What is the maximum monetary limit for a Class C contractor license in Virginia?
Correct Answer
B) $120,000
Virginia Class C contractors are limited to individual contracts not exceeding $120,000, including labor and materials.
Why This Is the Correct Answer
Virginia Class C contractors are limited to individual contracts not exceeding $120,000, including both labor and materials. This cap defines the scope of work a Class C licensee may undertake and protects consumers by ensuring contractors take on work commensurate with their demonstrated qualification level.
Why the Other Options Are Wrong
Option A: $100,000
$100,000 is a common guess because it is a round number close to the actual limit, but the Virginia statute specifies $120,000. This 20% error can be significant on the exam.
Option C: $50,000
$50,000 is well below the Class C limit and might be confused with thresholds for unlicensed handymen or exemptions in other states. Virginia's Class C limit is substantially higher.
Option D: $75,000
$75,000 has no basis in Virginia's licensing tiers. It may appear as a reasonable midpoint between $50,000 and $100,000 but does not match the statutory figure.
Memory Technique
Class C = $120K cap. Remember: C is the third letter of the alphabet (3rd tier = smallest license), but its limit is $120,000 — twelve tens of thousands. '$120K for the Class C contractor.'
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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Previous Question
A Virginia contractor completes a $125,000 commercial project. The owner disputes $18,000 in charges. What is the maximum mechanics lien amount the contractor can file under Virginia law?
Next Question
Under Virginia law, a contractor must provide preliminary notice to property owners before filing a mechanics lien. This notice must be served within how many days of first furnishing labor or materials?