Virginia General Contractor License Requirements & Guide

Virginia Contractor License Requirements

To work as a contractor in the state of Virginia, you’ll need to follow a step-by-step process set forth by the Virginia Department of Professional and Occupational Regulation (DPOR). This includes creating and registering your business entity, identifying responsible management and qualified individuals, and completing an application with proof of education, certificate of insurance, and fees attached, among other requirements.

Who Needs a Contractors License?

Anybody who is performing or managing construction, removal, repair, or improvements when the total value of a single project is over $1,000 must obtain a license from DPOR. There are three license classes: Class A, Class B, and Class C:

• Class A Contractors License: required when the total value of a single contract or project is $120,000 or more, or is $750,000 or more over a 12-month period. The Qualified Individual identified for this license must have at least 5 years of experience.
• Class B Contractors License: required when the total value of a single contract or project is $10,000 or more, but less than $120,000, or is $150,000 or more, but less than $750,000 over a 12-month period. The Qualified Individual identified for this license must have at least 3 years of experience.
• Class C Contractors License: required when the total value of a single contract or project is over $1,000 but no more than $10,000, or is no more than $150,000 over a 12-month period. The Qualified Individual identified for this license must have at least 2 years of experience.

Most cities in Virginia require contractors to get a surety bond, liability insurance, and workers’ compensation prior to beginning work on any type of construction project. However, those with a Class C contractors license are exempt from this requirement. The exact amount required varies widely by city, so it is important to investigate the local rules for bonding before commencing a construction project. The cost of these bonds vary with each project, while rates on liability insurance tend to be fixed based on the amount of coverage. In fact, it is required each of the bonds are purchased through one or more authorized surety bond companies local to your area.

Performance bonds are required on all public construction contracts worth $500,000 or more and transportation related projects exceeding $350,000. However, according to the Virginia State law, “non transportation-related construction contracts in excess of $100,000 but less than $500,000, where the performance and payment bond requirements are waived, prospective contractors shall be prequalified for each individual project in accordance with § 2.2-4317.”

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What Do You Need To Become a Contractor in Virginia?

The Commonwealth of Virginia DPOR specifically lists 10 steps for obtaining a contractor license:

1. 1. Create a business entity. The Virginia Board for Contractors recognizes all legal forms of business entities, including LLCs, partnerships, sole proprietorships, and corporations. Contractor licenses are only issued to these legally recognized entities, not to individuals.
   2. Name and register your business entity. If your company is a corporation, LLC, or limited partnership, you must register both your company and any names used by that company with the Virginia State Corporation Commission. Sole proprietorships and partnerships must register any fictitious name they are using with the court in the jurisdiction in which the company is located.
   3. Determine the type of license your company is seeking. Decide whether you’re seeking a Class A, B, or C license based on the size of contracts or projects you’ll be taking on. Exceeding the monetary limits of your license class is a violation of DPOR regulations and could result in disciplinary action or license revocation. You’ll also need to select your specialty, identified by three-letter abbreviations, and found in the Commonwealth of Virginia Board for Contractors official regulations. A commercial building contractor, for example, would be identified as “CBC”. Electricians and plumbers must seek separate licensing for their respective trades.
   4. Identify Responsible Management. Licensed contractors in Virginia are required to identify officers, members, partners, owners, etc. of their business entities. These individuals are responsible for the license and for ensuring that all regulations and statutes are followed. You’ll need to provide the names of these individuals, their birthdates, and Social Security Numbers or their Virginia DMV Control Number, and their address and you must include a copy of a government-issued photo ID.
   5. Identify Qualified Individuals. Every license and every specialty must have a Qualified Individual (QI) associated with it. This must be a legitimate full-time employee or one of the members of Responsible Management identified in the previous step. You’ll need to provide the name, birth date, and Social Security Number of your QI, or their Virginia DMV Control Number, and their address and you must include a copy of a government issued photo ID. More information on determining Qualified Individuals can be found here.
   6. Identify your Designated Employee. Class A and Class B contractors must identify a Designated Employee (DE) who has passed the required portions of their examination.  This must be a legitimate full-time employee or one of the members of Responsible Management. A DE for Class A must complete the General, Virginia, and Advanced portions of the examination. A DE for Class B must complete just the General and Virginia portions. Class C does not require a DE. You’ll need to provide the name, birthdate, and Social Security Number of your DE, or their Virginia DMV Control Number, and their address and you must include a copy of a government-issued photo ID.
   7. Complete the pre-license education course. All applicants are required to have a member of Responsible Management or their DE successfully complete pre-license education approved by the Board for Contractors. There are multiple approved courses and providers with their own fees, schedules, and locations. Find the list of approved pre-license education providers here.

1. Complete the entire application. The Virginia DPOR Board for Contractors license application can be found here. All items on the application must be completed to avoid delay, and some questions may require additional documentation. If you have a question about an item on any application form please email the Board for Contractors, or call the licensing staff at (804) 367-8511.
2. Send your application to the Board with the appropriate fee. Each form has a fee associated with it that is listed on the first page of that form. Applications sent without a fee are returned to the applicant, while sending the wrong fee may delay processing. Fees are non-refundable.
3. Be patient and wait for the licensing staff to process your application. The average processing time for most applications in approximately 30 days, but can be more or less depending on the factors. If your application is complete and you have met all of the eligibility requirements, the license will be issued at the initial review and will be mailed to you. If your application is incomplete, then a letter will be sent to you outlining what was missing and what is needed to finish the review and issue your license.

