VIRGINIA HOME IMPROVEMENT CONTRACTOR
(HIC) EXAMINATION
Actual Exam 2026 | Complete Questions and Correct
Detailed Answers
Question 1 According to Virginia Code § 54.1-1100 and DPOR regulations, 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 § 54.1-1101 establishes minimum net worth requirements: Class A
contractors must demonstrate a minimum net worth of $45,000; Class B contractors require
$15,000; Class C contractors have no minimum net worth requirement but are limited to projects
under $10,000. Net worth is calculated as total assets minus total liabilities. Class A contractors
may perform projects of unlimited value, making financial stability essential. Option A ($15,000)
is the Class B requirement. Options C and D exceed statutory requirements.
Question 2 A contractor performs a kitchen remodel for $8,500, a bathroom renovation for
$9,000, and a deck construction for $7,500 over the course of a year. Based on Virginia license
classifications, which license class is appropriate for this contractor?
A. Class A only
B. Class B or Class A [CORRECT]
C. Class C only
D. No license required
Correct Answer: B
Rationale: Virginia Code § 54.1-1100 defines license classes by project value: Class C is limited
to single projects not exceeding $10,000 AND total annual volume not exceeding $150,000;
Class B allows single projects up to $120,000 AND total annual volume up to $750,000; Class A
has no limits. Each project here ($8,500, $9,000, $7,500) is under $10,000, so Class C is
technically permissible. However, total annual volume ($25,000) and individual project values
are well within Class B limits, and Class B or A would provide flexibility for larger future
,projects. Class A or B is the most appropriate answer because Class C is restrictive and the
contractor may want to bid larger projects. Option D is incorrect because home improvement
work over $1,000 requires a license.
Question 3 Under 18VAC50-22-30, a Virginia contractor license must be renewed:
A. Annually
B. Every two years [CORRECT]
C. Every three years
D. Every five years
Correct Answer: B
Rationale: DPOR regulations (18VAC50-22-30) require contractor licenses to expire every two
years from the date of issuance. Renewal requires completion of continuing education: Class A
and B contractors must complete 8 hours (3 hours in standard, 1 hour in accessibility, 1 hour in
energy, 3 hours elective); Class C contractors must complete 5 hours. Failure to renew by
expiration results in license lapse and potential penalties for unlicensed contracting. Options A,
C, and D do not reflect Virginia's biennial renewal cycle.
Question 4 A contractor incorporated in Virginia moves their principal office from Richmond to
Virginia Beach. Under 18VAC50-22-40, notification to the Board for Contractors must occur
within:
A. 10 days
B. 30 days [CORRECT]
C. 60 days
D. 90 days
Correct Answer: B
Rationale: 18VAC50-22-40 requires licensees to notify the Board within 30 days of any change
in business address, email address, telephone number, or responsible management. This ensures
the Board maintains current contact information for regulatory oversight and consumer
protection. Failure to report changes may result in disciplinary action. The 30-day requirement
applies to all material business changes. Options A, C, and D do not reflect the statutory
notification period.
Question 5 Which of the following trades is specifically EXEMPT from Virginia contractor
licensing requirements when performed by a properly licensed trade professional?
,A. Residential framing
B. Roofing installation
C. Electrical work performed by a licensed electrician [CORRECT]
D. HVAC system installation
Correct Answer: C
Rationale: Virginia Code § 54.1-1100(B) exempts electrical, plumbing, and HVAC work from
contractor licensing when performed by individuals holding specific trade licenses from the
Board for Contractors or other DPOR boards. Licensed electricians may perform electrical
contracting without a separate Class A, B, or C contractor license. However, if the electrician
acts as a general contractor hiring other trades, contractor licensing may be required. Options A,
B, and D require contractor licensing when performed as part of home improvement contracting,
unless the work falls under the Class C monetary limits and the individual has that license.
Question 6 A Class B contractor bids on a commercial project valued at $500,000. Under
Virginia law, this bid:
A. Is permissible because Class B has no annual volume limit
B. Exceeds the single project limit for Class B [CORRECT]
C. Is allowed if the contractor obtains a temporary Class A license
D. Is permissible with a performance bond
Correct Answer: B
Rationale: Class B contractors are limited to single projects not exceeding $120,000, regardless
of their annual volume capacity (which is capped at $750,000 total). A $500,000 project exceeds
the Class B single project limit by $380,000. Only Class A contractors may bid projects of this
value. There is no "temporary" Class A license (C). Performance bonds (D) do not override
license class limitations. The contractor must either decline the project or upgrade to Class A
(requiring $45,000 net worth and additional experience).
