In Virginia, what is the minimum net worth requirement for a Class A contractor license?
Correct Answer
B) $45,000
Virginia requires Class A contractors to maintain a minimum net worth of $45,000 as specified in Title 54.1 of the Virginia Code.
Why This Is the Correct Answer
Virginia Title 54.1 sets the minimum net worth for a Class A contractor license at $45,000. Class A is the highest tier of Virginia contractor licensing, allowing unlimited contract values. The $45,000 net worth requirement ensures that Class A licensees have sufficient financial stability to take on large projects and meet their contractual obligations.
Why the Other Options Are Wrong
Option A: $25,000
$25,000 is the net worth requirement for Class B contractors in Virginia, not Class A. Class B licenses are for projects between $10,000 and $120,000 in aggregate. Using the wrong class's threshold is the most common error on this type of question.
Option C: $100,000
$100,000 exceeds the actual requirement. This figure might seem logical for the highest license class, but it overstates what Virginia law mandates. The correct figure is $45,000, not $100,000.
Option D: $75,000
$75,000 is a plausible-sounding figure but does not correspond to any Virginia contractor license class net worth threshold. This is a distractor designed to catch candidates who are guessing rather than recalling the specific statutory amount.
Memory Technique
Virginia Class A = $45,000 net worth. Remember: 'A is for 45 — not 25, not 75.' Class B = $25,000. Class C = no net worth requirement. The numbers go: C (none), B ($25K), A ($45K) — they don't jump to six figures.
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
A Class C contractor in Virginia is approached to install a $35,000 commercial HVAC system. Can this contractor legally perform this work?
Next Question
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?