Before you engage in the construction, removal, repair, or improvement of facilities on property owned by others in Virginia (like in most other states) you must first obtain a contractors license. Contractor licenses are issued by the Department of Professional and Occupational Regulation through the Board for Contractors. Virginia contractor licenses consist of two parts, the first of which this post will cover: Classes.
Virginia has three classes of contractor licenses: Class A, Class B, and Class C. The class that you are in will determine the financial size of jobs that you'll be able to take in Virginia. So when you're considering which class makes sense for your business, you first need to think about the potential size of the jobs you'll be doing.
Class A contractors are the highest class level and can take any financial size job they want. You must get a Class A contractor license if the total value of a single project will be $120,000 or more or if the total value of all of your projects in any 12 month period will be $750,000 or more.
Class B contractors are the second highest level and can take single jobs of less that $120,000 and total annual jobs up to $750,000 per 12 month period.
Class C contractors can only take single jobs worth no more than $10,000 and total annual work of no more than $150,000 per 12 month period.
Because of the higher financial level that Class A and Class B contractors can accept, the licensing application process is more complicated than the relatively easy Class C contractor licensing process.
Once you have determined the proper Class to apply for, the second part of the Virginia contractor license is the classification or specialty designations you'll need, which tells you the type of work you can do. We'll cover that in another post.Spread the Word