VA Contractors Advanced Class A License
EXAM STUDY GUIDE 2026/2027
ACCURATE QUESTIONS WITH CORRECT
DETAILED SOLUTIONS ||
100% GUARANTEED PASS
<NEWEST VERSION>
1. What is the primary purpose of a contractor's license in Virginia? -
ANSWER ✔ To ensure that contractors meet state standards for
competency and financial responsibility, protecting consumers and ensuring
quality work.
2. What are the requirements to obtain a Class A contractor license in Virginia?
- ANSWER ✔ Applicants must demonstrate at least $120,000 in work
experience, pass the required exams, and provide proof of financial
responsibility.
3. What is the minimum net worth requirement for a Class A contractor in
Virginia? - ANSWER ✔ A minimum net worth of $45,000 is required,
which must be verified through financial statements.
4. What types of work can a Class A contractor perform in Virginia? -
ANSWER ✔ Class A contractors can perform any type of construction
work, including residential, commercial, and industrial projects.
5. What is the significance of the Virginia Uniform Statewide Building Code? -
ANSWER ✔ It establishes minimum construction standards for safety,
health, and welfare in building practices across Virginia.
,6. What is the role of the Virginia Board for Contractors? - ANSWER ✔ The
Board regulates the licensing of contractors, enforces compliance with laws,
and handles complaints against licensed contractors.
7. What is required for a contractor to maintain their license in Virginia? -
ANSWER ✔ Contractors must complete continuing education
requirements and renew their license every two years.
8. What is the purpose of a contractor's bond in Virginia? - ANSWER ✔ A
contractor's bond protects consumers by ensuring that the contractor will
fulfill their contractual obligations and comply with state laws.
9. What are the penalties for operating without a contractor's license in
Virginia? - ANSWER ✔ Penalties can include fines, legal action, and the
requirement to pay restitution to affected consumers.
10.A lump sum contract on a project has a total contract price of $160,000.
Retainage has been held back at 10%. The contractor has received progress
payments for 75% of the project. The contractor submits a request for final
payment for the new completed project. The final payment amount should
be for... - ANSWER ✔ More than $50,000
11.What is the total value of current assets for an accrual basis company that
has the following? Checking account cash balance is $4,800; materials
inventory for work-in-progress is $4,200; a pick-up truck that cost $12,460-
paid for with $2,460 in cash and a note for $10,000- and is used 100% in the
business; accounts receivable is $5,700; suppliers' accounts payable is
$6,300; other accounts payable is $2,200; and quarterly income tax payment
due is $1,180... - ANSWER ✔ Between $12,000 and $16,000
12.What is the total project overhead for a project that lasts 3 months and has
the following costs? Labor is $4,000; materials are $9,500; equipment
rentals are $1,200; superintendent's annual salary is $36,000; office rent is
$800 per month; and office utilities are $375 per month. - ANSWER ✔
Less than $12,000
13.For 1 month a company bills out $38,000 in completed work, and receives
$22,000 in payments plus $8,000 from the previous month's billings. They
pay their total bill of $26,000 to supply houses for this month's purchases,
, and another $5,000 to supply houses for last month's purchases. Using a cash
accounting method and NOT considering any other revenue or expenses,
what is the company's net income for the month? - ANSWER ✔ Loss of
$1,000
14.An insurer offers the contractor a 20% per year reduction in premiums if the
contractor has a defied safety program in place. The insurer's standard rates
are $8 per $1,000 of coverage. The contractor has $300,000 in coverage.
How much in premiums will the contractor save a 3-year period by having a
defined safety program in place? - ANSWER ✔ Between $1,001 and
$1,500
15.Where would depreciation of equipment first be entered? - ANSWER ✔
General journal
16.What is the gross pay of a non-exempt employee who works 45 hours during
a holiday week, and receives 8 hours additional pay for the holiday? The
employee earns $12.50 per hour. - ANSWER ✔ $693.75
17.A contractor pays a workers' compensation rate of $0.08 per $100 of office
employee payroll, $0.15 per $100 of field supervisor payroll, and $0.26 per
$100 of field employee payroll. Total office employee payroll for the year is
$25,000. Total field supervisor payroll is $48,000. Total field employee
payroll is $225,000. The contractor receives a discount of 5% of total
premiums for having a safety program in place. The total workers'
compensation for the year is... - ANSWER ✔ More than $600
18.A permit is obtained on Friday, May 1. The materials are to be delivered
May 8. The materials are needed when labor begins on May 11. It is
estimated that 15 days of labor are REQUIRED. The crew will work every
day, including weekends and holidays. The project is scheduled to be
completed on June 8. How many float days are available for the labor for
this project? - ANSWER ✔ 13
19.A contractor puts in a claim under a comprehensive standard general liability
policy. The policy has no additional coverage, riders, or floaters, and has a
$500 deductible per occurrence. The claim is for a job-site accident that
caused $2,000 of injuries to employees, $1,800 of injuries to a pedestrian,
$2,300 damage to the contractor's equipment, and $1,750 loss of project
, materials purchased by the contractor. The insurance company is liable for...
