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 18VAC50-22-30, 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 §54.1-1100 requires Class A contractors to demonstrate a minimum
net worth of $45,000. Class B contractors must have $15,000 minimum net worth (Option A).
Class C contractors have no minimum net worth requirement but are limited to projects under
$10,000. Options C and D exceed any class requirement.
Why Others Are Wrong:
• A is the Class B requirement
• C and D are distractors not found in Virginia law
• Financial responsibility must be demonstrated through CPA-reviewed financial
statements, surety bonds, or escrow accounts
Practical Tip: Net worth = Assets - Liabilities. Class A contractors must file financial statements
with a CPA review or audit, depending on license type.
Question 2 A contractor performs work where the total value of all projects in a year is
$600,000, and the largest single project is $100,000. Which license class is appropriate?
A. Class A only B. Class A or Class B [CORRECT] C. Class B or Class C D. Class C only
Correct Answer: B
Rationale: Class B contractors are limited to single projects not exceeding $120,000 and total
annual volume not exceeding $750,000. This contractor fits within Class B limits. However, they
could also qualify for Class A (no limits). Class C (Option D) is incorrect because Class C limits
are single project ≤$10,000 and annual ≤$150,000.
Virginia Limits:
, • Class A: No project or annual limits
• Class B: Single project ≤$120,000; Annual ≤$750,000
• Class C: Single project ≤$10,000; Annual ≤$150,000
Why Others Are Wrong:
• C is incorrect because Class C single project limit ($10,000) is exceeded
• D is incorrect for the same reason
• A is technically correct but incomplete since B also works
Question 3 Under 18VAC50-22-50, how many hours of continuing education are required for
contractor license renewal in Virginia?
A. 2 hours every year B. 3 hours every 2 years C. 8 hours every 2 years [CORRECT] D. 16
hours every 2 years
Correct Answer: C
Rationale: Virginia contractors must complete 8 hours of continuing education (CE) during
each 2-year license period. This includes 2 hours on Virginia construction laws and regulations,
and 6 hours on technical/safety topics. Options A, B, and D do not match DPOR requirements.
CE Breakdown:
• 2 hours: Virginia construction laws and regulations
• 6 hours: Technical, business, or safety topics
• Must be completed before renewal
Why Others Are Wrong:
• A and B are insufficient hours
• D exceeds the requirement (though additional education is encouraged)
Question 4 A contractor changes their business address from Richmond to Virginia Beach.
According to 18VAC50-22-70, how many days do they have to notify the Board for Contractors?
A. 10 days B. 30 days [CORRECT] C. 60 days D. 90 days
Correct Answer: B
,Rationale: 18VAC50-22-70 requires licensees to notify the Board in writing within 30 days of
any change of address, email, telephone number, or business structure. Failure to report changes
can result in disciplinary action and failure to receive important regulatory notices.
Why Others Are Wrong:
• A is too short and not required by regulation
• C and D exceed the regulatory requirement
• Prompt notification ensures the contractor receives renewal notices and legal documents
Practical Tip: Update your DPOR online account immediately when moving. Failure to receive
renewal notices due to old addresses does not excuse late renewal penalties.
Question 5 Which of the following trades is EXEMPT from Virginia contractor licensing
requirements when performed by a properly licensed trade professional?
A. Residential building construction B. Home improvement contracting C. Electrical work
performed by a licensed electrician [CORRECT] D. Commercial construction over $120,000
Correct Answer: C
Rationale: Under §54.1-1101, electrical, plumbing, and HVAC work performed by
individuals licensed by their respective trade boards are exempt from contractor licensing
requirements. However, if these trades act as contractors (hiring subcontractors, managing
projects), they may need a contractor license. Options A, B, and D require contractor licensing.
Why Others Are Wrong:
• A and B require Class A, B, or C licenses
• D would require Class A or B depending on specifics
• The exemption applies only to the trade work itself, not general contracting activities
Question 6 A Class C contractor is offered a kitchen remodeling project for $12,000. What
should the contractor do?
