Virginia Residential Building Contractor Final Exam – 250
Questions And Correct Answers (100% Verified Answers)
Plus Rationales 2026 Q&A | Instant Download Pdf
Section 1: Licensing & Regulatory Compliance
1. What is the PRIMARY purpose of contractor licensing in Virginia?
A) To generate revenue for the state
B) To protect the health and welfare of the public
C) To ensure all contractors charge fair prices
D) To limit competition among builders
Answer: B
Rationale: The fundamental purpose of licensing is consumer protection—ensuring contractors meet
minimum standards of competence and integrity.
2. How much is the Class A initial license fee?
A) 100
B)200
C) 350
D)500
Answer: B
Rationale: The Class A initial license fee is $200, plus Recovery Fund fees as assessed .
3. A firm desiring to be licensed as a Class B contractor MUST have a MINIMUM net worth of:
A) 5, 000
B)10,000
C) 15,000
D)45,000
Answer: C
1 SUCCESS!!!
, Rationale: Class B contractors must demonstrate a minimum net worth of
15,000toensurefinancialsolvencyforprojectsupto120,000 .
4. A contract for which type of structure may be subject to recovery from the Transaction Recovery
Fund?
A) Commercial only
B) Industrial only
C) Residential only
D) All structures regardless of use
Answer: C
Rationale: The Transaction Recovery Fund specifically covers residential construction contracts to
protect homeowners from contractor misconduct.
5. Contractors will be assessed a fee for the Transaction Recovery Fund whenever the fund balance is
less than:
A) 200 ,000
B)400,000
C) 500,000
D)1,000,000
Answer: B
Rationale: When the Transaction Recovery Fund balance drops below $400,000, contractors are
assessed a fee to replenish it .
6. When a claimant is paid funds from the Contractors Recovery Trust Fund, what happens to the
contractor's license?
A) The license is placed on probation
B) The license is suspended for 6 months
C) The license is revoked
D) No change to license status
Answer: C
2 SUCCESS!!!
, Rationale: Payment from the Recovery Trust Fund triggers automatic license revocation, as the
contractor has demonstrated financial irresponsibility .
7. The application for licensure MUST include:
A) Personal references from three clients
B) The business address of the proposed designated employee
C) A sample contract template
D) A list of all past projects
Answer: B
Rationale: The designated employee's business address is a mandatory component of licensure
applications for verification and service of process .
8. Who is in charge of a local building department?
A) The Mayor
B) The Building Official
C) The City Council
D) The Fire Marshal
Answer: B
Rationale: The Building Official is the designated authority responsible for code enforcement, permit
issuance, and inspections at the local level .
9. When MUST work be stopped following the issuance of a stop work order?
A) Within 24 hours
B) Immediately
C) After the contractor appeals the order
D) Within 48 hours
Answer: B
Rationale: Stop work orders require immediate cessation of all work on the affected project until the
violation is corrected and the order is lifted.
3 SUCCESS!!!
, 11. Contractors assessed a fee for the Transaction Recovery Fund MUST pay this fee within a
MINIMUM of how many days from when the assessment fee notice was mailed?
A) 15 days
B) 30 days
C) 45 days
D) 60 days
Answer: C
Rationale: Contractors have 45 days from notice mailing to pay Recovery Fund assessment fees or face
license consequences .
12. A verified claim for payment from the Transaction Recovery Fund MUST occur within a MAXIMUM
of what period from the date the claimant was awarded a final judgment?
A) 6 months
B) 12 months
C) 18 months
D) 24 months
Answer: B
Rationale: Claimants have 12 months from final judgment date to file a verified claim with the
Recovery Fund.
13. All of the following MUST be licensed EXCEPT:
A) A general contractor building a single-family home
B) A material supplier who advises a contractor on product selection
C) A residential remodeling contractor
D) A roofing contractor on a residential project
Answer: B
Rationale: Material suppliers providing advice are not required to hold a contractor's license; only
those performing construction work need licensure .
14. An appeal of the local building official's decision to refuse a modification to the USBC MUST be
made within a MAXIMUM of how many days?
