Licensing and scope in Virginia
Virginia licenses contractors through the Board for Contractors, part of the Department of Professional and Occupational Regulation (DPOR), under Code of Virginia Title 54.1, Chapter 11. A contractor license is required to bid or perform work where the total value is more than $1,000 (single project or the value of all work in a 12-month period). The license is held by a qualifying individual/entity; you must work within the classification and any monetary limits you hold, pull the required permits, and pass the required inspections. Performing or advertising contracting work without the required license, or beyond your scope, is a violation that can void the contract, forfeit your right to collect payment, and carry civil or criminal penalties.
License classes by value (Virginia-specific). Virginia issues three classes set by the dollar size of the work you may take on:
- Class C — single projects over $1,000 but under $30,000, or under $250,000 total in a 12-month period; no minimum net worth required.
- Class B — single projects of $30,000 to under $150,000, or $250,000 to under $1,000,000 total in a 12-month period; minimum net worth of $15,000 (or a $50,000 surety bond on the board's form in lieu of net worth).
- Class A — single projects of $150,000 or more, or $1,000,000 or more total in a 12-month period; minimum net worth of $45,000 (or a $50,000 surety bond in lieu of net worth).
Know the licensing-law essentials the exam tests: who must be licensed and the dollar threshold that triggers it; classifications (general vs specialty/sub-classifications) and staying within yours; advertising rules (showing your license number on contracts, ads, and vehicles); prohibited acts (abandonment without legal excuse, willful departure from approved plans, willful or fraudulent code violations, diversion of funds from one job to another, aiding unlicensed activity, and fraud or misrepresentation); the complaint and disciplinary process the board can bring (investigation, citations, administrative fines, probation, suspension, or revocation, and restitution to the consumer); and renewal/continuing-education requirements.
The qualifying individual. The person who passed the exams and holds the experience is the qualifier for the company; if they leave, the company may have a limited time to replace them or the license lapses. A qualifier may not improperly "rent" their license to a company they do not actively manage — a serious violation. Know the difference between the license (the company's authority to contract) and the qualifier (the responsible person), and that the board can discipline both. Many states also fund a recovery/guaranty fund that pays consumers harmed by a licensed contractor, financed by licensee fees.
How Virginia licensing works
- Financial responsibility: proof of net worth scaled to the license class (none for C, $15,000 for B, $45,000 for A) — Class A/B applicants who cannot document the net worth may instead file a $50,000 surety bond on the board's form — and insurance (general liability, and workers' compensation when you have three or more employees). Virginia does not require a general surety/license bond of every contractor, though local jurisdictions or specific projects may.
- Entity documents: registration of the business entity, an EIN, and any local business licenses.
- Exam vendor: PSI.
- Renewal: licenses renew on a two-year cycle and require continuing education for certain specialties and keeping insurance current.
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