses.
• Why A is incorrect: $15,000 is the net worth requirement for Class B contractors
(18VAC50-22-30.B), not Class A.
• Why C is incorrect: $75,000 is not a statutory net worth threshold in Virginia contractor
licensing.
• Why D is incorrect: While Class A contractors may need higher bonding for specific
projects, $150,000 is not the statutory minimum net worth requirement.
Practical Implication: Class A contractors must submit audited financial statements or CPA-
reviewed statements proving net worth, making this a significant barrier to entry that ensures
financial responsibility for large-scale projects.
Question 2 A contractor performs work where the total value of all projects in a calendar year
does not exceed $150,000 and no single project exceeds $120,000. Which license class is
appropriate?
A. Class A B. Class B [CORRECT] C. Class C D. No license required
Correct Answer: B
,Rationale:
• Virginia Code Reference: §54.1-1100 and 18VAC50-22-10 (Definitions and
Classifications)
• Why B is correct: Class B contractors are limited to single projects not exceeding
$120,000 and total annual volume not exceeding $750,000. The scenario describes
projects under $120,000 and annual volume under $150,000, fitting Class B limits.
• Why A is incorrect: Class A has no project limits; while legal, it's unnecessary for this
volume and requires higher net worth ($45,000 vs. $15,000).
• Why C is incorrect: Class C contractors are limited to single projects not exceeding
$10,000 (not $120,000) with total annual volume not exceeding $150,000. The $120,000
single project exceeds Class C limits.
• Why D is incorrect: Virginia requires contractor licensing for home improvement work
over $1,000 (§54.1-1100). No exemption applies here.
Practical Implication: Contractors often start with Class C and upgrade to Class B as business
grows, but must ensure they don't exceed single project limits or they face disciplinary action.
Question 3 Under 18VAC50-22-50, how frequently must a Virginia contractor license be
renewed?
A. Annually B. Every two years [CORRECT] C. Every three years D. Every five years
Correct Answer: B
Rationale:
• Virginia Code Reference: 18VAC50-22-50 (License Renewal) and §54.1-1109
• Why B is correct: Virginia contractor licenses expire two years from the date of issuance
and must be renewed before expiration. The renewal period aligns with the continuing
education cycle.
• Why A is incorrect: Annual renewal is not required; this would create excessive
administrative burden.
• Why C is incorrect: Three-year renewal cycles are used in some other professions but
not Virginia contracting.
• Why D is incorrect: Five-year cycles are too long for monitoring contractor compliance
and financial responsibility.
,Practical Implication: Contractors must track expiration dates carefully. Late renewal incurs
penalties and potential license lapse, during which contracting is illegal.
Question 4 A contractor changes their business address within Virginia. According to 18VAC50-
22-60, within how many days must the Board for Contractors be notified?
A. 10 days B. 30 days [CORRECT] C. 60 days D. 90 days
Correct Answer: B
Rationale:
• Virginia Code Reference: 18VAC50-22-60 (Change of Address, Email, or Telephone
Number)
• Why B is correct: Licensees must notify the Board within 30 days of any change of
address, email address, or telephone number. This ensures the Board can maintain
accurate records and serve legal notices.
• Why A is incorrect: 10 days is not specified in the regulations for address changes.
• Why C is incorrect: 60 days exceeds the regulatory requirement and risks non-
compliance.
• Why D is incorrect: 90 days is far too long and would constitute a violation.
Practical Implication: Failure to notify the Board of address changes can result in missed
renewal notices, disciplinary communications, or legal service, potentially leading to default
judgments or license revocation.
Question 5 Which of the following activities is generally EXEMPT from Virginia contractor
licensing requirements under §54.1-1101?
A. Building a new single-family residence B. Remodeling a kitchen for $15,000 C. Installing a
new roof on a commercial building D. Performing electrical work as a licensed Class A
electrician [CORRECT]
Correct Answer: D
Rationale:
• Virginia Code Reference: §54.1-1101 (Exemptions from licensing requirements)
• Why D is correct: Persons licensed and performing work within the scope of their
license as electricians, plumbers, or HVAC contractors under the Department of Health
, Professions or other regulatory boards are exempt from contractor licensing for that
specific trade work.
