A contractor holds a Class B license and is offered a single contract for
$130,000 in new construction. Under Virginia DPOR rules, what is the most
accurate consequence?
A. The contract is permissible because Class B covers projects up to
$150,000.
B. The contract is permissible if the contractor subcontracts more than
50% of the work.
C. The contract exceeds the Class B limit and requires a Class A license.
D. The contract is permissible if the contractor obtains a separate building
permit.
Correct Answer: C - The contract exceeds the Class B limit and
requires a Class A license.
RATIONALE
Class B is limited to single contracts under $120,000 (or $750,000
aggregate), so a $130,000 single contract exceeds the threshold and
requires Class A. Subcontracting percentages and permits do not alter
the statutory classification limit.
Question 2
An applicant for Class A licensure reports a net worth of $40,000. Which fiscal
responsibility requirement is most directly implicated?
A. Class A requires a minimum net worth of $45,000 or a surety bond.
B. Class A requires a minimum net worth of $25,000 with no bond
option.
C. Class A requires a minimum net worth of $50,000 and a $10,000 bond.
D. Class A has no net worth requirement if the applicant has five years of
experience.
Correct Answer: A - Class A requires a minimum net worth of
$45,000 or a surety bond.
Page 2
, RATIONALE
Virginia requires Class A applicants to demonstrate fiscal
responsibility via a minimum net worth or a bond; the current
threshold is $45,000, and a bond may satisfy the requirement.
Experience alone does not waive the fiscal responsibility standard.
Question 3
A contractor's license lapsed for eight months before renewal. Which statement
best reflects Virginia DPOR policy on late renewal?
A. The license is automatically reinstated upon payment of a late fee.
B. The contractor must reapply as a new applicant and retake the exam.
C. The license may be renewed within one year with a late fee and proof
of continuing education.
D. The license is void and the contractor must wait two years before
reapplying.
Correct Answer: C - The license may be renewed within one year
with a late fee and proof of continuing education.
RATIONALE
Virginia permits late renewal within a defined window (generally up
to one year) with a late fee and compliance with any continuing
education or reinstatement requirements. Beyond that window,
reapplication as a new applicant may be required.
Question 4
A contractor performs both HVAC and plumbing work under a single Class B
license. Which regulatory principle governs this scope?
A. A single license automatically covers all specialty trades.
B. Specialty trades require separate specialty licenses or certifications
where mandated.
C. Class B licenses cannot include any specialty trade work.
Page 3
, D. The contractor must obtain a Class A license to perform any specialty
work.
Correct Answer: B - Specialty trades require separate specialty
licenses or certifications where mandated.
RATIONALE
Virginia requires separate specialty licenses or certifications for
certain trades (e.g., plumbing, HVAC, electrical) even when the
contractor holds a Class A or B license. A general license does not
automatically authorize all specialty work.
Question 5
During a DPOR investigation, a contractor is found to have used an unlicensed
subcontractor on a residential project. What is the most likely disciplinary
outcome?
A. No action, because the subcontractor is solely responsible.
B. A warning only, since the prime contractor holds a valid license.
C. Suspension, revocation, or monetary penalty against the prime
contractor.
D. Automatic criminal prosecution of the prime contractor.
Correct Answer: C - Suspension, revocation, or monetary penalty
against the prime contractor.
RATIONALE
Prime contractors are responsible for ensuring subcontractors are
properly licensed; failure can result in disciplinary action including
fines, suspension, or revocation. Criminal prosecution is not automatic
and depends on separate statutory violations.
Question 6
A contractor signs a contract that includes an arbitration clause and a waiver of
lien rights. Which statement best reflects Virginia law on such provisions?
Page 4