A. Accept the project and subcontract $2,000 of work to stay under the limit B. Decline the
project or upgrade to Class B license [CORRECT] C. Accept the project but split it into two
$6,000 contracts D. Accept the project with a Class A licensed supervisor
Correct Answer: B
, Rationale: Class C contractors cannot exceed $10,000 on any single project regardless of
how the contract is structured. Options A, C, and D represent illegal attempts to circumvent
licensing limits. The contractor must either decline the project or upgrade their license to
Class B (which requires meeting net worth and experience requirements).
Why Others Are Wrong:
• A and C are illegal contract splitting (fraudulent)
• D violates the statute—supervision doesn't change the licensee's class limits
• Violations can result in fines up to $500 per day and disciplinary action
Practical Tip: Never attempt to split contracts to avoid license limits. DPOR and the courts look
at the "totality of the project," not individual contracts.
Question 7 Under §54.1-1115, what is the maximum civil penalty for contracting without a
required license in Virginia?
A. $500 per violation B. $1,000 per violation C. $2,500 per violation [CORRECT] D. $5,000
per violation
Correct Answer: C
Rationale: Contracting without a license is a Class 1 misdemeanor, and DPOR may impose civil
penalties of up to $2,500 per violation under §54.1-1115. Each day of unlicensed contracting
can be a separate violation. Criminal penalties may also apply.
Why Others Are Wrong:
• A and B are below the statutory maximum
• D exceeds the current statutory limit (though penalties can accumulate daily)
• Unlicensed contractors also face liability under the Consumer Protection Act
Question 8 A contractor wants to advertise their services on social media. According to
18VAC50-22-120, what must be included in all advertisements?
A. Business address only B. License number [CORRECT] C. Years in business D. Bonding
information
Correct Answer: B
Rationale: 18VAC50-22-120 requires that all advertisements (including business cards,
websites, social media, and signage) must include the contractor's license number. This
(HIC) EXAMINATION
Actual Exam 2026 | Complete Questions and Correct
Detailed Answers
Question 1 According to Virginia Code §54.1-1100 and 18VAC50-22-30, 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 §54.1-1100 requires Class A contractors to demonstrate a minimum
net worth of $45,000. Class B contractors must have $15,000 minimum net worth (Option A).
Class C contractors have no minimum net worth requirement but are limited to projects under
$10,000. Options C and D exceed any class requirement.
Why Others Are Wrong:
• A is the Class B requirement
• C and D are distractors not found in Virginia law
• Financial responsibility must be demonstrated through CPA-reviewed financial
statements, surety bonds, or escrow accounts
Practical Tip: Net worth = Assets - Liabilities. Class A contractors must file financial statements
with a CPA review or audit, depending on license type.
Question 2 A contractor performs work where the total value of all projects in a year is
$600,000, and the largest single project is $100,000. Which license class is appropriate?
A. Class A only B. Class A or Class B [CORRECT] C. Class B or Class C D. Class C only
Correct Answer: B
Rationale: Class B contractors are limited to single projects not exceeding $120,000 and total
annual volume not exceeding $750,000. This contractor fits within Class B limits. However, they
could also qualify for Class A (no limits). Class C (Option D) is incorrect because Class C limits
are single project ≤$10,000 and annual ≤$150,000.
Virginia Limits:
, • Class A: No project or annual limits
• Class B: Single project ≤$120,000; Annual ≤$750,000
• Class C: Single project ≤$10,000; Annual ≤$150,000
Why Others Are Wrong:
• C is incorrect because Class C single project limit ($10,000) is exceeded
• D is incorrect for the same reason
• A is technically correct but incomplete since B also works
Question 3 Under 18VAC50-22-50, how many hours of continuing education are required for
contractor license renewal in Virginia?
A. 2 hours every year B. 3 hours every 2 years C. 8 hours every 2 years [CORRECT] D. 16
hours every 2 years
Correct Answer: C
Rationale: Virginia contractors must complete 8 hours of continuing education (CE) during
each 2-year license period. This includes 2 hours on Virginia construction laws and regulations,
and 6 hours on technical/safety topics. Options A, B, and D do not match DPOR requirements.