• Why A is incorrect: New residential construction requires a contractor license (Class A,
B, or C depending on value).
• Why B is incorrect: Kitchen remodeling exceeding $1,000 requires a home
improvement contractor license.
• Why C is incorrect: Commercial roofing requires a contractor license; no exemption
exists for trade work performed by unlicensed individuals.
Practical Implication: Electricians must still hold appropriate electrical licenses, but don't need
separate contractor licenses for electrical work. However, if they perform general contracting
(hiring subcontractors, managing projects), they need contractor licensing.
Question 6 What is the penalty for contracting without a required license in Virginia under
§54.1-1115?
A. A warning letter B. Civil penalty up to $500 per day C. Class 1 misdemeanor and civil penalty
up to $500 per day [CORRECT] D. Felony charge only
Correct Answer: C
Rationale:
• Virginia Code Reference: §54.1-1115 (Practicing without license; penalty)
• Why C is correct: Contracting without a required license is a Class 1 misdemeanor
(criminal offense) punishable by up to 12 months in jail and/or fine up to $2,500, plus
civil penalties up to $500 per day for each day of violation.
• Why A is incorrect: No warning letter scheme exists; unlicensed contracting is
immediately punishable.
• Why B is incorrect: While the $500/day civil penalty is correct, this option omits the
criminal misdemeanor classification.
• Why D is incorrect: While serious, unlicensed contracting is a misdemeanor, not a
felony (which requires more than 12 months imprisonment).
Practical Implication: Unlicensed contracting carries severe consequences including criminal
record, fines, and inability to obtain licensure later. Always verify license status before bidding.
Question 7 Under 18VAC50-22-190, what continuing education is required for license renewal?
(HIC) EXAMINATION
Actual Exam 2026 | Complete Questions and Correct
Detailed Answers
Question 1 According to Virginia Code §54.1-1100 et seq., what is the minimum net worth
requirement for a Class A contractor license?
A. $15,000 B. $45,000 [CORRECT] C. $75,000 D. $150,000
Correct Answer: B
Rationale:
• Virginia Code Reference: §54.1-1101 and 18VAC50-22-30 (Board for Contractors
Regulations)
• Why B is correct: Class A contractors must demonstrate a minimum net worth of
$45,000 or provide a $45,000 surety bond. This reflects the unlimited project value
capacity of Class A licenses.
• Why A is incorrect: $15,000 is the net worth requirement for Class B contractors
(18VAC50-22-30.B), not Class A.
• Why C is incorrect: $75,000 is not a statutory net worth threshold in Virginia contractor
licensing.
• Why D is incorrect: While Class A contractors may need higher bonding for specific
projects, $150,000 is not the statutory minimum net worth requirement.
Practical Implication: Class A contractors must submit audited financial statements or CPA-
reviewed statements proving net worth, making this a significant barrier to entry that ensures
financial responsibility for large-scale projects.
Question 2 A contractor performs work where the total value of all projects in a calendar year
does not exceed $150,000 and no single project exceeds $120,000. Which license class is
appropriate?
A. Class A B. Class B [CORRECT] C. Class C D. No license required
Correct Answer: B
,Rationale:
• Virginia Code Reference: §54.1-1100 and 18VAC50-22-10 (Definitions and
Classifications)
• Why B is correct: Class B contractors are limited to single projects not exceeding
$120,000 and total annual volume not exceeding $750,000. The scenario describes
projects under $120,000 and annual volume under $150,000, fitting Class B limits.
• Why A is incorrect: Class A has no project limits; while legal, it's unnecessary for this
volume and requires higher net worth ($45,000 vs. $15,000).
• Why C is incorrect: Class C contractors are limited to single projects not exceeding
$10,000 (not $120,000) with total annual volume not exceeding $150,000. The $120,000
single project exceeds Class C limits.
• Why D is incorrect: Virginia requires contractor licensing for home improvement work
over $1,000 (§54.1-1100). No exemption applies here.
Practical Implication: Contractors often start with Class C and upgrade to Class B as business
grows, but must ensure they don't exceed single project limits or they face disciplinary action.
