1
VIRGINIA HOME IMPROVEMENT CONTRACTOR (HIC)
VIRGINIA DEPARTMENT OF PROFESSIONAL AND
OCCUPATIONAL REGULATION FULL PACKAGE QUESTIONS
ANSWERS AND RATIONALES
INSTANT DOWNLOAD PDF..!!
The Virginia Home Improvement Contractor (HIC) licensing examination is a rigorous, competency-based
assessment administered by PSI Services on behalf of the Virginia Department of Professional and
Occupational Regulation (DPOR) and the Board for Contractors. This examination is mandatory for any
individual or firm seeking to perform home improvement, repair, renovation, or remodeling work in the
Commonwealth of Virginia where the total value of a single contract exceeds $1,000. The HIC designation is not
a standalone license; rather, it is a specialty that attaches to a Class A, Class B, or Class C contractor license. The
exam validates a candidate's knowledge of Virginia contractor statutes (Title 54.1, Chapter 11), the Virginia
Administrative Code (18VAC50-22), the Virginia Uniform Statewide Building Code (USBC), OSHA construction
safety standards (29 CFR 1926), contract law, business practices, and trade-specific technical competencies.
This question bank has been meticulously crafted to simulate the advanced, scenario-based difficulty of the
actual PSI-administered examination. By working through these 200 application-level questions, you will
develop the regulatory precision and technical reasoning needed to pass on your first attempt.
CORE DOMAINS TESTED
1. Licensing Classifications, Requirements & DPOR Regulations – Class A, B, and C license thresholds,
net worth/working capital requirements, bond alternatives, application procedures, renewal cycles,
and continuing education mandates under 18VAC50-22.
2. Contract Law & Consumer Protection – Written contract requirements under 18VAC50-22-260, three-
day right of cancellation, Virginia Contractor Transaction Recovery Act, prohibited acts, and
homeowner protections.
3. Business Organization, Estimating & Financial Management – Business structures, accounting,
payroll, budgeting, cash flow, bidding, and cost control.
4. Virginia Uniform Statewide Building Code (USBC) & Construction Practices – Permitting, inspections,
egress requirements, structural standards, and trade-specific code compliance.
5. OSHA Safety Standards (29 CFR 1926) & Risk Management – Fall protection, excavation, scaffolding,
PPE, hazard communication, emergency action plans, and insurance/bonding.
6. Trade-Specific Technical Knowledge – Carpentry, drywall, roofing, siding, masonry, concrete, and
general construction methods.
,2
QUESTIONS 1-200
Q1: A contractor performs home improvement work with a total
contract price of $1,000 for labor and materials. According to Virginia
law, what license is required?
A) No license required
B) Class C contractor license only
C) **Class A, B, or C contractor license**
D) Home Improvement Contractor certification only
*Rationale: The correct answer is C because Virginia Code §54.1-1100
requires any home improvement contractor performing work with a
contract value exceeding $1,000 for labor and materials to hold a
Class A, B, or C contractor license from the Virginia Board for
Contractors. The HIC designation is added to an existing Class A, B, or
C license rather than being a standalone license. Option A is incorrect
because the $1,000 threshold triggers the licensing requirement.
Option B is incomplete because Class A and B licenses also authorize
home improvement work. Option D is incorrect because HIC is a
specialty designation, not a standalone license.*
Q2: A contractor performs a single contract valued at $150,000. What
class of license must the contractor hold?
A) Class C
B) Class B
C) **Class A**
D) No license required
*Rationale: The correct answer is C because Class A contractors may
perform contracts of $120,000 or more. Since $150,000 exceeds this
threshold, a Class A license is required. Class B contractors are limited
,3
to contracts valued at $10,000 or more but less than $120,000. Class
C contractors are limited to contracts not exceeding $10,000. Option
A is incorrect because Class C is limited to $10,000. Option B is
incorrect because Class B is limited to less than $120,000.*
Q3: What is the MINIMUM net worth requirement for a Class A
contractor license in Virginia?
