Under Virginia contractor licensing law (Title 54.1), what is the minimum net worth requirement for a Class A contractor license?
Correct Answer
A) $45,000
Virginia Code § 54.1-1108 requires Class A contractors to maintain a minimum net worth of $45,000.
Why This Is the Correct Answer
Virginia Code § 54.1-1108 explicitly sets the minimum net worth for a Class A contractor license at $45,000. This threshold reflects the higher financial responsibility expected of Class A contractors who handle larger, more complex projects.
Why the Other Options Are Wrong
Option B: $25,000
$25,000 is the net worth requirement for a Class B contractor license, not Class A. Mixing up the financial thresholds for different license classes is a common error.
Option C: $75,000
$75,000 does not correspond to any Virginia contractor license class net worth requirement. It may seem plausible as a higher threshold, but the statute specifies $45,000 for Class A.
Option D: $100,000
$100,000 is not the statutory net worth requirement for any Virginia contractor license class. It is a distractor that exaggerates the actual requirement.
Memory Technique
Think 'A = 45' — Class A has 4+5 = 9 letters if you count wrong, but simply anchor: Class A contractors need $45,000 net worth. Use the mnemonic '45 for A' — like a 45-degree angle forming an 'A' shape.
More Virginia Questions
Under Virginia law (Title 54.1), what is the minimum net worth requirement for a Class A contractor license?
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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?
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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?
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