Under Virginia Code Title 54.1, what is the minimum net worth requirement for a Class A contractor license?
Correct Answer
C) $45,000
Virginia Code requires Class A contractors to maintain a minimum net worth of $45,000 to qualify for and maintain their license.
Why This Is the Correct Answer
The correct answer is C ($45,000). Virginia Code Title 54.1 requires applicants for a Class A contractor license to demonstrate a minimum net worth of $45,000. This financial requirement ensures that Class A contractors, who can work on the largest and most complex projects, have sufficient financial stability.
Why the Other Options Are Wrong
Option A: $15,000
$15,000 is incorrect. This figure corresponds to the minimum net worth requirement for a Class B contractor license in Virginia, not Class A. Class B contractors handle mid-range projects with lower contract value limits, so the financial threshold is lower.
Option B: $100,000
$100,000 is incorrect. While this may seem like a reasonable amount for a high-tier license, it exceeds the actual Class A requirement. No standard Virginia contractor class requires $100,000 in net worth.
Option D: $75,000
$75,000 is incorrect. This amount is not the net worth requirement for any standard Virginia contractor license class. It may be confused with bond amounts or other financial requirements from different contexts.
Memory Technique
Remember the VA contractor class ladder: Class C → Class B ($15K) → Class A ($45K). Class A is three times Class B's requirement: $15K × 3 = $45K. 'A' for 'Ample' net worth — $45,000.
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?
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