NASCLA Contractors Exam Questions and Answers Latest Update 2025-2026 Graded A+
market analysis - Answers major competitors
Financial Plan - Answers projection
Advantage of a Sole Proprietorship - Answers Freedom in decision-making process
Disadvantage of a Sole Proprietorship - Answers Unlimited personal liability
Partnership - Answers each partner expects to share in the profits and losses of the business.
Two types of partnerships- General and limited
Disadvantages of a General Partnership - Answers Unlimited personal liability of general partners.
Partnership dissolves in the event of the death of a general partner.
Purpose of Licensing - Answers A major purpose of licensing is to protect the health, safety, and welfare
of the public
VA Board for Contractors - Answers 7 licensed contractor members
Licensing Requirements: Exemptions - Answers Any material supplier
Class A - Answers Single contract - $120,000 or more
12-month - $750,000 or more
License classes are determined by - Answers Net worth
Class A
Class B - Answers $45,000
$15,000
License Renewals - Answers license expire two years
must file renewal form
within 30 days of the license expiration
fees are not received within 30 days
must reinstate the license
Changes - Answers change of designated employee 90 days
change of a business/trade name 30 days
, change of address 30 days
Prohibited act - Answers Failure to maintain all documents relating to contract 5 years
Recovery Fund - Answers to homeowners
per claimant $20,000
per contractor $40,000
$25 assessment
minimum balance set at $400,000
If the balance of the fund falls below
assessment will not exceed $50
Property Insurance - Answers covers your business and personal property
Named Peril Builders' Risk Insurance - Answers Water damage
Transportation Floater and Motor Truck Cargo Insurance - Answers damage that occurs to freight during
transport
Commercial General Liability (CGL) - Answers bodily injury that results in actual physical damage or loss
for individuals who are not employees.
damage or loss to property not belonging to the business.
Key Man Life Insurance - Answers partnership
if one of the partners died
Workers' Compensation Insurance - Answers for employees who are injured on the job.
purchased by the employer
VA Coverage Requirements - Answers Under VA Law
Three or more full-time or part-time employees
Subcontractors - Answers verify their insurance coverage
Bond - Answers is a risk transfer between a surety, the contractor, and project owner
Types of Bonds - Answers Bid bond - will do work at the submitted bid price
Performance bond - complete a contract
market analysis - Answers major competitors
Financial Plan - Answers projection
Advantage of a Sole Proprietorship - Answers Freedom in decision-making process
Disadvantage of a Sole Proprietorship - Answers Unlimited personal liability
Partnership - Answers each partner expects to share in the profits and losses of the business.
Two types of partnerships- General and limited
Disadvantages of a General Partnership - Answers Unlimited personal liability of general partners.
Partnership dissolves in the event of the death of a general partner.
Purpose of Licensing - Answers A major purpose of licensing is to protect the health, safety, and welfare
of the public
VA Board for Contractors - Answers 7 licensed contractor members
Licensing Requirements: Exemptions - Answers Any material supplier
Class A - Answers Single contract - $120,000 or more
12-month - $750,000 or more
License classes are determined by - Answers Net worth
Class A
Class B - Answers $45,000
$15,000
License Renewals - Answers license expire two years
must file renewal form
within 30 days of the license expiration
fees are not received within 30 days
must reinstate the license
Changes - Answers change of designated employee 90 days
change of a business/trade name 30 days
, change of address 30 days
Prohibited act - Answers Failure to maintain all documents relating to contract 5 years
Recovery Fund - Answers to homeowners
per claimant $20,000
per contractor $40,000
$25 assessment
minimum balance set at $400,000
If the balance of the fund falls below
assessment will not exceed $50
Property Insurance - Answers covers your business and personal property
Named Peril Builders' Risk Insurance - Answers Water damage
Transportation Floater and Motor Truck Cargo Insurance - Answers damage that occurs to freight during
transport
Commercial General Liability (CGL) - Answers bodily injury that results in actual physical damage or loss
for individuals who are not employees.
damage or loss to property not belonging to the business.
Key Man Life Insurance - Answers partnership
if one of the partners died
Workers' Compensation Insurance - Answers for employees who are injured on the job.
purchased by the employer
VA Coverage Requirements - Answers Under VA Law
Three or more full-time or part-time employees
Subcontractors - Answers verify their insurance coverage
Bond - Answers is a risk transfer between a surety, the contractor, and project owner
Types of Bonds - Answers Bid bond - will do work at the submitted bid price
Performance bond - complete a contract