Licensing and Registration Fees

A check or money order payable to the Treasurer or Virginia, or a completed credit card insert must be mailed with your application package.

• $385.00 – application fee for Class A license
• $370.00 – application fee for Class B license
• $235.00 – application fee for Class C license
• $50.00 – annual business registration fee

Virginia Contractors Exam & Fees

The Virginia Board for Contractors requires that either the DE or a member of Responsible Management complete an eight-hour pre-license education course for contractors. The DE may complete the course for a Class A or B license, while Class C requires a member of Responsible Management.

Because providers establish their own fees and schedules, you should contact the provider directly to determine the specific location, cost, and materials requirements for their course.

A complete list of approved contractors can be found on the DPOR website.

Virginia Contractors License Application

The Virginia DPOR Board for Contractors license application has multiple parts to it, all of which must be completed in order for the application to process. The application can be found here. The application sections require you provide this information and supplementary material:

1. Type of license (Class A, B, or C)
2. Business or sole proprietor name
3. Trade, “Doing Business As” (DBA) or fictitious name
4. Type of business entity
5. One of the following identification numbers:
   1. Business Federal Employer Identification Number (FEIN)
   2. Sole Proprietor/Individual Social Security Number
   3. Virginia Department of Motor Vehicles Control Number
6. Mailing address (PO Box accepted)
7. Street address (PO Box not accepted, physical address required)
8. Contact numbers:
   1. Primary telephone
   2. Alternate telephone
   3. Fax
9. Email address
10. Does your Business, Designated Employee, Qualified Individual, or Responsible Management have a current or expired contractor’s license? If yes, provide:
    1. Business/individual full legal name
    2. State/jurisdiction
    3. License, certification, or registration number
    4. Expiration date
11. All members of Responsible Management and information including:
    1. Full legal name
    2. Title
    3. Address
    4. SSN # or VA DMV Control #
    5. Date of birth
    6. Attached legible copy of government-issued photo ID
12. Proof of pre-license education course completion by DE or Responsible Management, including the individual’s:
    1. Full name
    2. Date of birth
    3. SSN # or VA DMV Control #
    4. Course completion date
    5. Course provider’s name
    6. Attached legible copy of government-issued photo ID
13. Determine license classification and specialty designation and provide one Qualified Individual for the designation
14. If applying for Class A or B, declare a designated employee
    1. Full name
    2. Date of birth
    3. SSN # or VA DMV Control #
    4. Exam date
15. Indicate whether the Business, Designated Employee, Qualified Individual, or Responsible Management has:
    1. Received disciplinary action by a local, state or national regulatory body
    2. Been convicted or found guilty of any felony or misdemeanor
    3. Had outstanding/past-due debts (including child support arrearage); judgments; liens; past due ‘unpaid’ claims or suits; outstanding tax obligations; defaults on bonds; or pending/past bankruptcies
16. Indication that all members of Responsible Management understand that Class A, B, and C Contractors must comply with local licensing requirements of all counties, cities, and towns in which work was performed
17. Indication that the business/firm meets minimum net worth/equity requirements for Class A ($45,000) or Class B ($15,000) by submission of:
    1. Financial Statement Form
    2. CPA review/audit
    3. Or Surety Bond Form
18. Signature of all members of Responsible Management, Designated Employee, and Qualified Individual

Remember to submit your application with all documents at one time, with fees included. Failure to do so may cause your application request to be delayed or even denied.

Virginia Contractor Registration and Permitting Requirements

Beyond the Commonwealth of Virginia business registration requirements as well as the DPOR Board for Contractors licensing requirements, there may be additional permitting requirements established by local cities, towns, municipalities or governments below the state level. These vary, but it is still the contractor’s responsibility to know and follow all registrations and permitting requirements pertinent to the area that they are working in.

Virginia Business Registration

To do business in Virginia, contractors will have to register their organization with the State Corporation Commission (SCC). More information about business/entity formation in Virginia can be found here.

Virginia Tax Identification Numbers and Registration

On top of your federal EIN number assigned by the IRS, you are also required to register your business with Virginia Tax. You can find more information on Virginia State tax registration here.

Virginia Workers’ Compensation Insurance Requirements and Forms

Virginia law requires employers who regularly employ more than two part-time or full-time employees, including subcontractors, must provide proof of workers’ compensation insurance. More information can be found on the Virginia.gov website.

Virginia Contractor License Search and Verification

Using the DPOR license lookup tool, you can search for licenses and license-holders by name, license number, and address.

See General Contractor Licensing Information in Nearby States

• WV contractors license
• Kentucky contractors license
• Tennessee contractors license
• NC contractor license

 

For More License and Career Guides

To find out how to become a General Contractor in another state, start here. 

For information on other trades in Virginia, click on a link below to learn more about the licensing requirements:

• Virginia Electrician License Requirements
• How to Become a Plumber in Virginia  
• Virginia Handyman License Guide
• Virginia Welding Schools and Career Guide
• How to Get an HVAC License in Virginia