VIRGINIA HIC EXAM (HOME IMPROVEMENT EXAM) NEWEST
ACTUAL EXAM COMPLETE 150 QUESTIONS AND CORRECT
DETAILED ANSWERS 2026-2027
1. Which of the following licenses is required to perform home improvement work
in Virginia that exceeds $1,000 in labor and materials?
A. Business license only
B. Class C Contractor License
C. Home Repair Permit
D. Business Tax Certificate
Correct Answer: B
Explanation: Any contractor performing work valued over $1,000 must hold at
least a Class C Contractor License issued by the Virginia Department of
Professional and Occupational Regulation (DPOR).
2. A Home Improvement Contract must include all the following except:
A. Description of work
B. Total cost
C. License number of the contractor
D. Social Security number of the homeowner
Correct Answer: D
Explanation: A contractor’s license number is required, but the homeowner’s
Social Security number is private and should never appear in the contract.
3. Which document outlines the standards for building safety in Virginia?
A. Virginia Uniform Statewide Building Code (USBC)
B. Federal OSHA Regulations
C. Local HOA Guidelines
D. EPA Residential Code
Correct Answer: A
,Explanation: The USBC governs all construction, renovation, and repair projects in
Virginia to ensure statewide safety and quality standards.
4. How long must a contractor keep business records, contracts, and invoices?
A. 6 months
B. 1 year
C. 3 years
D. 5 years
Correct Answer: D
Explanation: Virginia law requires contractors to maintain business records for at
least five years for potential audits or complaints.
5. What is the maximum deposit a contractor may legally request before work
begins on a home improvement project?
A. 10% of total contract
B. 33% of total contract
C. 50% of total contract
D. No limit by law
Correct Answer: B
Explanation: Virginia guidelines recommend no more than one-third of the total
contract price as a down payment, except for custom materials or special orders.
6. What is the main purpose of a mechanic’s lien?
A. To terminate a contractor’s license
B. To collect unpaid wages for labor and materials
C. To ensure safety on the worksite
D. To enforce building code violations
Correct Answer: B
Explanation: A mechanic’s lien allows contractors or suppliers to claim payment
against a property when the owner fails to pay for services rendered.
,7. If a contractor’s license expires, what must the contractor do before resuming
work?
A. Pay a fine and continue working
B. Renew the license with DPOR before doing any more work
C. File a new business registration
D. Continue work for 30 days before renewal
Correct Answer: B
Explanation: Work cannot resume until the contractor’s license is officially
renewed with DPOR.
8. Which of the following is required to display on a contractor’s business vehicle
in Virginia?
A. Contractor’s name and phone number
B. Contractor’s license number and state seal
C. Only the business name
D. No identification is required
Correct Answer: A
Explanation: Vehicles used for contracting must show the business name and
contact information for transparency and consumer protection.
9. When must a building permit be obtained?
A. For any work under $500
B. For cosmetic painting only
C. For structural, electrical, or plumbing modifications
D. For landscaping and lawn maintenance
Correct Answer: C
Explanation: Permits are required for major work affecting structure, plumbing,
electrical, or mechanical systems, as mandated by the USBC.
10. What is the purpose of general liability insurance for contractors?
A. To cover personal health expenses
B. To protect against property damage or injuries caused by the contractor’s work
, C. To insure tools and equipment only
D. To guarantee job completion
Correct Answer: B
Explanation: Liability insurance protects the contractor and homeowner from
accidents or damages arising from the contractor’s operations.
11. Which of the following best defines “substantial completion” in a contract?
A. The project is 50% complete
B. The work is completed enough for use but may need minor touch-ups
C. The project passes all inspections
D. The project is fully paid
Correct Answer: B
Explanation: Substantial completion occurs when the owner can use the project for
its intended purpose even if some minor work remains unfinished.
12. If a homeowner cancels a contract within the legal cancellation period, what
must the contractor do?
A. Keep the deposit
B. Charge a cancellation fee
C. Refund all money paid
D. Delay refund until work begins
Correct Answer: C
Explanation: Under Virginia consumer protection laws, the contractor must refund
all payments if the homeowner cancels within the allowed three-day period.