CE Breakdown:
• 2 hours: Virginia construction laws and regulations
• 6 hours: Technical, business, or safety topics
• Must be completed before renewal
Why Others Are Wrong:
• A and B are insufficient hours
• D exceeds the requirement (though additional education is encouraged)
Question 4 A contractor changes their business address from Richmond to Virginia Beach.
According to 18VAC50-22-70, how many days do they have to notify the Board for Contractors?
A. 10 days B. 30 days [CORRECT] C. 60 days D. 90 days
Correct Answer: B
,Rationale: 18VAC50-22-70 requires licensees to notify the Board in writing within 30 days of
any change of address, email, telephone number, or business structure. Failure to report changes
can result in disciplinary action and failure to receive important regulatory notices.
Why Others Are Wrong:
• A is too short and not required by regulation
• C and D exceed the regulatory requirement
• Prompt notification ensures the contractor receives renewal notices and legal documents
Practical Tip: Update your DPOR online account immediately when moving. Failure to receive
renewal notices due to old addresses does not excuse late renewal penalties.
Question 5 Which of the following trades is EXEMPT from Virginia contractor licensing
requirements when performed by a properly licensed trade professional?
A. Residential building construction B. Home improvement contracting C. Electrical work
performed by a licensed electrician [CORRECT] D. Commercial construction over $120,000
Correct Answer: C
Rationale: Under §54.1-1101, electrical, plumbing, and HVAC work performed by
individuals licensed by their respective trade boards are exempt from contractor licensing
requirements. However, if these trades act as contractors (hiring subcontractors, managing
projects), they may need a contractor license. Options A, B, and D require contractor licensing.
Why Others Are Wrong:
• A and B require Class A, B, or C licenses
• D would require Class A or B depending on specifics
• The exemption applies only to the trade work itself, not general contracting activities
Question 6 A Class C contractor is offered a kitchen remodeling project for $12,000. What
should the contractor do?
A. Accept the project and subcontract $2,000 of work to stay under the limit B. Decline the
project or upgrade to Class B license [CORRECT] C. Accept the project but split it into two
$6,000 contracts D. Accept the project with a Class A licensed supervisor
Correct Answer: B
, Rationale: Class C contractors cannot exceed $10,000 on any single project regardless of
how the contract is structured. Options A, C, and D represent illegal attempts to circumvent
licensing limits. The contractor must either decline the project or upgrade their license to
Class B (which requires meeting net worth and experience requirements).
Why Others Are Wrong:
• A and C are illegal contract splitting (fraudulent)
• D violates the statute—supervision doesn't change the licensee's class limits
• Violations can result in fines up to $500 per day and disciplinary action
Practical Tip: Never attempt to split contracts to avoid license limits. DPOR and the courts look
at the "totality of the project," not individual contracts.
Question 7 Under §54.1-1115, what is the maximum civil penalty for contracting without a
required license in Virginia?
A. $500 per violation B. $1,000 per violation C. $2,500 per violation [CORRECT] D. $5,000
per violation
Correct Answer: C
Rationale: Contracting without a license is a Class 1 misdemeanor, and DPOR may impose civil
penalties of up to $2,500 per violation under §54.1-1115. Each day of unlicensed contracting
can be a separate violation. Criminal penalties may also apply.
Why Others Are Wrong:
• A and B are below the statutory maximum
• D exceeds the current statutory limit (though penalties can accumulate daily)
• Unlicensed contractors also face liability under the Consumer Protection Act
Question 8 A contractor wants to advertise their services on social media. According to
18VAC50-22-120, what must be included in all advertisements?
A. Business address only B. License number [CORRECT] C. Years in business D. Bonding
information
Correct Answer: B
Rationale: 18VAC50-22-120 requires that all advertisements (including business cards,
websites, social media, and signage) must include the contractor's license number. This
