Rationales/ Newest Update
Question 1
A licensed contractor moves their business office to a new location but fails to notify the Board
for Contractors of the change of address. Consequently, the contractor does not receive the
renewal notice and the license expires. Who is held responsible for the failure to renew on time?
A) The Designated Employee
B) The United States Postal Service
C) The Board for Contractors
D) The Licensee (Contractor)
E) The Bonding Company
Correct Answer: D) The Licensee (Contractor)
Rationale: The licensee is ultimately responsible for maintaining their license. According to
DPOR regulations, a contractor must notify the Board of any change of address within 30
days. Failure to receive a renewal notice because of an unreported address change does not
relieve the contractor of the responsibility to renew the license prior to expiration.
Question 2
Which of the following sets of criteria correctly identifies the requirements for a Designated
Employee in Virginia?
A) At least 21 years old, part-time employee (20 hours), passed required exam.
B) At least 18 years old, full-time employee, passed required exam.
C) At least 18 years old, 1099 subcontractor, passed required exam.
D) At least 25 years old, full-time employee, has 5 years of experience.
E) At least 21 years old, full-time employee, has a bachelor’s degree in construction.
Correct Answer: B) At least 18 years old, full-time employee, passed required exam.
Rationale: Virginia regulations stipulate that a Designated Employee must be at least 18
years of age, a full-time employee of the business (generally defined as working a minimum
of 30 hours per week), and must have successfully passed the required examination for the
specific license classification.
Question 3
When a contractor applies for an initial license, they are required to pay a fee to the Transaction
Recovery Fund. What is the amount of this initial fee?
A) $50
B) $100
C) $25
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D) $10
E) $500
Correct Answer: C) $25
Rationale: The Virginia Board for Contractors requires new licensees to pay an assessment
fee of $25 to the Transaction Recovery Fund. This fund is used to satisfy judgments against
contractors for improper or dishonest conduct when the contractor fails to pay.
Question 4
A general contractor secures a single project contract with a total value of $150,000. Which class
of contractor license is required to legally perform this work?
A) Class C
B) Class B
C) Class A
D) Sole Proprietorship License
E) Master Tradesman License
Correct Answer: C) Class A
Rationale: In Virginia, license classes are determined by monetary limits. A Class A license
is required if a single contract or project value is $120,000 or more, or if the total value of
all contracts performed in a twelve-month period is $750,000 or more. Since $150,000
exceeds the $120,000 threshold, a Class A license is mandatory.
Question 5
According to erosion and sediment control regulations, an erosion control conservation plan
must be approved within how many days of submission?
A) 30 days
B) 45 days
C) 60 days
D) 90 days
E) 120 days
Correct Answer: B) 45 days
Rationale: The authority responsible for plan review must approve or disapprove an erosion
control conservation plan within 45 days. This ensures that construction projects are not
indefinitely delayed by administrative reviews regarding environmental compliance.
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Question 6
A local building official refuses to grant a modification to the Uniform Statewide Building Code
(USBC). To whom should the contractor or owner file an appeal regarding this decision?
A) The State Technical Review Board
B) The Governor's Office
C) The Local Board of Building Code Appeals (BBCA)
D) The Department of Professional and Occupational Regulation (DPOR)
E) The Circuit Court
Correct Answer: C) The Local Board of Building Code Appeals (BBCA)
Rationale: The first step in the appeals process regarding a local building official's decision
on the USBC is the Local Board of Building Code Appeals (BBCA). If the issue is not
resolved there, it may then proceed to the State Technical Review Board.
Question 7
A contractor's license has expired. The contractor is required to submit a renewal application
within how many days of the expiration date to avoid having to apply for reinstatement?
A) 10 days
B) 60 days
C) 90 days
D) 30 days
E) 6 months
Correct Answer: D) 30 days
Rationale: A contractor has a 30-day grace period following the expiration date to submit a
renewal application (usually with a late fee). If the renewal and fee are not received within
30 days of expiration, the contractor must apply for reinstatement of the license, which is a
more complex process.
Question 8
Who is legally permitted to file a complaint against a licensed contractor in Virginia?
A) Only the property owner who hired the contractor.
B) Only another licensed contractor.
C) Only a building inspector.
D) Any person.
E) Only the Designated Employee of the firm.
Correct Answer: D) Any person.
Rationale: Virginia regulations allow "any person" to file a complaint against a contractor.
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This includes homeowners, other contractors, suppliers, building officials, or the general
public, provided the complaint alleges a violation of the statutes or regulations governing
contractors.
Question 9
A contractor has been operating as a sole proprietorship but decides to incorporate the business
to limit personal liability. What is the requirement regarding the contractor's license?
A) The license automatically transfers to the corporation.
B) The contractor must file a name change form only.
C) A new license must be obtained.
D) The contractor can continue using the old license for 6 months.
E) The contractor must pay a transfer fee of $50.
Correct Answer: C) A new license must be obtained.
Rationale: Licenses in Virginia are issued to legal entities. A sole proprietorship and a
corporation are distinct legal entities. Therefore, changing the form of the entity requires
the new entity (the corporation) to apply for and obtain a new license; the old license
cannot be transferred.
Question 10
What is the maximum total amount the Transaction Recovery Fund can pay out for claims
against a single contractor during a license period?
A) $10,000
B) $20,000
C) $40,000
D) $100,000
E) $120,000
Correct Answer: C) $40,000
Rationale: While a single claimant may only receive up to $20,000, the aggregate maximum
payout from the Fund for all claims combined against a single contractor or regulant is
capped at $40,000.
Question 11
A building official issues a stop work order due to code violations. To whom must this order be
delivered to be effective?
A) The bank financing the project.