VIRGINIA RBC TEST BANK 3: 300
RESIDENTIAL BUILDING
CONTRACTOR EXAM QUESTIONS
WITH CORRECT ANSWERS &
RATIONALES (2026–2027)
SECTION 1 — LICENSING & REGULATORY COMPLIANCE
(Questions 1–50)
1. A Residential Building Contractor (RBC) license is required in Virginia when
the total value of a single residential project is:
A. $1,000 or more
B. $5,000 or more
**C. $10,000 or more**
D. $20,000 or more
Rationale: The RBC specialty is available under a Class B or Class A license. A Class B
license is required for single contracts of $10,000 or more (and less than $120,000),
while Class A covers unlimited projects. Therefore the $10,000 threshold triggers the
need for an RBC-level license.
2. Which state agency regulates contractor licensing in Virginia?
A. Department of Housing and Community Development
B. Board for Contractors
C. Department of Professional and Occupational Regulation (DPOR)
D. Virginia Construction Board
Rationale: The Board for Contractors, operating under DPOR, is the body that issues
contractor licenses and enforces contractor regulations. DPOR is the parent agency, but
the Board itself is the licensing authority.
3. A Class B contractor license in Virginia requires a minimum net worth of:
A. $5,000
B. $10,000
**C. $15,000**
D. $45,000
,Rationale: Class B applicants must document a net worth of at least $15,000. Class A
requires $45,000, and Class C has no net-worth requirement.
4. A Class A contractor license requires a minimum net worth of:
A. $15,000
B. $30,000
**C. $45,000**
D. $50,000
Rationale: The Board for Contractors requires Class A applicants to show a net worth of
at least $45,000, documented by a certified financial statement.
5. Which class of contractor license has no net-worth requirement?
A. Class A
B. Class B
C. Class C
D. All classes require a net worth statement
Rationale: Class C licenses carry no minimum net-worth requirement, although Class C
contractors are limited to projects over $1,000 but less than $10,000 (and annual
volume under $150,000).
6. The maximum single-project value for a Class C contractor is:
A. $1,000
B. $5,000
**C. $10,000**
D. $120,000
Rationale: Class C contractors may perform or manage projects where the total value
of a single contract is over $1,000 but less than $10,000.
7. A Class B contractor may perform a single project valued up to:
A. $10,000
B. $70,000
**C. $120,000**
D. Unlimited
*Rationale: Class B is capped at $120,000 per single contract or project. Class A has
no monetary limit.*
8. Which of the following is not a core specialty classification under the Board
for Contractors?
A. Residential Building Contractor (RBC)
B. Commercial Building Contractor (CBC)
C. Highway Heavy Contractor (HHC)
D. Electrical Contractor (ELE)
Rationale: The Board for Contractors licenses CBC, RBC, and trade specialties such as
electrical, plumbing, and HVAC. “Highway Heavy Contractor” is not a Virginia Board
,for Contractors specialty; highway work is generally handled under other procurement
categories.
9. Before applying for an RBC license, an applicant must complete:
A. A 4-hour orientation
B. An 8-hour pre-license course
C. A 16-hour blueprint-reading course
D. No pre-license education
Rationale: Virginia requires completion of an approved 8-hour pre-license course
before taking the RBC licensing exam.
10. The RBC examination is administered by:
A. The Board for Contractors directly
B. PSI
C. NASCLA
D. The local building department
Rationale: PSI delivers the Virginia RBC trade exam and the Business & Law exam.
NASCLA is accepted for the CBC classification, not the RBC specialty.
11. A contractor license in Virginia is issued to:
A. The individual qualifying agent only
B. The business entity
C. The project owner
D. The building official
Rationale: Contractor licenses are issued to business entities, not to individuals. The
“qualified individual” is associated with the licensed business.
12. If a licensed Class A contractor changes the form of business entity (e.g.,
from a sole proprietorship to an LLC), the contractor:
A. Must retake the licensing exam
B. Must surrender the license and reapply as a new entity
C. May retain the license if the contractor remains in good standing with the
Board
D. Must obtain a new Class C license first
Rationale: The Board does not require a new examination when a licensed Class A
contractor changes the form of business entity, provided the contractor is in good
standing.
