VIRGINIA CONTRACTORS LICENSE EXAM – ADVANCED (CLASS
A)
200 COMPREHENSIVE EXAM QUESTIONS & DETAILED
SOLUTIONS
SECTION 1: LICENSING, REGULATIONS & BUSINESS LAW (Questions 1-
35)
1. What is the minimum net worth required for a Class A contractor
license in Virginia?
A. $10,000
B. $45,000
C. **$120,000**
D. $250,000
Answer: C
Rationale: Class A contractors must have a minimum net worth of
$120,000 or a minimum of $250,000 in gross sales.
2. Fill in the blank: The Virginia Board for Contractors requires that a
Class A contractor have a minimum of _____ in gross sales or a
combination of gross sales and net worth. - $250,000
3. Which of the following are acceptable forms of business entities for
a Class A contractor in Virginia? (Select all that apply)
A. Sole Proprietorship
B. Corporation
C. Limited Liability Company (LLC)
D. Foreign Trust
Answer: A, B, C
,Rationale: Virginia recognizes sole proprietorships, corporations, and
LLCs as valid business entities for contractor licensing.
4. List the three primary qualifications an applicant must meet to
obtain a Class A contractor license in Virginia.
Answer: 1. Minimum net worth or gross sales, 2. Passing the required
exams, 3. Providing proof of experience.
5. If a Class A contractor's license is revoked, how long must they wait
before applying for a new license?
A. 6 months
B. 1 year
C. 2 years
D. 5 years
Answer: C
Rationale: A revoked license requires a two-year waiting period before a
new application can be submitted.
6. What is the maximum penalty per violation under the Virginia
Consumer Protection Act for a contractor?
A. $500
B. $1,000
C. **$2,500**
D. $5,000
Answer: C
Rationale: The Virginia Consumer Protection Act allows for civil
penalties of up to $2,500 per violation.
7. Fill in the blank: A contractor must notify the Board in writing within
_____ days of any change in the principal address of the business. -
*30*
,8. Which of the following acts would be considered a violation of the
Virginia Contractor Transaction Recovery Act?
A. Abandoning a construction project without justification
B. Misapplying funds received for a specific project
C. Performing work without a valid license
D. Delaying a project due to weather
Answer: A, B, C
Rationale: Abandonment, misapplication of funds, and unlicensed work
are all violations covered by the Recovery Act.
9. What is the primary purpose of the Virginia Contractor Transaction
Recovery Fund?
A. To fund government construction projects
B. To reimburse consumers for losses caused by improper or dishonest
conduct by a contractor
C. To provide loans to new contractors
D. To pay for contractor insurance premiums
Answer: B
Rationale: The fund is designed to protect consumers from financial loss
due to contractor misconduct.
10. List two conditions under which the Board may suspend a
contractor's license immediately.
Answer: 1. Gross negligence or misconduct, 2. Operating without a valid
license.
11. A Class A contractor is required to display their license number on:
A. All contracts and advertisements
B. Only their business cards
C. Only their vehicles
, D. Only their website
Answer: A
Rationale: Virginia law requires the license number to be displayed on
all contracts, advertisements, and bids.
12. Fill in the blank: The Board for Contractors falls under the Virginia
Department of _____. - Professional and Occupational Regulation
(DPOR)
13. What is the statute of limitations for filing a claim against the
Contractor Transaction Recovery Fund?
A. 6 months from the date of loss
B. 1 year from the date of loss
C. 2 years from the date of loss
D. 3 years from the date of loss
Answer: B
Rationale: Claims must be filed within one year from the date the loss
was discovered.
14. Which of the following is NOT a requirement for a Class A
contractor's license?
A. Passing the general knowledge exam
B. Passing the advanced exam
C. Having a college degree in construction management
D. Meeting the net worth requirement
Answer: C
Rationale: A college degree is not required; experience and exam
passage are the primary requirements.
15. What is the maximum amount a consumer can recover from the
Contractor Transaction Recovery Fund per project?