13. Which agency regulates contractor licensing in Virginia?
A. Department of Labor
B. Department of Professional and Occupational Regulation (DPOR)
C. Department of Commerce
D. Department of Housing
Correct Answer: B
ACTUAL EXAM COMPLETE 150 QUESTIONS AND CORRECT
DETAILED ANSWERS 2026-2027
1. Which of the following licenses is required to perform home improvement work
in Virginia that exceeds $1,000 in labor and materials?
A. Business license only
B. Class C Contractor License
C. Home Repair Permit
D. Business Tax Certificate
Correct Answer: B
Explanation: Any contractor performing work valued over $1,000 must hold at
least a Class C Contractor License issued by the Virginia Department of
Professional and Occupational Regulation (DPOR).
2. A Home Improvement Contract must include all the following except:
A. Description of work
B. Total cost
C. License number of the contractor
D. Social Security number of the homeowner
Correct Answer: D
Explanation: A contractor’s license number is required, but the homeowner’s
Social Security number is private and should never appear in the contract.
3. Which document outlines the standards for building safety in Virginia?
A. Virginia Uniform Statewide Building Code (USBC)
B. Federal OSHA Regulations
C. Local HOA Guidelines
D. EPA Residential Code
Correct Answer: A
,Explanation: The USBC governs all construction, renovation, and repair projects in
Virginia to ensure statewide safety and quality standards.
4. How long must a contractor keep business records, contracts, and invoices?
A. 6 months
B. 1 year
C. 3 years
D. 5 years
Correct Answer: D
Explanation: Virginia law requires contractors to maintain business records for at
least five years for potential audits or complaints.
5. What is the maximum deposit a contractor may legally request before work
begins on a home improvement project?
A. 10% of total contract
B. 33% of total contract
C. 50% of total contract
D. No limit by law
Correct Answer: B
Explanation: Virginia guidelines recommend no more than one-third of the total
contract price as a down payment, except for custom materials or special orders.
6. What is the main purpose of a mechanic’s lien?
A. To terminate a contractor’s license
B. To collect unpaid wages for labor and materials
C. To ensure safety on the worksite
D. To enforce building code violations
Correct Answer: B
Explanation: A mechanic’s lien allows contractors or suppliers to claim payment
against a property when the owner fails to pay for services rendered.
,7. If a contractor’s license expires, what must the contractor do before resuming
work?
A. Pay a fine and continue working
B. Renew the license with DPOR before doing any more work
C. File a new business registration
D. Continue work for 30 days before renewal
Correct Answer: B
Explanation: Work cannot resume until the contractor’s license is officially
renewed with DPOR.
8. Which of the following is required to display on a contractor’s business vehicle
in Virginia?
A. Contractor’s name and phone number
B. Contractor’s license number and state seal
C. Only the business name
D. No identification is required
Correct Answer: A
Explanation: Vehicles used for contracting must show the business name and
contact information for transparency and consumer protection.
9. When must a building permit be obtained?
A. For any work under $500
B. For cosmetic painting only
C. For structural, electrical, or plumbing modifications
D. For landscaping and lawn maintenance
Correct Answer: C
Explanation: Permits are required for major work affecting structure, plumbing,
electrical, or mechanical systems, as mandated by the USBC.
10. What is the purpose of general liability insurance for contractors?
A. To cover personal health expenses
B. To protect against property damage or injuries caused by the contractor’s work
, C. To insure tools and equipment only
D. To guarantee job completion
Correct Answer: B
Explanation: Liability insurance protects the contractor and homeowner from
accidents or damages arising from the contractor’s operations.
11. Which of the following best defines “substantial completion” in a contract?
A. The project is 50% complete
B. The work is completed enough for use but may need minor touch-ups
C. The project passes all inspections
D. The project is fully paid
Correct Answer: B
Explanation: Substantial completion occurs when the owner can use the project for
its intended purpose even if some minor work remains unfinished.
12. If a homeowner cancels a contract within the legal cancellation period, what
must the contractor do?
A. Keep the deposit
B. Charge a cancellation fee
C. Refund all money paid
D. Delay refund until work begins
Correct Answer: C
Explanation: Under Virginia consumer protection laws, the contractor must refund
all payments if the homeowner cancels within the allowed three-day period.
13. Which agency regulates contractor licensing in Virginia?
A. Department of Labor
B. Department of Professional and Occupational Regulation (DPOR)
C. Department of Commerce
D. Department of Housing
Correct Answer: B
