Virginia Class A Designated Employee Examination

Under Code of Virginia § 54.1-1100, a Class A contractor license is required when the total value of a single contract or project is which of the following?

• AMore than USD 1,000 but less than USD 30,000
• BUSD 30,000 or more but less than USD 150,000
• CUSD 150,000 or more
• DUSD 250,000 or more

A Virginia firm’s total construction, removal, repair, or improvement work over a 12-month period reaches USD 1 million. Which license class is required?

• AClass C
• BClass A
• CClass B
• DNo contractor license is required at that volume

Which statement correctly describes Virginia Class B contractor thresholds under § 54.1-1100?

• AA single contract or project of USD 30,000 or more but less than USD 150,000, or 12-month…
• BA single contract of USD 150,000 or more, or 12-month volume of USD 1 million or more
• CA single contract over USD 1,000 but less than USD 30,000, or 12-month volume under USD 2…
• DAny project under USD 250,000 with no annual-volume test

Unless an exemption applies, a Virginia contractor license is generally required when the value of the contracting work exceeds which amount?

• AUSD 250
• BUSD 500
• CUSD 5,000
• DUSD 1,000

For a Class A license, the qualified individual named for each classification or specialty must have at least how many years of experience in that classification or specialty?

• AOne year
• BFive years
• CThree years
• DTen years

Who may serve as the designated employee for a Virginia Class A contractor?

• AA person who is at least 18, is a full-time employee or a member of responsible managemen…
• BAny stockholder who owns at least 10 percent of the firm, regardless of age or employment
• CAny field superintendent with two years of trade experience, even if part-time and not in…
• DOnly a Virginia-licensed professional engineer who is not employed by the firm

What financial-responsibility showing does 18VAC50-22-60 require for a Class A applicant?

• AUSD 15,000 net worth only, with no bond alternative
• BA USD 1 million line of credit from a Virginia bank
• CUSD 45,000 net worth or equity, or a USD 50,000 surety bond on the Board’s bond form
• DUSD 100,000 cash on deposit with DPOR

What Board fees are due with a Class A initial license application under 18VAC50-22-100?

• AUSD 235 plus a USD 25 Recovery Fund assessment
• BUSD 400 plus a USD 25 Recovery Fund assessment
• CUSD 380 with no Recovery Fund assessment
• DUSD 85 only, which also covers the license

Before a Class A firm can be licensed, who must complete a board-approved basic business / pre-license education course?

• AEvery field employee who will work on Virginia jobs
• BOnly the firm’s outside CPA
• CEvery subcontractor named in the application
• DThe designated employee or a member of responsible management

A Virginia contractor license issued by the Board for Contractors is held by which party?

• AThe designated employee personally, and it travels with that person to any new employer
• BThe qualified individual personally, independent of the firm
• CThe firm (the business entity), which must name a designated employee and a qualified ind…
• DThe local building official in the city where the firm’s office is located

What is the maximum Virginia Contractor Transaction Recovery Fund payment to one claimant based on an unpaid judgment from one regulant in a single contracting transaction?

• AUSD 10,000
• BUSD 30,000, including any amount paid from a contractor’s surety bond under the Recovery…
• CUSD 100,000 per claim with no biennium cap
• DThe full unpaid judgment, including interest and punitive damages

The Board’s aggregate cap on Recovery Fund claims arising from the improper or dishonest conduct of any one regulant is which of the following?

• AUSD 100,000 during any biennium
• BUSD 30,000 during any calendar year
• CUSD 250,000 with no time limit
• DUnlimited if the contractor’s bond has been exhausted

Who is an eligible Recovery Fund claimant under the Virginia Contractor Transaction Recovery Act?

• AAnother licensed contractor who was not paid by the regulant on a commercial job
• BA material vendor of the judgment-debtor contractor
• CAn individual whose contract with the licensed regulant was for the claimant’s residence…
• DThe spouse of the judgment-debtor contractor

Which amounts may be included in a Recovery Fund claim based on an unpaid judgment, and which are excluded?