Question 7 Under Virginia Code § 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 for the first offense [CORRECT]
C. A felony only after three offenses
D. Not punishable if the work was performed satisfactorily
Correct Answer: B
, Rationale: Unlicensed contracting in Virginia is a Class 1 misdemeanor for the first offense,
carrying penalties of up to 12 months in jail and/or a $2,500 fine. Subsequent offenses may result
in enhanced penalties. Additionally, unlicensed contractors cannot enforce contracts in court and
are subject to DPOR enforcement actions. Consumer protection laws also apply. Option A
understates the severity. Option C is incorrect because the first offense is already criminal.
Option D is false—satisfactory work does not excuse unlicensed activity.
Question 8 The designated "qualified individual" for a Virginia contractor license must:
A. Be the company's attorney
B. Meet experience and examination requirements and be actively involved in the business
[CORRECT]
C. Be a licensed architect
D. Hold a CPA certificate
Correct Answer: B
Rationale: The qualified individual (QI) is the person who meets the Board's experience
requirements (typically 3-5 years depending on class) and passes the required examinations
(Class A and B require the General, Virginia, and Business Law exams). The QI must be a full-
time employee, officer, or member of the business actively involved in operations. The QI
ensures technical competence and regulatory compliance. Options A, C, and D describe
unrelated professional credentials.
Question 9 A contractor allows their Class B license to expire. They may continue to operate for:
A. Up to 30 days while renewing
B. Up to 60 days with a late fee
C. 0 days—operating with an expired license constitutes unlicensed contracting [CORRECT]
D. Up to 1 year if they maintain insurance
Correct Answer: C
Rationale: There is no grace period for expired licenses in Virginia. Once a license expires, the
holder is immediately engaged in unlicensed contracting if they continue performing work
requiring a license. DPOR does not recognize "late renewal" as valid licensure. The contractor
must cease operations until renewal is processed and approved. Options A, B, and D suggest
non-existent grace periods.
Question 10 Under 18VAC50-22-70, a contractor must display their license number:
(HIC) EXAMINATION
Actual Exam 2026 | Complete Questions and Correct
Detailed Answers
Question 1 According to Virginia Code § 54.1-1100 and DPOR regulations, 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 § 54.1-1101 establishes minimum net worth requirements: Class A
contractors must demonstrate a minimum net worth of $45,000; Class B contractors require
$15,000; Class C contractors have no minimum net worth requirement but are limited to projects
under $10,000. Net worth is calculated as total assets minus total liabilities. Class A contractors
may perform projects of unlimited value, making financial stability essential. Option A ($15,000)
is the Class B requirement. Options C and D exceed statutory requirements.
Question 2 A contractor performs a kitchen remodel for $8,500, a bathroom renovation for
$9,000, and a deck construction for $7,500 over the course of a year. Based on Virginia license
classifications, which license class is appropriate for this contractor?
A. Class A only
B. Class B or Class A [CORRECT]
C. Class C only
D. No license required
Correct Answer: B
Rationale: Virginia Code § 54.1-1100 defines license classes by project value: Class C is limited
to single projects not exceeding $10,000 AND total annual volume not exceeding $150,000;
Class B allows single projects up to $120,000 AND total annual volume up to $750,000; Class A
has no limits. Each project here ($8,500, $9,000, $7,500) is under $10,000, so Class C is
technically permissible. However, total annual volume ($25,000) and individual project values
are well within Class B limits, and Class B or A would provide flexibility for larger future
,projects. Class A or B is the most appropriate answer because Class C is restrictive and the
contractor may want to bid larger projects. Option D is incorrect because home improvement
work over $1,000 requires a license.
Question 3 Under 18VAC50-22-30, a Virginia contractor license must be renewed:
A. Annually
B. Every two years [CORRECT]
C. Every three years
D. Every five years
Correct Answer: B
Rationale: DPOR regulations (18VAC50-22-30) require contractor licenses to expire every two
years from the date of issuance. Renewal requires completion of continuing education: Class A
and B contractors must complete 8 hours (3 hours in standard, 1 hour in accessibility, 1 hour in
energy, 3 hours elective); Class C contractors must complete 5 hours. Failure to renew by
expiration results in license lapse and potential penalties for unlicensed contracting. Options A,
C, and D do not reflect Virginia's biennial renewal cycle.
