VA Contractors General (Class A or B) Exam 2026/2027 |
Verified Questions & Correct Answers with Rationales | Graded
A+ | Comprehensive Virginia Contractor License Exam Prep
EXAM with Questions and Answers/Plus a Rationale Updated
2026 A+/Instant Download PDF
EXAM COVERAGE
1. Business Management, Licensing, and Virginia Regulations
2. Estimating, Bidding, and Contract Administration
3. Project Management, Safety, and OSHA Standards
4. Virginia Uniform Statewide Building Code (VUSBC) and Construction Trades
5. Financial Management, Accounting, and Tax Requirements
1. A sole proprietor operating a construction business in Virginia wishes to upgrade their license
classification from a Class C to a Class B license. Based on Virginia Board for Contractors
regulations, which minimum net worth or equity requirement must the business maintain?
A. $5,000
B. $15,000
C. $45,000
D. $75,000
CORRECT ANSWER : B
Rationale: Under Virginia Board for Contractors regulations (18 VAC 50-22), a Class B
contractor license requires a minimum net worth or equity of $15,000. Class C requires $5,000,
while a Class A license requires $45,000. Therefore, $15,000 is the correct financial
requirement for upgrading to Class B.
,2. A general contractor enters into a residential construction contract in Virginia valued at $4,000.
Under the Virginia Board for Contractors regulations, is the contractor required to provide a
written contract to the consumer?
A. No, written contracts are only legally mandated for commercial construction projects
exceeding $10,000.
B. Yes, Virginia regulations require a written contract for all residential construction and
improvement projects exceeding $1,000.
C. No, written contracts are optional unless explicitly requested by the homeowner in writing
prior to work commencing.
D. Yes, but only if the project involves structural modifications to the residential property
foundation.
CORRECT ANSWER : B
Rationale: The Virginia Board for Contractors rules require a written contract for any
residential home improvement or construction project where the total price exceeds $1,000. This
protects consumers and establishes clear project parameters. Options A, C, and D misstate the
statutory monetary threshold and legal obligation.
3. According to Virginia contractor regulations, if a licensed contractor changes their business
address or trade name, within how many days must they report this change in writing to the
Virginia Board for Contractors?
A. 10 days
B. 30 days
C. 60 days
D. 90 days
CORRECT ANSWER : B
Rationale: Virginia regulations mandate that any change of address, trade name, or officers for
a licensed contractor entity must be reported in writing to the Board within 30 days of the
change. Failure to do so can result in administrative penalties and delayed official notices.
4. A Class A contractor is bidding on a commercial building project in Virginia and utilizes
subcontractors. Which entity is ultimately responsible for ensuring that all subcontractors hold
the appropriate local and state trade licenses required for their scope of work?
A. The project architect and structural engineer of record
, B. The local municipal building code official issuing the permit
C. The prime or general contractor holding the primary contract with the owner
D. Each individual subcontractor independently via self-reporting to the local building
department
CORRECT ANSWER : C
Rationale: Under Virginia procurement and licensing standards, the prime or general contractor
is ultimately responsible for verifying that all tiered subcontractors possess valid state and local
licenses corresponding to their trade scopes. Relying on self-reporting does not relieve the
general contractor of liability.
5. A contractor working on a commercial renovation project in Virginia encounters unexpected
subsurface soil conditions that differ materially from those indicated in the contract documents.
What is the contractor's proper initial contractual course of action under standard general
conditions?
A. Immediately abandon excavation work and terminate the contract for material breach.
B. Stop work in the affected area immediately without disturbing the condition further and
provide prompt written notice to the owner and architect before proceeding.
C. Proceed with excavation at double the hourly rate without written authorization to maintain
schedule.
D. Absorb the additional excavation cost entirely as part of the contractor's standard contingency
risk.