• AInterest and punitive damages are included; attorney fees are excluded
• BCourt costs and attorney fees may be included; interest, punitive damages, and non-actual…
• CThe entire judgment is payable, including punitive damages, if the contractor was Class A
• DOnly the Recovery Fund assessment the owner paid at permit issuance is recoverable

When must a Virginia residential contracting firm have a signed, legible written contract with the consumer?

• APrior to commencement of work or acceptance of payments
• BOnly if the contract exceeds USD 150,000
• CWithin 30 days after the job is substantially complete
• DOnly when the owner requests a writing after a dispute arises

Which element is among the Board’s minimum requirements for a Virginia residential construction contract?

• AA clause stating that verbal change orders are binding if the superintendent agrees
• BA waiver of the owner’s right to a building permit
• CA promise that the contractor need not disclose the firm’s license number
• DA statement notifying the consumer of the Virginia Contractor Transaction Recovery Fund a…

Under Board regulations, abandonment of a contract means which of the following?

• AAny rain delay that lasts more than three consecutive days
• BThe owner’s failure to approve a color selection within 48 hours
• CThe unjustified cessation of work under the contract for a period of 30 days or more
• DSubstantial completion followed by a punch-list visit the next week

How long must a Virginia contractor keep a complete, legible copy of a contract and related documents?

• AOne year from substantial completion
• BFive years from the date of the contract
• CNinety days after final payment
• DUntil the Recovery Fund biennium ends

A Class A firm’s designated employee resigns. Within how many days must the change be reported to the Board on the Board’s form?

• A120 days, and the new designated employee must meet the Class A designated-employee requi…
• B10 days, and no replacement is required until renewal
• CTwo years, because the license is issued to the firm only
• D60 days, which is the same deadline used for a qualified-individual change

A Class A firm’s qualified individual leaves the company. What is the Board reporting deadline?

• A120 days, the same as a designated-employee change
• BAt the next biennial renewal only
• C60 days, on a Board form, and the replacement must meet Class A qualified-individual requ…
• D24 hours, by telephone to the local building official

When does a Virginia contractor license expire?

• AOne year from the date the designated employee passed the PSI exam
• BTwo years from the last day of the month in which it was issued, as shown on the license
• COn December 31 of every even-numbered year for all firms
• DFive years after issuance, matching the contract-file retention period

Who enforces the Virginia Uniform Statewide Building Code (USBC) on a typical private construction project?

• AThe Virginia Board for Contractors, which also issues building permits
• BPSI Services, as part of the designated-employee examination
• CThe federal Occupational Safety and Health Administration
• DThe local building department / building official

Under the USBC, when must a building permit generally be obtained?

• APrior to commencement of the regulated work, except that emergency work must be applied f…
• BOnly after the first inspection fails
• CWithin 90 days after the certificate of occupancy is issued
• DNever, if the contractor holds a Class A license

When a contractor will perform land-disturbing activity under a construction contract, who is responsible for preparing, submitting, and obtaining approval of the erosion and sediment control plan?

• AThe local building official, automatically, when the building permit is issued
• BThe excavation subcontractor only, because the prime contractor never disturbs land
• CThe owner
• DThe Board for Contractors as a condition of Class A licensure

Unless a locality adopts a smaller threshold, a Virginia land-disturbing activity generally becomes subject to erosion and sediment control requirements when it disturbs at least which area?

• A1,000 square feet anywhere in the Commonwealth
• B10,000 square feet, or 2,500 square feet in a Chesapeake Bay Preservation Area
• COne acre only; smaller sites are never regulated
• DFive acres, matching the former federal NPDES construction threshold only

What is the defining liability feature of an unincorporated sole proprietorship?

• AThe owner has unlimited personal liability for business debts and judgments
• BThe owner’s personal assets are automatically shielded without any filing
• COnly the designated employee, not the owner, can be sued
• DLiability is capped at the Class A net-worth figure of USD 45,000

Which statement best describes a corporation as a contracting business form?

• AIt cannot hold a Virginia contractor license; only individuals may be licensed
• BShareholders are jointly and severally liable for all corporate trade payables by default
• CIt is a separate legal entity that holds assets, contracts, and the contractor license in…
• DIt is dissolved automatically if the designated employee fails the Advanced portion once

Compared with a general partnership, a limited liability company typically offers which combination?