- ANSWER ✔ $1,300
20.What is the MAXIMUM amount of a lien that can claimed by a
subcontractor who notifies the lien agent for a two-family residential
property on August 1 that the subcontractor first provided labor and
materials on the project on May 1? The subcontractor billed the general
contractor for $4,000 per month, through September 30, and was never paid.
- ANSWER ✔ $8,000
21.What percent should the employer withhold for Virginia withholding for an
employee who is to receive a separate supplemental payment for vacation?
The employer is using a flat percentage rate. - ANSWER ✔ 5.75%
22.A cost plus contract calls for the contractor to receive direct costs for labor
and materials, and a markup of 20% of direct costs. The contractor is also to
receive a bound of 15% of savings if total cost to the owner is less than
$80,000, and a bonus of $1,000 per day if the project is completed early.
Final costs for direct labor and materials are $60,000. The project is
completed 3 days early. What is the total amount due to the contractor? -
ANSWER ✔ Between $75,001 and $80,000
23.What would be the total amount of Medicare and Social Security taxes that
the employer should withhold on the last week of the year from an employee
who earns $3,000 per week and has worked for the employer the entire year?
- ANSWER ✔ $43.50
24.The owner requests for change which will cost the contractor $15,000 in
labor and materials and $2,250 in overhead costs. With the change, the
contractor would be relieved of $18,000 in labor and materials costs, and
$2,400 in overhead costs from the original contract. The original bid
included profit of 20% of all costs. The contractor wants to make a profit of
20% of all costs on the changes. The adjusted contract price for the change
order should be... - ANSWER ✔ A decrease of $3,780
25.Which of the following would typically be covered by a contractor's
comprehensive general liability insurance policy? - ANSWER ✔ Damage
to adjoining property from a crane accident
EXAM STUDY GUIDE 2026/2027
ACCURATE QUESTIONS WITH CORRECT
DETAILED SOLUTIONS ||
100% GUARANTEED PASS
<NEWEST VERSION>
1. What is the primary purpose of a contractor's license in Virginia? -
ANSWER ✔ To ensure that contractors meet state standards for
competency and financial responsibility, protecting consumers and ensuring
quality work.
2. What are the requirements to obtain a Class A contractor license in Virginia?
- ANSWER ✔ Applicants must demonstrate at least $120,000 in work
experience, pass the required exams, and provide proof of financial
responsibility.
3. What is the minimum net worth requirement for a Class A contractor in
Virginia? - ANSWER ✔ A minimum net worth of $45,000 is required,
which must be verified through financial statements.
4. What types of work can a Class A contractor perform in Virginia? -
ANSWER ✔ Class A contractors can perform any type of construction
work, including residential, commercial, and industrial projects.
5. What is the significance of the Virginia Uniform Statewide Building Code? -
ANSWER ✔ It establishes minimum construction standards for safety,
health, and welfare in building practices across Virginia.
,6. What is the role of the Virginia Board for Contractors? - ANSWER ✔ The
Board regulates the licensing of contractors, enforces compliance with laws,
and handles complaints against licensed contractors.
7. What is required for a contractor to maintain their license in Virginia? -
ANSWER ✔ Contractors must complete continuing education
requirements and renew their license every two years.
8. What is the purpose of a contractor's bond in Virginia? - ANSWER ✔ A
contractor's bond protects consumers by ensuring that the contractor will
fulfill their contractual obligations and comply with state laws.
9. What are the penalties for operating without a contractor's license in
Virginia? - ANSWER ✔ Penalties can include fines, legal action, and the
requirement to pay restitution to affected consumers.
10.A lump sum contract on a project has a total contract price of $160,000.
