Are there different types of contractors?

"Are you a licensed contractor?" This is a question that I often get asked by my customers during our initial meeting, and that's a good thing. It shows me that consumers in the State of Virginia are getting smarter about hiring State licensed contractors. However, often Consumer's knowledge or due diligence stops at that point. In this brief posting, I would like to enhance consumer's understanding of different types of contractor licenses offered in the State of Virginia.

State of Virginia offers 3 different types of contractor licenses; class A, B and C. Let's start with the lowest level license, C. This class of license is the entry level to construction business as a contractor. State of Virginia does not require holders of class C licenses to take a qualification exam. Instead candidates are obligated to attend a 8 hour long class offered by a state authorized trainer. This is the same class that candidates for all class type license must attend, including A and B. The class generally covers various topics at a high level including legal, business and some local building code. Once the candidates for class C license attend and complete the class, they are qualified to become State certified contractors. Their licenses remain valid for the duration of 24 months. This type of license comes with certain limitations, most importantly project size and annual business volume. C class license owners are limited to work on projects that are under $7,500 per contract and less than $150,000 per annum.

The next level up is class B type contractor license. Apart from attending the mandatory class, candidates must also pass 2 exams in order to qualify for this classification. The exam is designed to test the business, legal and some construction code knowledge of the candidates. The monetary limitations for this class are less than $120,000 per project and less than $750,000 per annum.

The final level is called class A type contractor's license. The holders of this license are required to take the same 2 exams as the class B license holders, and an additional exam that generally tests their understanding of finances and running a business. State does not place any monetary limitations tby projects as well the total volume of annual business for these license holders.

Most counties and cities started to require a "Builder" license for any construction projects involving new construction as well as additions. This classification requires an additional exam that tests the knowledge of candidates on topics such as reading a blue print, state construction codes and safety. Holders of both class A and B licenses can qualify to become "Builder" provided they obey by monetary limitations imposed upon their licenses by the State.

You may say, "What if I have a project that is less than $1,000 per single contract?" In that case, State does not require companies to be licensed for any class of contractor. So you can use your friend from church, work or school for small projects costing less than $1,000 without having to verify if they are state licensed.

I hope this posting will help you understand the different type classes of State contractor licenses. Make sure that your contractor and the sub contractors employed by him/her are State licensed. Verify their licenses by visiting the following URL and clicking on License Lookup:

http://www.dpor.virginia.gov/dporweb/servicesconsumers.cfm

Murat Aksu
December 25th, 2006