• AUnlimited personal liability for all members and corporation-style double taxation only
• BLimited liability for members plus, if taxed as a pass-through, profits reported on the m…
• CNo ability to name a designated employee or hold a contractor license
• DAutomatic exemption from workers’ compensation and payroll-tax rules

Failure to comply with the Virginia Underground Utility Damage Prevention Act (Miss Utility) is which of the following?

• AA recommended industry courtesy with no Board consequence
• BRequired only on federal-aid highway projects
• CRequired only when the excavation is deeper than 10 feet
• DA prohibited act for a Board-licensed contractor

A concrete slab is 36 feet long, 24 feet wide, and 6 inches thick. How many cubic yards of concrete are required, with no waste allowance?

• A12.0 cubic yards
• B16.0 cubic yards
• C18.0 cubic yards
• D24.0 cubic yards

How many board feet are in 120 pieces of 2 × 6 × 16 lumber?

• A1,440 board feet
• B1,920 board feet
• C2,304 board feet
• D3,840 board feet

A job’s estimated cost is USD 64,000. The contractor applies a 25 percent markup on cost. What bid price should be submitted?

• AUSD 72,000
• BUSD 80,000
• CUSD 85,333
• DUSD 89,600

What does a bid bond primarily guarantee?

• AThat the project will be completed free of defects for one year
• BThat suppliers will be paid if the contractor defaults after award
• CThat the bidder will enter into the contract at the bid price and provide required perfor…
• DThat the owner’s construction loan will close on schedule

What is the first step in building a detailed construction estimate from a complete set of plans and specifications?

• AApply historical unit prices before reading the specifications
• BPerform a quantity takeoff of the work shown in the documents
• CIssue the subcontract buyout letters
• DFile a memorandum of mechanic’s lien

In an estimate, contingency is best used to cover which of the following?

• AOwner-directed scope additions after award
• BKnown unknowns — uncertain items and conditions inside the defined scope that experience…
• CThe contractor’s profit target
• DSales tax the owner has already agreed to pay as a reimbursable

During the bidding period the architect issues an addendum that changes a specified product. What should a bidder do?

• AIgnore the addendum if the original specification is already taken off
• BAcknowledge the addendum and price the revised scope in the bid
• CWait until after award and then submit a change-order request for the addendum
• DTreat the addendum as a shop-drawing comment only

On a public bid, what is the difference between a responsive bid and a responsible bidder?

• AResponsive describes the bid documents; responsible describes the bidder’s capability, in…
• BThe two terms are interchangeable
• CResponsible means the bid is the lowest number; responsive means the bid is the highest
• DResponsive refers only to the bid bond percentage; responsible refers only to insurance l…

Under a unit-price contract, how is the contractor typically paid?

• AA single lump sum regardless of actual quantities
• BCost plus a percentage of cost with no quantity measurement
• CA stated price for each measured unit of work actually placed, using bid unit prices
• DOnly from the Recovery Fund if quantities overrun

Which costs are typically classified as project overhead (general conditions) rather than direct craft costs?

• AFoundation concrete and reinforcing steel
• BSuperintendent time, job-trailer rent, temporary toilets, and site fencing
• COwner-furnished equipment installed by the owner
• DHome-office federal income tax

A masonry crew places 250 square feet of wall per day. How many working days are required to place 4,000 square feet at that production rate?

• A12 days
• B14 days
• C16 days
• D20 days

A takeoff shows 15.0 cubic yards of concrete in place. The estimator adds a 10 percent waste factor. How many cubic yards should be ordered?

• A15.0 cubic yards
• B16.5 cubic yards
• C18.0 cubic yards
• D25.0 cubic yards

Which element is required, along with offer and acceptance, to form an enforceable contract?

• AA bid bond from a Treasury-listed surety
• BConsideration — a bargained-for exchange of value
• CA mechanic’s lien memorandum recorded before work starts
• DBoard approval of the contract form