Question 3 Under 18VAC50-22-50, how frequently must a Virginia contractor license be
renewed?
A. Annually B. Every two years [CORRECT] C. Every three years D. Every five years
Correct Answer: B
Rationale:
• Virginia Code Reference: 18VAC50-22-50 (License Renewal) and §54.1-1109
• Why B is correct: Virginia contractor licenses expire two years from the date of issuance
and must be renewed before expiration. The renewal period aligns with the continuing
education cycle.
• Why A is incorrect: Annual renewal is not required; this would create excessive
administrative burden.
• Why C is incorrect: Three-year renewal cycles are used in some other professions but
not Virginia contracting.
• Why D is incorrect: Five-year cycles are too long for monitoring contractor compliance
and financial responsibility.
,Practical Implication: Contractors must track expiration dates carefully. Late renewal incurs
penalties and potential license lapse, during which contracting is illegal.
Question 4 A contractor changes their business address within Virginia. According to 18VAC50-
22-60, within how many days must the Board for Contractors be notified?
A. 10 days B. 30 days [CORRECT] C. 60 days D. 90 days
Correct Answer: B
Rationale:
• Virginia Code Reference: 18VAC50-22-60 (Change of Address, Email, or Telephone
Number)
• Why B is correct: Licensees must notify the Board within 30 days of any change of
address, email address, or telephone number. This ensures the Board can maintain
accurate records and serve legal notices.
• Why A is incorrect: 10 days is not specified in the regulations for address changes.
• Why C is incorrect: 60 days exceeds the regulatory requirement and risks non-
compliance.
• Why D is incorrect: 90 days is far too long and would constitute a violation.
Practical Implication: Failure to notify the Board of address changes can result in missed
renewal notices, disciplinary communications, or legal service, potentially leading to default
judgments or license revocation.
Question 5 Which of the following activities is generally EXEMPT from Virginia contractor
licensing requirements under §54.1-1101?
A. Building a new single-family residence B. Remodeling a kitchen for $15,000 C. Installing a
new roof on a commercial building D. Performing electrical work as a licensed Class A
electrician [CORRECT]
Correct Answer: D
Rationale:
• Virginia Code Reference: §54.1-1101 (Exemptions from licensing requirements)
• Why D is correct: Persons licensed and performing work within the scope of their
license as electricians, plumbers, or HVAC contractors under the Department of Health
, Professions or other regulatory boards are exempt from contractor licensing for that
specific trade work.
• Why A is incorrect: New residential construction requires a contractor license (Class A,
B, or C depending on value).
• Why B is incorrect: Kitchen remodeling exceeding $1,000 requires a home
improvement contractor license.
• Why C is incorrect: Commercial roofing requires a contractor license; no exemption
exists for trade work performed by unlicensed individuals.
Practical Implication: Electricians must still hold appropriate electrical licenses, but don't need
separate contractor licenses for electrical work. However, if they perform general contracting
(hiring subcontractors, managing projects), they need contractor licensing.
Question 6 What is the penalty for contracting without a required license in Virginia under
§54.1-1115?
A. A warning letter B. Civil penalty up to $500 per day C. Class 1 misdemeanor and civil penalty
up to $500 per day [CORRECT] D. Felony charge only
Correct Answer: C
Rationale:
• Virginia Code Reference: §54.1-1115 (Practicing without license; penalty)
• Why C is correct: Contracting without a required license is a Class 1 misdemeanor
(criminal offense) punishable by up to 12 months in jail and/or fine up to $2,500, plus
civil penalties up to $500 per day for each day of violation.
• Why A is incorrect: No warning letter scheme exists; unlicensed contracting is
immediately punishable.
• Why B is incorrect: While the $500/day civil penalty is correct, this option omits the
criminal misdemeanor classification.
• Why D is incorrect: While serious, unlicensed contracting is a misdemeanor, not a
felony (which requires more than 12 months imprisonment).
Practical Implication: Unlicensed contracting carries severe consequences including criminal
record, fines, and inability to obtain licensure later. Always verify license status before bidding.
Question 7 Under 18VAC50-22-190, what continuing education is required for license renewal?
