Virginia issues contractor licenses to businesses, not individuals, and sets your Class A/B/C by project value. Here's the 2026 breakdown of classes, classifications, exams, and the qualified-individual requirement.
If you want to bid, contract, or run construction projects in Virginia, you need a contractor license from the Department of Professional and Occupational Regulation (DPOR) Board for Contractors. Virginia's system is different from many states in two ways that catch people off guard: the license is issued to your business, not to you personally, and your class is determined by the dollar value of the work you take on. This 2026 guide breaks down the classes, the classifications, the exams, and the qualified-individual requirement that ties it all together.
Virginia Licenses the Business, Not the Person
In Virginia, the contractor license belongs to the business entity, the sole proprietorship, LLC, or corporation. The business then names the people who make it qualified:
- A Qualified Individual (QI), a person who meets the experience requirement and carries the trade competency for each classification or specialty the firm holds.
- A Designated Employee, who passes DPOR's business-and-law exam on behalf of the firm.
Because the license is tied to those named individuals, a company is only as licensed as the qualified people standing behind it. That single fact is what makes the qualifier question (covered below) so important for anyone starting, buying, or expanding a Virginia contracting business.
Step 1: Choose Your Class (A, B, or C) by Project Value
DPOR issues contractor licenses in three classes, distinguished by the dollar value of work you are allowed to perform, both per project and per year:
- Class C, the smallest tier: single projects roughly $1,000–$29,999 and annual gross under about $250,000; approximately one year of experience; no minimum net-worth requirement.
- Class B, a mid tier: single projects roughly $30,000–$149,999 and annual gross of about $250,000–$999,999; roughly three years of experience; a minimum net worth (commonly cited around $15,000).
- Class A, no monetary limit: single projects $150,000+ or annual gross $1M+; roughly five years of experience; a higher minimum net worth (commonly cited around $45,000), with a surety-bond option in lieu of net worth in some cases.
Virginia's per-project and annual monetary limits, and the minimum net-worth / financial requirements that go with each class, are set by DPOR and have been adjusted over time. Confirm the current thresholds directly with DPOR before you choose a class.
Step 2: Choose Your Classification or Specialty
The class sets how big your projects can be; the classification or specialty sets what kind of work you are licensed to do. Virginia's general-building classifications are the ones most "general contractors" want:
- Residential Building Contractor (RBC), the general residential classification (formerly called BLD).
- Commercial Building Contractor (CBC), the general commercial classification.
- Home Improvement Contracting (HIC), residential improvement work.
- Commercial Improvement Contracting (CIC), commercial improvement work.
- Highway / Heavy (H/H), infrastructure and heavy construction.
Virginia also issues trade specialties such as Electrical (ELE), Plumbing (PLB), and HVAC (HVA). A firm can carry more than one classification or specialty, but each one needs a qualified individual who holds the competency for it, and the trade specialties require that person to hold the corresponding master tradesman license (see our Virginia electrician, plumbing, and HVAC guides for those tracks).
Step 3: Meet the Exam and Education Requirements
Two requirements sit on top of the class and classification:
- The Designated Employee exam. Class A and Class B applicants must pass DPOR's Designated Employee exam through PSI, Virginia's testing vendor. It covers general business knowledge and the laws and regulations governing Virginia contractors. If the firm is seeking a building classification (RBC, CBC, or HIC), the exam also tests knowledge of the Virginia Uniform Statewide Building Code (USBC). Virginia has been expanding exam requirements over time, so confirm whether your specific class and classification require an exam with DPOR.
- The pre-license basic business course. Before an initial contractor license is issued, a responsible party must complete a Board-approved pre-license basic business course.
Exam content, fees, and course requirements are set by DPOR and PSI and change over time. Verify the current requirements with DPOR before you apply.
Step 4: Meet the Financial and Insurance Requirements
Class B and Class A require you to demonstrate a minimum net worth (or, in some cases, post a surety bond instead). All classes should plan for general liability insurance, and workers' compensation if you have employees. Virginia is also a NASCLA-accredited state, which means an approved NASCLA exam credential can streamline part of the process for qualifying multi-state, see our guide to the NASCLA exam and accredited states. For a national view of bonding, see contractor bond requirements by state.
Step-by-Step: Getting Your Virginia Contractor License
- Form your business entity and register it with the Virginia State Corporation Commission if required.
- Choose your class (A, B, or C) based on the project values and annual volume you intend to take on.
- Choose your classification/specialty (RBC, CBC, HIC, or a trade specialty like ELE/PLB/HVA).
- Line up your qualified individual, the person with the required experience (and, for trade specialties, the master tradesman license) who will qualify the firm.
- Complete the pre-license basic business course and, for Class A/B, pass the Designated Employee exam through PSI.
- Assemble your financials (net worth documentation for Class A/B) and insurance.
