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?
Correct Answer
D) Upgrade to a Class A license
Class B contractors in Virginia are limited to projects under $120,000. For a $175,000 project, the contractor must upgrade to a Class A license which has no monetary limit.
Why This Is the Correct Answer
Virginia Class B contractor licenses are capped at projects up to $120,000 per single contract. A $175,000 project exceeds this limit. The only path forward is upgrading to a Class A license, which carries no upper monetary limit. There is no variance, supplemental bonding, or partnership workaround that permits a Class B license holder to exceed their class limit.
Why the Other Options Are Wrong
Option A: Apply for a project-specific variance
Virginia's DPOR does not issue project-specific variances that allow a contractor to exceed their license class monetary limit on a one-off basis. The license class is a hard regulatory ceiling.
Option B: Obtain additional bonding
Obtaining additional bonding does not change the contractor's license class or permit them to take on projects above their class limit. Bonding and license class are separate requirements.
Option C: Partner with another Class B contractor
Partnering with another Class B contractor does not combine their individual project limits. Two Class B contractors are still each restricted to projects under $120,000; a joint venture does not create a Class A equivalency.
Memory Technique
Virginia license tiers: Class C ≤ $10,000 | Class B ≤ $120,000 | Class A = unlimited. Think of it as a speed limit — you cannot drive 175 mph in a 120 mph zone just because you have two cars.
More Virginia Questions
Under Virginia law (Title 54.1), what is the minimum net worth requirement for a Class A contractor license?
A Virginia contractor fails to pay a subcontractor $18,500 for completed work. Under Virginia mechanics lien law, within how many days must the subcontractor file a memorandum of lien to preserve their lien rights?
A Virginia contractor employs 8 workers with a total annual payroll of $420,000. Using the standard construction rate of $8.50 per $100 of payroll, what is the annual workers' compensation premium?
A Virginia contractor fails to pay subcontractors on a $180,000 project. Under Virginia mechanics lien law, what is the maximum time period a subcontractor has to file a mechanics lien after last furnishing labor or materials?
Under Virginia contractor law, what happens to a contractor's license if they fail to maintain required insurance coverage?
A contractor fails to pay a subcontractor and the subcontractor files a mechanics lien. Under Virginia law, within how many days must the general contractor post a bond to release the lien from the property?
A Class B contractor in Virginia completed $850,000 worth of work in the current license period and has contracts totaling $1,200,000 for the next period. What action must the contractor take?
A homeowner hired an unlicensed contractor for a $45,000 kitchen renovation. Under Virginia law, what remedy is available to the homeowner?
Calculate the required bond amount for a Virginia Class A contractor with average annual gross receipts of $2,800,000 over the past three years.
A Class C contractor in Virginia wants to install a residential HVAC system valued at $12,000. The contractor's specialty classification is electrical work. What must the contractor do to legally perform this work?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Contract Administration
60 questions · 70% to pass
Project Management
60 questions · 70% to pass
Related Study Resources
Previous Question
According to the USBC, what is the minimum ceiling height requirement for habitable rooms in residential construction?
Next Question
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?