4 SUCCESS!!!
Questions And Correct Answers (100% Verified Answers)
Plus Rationales 2026 Q&A | Instant Download Pdf
Section 1: Licensing & Regulatory Compliance
1. What is the PRIMARY purpose of contractor licensing in Virginia?
A) To generate revenue for the state
B) To protect the health and welfare of the public
C) To ensure all contractors charge fair prices
D) To limit competition among builders
Answer: B
Rationale: The fundamental purpose of licensing is consumer protection—ensuring contractors meet
minimum standards of competence and integrity.
2. How much is the Class A initial license fee?
A) 100
B)200
C) 350
D)500
Answer: B
Rationale: The Class A initial license fee is $200, plus Recovery Fund fees as assessed .
3. A firm desiring to be licensed as a Class B contractor MUST have a MINIMUM net worth of:
A) 5, 000
B)10,000
C) 15,000
D)45,000
Answer: C
1 SUCCESS!!!
, Rationale: Class B contractors must demonstrate a minimum net worth of
15,000toensurefinancialsolvencyforprojectsupto120,000 .
4. A contract for which type of structure may be subject to recovery from the Transaction Recovery
Fund?
A) Commercial only
B) Industrial only
C) Residential only
D) All structures regardless of use
Answer: C
Rationale: The Transaction Recovery Fund specifically covers residential construction contracts to
protect homeowners from contractor misconduct.
5. Contractors will be assessed a fee for the Transaction Recovery Fund whenever the fund balance is
less than:
A) 200 ,000
B)400,000
C) 500,000
D)1,000,000
Answer: B
Rationale: When the Transaction Recovery Fund balance drops below $400,000, contractors are
assessed a fee to replenish it .
6. When a claimant is paid funds from the Contractors Recovery Trust Fund, what happens to the
contractor's license?
A) The license is placed on probation
B) The license is suspended for 6 months
C) The license is revoked
D) No change to license status
Answer: C
2 SUCCESS!!!
, Rationale: Payment from the Recovery Trust Fund triggers automatic license revocation, as the
contractor has demonstrated financial irresponsibility .
7. The application for licensure MUST include:
A) Personal references from three clients
B) The business address of the proposed designated employee
C) A sample contract template
D) A list of all past projects
Answer: B
Rationale: The designated employee's business address is a mandatory component of licensure
applications for verification and service of process .
8. Who is in charge of a local building department?
A) The Mayor
B) The Building Official
C) The City Council
D) The Fire Marshal
Answer: B
Rationale: The Building Official is the designated authority responsible for code enforcement, permit
issuance, and inspections at the local level .
9. When MUST work be stopped following the issuance of a stop work order?
A) Within 24 hours
B) Immediately
C) After the contractor appeals the order
D) Within 48 hours
Answer: B
Rationale: Stop work orders require immediate cessation of all work on the affected project until the
violation is corrected and the order is lifted.
3 SUCCESS!!!
, 11. Contractors assessed a fee for the Transaction Recovery Fund MUST pay this fee within a
MINIMUM of how many days from when the assessment fee notice was mailed?
A) 15 days
B) 30 days
C) 45 days
D) 60 days
Answer: C
Rationale: Contractors have 45 days from notice mailing to pay Recovery Fund assessment fees or face
license consequences .
12. A verified claim for payment from the Transaction Recovery Fund MUST occur within a MAXIMUM
of what period from the date the claimant was awarded a final judgment?
A) 6 months
B) 12 months
C) 18 months
D) 24 months
Answer: B
Rationale: Claimants have 12 months from final judgment date to file a verified claim with the
Recovery Fund.
13. All of the following MUST be licensed EXCEPT:
A) A general contractor building a single-family home
B) A material supplier who advises a contractor on product selection
C) A residential remodeling contractor
D) A roofing contractor on a residential project
Answer: B
Rationale: Material suppliers providing advice are not required to hold a contractor's license; only
those performing construction work need licensure .
14. An appeal of the local building official's decision to refuse a modification to the USBC MUST be
made within a MAXIMUM of how many days?
4 SUCCESS!!!