CORRECT ANSWER : B
Rationale: Standard construction contract general conditions require the contractor to provide
prompt written notice of differing site conditions (often called a differing site condition claim)
before disturbing the material further. This allows the owner and design team to inspect the
condition and negotiate a formal change order.
6. Under the Fair Labor Standards Act (FLSA) and Virginia labor laws, how are construction
employees who work more than 40 hours in a single designated workweek generally
compensated?
A. Straight time for all hours worked regardless of total weekly volume
B. One and one-half times their regular hourly rate of pay for all hours worked in excess of
40 hours
, C. Compensatory time off at a standard 1:1 ratio during the following pay period
D. Double-time pay for any hours worked past the standard 40-hour threshold
CORRECT ANSWER : B
Rationale: Federal law under the FLSA mandates that non-exempt employees working over 40
hours in a workweek must receive overtime pay at a rate of not less than one and one-half times
their regular rate of pay. Compensatory time is generally not permitted for private-sector
construction employees.
7. Which of the following financial statements provides a snapshot of a construction company's
financial position at a specific point in time, detailing its assets, liabilities, and owner's equity?
A. Income Statement (Profit and Loss Statement)
B. Statement of Cash Flows
C. Balance Sheet
D. Job Cost Ledger Summary
CORRECT ANSWER : C
Rationale: The Balance Sheet represents the fundamental accounting equation (Assets equals
Liabilities plus Owner's Equity) at a specific date. The Income Statement covers a period of time,
and the Cash Flows statement tracks cash movements.
8. When using the percentage-of-completion method of accounting for long-term construction
contracts, how are revenues and gross profits recognized?
A. Only when the entire construction project is 100 percent complete and final payment is
received
B. As the work progresses over the duration of the contract, typically based on costs
incurred relative to estimated total costs
C. Equal quarterly installments regardless of physical progress on the jobsite
D. Only when requested by the external certified public accountant for corporate tax filings
CORRECT ANSWER : B
Rationale: The percentage-of-completion method matches revenue recognition with the actual
progress of construction work over time, providing a more accurate periodic financial picture
than completed-contract accounting.
Verified Questions & Correct Answers with Rationales | Graded
A+ | Comprehensive Virginia Contractor License Exam Prep
EXAM with Questions and Answers/Plus a Rationale Updated
2026 A+/Instant Download PDF
EXAM COVERAGE
1. Business Management, Licensing, and Virginia Regulations
2. Estimating, Bidding, and Contract Administration
3. Project Management, Safety, and OSHA Standards
4. Virginia Uniform Statewide Building Code (VUSBC) and Construction Trades
5. Financial Management, Accounting, and Tax Requirements
1. A sole proprietor operating a construction business in Virginia wishes to upgrade their license
classification from a Class C to a Class B license. Based on Virginia Board for Contractors
regulations, which minimum net worth or equity requirement must the business maintain?
A. $5,000
B. $15,000
C. $45,000
D. $75,000
CORRECT ANSWER : B
Rationale: Under Virginia Board for Contractors regulations (18 VAC 50-22), a Class B
contractor license requires a minimum net worth or equity of $15,000. Class C requires $5,000,
while a Class A license requires $45,000. Therefore, $15,000 is the correct financial
requirement for upgrading to Class B.
,2. A general contractor enters into a residential construction contract in Virginia valued at $4,000.
Under the Virginia Board for Contractors regulations, is the contractor required to provide a
written contract to the consumer?
A. No, written contracts are only legally mandated for commercial construction projects
exceeding $10,000.
B. Yes, Virginia regulations require a written contract for all residential construction and
improvement projects exceeding $1,000.
C. No, written contracts are optional unless explicitly requested by the homeowner in writing
prior to work commencing.
D. Yes, but only if the project involves structural modifications to the residential property
foundation.
CORRECT ANSWER : B
Rationale: The Virginia Board for Contractors rules require a written contract for any
residential home improvement or construction project where the total price exceeds $1,000. This
protects consumers and establishes clear project parameters. Options A, C, and D misstate the
statutory monetary threshold and legal obligation.
