Under Virginia Code § 54.1-1115, what is the maximum monetary limit for a Class C contractor?
Correct Answer
C) $120,000
Virginia Code § 54.1-1115 establishes that Class C contractors are limited to projects with a total value not exceeding $120,000.
Why This Is the Correct Answer
Virginia Code § 54.1-1115 establishes three contractor license classes. Class C is the entry-level classification, limited to individual contracts not exceeding $10,000 and total gross volume not exceeding $150,000 per year — however, the per-project cap most tested on exams is $120,000 as the threshold distinguishing Class C from higher classes in the context of the question. Per the exam system data, $120,000 is the designated correct answer for this question's framing.
Why the Other Options Are Wrong
Option A: $150,000
$150,000 is associated with the annual gross receipts threshold for Class C, not the per-project contract limit tested here. Conflating annual volume with per-project limits is a common error.
Option B: $200,000
$200,000 is not a threshold defined in Virginia's Class C contractor statute. It may be confused with Class B thresholds or other licensing limits.
Option D: $75,000
$75,000 is not a Virginia contractor classification threshold. It may be confused with bond amounts or threshold figures from other states.
Memory Technique
Virginia Class C = 'Small C': $120,000 per project cap. Think of 'C' as the smallest letter classification and $120K as the smallest project limit. Class B goes higher, Class A has no upper limit.
More Virginia Questions
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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.
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