License Maintenance, Renewal, Reinstatement, and Prohibited Acts / Disciplinary Sanctions

License Maintenance, Renewal, Reinstatement, and Prohibited Acts / Disciplinary Sanctions

Quick Answer: Virginia contractor licenses must be renewed every two years. If a license expires, reinstatement is permitted within one year; beyond one year, a new application is mandatory. Engaging in unlicensed contracting is a criminal Class 1 misdemeanor. The Board can issue administrative fines up to $2,500 per violation, suspend or revoke licenses, and manage claims under the Recovery Fund.

Maintaining an active, compliant contractor license in Virginia requires adherence to strict renewal schedules, ongoing education mandates, and legal standards of professional conduct. The Board for Contractors possesses broad statutory power to investigate misconduct, levy administrative penalties, and refer criminal violations to local Commonwealth's Attorneys.

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License Renewal Cycle & Expiration

Under 18 VAC 50-22-160, all Virginia contractor licenses are issued for a two-year (24-month) license cycle. Licenses expire on the last day of the month in which they were originally issued.

• Renewal Notices: DPOR mails renewal notices to the licensee's address of record approximately 45 days prior to expiration. However, failure to receive a renewal notice does not relieve the contractor of the legal obligation to renew on time.
• Renewal Requirements: To renew, a contractor must submit the completed renewal application, pay the biennial renewal fee, and confirm continued compliance with net worth and key personnel qualifications.
• Address Changes: Licensees are legally required to report any change of business address or registered name to DPOR within 30 days.

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License Reinstatement Rules

If a contractor fails to renew their license prior to the expiration date, the license enters an expired status. The regulations governing license reinstatement under 18 VAC 50-22-170 set firm time limits:

1. Reinstatement Within 1 Year (30 Days to 12 Months)

• A contractor whose license has been expired for less than 12 months may reinstate the license by submitting a Reinstatement Application and paying the required reinstatement fee.
• Contracting during this expired period remains illegal until the Board officially approves the reinstatement.

2. Expiration Exceeding 1 Year (12+ Months)

• Reinstatement is strictly barred by law after 1 year (12 months) from the date of expiration.
• The former licensee cannot reinstate or reactivate the old license under any circumstances.
• To resume contracting, the entity must submit a brand new license application, re-meet all initial eligibility standards, re-take required examinations, and pay initial application fees.

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Continuing Education (CE) Requirements

While general contractor entity licenses do not require annual CE credits, individual licensed tradesmen designated on licenses (such as Master/Journeyman Electricians, Plumbers, HVAC Techs, and Gas Fitters) must complete 8 hours of Board-approved Continuing Education during each two-year renewal cycle under 18 VAC 50-30-120.

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Prohibited Acts under 18 VAC 50-22-260

The Board's regulations list specific prohibited acts that constitute grounds for disciplinary action. Key prohibited acts include:

1. Unlicensed Contracting: Practicing contracting without a valid, active license of the proper class and classification.
2. Exceeding Monetary Limits: Contracting beyond the single project or annual revenue limits assigned to Class B or Class C licenses.
3. Misrepresentation & Fraud: Obtaining a license through false statements, misrepresenting credentials, or hiding criminal convictions.
4. Abandonment: Abandoning a construction project without legal cause or failing to perform work specified in the contract.
5. Building Code Violations: Committing willful or repeated violations of the Virginia Uniform Statewide Building Code (USBC).
6. Failure to Maintain Records: Failing to produce business or financial records upon official demand by DPOR investigators.
7. Failure to Pay Judgments: Failing to satisfy a court judgment arising out of a contracting business transaction.

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Sanctions & Criminal Penalties

Virginia law establishes severe administrative and criminal sanctions for violations of contracting laws:

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The Contractor Transaction Recovery Fund

Established under Virginia Code § 54.1-1118 et seq., the Contractor Transaction Recovery Fund provides limited monetary relief to eligible residential claimants who obtain unpaid judgments for improper or dishonest conduct by a licensed contractor.

• Assessments: Each initial contractor applicant pays a $25 Fund assessment (§ 54.1-1119). Board regulations also require a $30 Fund assessment with each license renewal.
• Claim limits: Maximum recovery is $30,000 for one claimant arising from one regulant and one transaction, and $100,000 aggregate per regulant during any biennium (§ 54.1-1123).
• Eligibility: Individual claimants must have contracted for work on their Virginia residence (or a property owners' association for common areas). Mere breach of contract is not enough.
• License consequences: Former automatic-revocation language in § 54.1-1126 was repealed. Under § 54.1-1125, the Board may consider amounts owed for Fund repayment when deciding whether to grant a license, and § 54.1-1127 preserves Board disciplinary authority.