3. According to Virginia contractor regulations, if a licensed contractor changes their business
address or trade name, within how many days must they report this change in writing to the
Virginia Board for Contractors?
A. 10 days
B. 30 days
C. 60 days
D. 90 days
CORRECT ANSWER : B
Rationale: Virginia regulations mandate that any change of address, trade name, or officers for
a licensed contractor entity must be reported in writing to the Board within 30 days of the
change. Failure to do so can result in administrative penalties and delayed official notices.
4. A Class A contractor is bidding on a commercial building project in Virginia and utilizes
subcontractors. Which entity is ultimately responsible for ensuring that all subcontractors hold
the appropriate local and state trade licenses required for their scope of work?
A. The project architect and structural engineer of record
, B. The local municipal building code official issuing the permit
C. The prime or general contractor holding the primary contract with the owner
D. Each individual subcontractor independently via self-reporting to the local building
department
CORRECT ANSWER : C
Rationale: Under Virginia procurement and licensing standards, the prime or general contractor
is ultimately responsible for verifying that all tiered subcontractors possess valid state and local
licenses corresponding to their trade scopes. Relying on self-reporting does not relieve the
general contractor of liability.
5. A contractor working on a commercial renovation project in Virginia encounters unexpected
subsurface soil conditions that differ materially from those indicated in the contract documents.
What is the contractor's proper initial contractual course of action under standard general
conditions?
A. Immediately abandon excavation work and terminate the contract for material breach.
B. Stop work in the affected area immediately without disturbing the condition further and
provide prompt written notice to the owner and architect before proceeding.
C. Proceed with excavation at double the hourly rate without written authorization to maintain
schedule.
D. Absorb the additional excavation cost entirely as part of the contractor's standard contingency
risk.
CORRECT ANSWER : B
Rationale: Standard construction contract general conditions require the contractor to provide
prompt written notice of differing site conditions (often called a differing site condition claim)
before disturbing the material further. This allows the owner and design team to inspect the
condition and negotiate a formal change order.
6. Under the Fair Labor Standards Act (FLSA) and Virginia labor laws, how are construction
employees who work more than 40 hours in a single designated workweek generally
compensated?
A. Straight time for all hours worked regardless of total weekly volume
B. One and one-half times their regular hourly rate of pay for all hours worked in excess of
40 hours
, C. Compensatory time off at a standard 1:1 ratio during the following pay period
D. Double-time pay for any hours worked past the standard 40-hour threshold
CORRECT ANSWER : B
Rationale: Federal law under the FLSA mandates that non-exempt employees working over 40
hours in a workweek must receive overtime pay at a rate of not less than one and one-half times
their regular rate of pay. Compensatory time is generally not permitted for private-sector
construction employees.
7. Which of the following financial statements provides a snapshot of a construction company's
financial position at a specific point in time, detailing its assets, liabilities, and owner's equity?
A. Income Statement (Profit and Loss Statement)
B. Statement of Cash Flows
C. Balance Sheet
D. Job Cost Ledger Summary
CORRECT ANSWER : C
Rationale: The Balance Sheet represents the fundamental accounting equation (Assets equals
Liabilities plus Owner's Equity) at a specific date. The Income Statement covers a period of time,
and the Cash Flows statement tracks cash movements.
8. When using the percentage-of-completion method of accounting for long-term construction
contracts, how are revenues and gross profits recognized?
A. Only when the entire construction project is 100 percent complete and final payment is
received
B. As the work progresses over the duration of the contract, typically based on costs
incurred relative to estimated total costs
C. Equal quarterly installments regardless of physical progress on the jobsite
D. Only when requested by the external certified public accountant for corporate tax filings
CORRECT ANSWER : B
Rationale: The percentage-of-completion method matches revenue recognition with the actual
progress of construction work over time, providing a more accurate periodic financial picture
than completed-contract accounting.
