Virginia Contractor General Practice Test

When is a Class A license required for a contract?

1. When a single contract is worth more than $50,000

2. When a single contract is worth more than $100,000

3. When a single contract is worth more than $120,000

4. When a single contract is worth more than $150,000

The correct answer is: When a single contract is worth more than $120,000

A Class A contractor license is required when the value of a single contract exceeds $120,000. In Virginia, contractor licensing is governed by specific thresholds that differentiate between Class A, B, and C licenses based on the monetary limits of construction contracts. The Class A license is intended for those who take on larger projects, reflecting the complexity and financial risk associated with contracts of this value. By setting the threshold at $120,000, the licensing requirements ensure that contractors who engage in significant construction projects have the necessary experience, skill, and financial responsibility to complete such work safely and effectively. This helps protect consumers and maintain industry standards. Understanding these licensing requirements is important for contractors to operate legally and effectively within Virginia, ensuring they comply with state regulations and serve the needs of their clients appropriately.