Virginia Contractor's Exam 2025/2026 with Prep Questions and Correct Answers
Plus Rationales/ Virginia Contractors Exam (brand new!)
Question 1
What is the MAXIMUM penalty for a contractor who undertakes work without the proper class
of license?
A) $100 fine per day and a verbal warning
B) $250 fine per day and administrative probation
C) $500 fine per day for each day of violation plus penalties for a misdemeanor
D) $1,000 flat fine and permanent debarment
E) $5,000 fine and 30 days of community service
Correct Answer: C) $500 fine per day for each day of violation plus penalties for a
misdemeanor
Rationale: Under Virginia law, practicing contracting without the appropriate class of
license (Class A, B, or C) is considered a Class 1 misdemeanor. The Board for Contractors
has the authority to levy a fine of up to $500 for every single day the violation occurs, and
the individual may face criminal prosecution in the judicial system.
Question 2
What is the PRIMARY purpose of licensing contractors in the Commonwealth of Virginia?
A) To generate tax revenue for the local municipality
B) To limit the number of competitors in the construction industry
C) To ensure the state has a database for employment statistics
D) To protect the health, safety, and welfare of the public
E) To provide a list of contractors for government projects
Correct Answer: D) Protect the health, safety, and welfare of the public
Rationale: The fundamental justification for professional regulation and licensure is "police
power," which is used to ensure that individuals performing specialized tasks (like
construction) are competent and honest, thereby preventing harm to the general public and
their property.
Question 3
The application for licensure submitted to the DPOR MUST include which of the following?
A) A list of all previous clients from the last ten years
B) The business address of the proposed designated employee
C) A copy of the contractor's personal birth certificate
D) A comprehensive list of all tools owned by the firm
E) A letter of recommendation from a local building official
Correct Answer: B) the business address of the proposed designated employee
Rationale: Virginia requires that a licensed entity identify a "Designated Employee." This
individual must be a full-time employee or officer and must pass the required examination.
, 2
Their official business address is a critical piece of the application to ensure the Board can
maintain oversight and communication.
Question 4
All of the following entities or individuals must be licensed by the Board for Contractors
EXCEPT:
A) A framing subcontractor working on a residential home
B) A commercial roofing company
C) A material supplier who advises a contractor on product selection
D) An individual building a speculative home for sale
E) A plumbing company installing new fixtures in a high-rise
Correct Answer: C) a material supplier who advises a contractor
Rationale: Licensure is required for those who perform, manage, or bid upon construction
work. Material suppliers who do not perform installation or manage the labor are exempt
from contractor licensure, as they are providing goods rather than professional contracting
services.
Question 5
When a claimant is paid funds from the Virginia Contractors Transaction Recovery Fund:
A) The contractor must pay the fund back within 90 days to stay licensed
B) The contractor’s license is immediately revoked
C) The contractor is placed on a 2-year probationary period
D) The contractor must attend a mandatory 8-hour remedial course
E) The contractor's license is suspended for 30 days
Correct Answer: B) the contractor's license is revoked
Rationale: If the Board pays a claim from the Transaction Recovery Fund due to the actions
of a contractor, that contractor's license is automatically and immediately revoked. The
contractor cannot apply for a new license until the Fund has been reimbursed in full, plus
interest at the judgment rate.
Question 6
All Class A contractor licensure applications MUST include which of the following?
A) A minimum of 10 years of field experience for all employees
B) A certificate of high school graduation for the owner
C) Information on the knowledge, skills, and abilities of the applicant
D) A list of every sub-contractor the firm intends to use
E) A pre-payment of $1,000 into the Recovery Fund
Correct Answer: C) information on the knowledge, skills, and abilities of the applicant
Rationale: Class A licensure represents the highest tier of contracting in Virginia (no limit
, 3
on project size). Applicants must provide detailed information regarding their experience
and competence to ensure they are capable of managing large-scale financial and structural
projects.
Question 7
Which of the following is a requirement for a joint venture to bid on a project in Virginia?
A) The joint venture must be registered with the IRS as a non-profit
B) Every individual laborer in the joint venture must be a licensed contractor
C) The joint venture must have a minimum of 50 employees
D) Either the joint venture or each contracting party of the joint venture must be licensed
E) Joint ventures are prohibited from performing residential work
Correct Answer: D) Either the joint venture or each contracting party of the joint venture
must be licensed
Rationale: Virginia law allows for joint ventures, but to ensure accountability, the entity
itself must hold a license, or every member entity of that venture must be properly licensed
in the appropriate class for the work being performed.
