Under Virginia contractor law (Title 54.1), what is the minimum net worth requirement for a Class A contractor license?
Correct Answer
A) $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
$45,000 is the minimum net worth specified under Virginia Code Title 54.1 for a Class A contractor license. Class A is the highest tier (unlimited contract value), and the $45,000 net worth requirement ensures financial responsibility for large projects.
Why the Other Options Are Wrong
Option B: $25,000
$25,000 is associated with a lower license class (Class B), not Class A. Confusing the financial requirements across license classes is one of the most common errors on this topic.
Option C: $75,000
$75,000 is not the statutory net worth figure for any Virginia contractor license class. This is a distractor designed to test whether candidates have memorized the exact threshold.
Option D: $100,000
$100,000 exceeds the actual Class A requirement and is not a statutory figure for net worth. It may be confused with bonding or insurance amounts.
Memory Technique
Think of it as '$45K to be Class A.' The number 45 contains a 4 and a 5 — Class A is the 1st class, and 4+5 = 9 (close to 10, the highest tier). Just memorize: Class A = $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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