A) $15,000
B) **$45,000**
C) $75,000
D) $150,000
Rationale: The correct answer is B because Virginia Code §54.1-1106
requires Class A contractors to demonstrate a minimum net worth of
$45,000. Class B contractors require $15,000 net worth. Option A
represents the Class B requirement. Option C is incorrect—there is no
$75,000 tier. Option D exceeds the Class A requirement.
Q4: 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 $10,000. Which license class is appropriate?
A) Class A
B) Class B
C) Class C
D) No license required
Rationale: The correct answer is C because Class C contractors are
limited to single projects not exceeding $10,000 and total annual
volume not exceeding $150,000 (18VAC50-22-10). Class B allows
single projects up to $120,000 and total annual volume up to
$750,000. Class A has no limits. Option D is incorrect because Virginia
requires licensing for home improvement work over $1,000.
Q5: Under 18VAC50-22-60, a Virginia contractor license must be
renewed:
, 4
A) Annually
B) Every 2 years
C) Every 3 years
D) Every 5 years
Rationale: The correct answer is B because Virginia contractor
licenses expire every two years from the date of issuance and must be
renewed before expiration. Licensees must complete 8 hours of
continuing education (for Class A and B) during each two-year
renewal period. Options A, C, and D do not match Virginia's biennial
renewal cycle.
Q6: A contractor changes their business address within Virginia.
According to 18VAC50-22-70, they must notify the Board for
Contractors within:
A) 10 days
B) 30 days
C) 60 days
D) 90 days
Rationale: The correct answer is B because Virginia Administrative
Code 18VAC50-22-70 requires licensees to notify the Board within 30
days of any change of address, email address, telephone number, or
business structure. This ensures the Board can maintain accurate
records and serve legal notices. Failure to report changes can result in
disciplinary action.
Q7: Which of the following trades is EXEMPT from Virginia contractor
licensing requirements when performed by a properly licensed
practitioner?
A) Carpentry
B) Roofing
C) Electrical work performed by a licensed electrician
D) Siding installation
VIRGINIA HOME IMPROVEMENT CONTRACTOR (HIC)
VIRGINIA DEPARTMENT OF PROFESSIONAL AND
OCCUPATIONAL REGULATION FULL PACKAGE QUESTIONS
ANSWERS AND RATIONALES
INSTANT DOWNLOAD PDF..!!
The Virginia Home Improvement Contractor (HIC) licensing examination is a rigorous, competency-based
assessment administered by PSI Services on behalf of the Virginia Department of Professional and
Occupational Regulation (DPOR) and the Board for Contractors. This examination is mandatory for any
individual or firm seeking to perform home improvement, repair, renovation, or remodeling work in the
Commonwealth of Virginia where the total value of a single contract exceeds $1,000. The HIC designation is not
a standalone license; rather, it is a specialty that attaches to a Class A, Class B, or Class C contractor license. The
exam validates a candidate's knowledge of Virginia contractor statutes (Title 54.1, Chapter 11), the Virginia
Administrative Code (18VAC50-22), the Virginia Uniform Statewide Building Code (USBC), OSHA construction
safety standards (29 CFR 1926), contract law, business practices, and trade-specific technical competencies.
This question bank has been meticulously crafted to simulate the advanced, scenario-based difficulty of the
actual PSI-administered examination. By working through these 200 application-level questions, you will
develop the regulatory precision and technical reasoning needed to pass on your first attempt.
CORE DOMAINS TESTED
1. Licensing Classifications, Requirements & DPOR Regulations – Class A, B, and C license thresholds,
net worth/working capital requirements, bond alternatives, application procedures, renewal cycles,
and continuing education mandates under 18VAC50-22.
2. Contract Law & Consumer Protection – Written contract requirements under 18VAC50-22-260, three-
day right of cancellation, Virginia Contractor Transaction Recovery Act, prohibited acts, and
homeowner protections.
3. Business Organization, Estimating & Financial Management – Business structures, accounting,
payroll, budgeting, cash flow, bidding, and cost control.