Question 8
How much is the Class A initial license fee, NOT including the Transaction Recovery Fund fee?
A) $150
B) $210
C) $360
D) $500
E) $1,000
Correct Answer: C) $360
Rationale: The DPOR sets specific administrative fees for initial licensure. For a Class A
license, the application fee is $360. Note that this does not include the mandatory $25
contribution to the Transaction Recovery Fund usually required at the time of initial
licensure.
Question 9
According to the Board Rules and Regulations, a full-time employee is one who works a
MINIMUM of how many hours per week?
A) 20 hours
B) 30 hours
C) 35 hours
D) 40 hours
E) 45 hours
, 4
Correct Answer: B) 30 hours
Rationale: For the purposes of determining who can serve as a "Qualified Individual" or
"Designated Employee," Virginia defines full-time employment as a minimum of 30 hours
per week.
Question 10
According to the Board Rules and Regulations, which of the following could be a qualified
individual?
A) A part-time consultant
B) Any full-time employee
C) An independent contractor paid via 1099
D) The spouse of the owner who does not work for the company
E) A licensed contractor from another state who is not an employee
Correct Answer: B) Any full-time employee
Rationale: The "Qualified Individual" (QI) must be either a full-time employee or an
officer/manager of the business entity. They are the person who possesses the technical
experience required for the specific specialty on the license.
Question 11
A firm desiring to be licensed as a Class B contractor MUST have a MINIMUM net worth of:
A) $5,000
B) $15,000
C) $45,000
D) $150,000
E) $1,000,000
Correct Answer: B) $15,000
Rationale: Class B contractors (who perform projects between $10,000 and $120,000) must
demonstrate a minimum net worth of $15,000. For Class A, the requirement is $45,000.
Class C does not have a net worth requirement.
Question 12
A licensee's name change or change of address MUST be reported to the Board within a
MAXIMUM of how many days?
A) 10 days
B) 15 days
C) 30 days
D) 45 days
E) 60 days
Plus Rationales/ Virginia Contractors Exam (brand new!)
Question 1
What is the MAXIMUM penalty for a contractor who undertakes work without the proper class
of license?
A) $100 fine per day and a verbal warning
B) $250 fine per day and administrative probation
C) $500 fine per day for each day of violation plus penalties for a misdemeanor
D) $1,000 flat fine and permanent debarment
E) $5,000 fine and 30 days of community service
Correct Answer: C) $500 fine per day for each day of violation plus penalties for a
misdemeanor
Rationale: Under Virginia law, practicing contracting without the appropriate class of
license (Class A, B, or C) is considered a Class 1 misdemeanor. The Board for Contractors
has the authority to levy a fine of up to $500 for every single day the violation occurs, and
the individual may face criminal prosecution in the judicial system.
Question 2
What is the PRIMARY purpose of licensing contractors in the Commonwealth of Virginia?
A) To generate tax revenue for the local municipality
B) To limit the number of competitors in the construction industry
C) To ensure the state has a database for employment statistics
D) To protect the health, safety, and welfare of the public
E) To provide a list of contractors for government projects
Correct Answer: D) Protect the health, safety, and welfare of the public
Rationale: The fundamental justification for professional regulation and licensure is "police
power," which is used to ensure that individuals performing specialized tasks (like
construction) are competent and honest, thereby preventing harm to the general public and
their property.
Question 3
The application for licensure submitted to the DPOR MUST include which of the following?
A) A list of all previous clients from the last ten years
B) The business address of the proposed designated employee
C) A copy of the contractor's personal birth certificate
D) A comprehensive list of all tools owned by the firm
E) A letter of recommendation from a local building official
Correct Answer: B) the business address of the proposed designated employee
Rationale: Virginia requires that a licensed entity identify a "Designated Employee." This
individual must be a full-time employee or officer and must pass the required examination.
, 2
Their official business address is a critical piece of the application to ensure the Board can
maintain oversight and communication.