Question 4 A contractor incorporated in Virginia moves their principal office from Richmond to
Virginia Beach. Under 18VAC50-22-40, notification to the Board for Contractors must occur
within:
A. 10 days
B. 30 days [CORRECT]
C. 60 days
D. 90 days
Correct Answer: B
Rationale: 18VAC50-22-40 requires licensees to notify the Board within 30 days of any change
in business address, email address, telephone number, or responsible management. This ensures
the Board maintains current contact information for regulatory oversight and consumer
protection. Failure to report changes may result in disciplinary action. The 30-day requirement
applies to all material business changes. Options A, C, and D do not reflect the statutory
notification period.
Question 5 Which of the following trades is specifically EXEMPT from Virginia contractor
licensing requirements when performed by a properly licensed trade professional?
,A. Residential framing
B. Roofing installation
C. Electrical work performed by a licensed electrician [CORRECT]
D. HVAC system installation
Correct Answer: C
Rationale: Virginia Code § 54.1-1100(B) exempts electrical, plumbing, and HVAC work from
contractor licensing when performed by individuals holding specific trade licenses from the
Board for Contractors or other DPOR boards. Licensed electricians may perform electrical
contracting without a separate Class A, B, or C contractor license. However, if the electrician
acts as a general contractor hiring other trades, contractor licensing may be required. Options A,
B, and D require contractor licensing when performed as part of home improvement contracting,
unless the work falls under the Class C monetary limits and the individual has that license.
Question 6 A Class B contractor bids on a commercial project valued at $500,000. Under
Virginia law, this bid:
A. Is permissible because Class B has no annual volume limit
B. Exceeds the single project limit for Class B [CORRECT]
C. Is allowed if the contractor obtains a temporary Class A license
D. Is permissible with a performance bond
Correct Answer: B
Rationale: Class B contractors are limited to single projects not exceeding $120,000, regardless
of their annual volume capacity (which is capped at $750,000 total). A $500,000 project exceeds
the Class B single project limit by $380,000. Only Class A contractors may bid projects of this
value. There is no "temporary" Class A license (C). Performance bonds (D) do not override
license class limitations. The contractor must either decline the project or upgrade to Class A
(requiring $45,000 net worth and additional experience).
Question 7 Under Virginia Code § 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 for the first offense [CORRECT]
C. A felony only after three offenses
D. Not punishable if the work was performed satisfactorily
Correct Answer: B
, Rationale: Unlicensed contracting in Virginia is a Class 1 misdemeanor for the first offense,
carrying penalties of up to 12 months in jail and/or a $2,500 fine. Subsequent offenses may result
in enhanced penalties. Additionally, unlicensed contractors cannot enforce contracts in court and
are subject to DPOR enforcement actions. Consumer protection laws also apply. Option A
understates the severity. Option C is incorrect because the first offense is already criminal.
Option D is false—satisfactory work does not excuse unlicensed activity.
Question 8 The designated "qualified individual" for a Virginia contractor license must:
A. Be the company's attorney
B. Meet experience and examination requirements and be actively involved in the business
[CORRECT]
C. Be a licensed architect
D. Hold a CPA certificate
Correct Answer: B
Rationale: The qualified individual (QI) is the person who meets the Board's experience
requirements (typically 3-5 years depending on class) and passes the required examinations
(Class A and B require the General, Virginia, and Business Law exams). The QI must be a full-
time employee, officer, or member of the business actively involved in operations. The QI
ensures technical competence and regulatory compliance. Options A, C, and D describe
unrelated professional credentials.
Question 9 A contractor allows their Class B license to expire. They may continue to operate for:
A. Up to 30 days while renewing
B. Up to 60 days with a late fee
C. 0 days—operating with an expired license constitutes unlicensed contracting [CORRECT]
D. Up to 1 year if they maintain insurance
Correct Answer: C
Rationale: There is no grace period for expired licenses in Virginia. Once a license expires, the
holder is immediately engaged in unlicensed contracting if they continue performing work
requiring a license. DPOR does not recognize "late renewal" as valid licensure. The contractor
must cease operations until renewal is processed and approved. Options A, B, and D suggest
non-existent grace periods.
Question 10 Under 18VAC50-22-70, a contractor must display their license number:
