VIRGINIA HOME IMPROVEMENT CONTRACTOR
(HIC) EXAMINATION
Actual Exam 2026 | Complete Questions and Correct
Detailed Answers
Section 1: Virginia Contractor Licensing Laws and Regulations
Questions 1-15
Question 1 According to Virginia Code §54.1-1106, what is the minimum net worth requirement
for a Class A contractor license?
A. $15,000
B. $45,000 [CORRECT]
C. $75,000
D. $150,000
Correct Answer: B
Rationale: Virginia Code §54.1-1106 requires Class A contractors to demonstrate a minimum net
worth of $45,000. This financial responsibility requirement ensures contractors have sufficient
resources to complete projects and satisfy obligations. Class B contractors require $15,000 net
worth (Option A). Option C is incorrect—there is no $75,000 tier. Option D ($150,000) exceeds
the Class A requirement and may confuse contractors with the Class C annual project volume
limit.
Question 2 A contractor performs work where the total value of all projects in a calendar year
does not exceed $150,000 and no single project exceeds $120,000. Which license class is
appropriate?
A. Class A
B. Class B [CORRECT]
C. Class C
D. No license required
Correct Answer: B
Rationale: Class B contractors are limited to single contracts not exceeding $120,000 and total
annual volume not exceeding $750,000. While the annual volume ($150,000) fits Class C (under
,$150,000), the single project limit of $120,000 exceeds Class C's $10,000 per project limit.
Therefore, Class B is required. Class A (Option A) has no limits but requires higher net worth.
Class C (Option C) is incorrect because the $120,000 project exceeds the $10,000 Class C
project limit. Option D is incorrect because any project over $1,000 requires licensing.
Question 3 Under 18VAC50-22-30, how often must a Virginia contractor license be renewed?
A. Annually
B. Every 2 years [CORRECT]
C. Every 3 years
D. Every 5 years
Correct Answer: B
Rationale: Virginia contractor licenses expire every two years from the date of issuance and
must be renewed before expiration to remain active. 18VAC50-22-30 establishes the biennial
renewal requirement. Contractors must complete continuing education (8 hours for Class A and
B, 5 hours for Class C) for renewal. Option A is incorrect—annual renewal is not required.
Options C and D exceed the renewal period.
Question 4 A contractor changes their business mailing address within Virginia. According to
18VAC50-22-70, within how many days must the Board for Contractors be notified?
A. 10 days
B. 30 days [CORRECT]
C. 60 days
D. 90 days
Correct Answer: B
Rationale: 18VAC50-22-70 requires licensees to notify the Board within 30 days of any change
of address, email address, telephone number, or business structure. Failure to provide timely
notice may result in disciplinary action. This ensures the Board can maintain accurate records
and contact contractors regarding regulatory matters. Options A, C, and D do not comply with
the specific regulatory timeframe.
Question 5 Which of the following trades is EXEMPT from Virginia contractor licensing
requirements when performed by a properly licensed tradesperson?
A. Residential framing
B. Roofing
,C. Electrical work performed by a licensed electrician [CORRECT]
D. Bathroom remodeling
Correct Answer: C
Rationale: Under §54.1-1100, electrical, plumbing, and HVAC work performed by persons
licensed by their respective boards (Board for Contractors trades section, Board for Plumbing,
etc.) are exempt from the general contractor licensing requirement. However, they must still hold
their trade-specific license. Options A, B, and D require a home improvement contractor license
when the project value exceeds $1,000, unless performed by the homeowner themselves.
Question 6 What is the maximum criminal penalty for contracting without a required license in
Virginia under §54.1-1115?
A. Class 1 misdemeanor
B. Class 2 misdemeanor
C. Class 6 felony for third or subsequent offense [CORRECT]
D. Civil fine only
Correct Answer: C
Rationale: §54.1-1115 makes contracting without a license a Class 1 misdemeanor for first and
second offenses, and a Class 6 felony for third or subsequent offenses within 10 years. This
reflects Virginia's serious approach to unlicensed contracting. Option A applies to first offenses
only. Option B understates the severity. Option D is incorrect—criminal penalties apply, not just
civil fines.
Question 7 A Class C contractor wishes to bid on a project valued at $12,000. What must they
do?
A. Proceed with the bid as-is
B. Decline the project
C. Partner with a Class A or B contractor [CORRECT]
D. Obtain a Class A or B license [CORRECT]
Correct Answer: C and D (Select all that apply)
Rationale: Class C contractors are limited to single projects not exceeding $10,000. To legally
perform a $12,000 project, they must either: (1) obtain a Class B license (requiring $15,000 net
worth and passing the Class B exam), or (2) partner as a subcontractor under a Class A or B
contractor who holds the prime contract. Options A and B are incorrect because declining is not
required (alternatives exist) and proceeding violates the law.
, Question 8 According to 18VAC50-22-50, where must a contractor's license number appear?
A. Only on the license certificate
B. On all contracts, advertisements, and vehicles used for business [CORRECT]
C. Only on business cards
D. Only when requested by customers
Correct Answer: B
Rationale: 18VAC50-22-50 requires the license number to be displayed on all contracts,
proposals, advertisements (including websites and social media), and vehicles used in the
business. This promotes transparency and allows consumers to verify licensing status. Option A
is insufficient. Option C is incomplete. Option D defeats the purpose of consumer protection
through disclosure.
Question 9 What continuing education is required for Class A and B contractor license renewal
in Virginia?
A. 4 hours every 2 years
B. 5 hours every 2 years
C. 8 hours every 2 years [CORRECT]
D. 16 hours every 2 years
Correct Answer: C
Rationale: Class A and B contractors must complete 8 hours of continuing education every 2
years, including 3 hours on Virginia construction laws and regulations and 5 hours on general
business practices or trade-specific topics. Class C contractors require 5 hours (3 law + 2
business). Options A and B understate the requirement. Option D doubles the actual requirement.
Question 10 A contractor's license is suspended for violation of the Virginia Contractor
Transaction Recovery Fund regulations. How long must they wait to apply for reinstatement?
A. 30 days
B. 6 months
C. Until all restitution is paid and requirements met [CORRECT]
D. 1 year
Correct Answer: C
Rationale: License suspension remains in effect until the contractor satisfies all conditions for
reinstatement, including payment of restitution to the Recovery Fund, completion of any required
education, and compliance with all Board orders. There is no automatic reinstatement after a set
(HIC) EXAMINATION
Actual Exam 2026 | Complete Questions and Correct
Detailed Answers
Section 1: Virginia Contractor Licensing Laws and Regulations
Questions 1-15
Question 1 According to Virginia Code §54.1-1106, what is the minimum net worth requirement
for a Class A contractor license?
A. $15,000
B. $45,000 [CORRECT]
C. $75,000
D. $150,000
Correct Answer: B
Rationale: Virginia Code §54.1-1106 requires Class A contractors to demonstrate a minimum net
worth of $45,000. This financial responsibility requirement ensures contractors have sufficient
resources to complete projects and satisfy obligations. Class B contractors require $15,000 net
worth (Option A). Option C is incorrect—there is no $75,000 tier. Option D ($150,000) exceeds
the Class A requirement and may confuse contractors with the Class C annual project volume
limit.
Question 2 A contractor performs work where the total value of all projects in a calendar year
does not exceed $150,000 and no single project exceeds $120,000. Which license class is
appropriate?
A. Class A
B. Class B [CORRECT]
C. Class C
D. No license required
Correct Answer: B
Rationale: Class B contractors are limited to single contracts not exceeding $120,000 and total
annual volume not exceeding $750,000. While the annual volume ($150,000) fits Class C (under
,$150,000), the single project limit of $120,000 exceeds Class C's $10,000 per project limit.
Therefore, Class B is required. Class A (Option A) has no limits but requires higher net worth.
Class C (Option C) is incorrect because the $120,000 project exceeds the $10,000 Class C
project limit. Option D is incorrect because any project over $1,000 requires licensing.
Question 3 Under 18VAC50-22-30, how often must a Virginia contractor license be renewed?
A. Annually
B. Every 2 years [CORRECT]
C. Every 3 years
D. Every 5 years
Correct Answer: B
Rationale: Virginia contractor licenses expire every two years from the date of issuance and
must be renewed before expiration to remain active. 18VAC50-22-30 establishes the biennial
renewal requirement. Contractors must complete continuing education (8 hours for Class A and
B, 5 hours for Class C) for renewal. Option A is incorrect—annual renewal is not required.
