Virginia Contracting Statutes, Regulations, and Licensing Requirements
The statutory frame
Contractor licensing lives in Title 54.1, Chapter 11 of the Code of Virginia and is administered by the Board for Contractors within the Department of Professional and Occupational Regulation (DPOR). "Contractor" is defined broadly as anyone who, for compensation, undertakes work on real property. Licenses are issued in three classes based on the dollar value of a single contract: Class C for work up to $10,000, Class B for work between $10,000 and $120,000, and Class A for work of $120,000 or more. Class limits apply per contract, not to annual volume.
Compliance points that generate questions
A license of the correct class must be in place before bidding, not merely before signing. Licenses run on a two-year renewal cycle and require the pre-licensing business course and examination for Class A and B applicants. Advertising must display the license number and class. Prohibited acts include contracting without a license, aiding an unlicensed person, and misrepresenting credentials; the Board may impose monetary penalties per violation. Courts generally will not assist an unlicensed contractor in collecting for work that required a license.
Adjacent Virginia rules
Residential home improvement work also falls under the Virginia Consumer Protection Act, which reaches fraudulent or misleading practices. The Contractor Transaction Recovery Fund gives consumers a limited recovery path against licensed contractors. Mechanics' liens (Title 43) generally require recording a memorandum of lien in the circuit court within 90 days of last furnishing labor or materials, measured from the last day of the month of last work, and suit to enforce within six months of recording. Virginia's Workers' Compensation Act covers employers with three or more regular employees - note the threshold.
Worked example
A firm holds a Class B license and bids an $85,000 job: proper. It then bids a $140,000 job without upgrading: violation of the class limit even though the annual total is small.