13. Which of the following convictions must be reported on a contractor license
application?
A. Only felonies
B. Only misdemeanors within the last year
C. All misdemeanor convictions within three years and all felony convictions
during the applicant’s lifetime
, D. No convictions need to be reported
Rationale: Applicants must disclose all misdemeanor convictions within three years of
application and all felony convictions during their lifetime.
14. The Virginia Contractor Transaction Recovery Fund is intended to:
A. Provide loans to new contractors
B. Pay the contractor’s business debts
C. Reimburse homeowners who suffer a loss due to a licensed contractor’s
improper or dishonest conduct
D. Fund building-code enforcement
Rationale: The Recovery Fund provides a source of compensation for eligible
homeowners who obtain a judgment against a licensed contractor for improper or
dishonest conduct.
15. A written residential construction contract with a licensed contractor must
include a statement notifying the homeowner of:
A. The contractor’s net-worth statement
B. The existence of the Virginia Contractor Transaction Recovery Fund
C. The building official’s phone number
D. The OSHA fall-protection plan
Rationale: Virginia law requires residential contracts with licensed contractors to
include a notice about the Virginia Contractor Transaction Recovery Fund and how to
access it.
16. “Pay-if-paid” and “pay-when-paid” clauses in private construction contracts
in Virginia are:
A. Always enforceable
B. Enforceable only on residential projects
C. Unenforceable under changes effective January 1, 2023
D. Enforceable only if written in bold
Rationale: Effective January 1, 2023, Virginia law makes pay-if-paid and
pay-when-paid clauses unenforceable in public and private construction contracts.
17. Virginia’s Prompt Payment Act requires an owner on a private project to
pay a contractor within:
A. 30 days of invoice
B. 45 days of invoice
C. 60 days of receiving an invoice
D. 90 days of invoice
Rationale: SB 550 extended prompt-payment requirements to private projects and sets
a 60-day deadline for owners to pay contractors after receiving an invoice.
18. Subcontracts on single-family residential projects are:
A. Fully covered by the Prompt Payment Act
RESIDENTIAL BUILDING
CONTRACTOR EXAM QUESTIONS
WITH CORRECT ANSWERS &
RATIONALES (2026–2027)
SECTION 1 — LICENSING & REGULATORY COMPLIANCE
(Questions 1–50)
1. A Residential Building Contractor (RBC) license is required in Virginia when
the total value of a single residential project is:
A. $1,000 or more
B. $5,000 or more
**C. $10,000 or more**
D. $20,000 or more
Rationale: The RBC specialty is available under a Class B or Class A license. A Class B
license is required for single contracts of $10,000 or more (and less than $120,000),
while Class A covers unlimited projects. Therefore the $10,000 threshold triggers the
need for an RBC-level license.
2. Which state agency regulates contractor licensing in Virginia?
A. Department of Housing and Community Development
B. Board for Contractors
C. Department of Professional and Occupational Regulation (DPOR)
D. Virginia Construction Board
Rationale: The Board for Contractors, operating under DPOR, is the body that issues
contractor licenses and enforces contractor regulations. DPOR is the parent agency, but
the Board itself is the licensing authority.
3. A Class B contractor license in Virginia requires a minimum net worth of:
A. $5,000
B. $10,000
**C. $15,000**
D. $45,000
,Rationale: Class B applicants must document a net worth of at least $15,000. Class A
requires $45,000, and Class C has no net-worth requirement.
4. A Class A contractor license requires a minimum net worth of:
A. $15,000
B. $30,000
**C. $45,000**
D. $50,000
Rationale: The Board for Contractors requires Class A applicants to show a net worth of
at least $45,000, documented by a certified financial statement.
5. Which class of contractor license has no net-worth requirement?
A. Class A
B. Class B
C. Class C
D. All classes require a net worth statement
Rationale: Class C licenses carry no minimum net-worth requirement, although Class C
contractors are limited to projects over $1,000 but less than $10,000 (and annual
volume under $150,000).
