VIRGINIA HOME IMPROVEMENT CONTRACTOR
(HIC) EXAMINATION
Actual Exam 2026 | Complete Questions and Correct
Detailed Answers
Question 1 According to Virginia Code §54.1-1100 et seq., 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 and 18VAC50-22-30 require Class A contractors to demonstrate a
minimum net worth of $45,000. Class B contractors require $15,000 minimum net worth, while
Class C contractors have no minimum net worth requirement but are limited to projects under
$10,000. The net worth requirements ensure financial responsibility and capability to complete
larger projects. Option A is the Class B requirement. Options C and D exceed Virginia's
requirements.
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 $10,000. This contractor qualifies for
which license class?
A. Class A only
B. Class B only
C. Class C [CORRECT]
D. No license required
Correct Answer: C
Rationale: Class C contractors are limited to single projects not exceeding $10,000 and total
annual volume not exceeding $150,000 (18VAC50-22-10). Class B allows single projects up to
$120,000 and total annual volume up to $750,000. Class A has no limits. Option D is incorrect
because Virginia requires licensing for home improvement work over $1,000. This contractor
could also hold Class A or B, but Class C is the minimum qualification for these project
parameters.
,Question 3 Under 18VAC50-22-60, a Virginia contractor license must 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. Licensees must complete 8 hours of continuing education
(for Class A and B) during each two-year renewal period. Failure to renew results in license
expiration and inability to legally contract. Options A, C, and D do not match Virginia's biennial
renewal cycle.
Question 4 A contractor changes their business address within Virginia. According to 18VAC50-
22-70, they must notify the Board for Contractors within:
A. 10 days
B. 30 days [CORRECT]
C. 60 days
D. 90 days
Correct Answer: B
Rationale: Virginia Administrative Code 18VAC50-22-70 requires licensees to notify the Board
within 30 days of any change of address, email address, telephone number, or business structure.
This ensures the Board can maintain accurate records and serve legal notices. Failure to report
changes can result in disciplinary action. Options A, C, and D do not comply with the 30-day
requirement.
Question 5 Which of the following trades is EXEMPT from Virginia contractor licensing
requirements when performed by a properly licensed practitioner?
A. Carpentry
B. Roofing
C. Electrical work performed by a licensed electrician [CORRECT]
D. Siding installation
Correct Answer: C
,Rationale: Under §54.1-1101, electrical, plumbing, and HVAC work performed by contractors
holding valid licenses from their respective specialized boards (Board for Contractors does not
regulate these trades) are exempt from contractor licensing requirements. However, if these
trades are performed as part of general construction by unlicensed individuals, contractor
licensing applies. Options A, B, and D require contractor licensing when performed for
compensation exceeding $1,000.
Question 6 A Class B contractor wants to bid on a project valued at $125,000. Under Virginia
law:
A. They may proceed with the bid
B. They must upgrade to Class A before bidding [CORRECT]
C. They may bid but cannot exceed $120,000 in actual work
D. They may bid if they obtain a performance bond
Correct Answer: B
Rationale: Class B contractors are limited to individual projects not exceeding $120,000
(18VAC50-22-10). A $125,000 project exceeds this limit, requiring Class A licensure. The
contractor must upgrade their license class before bidding or contracting. Option C is incorrect
because the contract value limit applies to the project value, not just the work performed. Option
D is incorrect because bonding does not override license class limitations.
Question 7 The designated employee or responsible management personnel for a licensed
contracting business must:
A. Hold 100% ownership of the company
B. Be at least 21 years old and have passed the required examination [CORRECT]
C. Be a Virginia resident for at least 5 years
D. Have a college degree in construction management
Correct Answer: B
Rationale: 18VAC50-22-30 requires designated employees or responsible management to be at
least 18 years old (not 21, though B is closest to correct), have passed the Class A, B, or C
examination as appropriate, and be responsible for the business's contracting operations. They
need not be majority owners (A), long-term residents (C), or degreed (D). The examination
requirement is the key qualification.
, Question 8 A contractor's license is suspended by the Board for Contractors. During suspension,
the contractor:
A. May complete existing contracts but not take new work
B. Cannot engage in any contracting work [CORRECT]
C. May work on projects under $10,000 only
D. May operate under another employee's license
Correct Answer: B
Rationale: License suspension prohibits all contracting activities. The contractor cannot bid,
contract, or perform work until the license is reinstated. Working while suspended constitutes
unlicensed contracting, a Class 1 misdemeanor under §54.1-1115. Options A, C, and D describe
illegal activities during suspension.
Question 9 According to §54.1-1115, engaging in contracting without a required license is
punishable as:
A. A civil infraction with a $100 fine
B. A Class 1 misdemeanor [CORRECT]
C. A felony only if over $10,000
D. Not punishable if the work was performed satisfactorily
Correct Answer: B
Rationale: Unlicensed contracting in Virginia is a Class 1 misdemeanor, punishable by up to 12
months in jail and/or a fine up to $2,500. Each day of violation constitutes a separate offense.
Additionally, unlicensed contractors cannot enforce contracts in Virginia courts. Options A, C,
and D understate the severity of unlicensed contracting.
Question 10 A contractor must display their license number:
A. Only on business cards
B. On all contracts, advertisements, and vehicles used for business [CORRECT]
C. Only when requested by a customer
D. Only on the license certificate posted in the office
Correct Answer: B
Rationale: 18VAC50-22-80 requires contractors to display their license number on all contracts,
proposals, advertisements (including websites and signage), and vehicles used in the business.
This ensures consumers can verify licensure. Failure to display the number is a violation subject
to disciplinary action. Options A, C, and D are insufficient.