Question 4
All of the following entities or individuals must be licensed by the Board for Contractors
EXCEPT:
A) A framing subcontractor working on a residential home
B) A commercial roofing company
C) A material supplier who advises a contractor on product selection
D) An individual building a speculative home for sale
E) A plumbing company installing new fixtures in a high-rise
Correct Answer: C) a material supplier who advises a contractor
Rationale: Licensure is required for those who perform, manage, or bid upon construction
work. Material suppliers who do not perform installation or manage the labor are exempt
from contractor licensure, as they are providing goods rather than professional contracting
services.
Question 5
When a claimant is paid funds from the Virginia Contractors Transaction Recovery Fund:
A) The contractor must pay the fund back within 90 days to stay licensed
B) The contractor’s license is immediately revoked
C) The contractor is placed on a 2-year probationary period
D) The contractor must attend a mandatory 8-hour remedial course
E) The contractor's license is suspended for 30 days
Correct Answer: B) the contractor's license is revoked
Rationale: If the Board pays a claim from the Transaction Recovery Fund due to the actions
of a contractor, that contractor's license is automatically and immediately revoked. The
contractor cannot apply for a new license until the Fund has been reimbursed in full, plus
interest at the judgment rate.
Question 6
All Class A contractor licensure applications MUST include which of the following?
A) A minimum of 10 years of field experience for all employees
B) A certificate of high school graduation for the owner
C) Information on the knowledge, skills, and abilities of the applicant
D) A list of every sub-contractor the firm intends to use
E) A pre-payment of $1,000 into the Recovery Fund
Correct Answer: C) information on the knowledge, skills, and abilities of the applicant
Rationale: Class A licensure represents the highest tier of contracting in Virginia (no limit
, 3
on project size). Applicants must provide detailed information regarding their experience
and competence to ensure they are capable of managing large-scale financial and structural
projects.
Question 7
Which of the following is a requirement for a joint venture to bid on a project in Virginia?
A) The joint venture must be registered with the IRS as a non-profit
B) Every individual laborer in the joint venture must be a licensed contractor
C) The joint venture must have a minimum of 50 employees
D) Either the joint venture or each contracting party of the joint venture must be licensed
E) Joint ventures are prohibited from performing residential work
Correct Answer: D) Either the joint venture or each contracting party of the joint venture
must be licensed
Rationale: Virginia law allows for joint ventures, but to ensure accountability, the entity
itself must hold a license, or every member entity of that venture must be properly licensed
in the appropriate class for the work being performed.
Question 8
How much is the Class A initial license fee, NOT including the Transaction Recovery Fund fee?
A) $150
B) $210
C) $360
D) $500
E) $1,000
Correct Answer: C) $360
Rationale: The DPOR sets specific administrative fees for initial licensure. For a Class A
license, the application fee is $360. Note that this does not include the mandatory $25
contribution to the Transaction Recovery Fund usually required at the time of initial
licensure.
Question 9
According to the Board Rules and Regulations, a full-time employee is one who works a
MINIMUM of how many hours per week?
A) 20 hours
B) 30 hours
C) 35 hours
D) 40 hours
E) 45 hours
, 4
Correct Answer: B) 30 hours
Rationale: For the purposes of determining who can serve as a "Qualified Individual" or
"Designated Employee," Virginia defines full-time employment as a minimum of 30 hours
per week.
Question 10
According to the Board Rules and Regulations, which of the following could be a qualified
individual?
A) A part-time consultant
B) Any full-time employee
C) An independent contractor paid via 1099
D) The spouse of the owner who does not work for the company
E) A licensed contractor from another state who is not an employee
Correct Answer: B) Any full-time employee
Rationale: The "Qualified Individual" (QI) must be either a full-time employee or an
officer/manager of the business entity. They are the person who possesses the technical
experience required for the specific specialty on the license.
Question 11
A firm desiring to be licensed as a Class B contractor MUST have a MINIMUM net worth of:
A) $5,000
B) $15,000
C) $45,000
D) $150,000
E) $1,000,000
Correct Answer: B) $15,000
Rationale: Class B contractors (who perform projects between $10,000 and $120,000) must
demonstrate a minimum net worth of $15,000. For Class A, the requirement is $45,000.
Class C does not have a net worth requirement.
Question 12
A licensee's name change or change of address MUST be reported to the Board within a
MAXIMUM of how many days?
A) 10 days
B) 15 days
C) 30 days
D) 45 days
E) 60 days
