Virginia Residential Building Contractor
Exam – Questions And Correct Answers
(Verified Answers) Plus Rationales 2026
Q&A | Instant Download Pdf
SECTION 1: LICENSING, LAW, AND BUSINESS (Questions 1–
35)
Question 1
What is the PRIMARY purpose of contractor licensing in Virginia?
• A. To generate revenue for the state
• B. To protect the health and welfare of the public
• C. To limit competition among contractors
• D. To standardize construction materials
Correct ,,,,answer,,,,: B – The fundamental purpose of Virginia
contractor licensing is consumer protection—ensuring contractors are
qualified and accountable. Licensing requirements safeguard public
health, safety, and welfare by establishing minimum competency
standards .
,Question 2
How much is the Class A initial license fee in Virginia?
• A. $100
• B. $200
• C. $380
• D. $500
Correct ,,,,answer,,,,: C – The Class A initial license fee is $380 (not
including the Recovery Fund fee). This allows unlimited contract value
per project .
Question 3
A firm desiring to be licensed as a Class B contractor MUST have a
MINIMUM net worth of:
• A. $5,000
• B. $10,000
• C. $15,000
• D. $45,000
Correct ,,,,answer,,,,: C – Class B contractors (projects up
to 120,000𝑝𝑒𝑟𝑝𝑟𝑜𝑗𝑒𝑐𝑡)𝑚𝑢𝑠𝑡𝑑𝑒𝑚𝑜𝑛𝑠𝑡𝑟𝑎𝑡𝑒𝑎𝑚𝑖𝑛𝑖𝑚𝑢𝑚𝑛𝑒𝑡𝑤𝑜𝑟𝑡ℎ𝑜𝑓15,
000 to ensure financial stability .
Question 4
When a claimant is paid funds from the Contractors Recovery Trust
Fund, what happens to the contractor's license?
, • A. The license is suspended for 30 days
• B. The license is revoked
• C. The license is placed on probation
• D. The license remains unchanged
Correct ,,,,answer,,,,: B – Payment from the Recovery Trust Fund
results in automatic license revocation—a severe penalty that
underscores the seriousness of financial misconduct in construction .
Question 5
A contract for which of the following types of structures may be subject
to recovery from the Transaction Recovery Fund?
• A. Commercial only
• B. Industrial only
• C. Residential only
• D. Both residential and commercial
Correct ,,,,answer,,,,: C – The Transaction Recovery Fund applies
specifically to residential structures. Commercial projects are not
covered under this consumer protection mechanism .
Question 6
Contractors will be assessed a fee for the Transaction Recovery Fund
whenever the fund balance is less than:
• A. $200,000
• B. $300,000
, • C. $400,000
• D. $500,000
Correct ,,,,answer,,,,: C – When the Transaction Recovery Fund
balance drops below $400,000, contractors are assessed additional fees
to replenish it. This maintains the fund's ability to compensate aggrieved
consumers .
Question 7
The application for licensure MUST include:
• A. The contractor's personal home address
• B. The business address of the proposed designated employee
• C. A list of all past projects
• D. A credit report
Correct ,,,,answer,,,,: B – The designated employee's business address
is required on the application. The designated employee serves as the
qualifying individual responsible for the contractor's compliance .
Question 8
Additions to buildings MUST comply with:
• A. The code in effect when the original building was built
• B. The current code for new construction
• C. Only local zoning ordinances
• D. No specific code requirements
Exam – Questions And Correct Answers
(Verified Answers) Plus Rationales 2026
Q&A | Instant Download Pdf
SECTION 1: LICENSING, LAW, AND BUSINESS (Questions 1–
35)
Question 1
What is the PRIMARY purpose of contractor licensing in Virginia?
• A. To generate revenue for the state
• B. To protect the health and welfare of the public
• C. To limit competition among contractors
• D. To standardize construction materials
Correct ,,,,answer,,,,: B – The fundamental purpose of Virginia
contractor licensing is consumer protection—ensuring contractors are
qualified and accountable. Licensing requirements safeguard public
health, safety, and welfare by establishing minimum competency
standards .
,Question 2
How much is the Class A initial license fee in Virginia?
• A. $100
• B. $200
• C. $380
• D. $500
Correct ,,,,answer,,,,: C – The Class A initial license fee is $380 (not
including the Recovery Fund fee). This allows unlimited contract value
per project .
Question 3
A firm desiring to be licensed as a Class B contractor MUST have a
MINIMUM net worth of:
• A. $5,000
• B. $10,000
• C. $15,000
• D. $45,000
Correct ,,,,answer,,,,: C – Class B contractors (projects up
to 120,000𝑝𝑒𝑟𝑝𝑟𝑜𝑗𝑒𝑐𝑡)𝑚𝑢𝑠𝑡𝑑𝑒𝑚𝑜𝑛𝑠𝑡𝑟𝑎𝑡𝑒𝑎𝑚𝑖𝑛𝑖𝑚𝑢𝑚𝑛𝑒𝑡𝑤𝑜𝑟𝑡ℎ𝑜𝑓15,
000 to ensure financial stability .
Question 4
When a claimant is paid funds from the Contractors Recovery Trust
Fund, what happens to the contractor's license?
, • A. The license is suspended for 30 days
• B. The license is revoked
• C. The license is placed on probation
• D. The license remains unchanged
Correct ,,,,answer,,,,: B – Payment from the Recovery Trust Fund
results in automatic license revocation—a severe penalty that
underscores the seriousness of financial misconduct in construction .
Question 5
A contract for which of the following types of structures may be subject
to recovery from the Transaction Recovery Fund?
• A. Commercial only
• B. Industrial only
• C. Residential only
• D. Both residential and commercial
Correct ,,,,answer,,,,: C – The Transaction Recovery Fund applies
specifically to residential structures. Commercial projects are not
covered under this consumer protection mechanism .
Question 6
Contractors will be assessed a fee for the Transaction Recovery Fund
whenever the fund balance is less than:
• A. $200,000
• B. $300,000
, • C. $400,000
• D. $500,000
Correct ,,,,answer,,,,: C – When the Transaction Recovery Fund
balance drops below $400,000, contractors are assessed additional fees
to replenish it. This maintains the fund's ability to compensate aggrieved
consumers .
Question 7
The application for licensure MUST include:
• A. The contractor's personal home address
• B. The business address of the proposed designated employee
• C. A list of all past projects
• D. A credit report
Correct ,,,,answer,,,,: B – The designated employee's business address
is required on the application. The designated employee serves as the
qualifying individual responsible for the contractor's compliance .
Question 8
Additions to buildings MUST comply with:
• A. The code in effect when the original building was built
• B. The current code for new construction
• C. Only local zoning ordinances
• D. No specific code requirements