Options C and D exceed the renewal period.
Question 4 A contractor changes their business mailing address within Virginia. According to
18VAC50-22-70, within how many days must the Board for Contractors be notified?
A. 10 days
B. 30 days [CORRECT]
C. 60 days
D. 90 days
Correct Answer: B
Rationale: 18VAC50-22-70 requires licensees to notify the Board within 30 days of any change
of address, email address, telephone number, or business structure. Failure to provide timely
notice may result in disciplinary action. This ensures the Board can maintain accurate records
and contact contractors regarding regulatory matters. Options A, C, and D do not comply with
the specific regulatory timeframe.
Question 5 Which of the following trades is EXEMPT from Virginia contractor licensing
requirements when performed by a properly licensed tradesperson?
A. Residential framing
B. Roofing
,C. Electrical work performed by a licensed electrician [CORRECT]
D. Bathroom remodeling
Correct Answer: C
Rationale: Under §54.1-1100, electrical, plumbing, and HVAC work performed by persons
licensed by their respective boards (Board for Contractors trades section, Board for Plumbing,
etc.) are exempt from the general contractor licensing requirement. However, they must still hold
their trade-specific license. Options A, B, and D require a home improvement contractor license
when the project value exceeds $1,000, unless performed by the homeowner themselves.
Question 6 What is the maximum criminal penalty for contracting without a required license in
Virginia under §54.1-1115?
A. Class 1 misdemeanor
B. Class 2 misdemeanor
C. Class 6 felony for third or subsequent offense [CORRECT]
D. Civil fine only
Correct Answer: C
Rationale: §54.1-1115 makes contracting without a license a Class 1 misdemeanor for first and
second offenses, and a Class 6 felony for third or subsequent offenses within 10 years. This
reflects Virginia's serious approach to unlicensed contracting. Option A applies to first offenses
only. Option B understates the severity. Option D is incorrect—criminal penalties apply, not just
civil fines.
Question 7 A Class C contractor wishes to bid on a project valued at $12,000. What must they
do?
A. Proceed with the bid as-is
B. Decline the project
C. Partner with a Class A or B contractor [CORRECT]
D. Obtain a Class A or B license [CORRECT]
Correct Answer: C and D (Select all that apply)
Rationale: Class C contractors are limited to single projects not exceeding $10,000. To legally
perform a $12,000 project, they must either: (1) obtain a Class B license (requiring $15,000 net
worth and passing the Class B exam), or (2) partner as a subcontractor under a Class A or B
contractor who holds the prime contract. Options A and B are incorrect because declining is not
required (alternatives exist) and proceeding violates the law.
, Question 8 According to 18VAC50-22-50, where must a contractor's license number appear?
A. Only on the license certificate
B. On all contracts, advertisements, and vehicles used for business [CORRECT]
C. Only on business cards
D. Only when requested by customers
Correct Answer: B
Rationale: 18VAC50-22-50 requires the license number to be displayed on all contracts,
proposals, advertisements (including websites and social media), and vehicles used in the
business. This promotes transparency and allows consumers to verify licensing status. Option A
is insufficient. Option C is incomplete. Option D defeats the purpose of consumer protection
through disclosure.
Question 9 What continuing education is required for Class A and B contractor license renewal
in Virginia?
A. 4 hours every 2 years
B. 5 hours every 2 years
C. 8 hours every 2 years [CORRECT]
D. 16 hours every 2 years
Correct Answer: C
Rationale: Class A and B contractors must complete 8 hours of continuing education every 2
years, including 3 hours on Virginia construction laws and regulations and 5 hours on general
business practices or trade-specific topics. Class C contractors require 5 hours (3 law + 2
business). Options A and B understate the requirement. Option D doubles the actual requirement.
Question 10 A contractor's license is suspended for violation of the Virginia Contractor
Transaction Recovery Fund regulations. How long must they wait to apply for reinstatement?
A. 30 days
B. 6 months
C. Until all restitution is paid and requirements met [CORRECT]
D. 1 year
Correct Answer: C
Rationale: License suspension remains in effect until the contractor satisfies all conditions for
reinstatement, including payment of restitution to the Recovery Fund, completion of any required
education, and compliance with all Board orders. There is no automatic reinstatement after a set
