Virginia Class A Contractor Exam Questions
and Correct Answers | Complete Study
Guide
Question 1
When does a breach of contract occur?
Correct Answer
When a party refuses to perform the contract,
performs an act prohibited by the contract, or
prevents the other party from performing its
obligations
Question 2
What are four required contract elements?
Correct Answer
Offer and acceptance, consideration, competent
parties, legal purpose
Question 3
What type of contracting method allows the owner to contract with two or more
prime contractors to complete the same project?
Correct Answer
Multiple Prime Contract
Question 4
What documents are included in a bid package?
Correct Answer
Invitation to bid, bid instructions, bid forms,
supplements, and sometimes addendums
Page 1 of 142
,Question 5
What are the 3 key functions of a business plan?
Correct Answer
Planning tool, Loan/Investor Document, and Benchmarking Tool
Question 6
What are four basic requirements of bonds?
Correct Answer
1. Total dollar amount required for the bond 2. Length
of the bond 3. Requirements for notice of defect or
lack of maintenance 4. Bond enforcement
Question 7
Who benefits from the Contractor Transaction Recovery Fund?
Correct Answer
Homeowners who have suffered a reimbursable
loss from a dishonest or incompetent general
contractor
Question 8
What are the two parts that a Contractor license consists of?
Correct Answer
The class of the license and the specialty of work
the contractor is allowed to perform
Question 9
What are two benefits of Just-In-Time (JIT) deliveries?
Correct Answer
They keep your inventory cost low and less
inventory on site will cut down on risk of theft or
vandalism
Page 2 of 142
,Question 10
What are the three types of scheduling methods?
Correct Answer
Calendar Scheduling, Bar Chart Scheduling,
Critical Path Method
Question 11
What are some examples of Company Overhead?
Correct Answer
Office rent, accounting fees, taxes, telephone,
legal fees, administrative labor
Question 12
What is the simplest form of ownership to set up?
Correct Answer
Sole Proprietorship
Question 13
What type of insurance covers your business and personal property when damage,
theft, or loss occurs?
Correct Answer
Property Insurance
Question 14
What is the difference in liability between a Sole Proprietorship and an S Corporation?
Correct Answer
A Sole Proprietorship has Unlimited personal
liability, while an S Corporation generally has no
personal liability of the shareholders.
Page 3 of 142
, Question 15
What is the Quantity Take-off Method?
Correct Answer
An accurate method of estimating where you
individually estimate units of materials and labor
for each task you list in the estimating framework.
Question 1: According to the Virginia Board for Contractors Regulations, what
is the minimum net worth requirement for an applicant seeking a Class A
contractor license?
A. $15,000
B. $45,000
C. $100,000
D. $200,000
CORRECT ANSWER: C. $100,000
Rationale: Under Virginia administrative code (18 VAC 50-22-60), an applicant for a
Class A contractor license must document a minimum net worth or equity of
$100,000. Class B requires $15,000 net worth, while Class C has no minimum net
worth requirement.
Question 2: Under Virginia contracting law, a Class A contractor license is
required when an individual project value equals or exceeds what threshold, or
when the total value of all contracting work undertaken within a 12-month
period equals or exceeds what amount?
A. $10,000 per single contract or $150,000 total per year
B. $120,000 per single contract or $750,000 total per year
C. $250,000 per single contract or $1,000,000 total per year
D. $500,000 per single contract or $2,500,000 total per year
CORRECT ANSWER: B. $120,000 per single contract or $750,000 total per year
Rationale: Virginia law defines Class A contractors as those performing single
contracts of $120,000 or more, or totaling $750,000 or more over a 12-month
period. Class B covers single projects between $10,000 and $120,000 or $150,000 to
$750,000 yearly.
Page 4 of 142
and Correct Answers | Complete Study
Guide
Question 1
When does a breach of contract occur?
Correct Answer
When a party refuses to perform the contract,
performs an act prohibited by the contract, or
prevents the other party from performing its
obligations
Question 2
What are four required contract elements?
Correct Answer
Offer and acceptance, consideration, competent
parties, legal purpose
Question 3
What type of contracting method allows the owner to contract with two or more
prime contractors to complete the same project?
Correct Answer
Multiple Prime Contract
Question 4
What documents are included in a bid package?
Correct Answer
Invitation to bid, bid instructions, bid forms,
supplements, and sometimes addendums
Page 1 of 142
,Question 5
What are the 3 key functions of a business plan?
Correct Answer
Planning tool, Loan/Investor Document, and Benchmarking Tool
Question 6
What are four basic requirements of bonds?
Correct Answer
1. Total dollar amount required for the bond 2. Length
of the bond 3. Requirements for notice of defect or
lack of maintenance 4. Bond enforcement
Question 7
Who benefits from the Contractor Transaction Recovery Fund?
Correct Answer
Homeowners who have suffered a reimbursable
loss from a dishonest or incompetent general
contractor
Question 8
What are the two parts that a Contractor license consists of?
Correct Answer
The class of the license and the specialty of work
the contractor is allowed to perform
Question 9
What are two benefits of Just-In-Time (JIT) deliveries?
Correct Answer
They keep your inventory cost low and less
inventory on site will cut down on risk of theft or
vandalism
Page 2 of 142
,Question 10
What are the three types of scheduling methods?
Correct Answer
Calendar Scheduling, Bar Chart Scheduling,
Critical Path Method
Question 11
What are some examples of Company Overhead?
Correct Answer
Office rent, accounting fees, taxes, telephone,
legal fees, administrative labor
Question 12
What is the simplest form of ownership to set up?
Correct Answer
Sole Proprietorship
Question 13
What type of insurance covers your business and personal property when damage,
theft, or loss occurs?
Correct Answer
Property Insurance
Question 14
What is the difference in liability between a Sole Proprietorship and an S Corporation?
Correct Answer
A Sole Proprietorship has Unlimited personal
liability, while an S Corporation generally has no
personal liability of the shareholders.
Page 3 of 142
, Question 15
What is the Quantity Take-off Method?
Correct Answer
An accurate method of estimating where you
individually estimate units of materials and labor
for each task you list in the estimating framework.
Question 1: According to the Virginia Board for Contractors Regulations, what
is the minimum net worth requirement for an applicant seeking a Class A
contractor license?
A. $15,000
B. $45,000
C. $100,000
D. $200,000
CORRECT ANSWER: C. $100,000
Rationale: Under Virginia administrative code (18 VAC 50-22-60), an applicant for a
Class A contractor license must document a minimum net worth or equity of
$100,000. Class B requires $15,000 net worth, while Class C has no minimum net
worth requirement.
Question 2: Under Virginia contracting law, a Class A contractor license is
required when an individual project value equals or exceeds what threshold, or
when the total value of all contracting work undertaken within a 12-month
period equals or exceeds what amount?
A. $10,000 per single contract or $150,000 total per year
B. $120,000 per single contract or $750,000 total per year
C. $250,000 per single contract or $1,000,000 total per year
D. $500,000 per single contract or $2,500,000 total per year
CORRECT ANSWER: B. $120,000 per single contract or $750,000 total per year
Rationale: Virginia law defines Class A contractors as those performing single
contracts of $120,000 or more, or totaling $750,000 or more over a 12-month
period. Class B covers single projects between $10,000 and $120,000 or $150,000 to
$750,000 yearly.
Page 4 of 142
