A Class B contractor in Virginia wants to bid on a $175,000 commercial renovation project. According to Virginia contractor law, what action must the contractor take?
Correct Answer
A) Obtain a Class A license upgrade
Class B contractors in Virginia are limited to projects under $120,000. A $175,000 project requires a Class A license, so the contractor must upgrade their license classification.
Why This Is the Correct Answer
Virginia law limits Class B contractors to projects with a single contract value under $120,000 and total annual volume under $750,000. A $175,000 project exceeds the Class B single-contract threshold, so the contractor must obtain a Class A license upgrade before being eligible to bid.
Why the Other Options Are Wrong
Option B: Submit the bid as the project is within Class B limits
Incorrect. The $175,000 project exceeds the Class B single-contract ceiling of $120,000. Submitting the bid without the appropriate license would constitute unlicensed contracting at that classification level.
Option C: Partner with a Class A contractor
Incorrect. Partnering with a Class A contractor does not transfer the license authority to the Class B contractor. The entity holding the contract and performing the work must hold the appropriate license class.
Option D: Apply for a special project permit
Incorrect. Virginia does not offer a 'special project permit' to allow a lower-class contractor to exceed their classification limits. The proper remedy is to upgrade the license classification.
Memory Technique
Think '120K per contract, 750K per year' for Class B. If the single job crosses $120K, you need Class A. A = Ambitious (bigger projects), B = Below $120K per contract.
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A Class B contractor in Virginia wants to bid on a project valued at $175,000. The contractor's current license allows work up to $120,000. What action must the contractor take?
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