THE MOST TESTED QUESTIONS AND CORRECT ANSWERS WITH
RATIONALES PERFECT FOR A+ GRADE
1. Which of the following is required before a contractor can begin work in Virginia?
A. Verbal agreement with the client
B. Insurance only
C. Business registration only
D. ☑ Valid Virginia contractor’s license
Rationale: Virginia law requires all contractors to hold a valid license before starting work.
2. What type of bond is generally required for a public works construction project in Virginia?
A. Personal bond
B. Performance bond
C. Surety bond optional
D. ☑ Payment and performance bond
Rationale: Public projects require both a performance bond to guarantee completion and a
payment bond to ensure subcontractors are paid.
3. How long must contractors maintain records of construction contracts in Virginia?
A. 1 year
B. 2 years
C. 5 years
D. ☑ 3 years
Rationale: Virginia law mandates a minimum of 3 years of records retention.
4. Which type of insurance is mandatory for most Virginia contractors?
A. Life insurance
B. Car insurance
C. Liability insurance only
D. ☑ Workers’ compensation insurance
Rationale: Contractors with employees must carry workers’ compensation insurance.
,5. Who is responsible for paying subcontractors if the main contractor fails?
A. Homeowner
B. Subcontractor only
C. State government
D. ☑ Surety (bond) company
Rationale: Payment bonds ensure subcontractors are protected.
6. A Virginia contractor must display their license in:
A. Home office only
B. Vehicle only
C. ☑ Place of business and on contracts
D. Anywhere convenient
Rationale: Displaying the license at the business and on contracts ensures transparency and
legal compliance.
7. Which of the following is NOT a classification of contractor licenses in Virginia?
A. Class A
B. Class B
C. Class C
D. ☑ Class D
Rationale: Virginia recognizes Class A, B, and C licenses only.
8. What is the maximum single project limit for a Class C contractor?
A. $10,000
B. $50,000
C. ☑ $120,000
D. $500,000
Rationale: Class C contractors are limited to $120,000 per project.
9. Which agency regulates contractor licensing in Virginia?
A. Department of Housing
B. Virginia Builders Association
C. Virginia Homeowners Association
D. ☑ Virginia Department of Professional and Occupational Regulation (DPOR)
,Rationale: DPOR oversees contractor licensing and enforcement.
10. A contractor fails to complete a project on time. What is the first step a homeowner can
take?
A. Sue immediately
B. Terminate contract
C. ☑ Send a written notice of default
D. Call law enforcement
Rationale: Written notice of default is required before legal remedies.
11. Which of the following is considered an unfair trade practice in Virginia?
A. Charging for materials
B. Providing a written estimate
C. ☑ Misrepresenting credentials or licenses
D. Following a contract schedule
Rationale: Misrepresenting qualifications is prohibited under Virginia law.
12. A contractor’s license is suspended. How soon must they notify clients?
A. No requirement
B. 90 days
C. ☑ Immediately
D. At next contract renewal
Rationale: Clients must be informed immediately to prevent unauthorized work.
13. Who can issue stop work orders in Virginia?
A. Homeowners
B. ☑ Building inspectors
C. Contractors
D. Local police
Rationale: Stop work orders are issued by local authorities for code violations.
14. How often must a Virginia contractor renew their license?
A. Every year
, B. ☑ Every 2 years
C. Every 3 years
D. Every 5 years
Rationale: Licenses are biennial and must be renewed to remain valid.
15. What is required for a contractor to act as a specialty contractor?
A. Nothing extra
B. General liability only
C. ☑ Appropriate specialty classification license
D. Work under Class A contractor only
Rationale: Specialty contractors must be licensed in their specific trade.
16. Which of the following is a violation of Virginia contracting law?
A. Submitting change orders
B. Performing work under contract
C. ☑ Working without a license
D. Using licensed subcontractors
Rationale: Unlicensed work is illegal regardless of intent.
17. A contractor wants to perform roofing over $50,000. Which license is required?
A. Class C
B. Class B
C. ☑ Class A
D. Specialty only
Rationale: Projects over $120,000 require a Class A license; roofing over $50,000 usually
requires Class A if total project exceeds Class C limits.
18. What is the primary purpose of a performance bond?
A. Protect subcontractors
B. Ensure contractor’s profit
C. ☑ Ensure project completion
D. Pay licensing fees