4. Virginia Uniform Statewide Building Code (USBC) & Construction Practices – Permitting, inspections,
egress requirements, structural standards, and trade-specific code compliance.
5. OSHA Safety Standards (29 CFR 1926) & Risk Management – Fall protection, excavation, scaffolding,
PPE, hazard communication, emergency action plans, and insurance/bonding.
6. Trade-Specific Technical Knowledge – Carpentry, drywall, roofing, siding, masonry, concrete, and
general construction methods.
,2
QUESTIONS 1-200
Q1: A contractor performs home improvement work with a total
contract price of $1,000 for labor and materials. According to Virginia
law, what license is required?
A) No license required
B) Class C contractor license only
C) **Class A, B, or C contractor license**
D) Home Improvement Contractor certification only
*Rationale: The correct answer is C because Virginia Code §54.1-1100
requires any home improvement contractor performing work with a
contract value exceeding $1,000 for labor and materials to hold a
Class A, B, or C contractor license from the Virginia Board for
Contractors. The HIC designation is added to an existing Class A, B, or
C license rather than being a standalone license. Option A is incorrect
because the $1,000 threshold triggers the licensing requirement.
Option B is incomplete because Class A and B licenses also authorize
home improvement work. Option D is incorrect because HIC is a
specialty designation, not a standalone license.*
Q2: A contractor performs a single contract valued at $150,000. What
class of license must the contractor hold?
A) Class C
B) Class B
C) **Class A**
D) No license required
*Rationale: The correct answer is C because Class A contractors may
perform contracts of $120,000 or more. Since $150,000 exceeds this
threshold, a Class A license is required. Class B contractors are limited
,3
to contracts valued at $10,000 or more but less than $120,000. Class
C contractors are limited to contracts not exceeding $10,000. Option
A is incorrect because Class C is limited to $10,000. Option B is
incorrect because Class B is limited to less than $120,000.*
Q3: What is the MINIMUM net worth requirement for a Class A
contractor license in Virginia?
A) $15,000
B) **$45,000**
C) $75,000
D) $150,000
Rationale: The correct answer is B because Virginia Code §54.1-1106
requires Class A contractors to demonstrate a minimum net worth of
$45,000. Class B contractors require $15,000 net worth. Option A
represents the Class B requirement. Option C is incorrect—there is no
$75,000 tier. Option D exceeds the Class A requirement.
Q4: 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 $10,000. Which license class is appropriate?
A) Class A
B) Class B
C) Class C
D) No license required
Rationale: The correct answer is C because Class C contractors are
limited to single projects not exceeding $10,000 and total annual
volume not exceeding $150,000 (18VAC50-22-10). Class B allows
single projects up to $120,000 and total annual volume up to
$750,000. Class A has no limits. Option D is incorrect because Virginia
requires licensing for home improvement work over $1,000.
Q5: Under 18VAC50-22-60, a Virginia contractor license must be
renewed:
, 4
A) Annually
B) Every 2 years
C) Every 3 years
D) Every 5 years
Rationale: The correct answer is B because Virginia contractor
licenses expire every two years from the date of issuance and must be
renewed before expiration. Licensees must complete 8 hours of
continuing education (for Class A and B) during each two-year
renewal period. Options A, C, and D do not match Virginia's biennial
renewal cycle.
Q6: A contractor changes their business address within Virginia.
According to 18VAC50-22-70, they must notify the Board for
Contractors within:
A) 10 days
B) 30 days
C) 60 days
D) 90 days
Rationale: The correct answer is B because Virginia Administrative
Code 18VAC50-22-70 requires licensees to notify the Board within 30
days of any change of address, email address, telephone number, or
business structure. This ensures the Board can maintain accurate
records and serve legal notices. Failure to report changes can result in
disciplinary action.
Q7: Which of the following trades is EXEMPT from Virginia contractor
licensing requirements when performed by a properly licensed
practitioner?
A) Carpentry
B) Roofing
C) Electrical work performed by a licensed electrician
D) Siding installation