- Submit the contractor license application to the DPOR Board for Contractors with all supporting documents.
- Maintain the license, renew on schedule and keep your qualified individual and designated employee current.
How Much Does a Virginia Contractor License Cost?
The government fees are only part of the picture. You will have the DPOR contractor license application fee, an annual business registration fee, PSI exam fees for Class A/B, the pre-license course cost, and, for Class A and B, the cost of meeting the net-worth or bond requirement. Add general liability insurance and any local business licenses on top.
Government and exam fees are set by DPOR and PSI and are subject to change. Verify the current fee schedule with DPOR before you apply.
There is no single number for "what it costs to get qualified," because it depends on your class, classification, financials, and insurance. See our contractor license cost guide for the framework, and our overview of the difference between a contractor license and a business license so you register the right things.
The Qualifier: Virginia's Make-or-Break Requirement
Because Virginia issues the license to the business and requires it to name a qualified individual, the qualifier is the linchpin of the whole system. If you personally have the experience (and, for a trade specialty, the master license), you can qualify your own company. But three situations create a real problem:
- You are starting a company and do not yet have the years of experience the class requires.
- You are expanding into Virginia from another state and your existing credentials do not transfer cleanly.
- Your qualifier left and the license is now at risk.
In all three, the business needs a qualified individual it can legitimately build around. Trying to "borrow" or "rent" someone's license is illegal in Virginia and puts the license and the business at risk. The legitimate path is to bring on a properly qualified person as a W-2, full-time employee who serves as the qualified individual, a genuine member of your company who stands behind its work, not a name rented for a fee or a percentage.
That is the only model we use: full-time W-2 placement, never percentage, flat-fee, per-project, or 1099 "license rental." Learn what a qualifying agent is, how the general contractor qualifying agent role works, and why renting a license is the wrong move.
Frequently Asked Questions
Is a Virginia contractor license issued to a person or a business? To the business. The firm holds the license and names a qualified individual (who carries the trade competency) and a designated employee (who passes the business-and-law exam). This is why the qualifier question matters so much.
What is the difference between Class A, B, and C? The class is set by the dollar value of your work. Class C handles the smallest projects (roughly up to $30,000), Class B a mid range (roughly $30,000–$150,000), and Class A has no monetary limit. Higher classes require more experience and a minimum net worth. Verify the current thresholds with DPOR.
What is the difference between a classification and a specialty? A classification like RBC (residential building) or CBC (commercial building) covers general building work; specialties like Electrical (ELE), Plumbing (PLB), and HVAC (HVA) cover specific trades. A firm can hold several, but each needs a qualified individual.
Do I need to pass an exam for a Virginia contractor license? Class A and Class B require the Designated Employee exam through PSI (with a Uniform Statewide Building Code component for building classifications). Virginia has been expanding exam requirements, confirm what applies to your class and classification with DPOR.
Can I get a Virginia contractor license without the required experience? Not on your own, the qualified individual must meet the experience requirement for the class. The legal way to satisfy it when you don't personally qualify is to employ a qualified individual full-time as a W-2 employee.
Next Steps
Virginia's contractor system rewards businesses that plan the three moving parts, class, classification, and qualified individual, before they apply. Get those aligned and the application is straightforward.
If your business needs a qualified individual to hold its Virginia contractor license, whether you are starting up, expanding into Virginia, or replacing a qualifier who left, we place licensed professionals as full-time W-2 employees. Explore hiring a qualifying agent, read how to become a general contractor, compare other state guides like North Carolina and Tennessee, or browse our state guides.
Fees, exam details, experience requirements, and monetary limits in this guide are set by DPOR and PSI and are subject to change. Always verify current requirements with the Virginia Department of Professional and Occupational Regulation before applying.
Who actually qualifies the license: the Designated Employee and Qualified Individual
The Virginia license belongs to your business entity, but the eligibility behind it belongs to named people. Class A and Class B firms must declare a Designated Employee who passes the PSI business examinations, and every firm must name a Qualified Individual for each classification or specialty on the license.
Both roles carry the same hard constraint: the person must be a member of Responsible Management, or a bona fide full-time employee working at least 30 hours per week and expressly "not a 1099 employee." When they are not an owner or manager, DPOR asks for an I-9 or W-2 as proof of the employment.
That single rule decides how most contractors can and cannot enter Virginia. We break the whole structure down, both roles, the trade-license prerequisites, the eight-hour pre-license course, the fees and what happens when either person leaves, in Virginia's Designated Employee: who actually qualifies a Class A or B contractor license.
Disclaimer: This article is provided for educational and informational purposes only. It does not constitute legal advice, licensing guidance, or an offer of services. Licensing requirements vary by jurisdiction. For specific compliance questions, contact The Licensing Company for a confidential consultation.