License Eligibility, Designated Employees, Qualified Individuals & Pre-Licensing Education
Key Takeaways
- Qualified Individual experience is 5 years for Class A, 3 years for Class B, and 1 year for Class C (18VAC50-22-40/50/60).
- Class A and Class B firms must name a Designated Employee who is at least 18, is a full-time employee or member of responsible management, and has passed the Board-approved business examination portions required for that class.
- Pre-license education is an 8-hour Board-approved basic business course: for Class A/B it must be completed by the Designated Employee or a member of responsible management; for Class C, by a member of responsible management.
- Contractor licenses are issued to business entities (corporations, LLCs, partnerships, sole proprietorships), not to individuals as personal licenses.
- Under 18VAC50-22-220, a change of Designated Employee must be reported within 120 days, and a change of Qualified Individual within 60 days.
License Eligibility, Designated Employees, Qualified Individuals & Pre-Licensing Education
Quick Answer: Contractor licenses in Virginia are issued to business entities, not individuals. Class A and Class B firms need a Designated Employee who passes the PSI business exam portions and a Qualified Individual with the required experience. Class C firms need a Qualified Individual and pre-license education completed by responsible management, but no Designated Employee exam.
Securing a contractor license in Virginia requires a thorough understanding of entity eligibility rules, key personnel responsibilities, and mandatory educational prerequisites. The Board for Contractors distinguishes between the business entity holding the license and the key individuals whose credentials satisfy statutory requirements.
Entity Licensing vs. Personnel Credentials
Under Board regulations, a Virginia contractor license is granted exclusively to a legal business entity. Eligible entity types include:
- Sole Proprietorships
- General or Limited Partnerships
- Limited Liability Companies (LLCs)
- Corporations (C-Corp or S-Corp)
While individual tradesmen (such as Master Electricians or Plumbers) receive personal licenses, contractor licenses belong to the firm. To qualify for licensure, the business entity must designate specific key personnel who fulfill examination, educational, and experience mandates.
Key Personnel Roles Defined
Virginia regulations define two critical key personnel roles:
1. The Designated Employee (DE)
The Designated Employee is the individual who satisfies the Class A or Class B business-examination requirement on behalf of the firm (Va. Code § 54.1-1100 definition; 18VAC50-22-50 B and 18VAC50-22-60 B).
- Age: At least 18 years of age
- Employment standard: Must be a full-time employee (DPOR application materials treat full-time as a minimum of 30 hours per week) or a member of responsible management
- Examination:
- Class B: Virginia portion + General portion
- Class A: Virginia portion + General portion + Advanced portion
- Pre-license course: The Designated Employee or a member of responsible management must complete the Board-approved basic business course (not more than 8 hours)
Class C licenses do not require a Designated Employee examination. For Class C, a member of responsible management completes the pre-license education.
2. The Qualified Individual (QI)
The Qualified Individual supplies the technical experience (and any specialty exam or credential) for each classification or specialty on the license:
| License Class | QI Minimum Experience | Authority |
|---|---|---|
| Class A | 5 years in the classification/specialty | 18VAC50-22-60 C |
| Class B | 3 years in the classification/specialty | 18VAC50-22-50 C |
| Class C | 1 year in the classification/specialty | 18VAC50-22-40 B |
The QI must be at least 18 and must be a full-time employee or member of responsible management. Some specialties also require a master tradesman license or other Board-approved technical exam (see 18VAC50-22-61 and DPOR QI requirements).
Pre-License Education (All Classes)
DPOR requires eight hours of Board-approved pre-license education for all new Class A, Class B, and Class C contractor licenses. The course is separate from the PSI Designated Employee examinations.
- Class A / Class B: completed by the Designated Employee or a member of responsible management
- Class C: completed by a member of responsible management
PSI Designated Employee Exam Structure (Business Exam)
The business examination administered by PSI for Designated Employees uses the DPOR Candidate Information Bulletin content outlines:
| Portion | Items | Passing Score | Time | Required For |
|---|---|---|---|---|
| Virginia | 24 | 18 correct | 48 minutes | Class A and Class B |
| General | 50 | 35 correct | 100 minutes | Class A and Class B |
| Advanced | 24 | 17 correct | 60 minutes | Class A only |
PSI exam fees (paid to PSI) are published by DPOR as $40 (one portion), $72 (two portions), and $85 (three portions). Always confirm current fees on the DPOR Board for Contractors page before scheduling.
Virginia Portion Blueprint Topics
Regulation of Contractors; Board Rules and Regulations; Building Codes; Transaction Recovery Fund; Virginia Erosion and Sediment Control Regulations.
General / Advanced Blueprint Topics
Business Organization; Estimating and Bidding; Contract Management; Project Management; Risk Management; Safety; Labor Laws; Financial Management; Federal and State Taxes; Lien Laws (Advanced deepens selected General topics for Class A).
Reporting Changes in Key Personnel (18VAC50-22-220)
When key people leave or change, the firm must report on Board forms within strict deadlines:
| Change | Reporting Deadline |
|---|---|
| Designated Employee | Within 120 days of the change |
| Qualified Individual | Within 60 days of the change |
| Responsible management principals (corporation, LLC, or association) | Within 120 days of the change |
Exam trap: do not treat DE and QI deadlines as identical. DE = 120 days; QI = 60 days.
Putting It Together for Application Day
A complete Class A application typically includes:
- Business entity formation / SCC registration as applicable
- Identification of responsible management
- Designated Employee who passed Virginia + General + Advanced
- Qualified Individual(s) with 5 years experience (and any specialty exam)
- Proof of $45,000 net worth/equity or $50,000 Board-form bond
- Eight-hour pre-license course certificate
- Application fees plus the $25 Recovery Fund assessment required of each initial contractor applicant
How many years of verifiable experience must a Qualified Individual possess for a Class A contractor license application?
For a Class A or Class B contractor license, who must complete the Board-approved basic business (pre-license) course of not more than eight hours?
Under 18VAC50-22-220, within how many days must a firm report a change of Designated Employee versus a change of Qualified Individual?
Under Virginia contractor regulations, to whom is the contractor license officially issued?