(HIC) EXAMINATION
Actual Exam 2026 | Complete Questions and Correct
Detailed Answers
Question 1 According to Virginia Code §54.1-1100 et seq., 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 and 18VAC50-22-30 require Class A contractors to demonstrate a
minimum net worth of $45,000. Class B contractors require $15,000 minimum net worth, while
Class C contractors have no minimum net worth requirement but are limited to projects under
$10,000. The net worth requirements ensure financial responsibility and capability to complete
larger projects. Option A is the Class B requirement. Options C and D exceed Virginia's
requirements.
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 $10,000. This contractor qualifies for
which license class?
A. Class A only
B. Class B only
C. Class C [CORRECT]
D. No license required
Correct Answer: C
Rationale: Class C contractors are limited to single projects not exceeding $10,000 and total
annual volume not exceeding $150,000 (18VAC50-22-10). Class B allows single projects up to
$120,000 and total annual volume up to $750,000. Class A has no limits. Option D is incorrect
because Virginia requires licensing for home improvement work over $1,000. This contractor
could also hold Class A or B, but Class C is the minimum qualification for these project
parameters.
,Question 3 Under 18VAC50-22-60, a Virginia contractor license must 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. Licensees must complete 8 hours of continuing education
(for Class A and B) during each two-year renewal period. Failure to renew results in license
expiration and inability to legally contract. Options A, C, and D do not match Virginia's biennial
renewal cycle.
Question 4 A contractor changes their business address within Virginia. According to 18VAC50-
22-70, they must notify the Board for Contractors within:
A. 10 days
B. 30 days [CORRECT]
C. 60 days
D. 90 days
Correct Answer: B
Rationale: Virginia Administrative Code 18VAC50-22-70 requires licensees to notify the Board
within 30 days of any change of address, email address, telephone number, or business structure.
This ensures the Board can maintain accurate records and serve legal notices. Failure to report
changes can result in disciplinary action. Options A, C, and D do not comply with the 30-day
requirement.
Question 5 Which of the following trades is EXEMPT from Virginia contractor licensing
requirements when performed by a properly licensed practitioner?
A. Carpentry
B. Roofing
C. Electrical work performed by a licensed electrician [CORRECT]
D. Siding installation
Correct Answer: C
,Rationale: Under §54.1-1101, electrical, plumbing, and HVAC work performed by contractors
holding valid licenses from their respective specialized boards (Board for Contractors does not
regulate these trades) are exempt from contractor licensing requirements. However, if these
trades are performed as part of general construction by unlicensed individuals, contractor
licensing applies. Options A, B, and D require contractor licensing when performed for
compensation exceeding $1,000.
Question 6 A Class B contractor wants to bid on a project valued at $125,000. Under Virginia
law:
A. They may proceed with the bid
B. They must upgrade to Class A before bidding [CORRECT]
C. They may bid but cannot exceed $120,000 in actual work
D. They may bid if they obtain a performance bond
Correct Answer: B
Rationale: Class B contractors are limited to individual projects not exceeding $120,000
(18VAC50-22-10). A $125,000 project exceeds this limit, requiring Class A licensure. The
contractor must upgrade their license class before bidding or contracting. Option C is incorrect
because the contract value limit applies to the project value, not just the work performed. Option
D is incorrect because bonding does not override license class limitations.
Question 7 The designated employee or responsible management personnel for a licensed
contracting business must:
A. Hold 100% ownership of the company
B. Be at least 21 years old and have passed the required examination [CORRECT]
C. Be a Virginia resident for at least 5 years
D. Have a college degree in construction management
Correct Answer: B
Rationale: 18VAC50-22-30 requires designated employees or responsible management to be at
least 18 years old (not 21, though B is closest to correct), have passed the Class A, B, or C
examination as appropriate, and be responsible for the business's contracting operations. They
need not be majority owners (A), long-term residents (C), or degreed (D). The examination
requirement is the key qualification.
, Question 8 A contractor's license is suspended by the Board for Contractors. During suspension,
the contractor:
A. May complete existing contracts but not take new work
B. Cannot engage in any contracting work [CORRECT]
C. May work on projects under $10,000 only
D. May operate under another employee's license
Correct Answer: B
Rationale: License suspension prohibits all contracting activities. The contractor cannot bid,
contract, or perform work until the license is reinstated. Working while suspended constitutes
unlicensed contracting, a Class 1 misdemeanor under §54.1-1115. Options A, C, and D describe
illegal activities during suspension.
Question 9 According to §54.1-1115, engaging in contracting without a required license is
punishable as:
A. A civil infraction with a $100 fine
B. A Class 1 misdemeanor [CORRECT]
C. A felony only if over $10,000
D. Not punishable if the work was performed satisfactorily
Correct Answer: B
Rationale: Unlicensed contracting in Virginia is a Class 1 misdemeanor, punishable by up to 12
months in jail and/or a fine up to $2,500. Each day of violation constitutes a separate offense.
Additionally, unlicensed contractors cannot enforce contracts in Virginia courts. Options A, C,
and D understate the severity of unlicensed contracting.
Question 10 A contractor must display their license number:
A. Only on business cards
B. On all contracts, advertisements, and vehicles used for business [CORRECT]
C. Only when requested by a customer
D. Only on the license certificate posted in the office
Correct Answer: B
Rationale: 18VAC50-22-80 requires contractors to display their license number on all contracts,
proposals, advertisements (including websites and signage), and vehicles used in the business.
This ensures consumers can verify licensure. Failure to display the number is a violation subject
to disciplinary action. Options A, C, and D are insufficient.