A)
200 COMPREHENSIVE EXAM QUESTIONS & DETAILED
SOLUTIONS
SECTION 1: LICENSING, REGULATIONS & BUSINESS LAW (Questions 1-
35)
1. What is the minimum net worth required for a Class A contractor
license in Virginia?
A. $10,000
B. $45,000
C. **$120,000**
D. $250,000
Answer: C
Rationale: Class A contractors must have a minimum net worth of
$120,000 or a minimum of $250,000 in gross sales.
2. Fill in the blank: The Virginia Board for Contractors requires that a
Class A contractor have a minimum of _____ in gross sales or a
combination of gross sales and net worth. - $250,000
3. Which of the following are acceptable forms of business entities for
a Class A contractor in Virginia? (Select all that apply)
A. Sole Proprietorship
B. Corporation
C. Limited Liability Company (LLC)
D. Foreign Trust
Answer: A, B, C
,Rationale: Virginia recognizes sole proprietorships, corporations, and
LLCs as valid business entities for contractor licensing.
4. List the three primary qualifications an applicant must meet to
obtain a Class A contractor license in Virginia.
Answer: 1. Minimum net worth or gross sales, 2. Passing the required
exams, 3. Providing proof of experience.
5. If a Class A contractor's license is revoked, how long must they wait
before applying for a new license?
A. 6 months
B. 1 year
C. 2 years
D. 5 years
Answer: C
Rationale: A revoked license requires a two-year waiting period before a
new application can be submitted.
6. What is the maximum penalty per violation under the Virginia
Consumer Protection Act for a contractor?
A. $500
B. $1,000
C. **$2,500**
D. $5,000
Answer: C
Rationale: The Virginia Consumer Protection Act allows for civil
penalties of up to $2,500 per violation.
7. Fill in the blank: A contractor must notify the Board in writing within
_____ days of any change in the principal address of the business. -
*30*
,8. Which of the following acts would be considered a violation of the
Virginia Contractor Transaction Recovery Act?
A. Abandoning a construction project without justification
B. Misapplying funds received for a specific project
C. Performing work without a valid license
D. Delaying a project due to weather
Answer: A, B, C
Rationale: Abandonment, misapplication of funds, and unlicensed work
are all violations covered by the Recovery Act.
9. What is the primary purpose of the Virginia Contractor Transaction
Recovery Fund?
A. To fund government construction projects
B. To reimburse consumers for losses caused by improper or dishonest
conduct by a contractor
C. To provide loans to new contractors
D. To pay for contractor insurance premiums
Answer: B
Rationale: The fund is designed to protect consumers from financial loss
due to contractor misconduct.
10. List two conditions under which the Board may suspend a
contractor's license immediately.
Answer: 1. Gross negligence or misconduct, 2. Operating without a valid
license.
11. A Class A contractor is required to display their license number on:
A. All contracts and advertisements
B. Only their business cards
C. Only their vehicles
, D. Only their website
Answer: A
Rationale: Virginia law requires the license number to be displayed on
all contracts, advertisements, and bids.
12. Fill in the blank: The Board for Contractors falls under the Virginia
Department of _____. - Professional and Occupational Regulation
(DPOR)
13. What is the statute of limitations for filing a claim against the
Contractor Transaction Recovery Fund?
A. 6 months from the date of loss
B. 1 year from the date of loss
C. 2 years from the date of loss
D. 3 years from the date of loss
Answer: B
Rationale: Claims must be filed within one year from the date the loss
was discovered.
14. Which of the following is NOT a requirement for a Class A
contractor's license?
A. Passing the general knowledge exam
B. Passing the advanced exam
C. Having a college degree in construction management
D. Meeting the net worth requirement
Answer: C
Rationale: A college degree is not required; experience and exam
passage are the primary requirements.
15. What is the maximum amount a consumer can recover from the
Contractor Transaction Recovery Fund per project?