6. The maximum single-project value for a Class C contractor is:
A. $1,000
B. $5,000
**C. $10,000**
D. $120,000
Rationale: Class C contractors may perform or manage projects where the total value
of a single contract is over $1,000 but less than $10,000.
7. A Class B contractor may perform a single project valued up to:
A. $10,000
B. $70,000
**C. $120,000**
D. Unlimited
*Rationale: Class B is capped at $120,000 per single contract or project. Class A has
no monetary limit.*
8. Which of the following is not a core specialty classification under the Board
for Contractors?
A. Residential Building Contractor (RBC)
B. Commercial Building Contractor (CBC)
C. Highway Heavy Contractor (HHC)
D. Electrical Contractor (ELE)
Rationale: The Board for Contractors licenses CBC, RBC, and trade specialties such as
electrical, plumbing, and HVAC. “Highway Heavy Contractor” is not a Virginia Board
,for Contractors specialty; highway work is generally handled under other procurement
categories.
9. Before applying for an RBC license, an applicant must complete:
A. A 4-hour orientation
B. An 8-hour pre-license course
C. A 16-hour blueprint-reading course
D. No pre-license education
Rationale: Virginia requires completion of an approved 8-hour pre-license course
before taking the RBC licensing exam.
10. The RBC examination is administered by:
A. The Board for Contractors directly
B. PSI
C. NASCLA
D. The local building department
Rationale: PSI delivers the Virginia RBC trade exam and the Business & Law exam.
NASCLA is accepted for the CBC classification, not the RBC specialty.
11. A contractor license in Virginia is issued to:
A. The individual qualifying agent only
B. The business entity
C. The project owner
D. The building official
Rationale: Contractor licenses are issued to business entities, not to individuals. The
“qualified individual” is associated with the licensed business.
12. If a licensed Class A contractor changes the form of business entity (e.g.,
from a sole proprietorship to an LLC), the contractor:
A. Must retake the licensing exam
B. Must surrender the license and reapply as a new entity
C. May retain the license if the contractor remains in good standing with the
Board
D. Must obtain a new Class C license first
Rationale: The Board does not require a new examination when a licensed Class A
contractor changes the form of business entity, provided the contractor is in good
standing.
13. Which of the following convictions must be reported on a contractor license
application?
A. Only felonies
B. Only misdemeanors within the last year
C. All misdemeanor convictions within three years and all felony convictions
during the applicant’s lifetime
, D. No convictions need to be reported
Rationale: Applicants must disclose all misdemeanor convictions within three years of
application and all felony convictions during their lifetime.
14. The Virginia Contractor Transaction Recovery Fund is intended to:
A. Provide loans to new contractors
B. Pay the contractor’s business debts
C. Reimburse homeowners who suffer a loss due to a licensed contractor’s
improper or dishonest conduct
D. Fund building-code enforcement
Rationale: The Recovery Fund provides a source of compensation for eligible
homeowners who obtain a judgment against a licensed contractor for improper or
dishonest conduct.
15. A written residential construction contract with a licensed contractor must
include a statement notifying the homeowner of:
A. The contractor’s net-worth statement
B. The existence of the Virginia Contractor Transaction Recovery Fund
C. The building official’s phone number
D. The OSHA fall-protection plan
Rationale: Virginia law requires residential contracts with licensed contractors to
include a notice about the Virginia Contractor Transaction Recovery Fund and how to
access it.
16. “Pay-if-paid” and “pay-when-paid” clauses in private construction contracts
in Virginia are:
A. Always enforceable
B. Enforceable only on residential projects
C. Unenforceable under changes effective January 1, 2023
D. Enforceable only if written in bold
Rationale: Effective January 1, 2023, Virginia law makes pay-if-paid and
pay-when-paid clauses unenforceable in public and private construction contracts.
17. Virginia’s Prompt Payment Act requires an owner on a private project to
pay a contractor within:
A. 30 days of invoice
B. 45 days of invoice
C. 60 days of receiving an invoice
D. 90 days of invoice
Rationale: SB 550 extended prompt-payment requirements to private projects and sets
a 60-day deadline for owners to pay contractors after receiving an invoice.
18. Subcontracts on single-family residential projects are:
A. Fully covered by the Prompt Payment Act