Retainage has been held back at 10%. The contractor has received progress
payments for 75% of the project. The contractor submits a request for final
payment for the new completed project. The final payment amount should
be for... - ANSWER ✔ More than $50,000
11.What is the total value of current assets for an accrual basis company that
has the following? Checking account cash balance is $4,800; materials
inventory for work-in-progress is $4,200; a pick-up truck that cost $12,460-
paid for with $2,460 in cash and a note for $10,000- and is used 100% in the
business; accounts receivable is $5,700; suppliers' accounts payable is
$6,300; other accounts payable is $2,200; and quarterly income tax payment
due is $1,180... - ANSWER ✔ Between $12,000 and $16,000
12.What is the total project overhead for a project that lasts 3 months and has
the following costs? Labor is $4,000; materials are $9,500; equipment
rentals are $1,200; superintendent's annual salary is $36,000; office rent is
$800 per month; and office utilities are $375 per month. - ANSWER ✔
Less than $12,000
13.For 1 month a company bills out $38,000 in completed work, and receives
$22,000 in payments plus $8,000 from the previous month's billings. They
pay their total bill of $26,000 to supply houses for this month's purchases,
, and another $5,000 to supply houses for last month's purchases. Using a cash
accounting method and NOT considering any other revenue or expenses,
what is the company's net income for the month? - ANSWER ✔ Loss of
$1,000
14.An insurer offers the contractor a 20% per year reduction in premiums if the
contractor has a defied safety program in place. The insurer's standard rates
are $8 per $1,000 of coverage. The contractor has $300,000 in coverage.
How much in premiums will the contractor save a 3-year period by having a
defined safety program in place? - ANSWER ✔ Between $1,001 and
$1,500
15.Where would depreciation of equipment first be entered? - ANSWER ✔
General journal
16.What is the gross pay of a non-exempt employee who works 45 hours during
a holiday week, and receives 8 hours additional pay for the holiday? The
employee earns $12.50 per hour. - ANSWER ✔ $693.75
17.A contractor pays a workers' compensation rate of $0.08 per $100 of office
employee payroll, $0.15 per $100 of field supervisor payroll, and $0.26 per
$100 of field employee payroll. Total office employee payroll for the year is
$25,000. Total field supervisor payroll is $48,000. Total field employee
payroll is $225,000. The contractor receives a discount of 5% of total
premiums for having a safety program in place. The total workers'
compensation for the year is... - ANSWER ✔ More than $600
18.A permit is obtained on Friday, May 1. The materials are to be delivered
May 8. The materials are needed when labor begins on May 11. It is
estimated that 15 days of labor are REQUIRED. The crew will work every
day, including weekends and holidays. The project is scheduled to be
completed on June 8. How many float days are available for the labor for
this project? - ANSWER ✔ 13
19.A contractor puts in a claim under a comprehensive standard general liability
policy. The policy has no additional coverage, riders, or floaters, and has a
$500 deductible per occurrence. The claim is for a job-site accident that
caused $2,000 of injuries to employees, $1,800 of injuries to a pedestrian,
$2,300 damage to the contractor's equipment, and $1,750 loss of project
, materials purchased by the contractor. The insurance company is liable for...
- ANSWER ✔ $1,300
20.What is the MAXIMUM amount of a lien that can claimed by a
subcontractor who notifies the lien agent for a two-family residential
property on August 1 that the subcontractor first provided labor and
materials on the project on May 1? The subcontractor billed the general
contractor for $4,000 per month, through September 30, and was never paid.
- ANSWER ✔ $8,000
21.What percent should the employer withhold for Virginia withholding for an
employee who is to receive a separate supplemental payment for vacation?
The employer is using a flat percentage rate. - ANSWER ✔ 5.75%
22.A cost plus contract calls for the contractor to receive direct costs for labor
and materials, and a markup of 20% of direct costs. The contractor is also to
receive a bound of 15% of savings if total cost to the owner is less than
$80,000, and a bonus of $1,000 per day if the project is completed early.
Final costs for direct labor and materials are $60,000. The project is
completed 3 days early. What is the total amount due to the contractor? -
ANSWER ✔ Between $75,001 and $80,000
23.What would be the total amount of Medicare and Social Security taxes that
the employer should withhold on the last week of the year from an employee
who earns $3,000 per week and has worked for the employer the entire year?
- ANSWER ✔ $43.50
24.The owner requests for change which will cost the contractor $15,000 in
labor and materials and $2,250 in overhead costs. With the change, the
contractor would be relieved of $18,000 in labor and materials costs, and
$2,400 in overhead costs from the original contract. The original bid
included profit of 20% of all costs. The contractor wants to make a profit of
20% of all costs on the changes. The adjusted contract price for the change
order should be... - ANSWER ✔ A decrease of $3,780
25.Which of the following would typically be covered by a contractor's
comprehensive general liability insurance policy? - ANSWER ✔ Damage
to adjoining property from a crane accident
