A Virginia Class C contractor wants to bid on a $125,000 residential addition project. What is required?
Correct Answer
B) Must upgrade to Class B license before bidding
Class C contractors are limited to $120,000 per project. This $125,000 project exceeds the limit and requires a Class B license minimum.
Why This Is the Correct Answer
Virginia Class C contractors are limited to single-project contracts of $120,000 or less. A $125,000 project exceeds this limit by $5,000, making it illegal for a Class C contractor to bid or contract for this work. The contractor must upgrade their license to at least Class B (which allows single contracts up to $500,000 and unlimited total volume) before bidding on this project.
Why the Other Options Are Wrong
Option A: Requires special permit from the Board for Contractors
No special project-specific permit from the Board for Contractors exists to authorize work beyond a license class's financial limits. License class limits are hard thresholds that require formal upgrading, not one-time exceptions.
Option C: Can subcontract portions to stay under $120,000
Subcontracting portions to keep the contractor's share under $120,000 does not satisfy the requirement. The $120,000 Class C limit applies to the total single-project contract value, not just the portion the Class C contractor personally performs. Attempting this workaround would still constitute bidding on a project that exceeds the license classification limit.
Option D: The contractor can proceed as Class C covers up to $150,000
Class C does NOT cover up to $150,000. The Class C limit is $120,000 per single project. This answer includes a false statement about the license classification limit and would lead a contractor to commit a licensing violation.
Memory Technique
Virginia contractor class limits: Class C = $120,000 max per contract (think 'C' as in a 'C' grade, smaller). Class B = up to $500,000 per contract (bigger). Class A = unlimited (the top). $125,000 is above $120,000 — Class C cannot touch it, must go Class B.
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