Virginia
Contractor Bonds

Virginia Contractor License Bonds

Contractors in the state of Virginia wishing to perform any work, including removals or repairs that total a minimum of $1,000, must obtain a contractor’s license as outlined by the Code of Virginia 54.1-1103. The Virginia Department of Professional and Occupational Regulation (DPOR) requires contractors to post a $50,000 contractor bond as a contractual obligation that the contractor will perform all work in accordance with applicable laws and regulations or be held liable for damages or negligence.

How to become a licensed contractor in the state of Virginia

Applicants for a Virginia contractor license must complete the following eight steps before they are eligible for a license and can complete the application.

Create and register a business entity

Contractor licenses in Virginia can only be issued to businesses, not to individuals. Therefore, to be eligible to receive a license, contractors must create a business entity; these include sole proprietorships, limited liability companies, partnerships, and corporations.

Corporations, LLC, and limited partnerships must register with the State of Corporation Commission. However, partnerships or sole proprietorships must register their business name with the local jurisdiction court.

All businesses must pay the annual business registration fee of $50. You can find information on business entities and rules concerning their names at Virginia’s Business One Stop service.

Determine contractor license type

Contractors must first determine their class type out of the three Board-recognized classes:

• Class A: For contractors who work on single contracts of at least $120,000 or as much as $750,000 (or more)

• Class B: For contractors who work on single contracts of $10,000 or more, but less than $120,000; they may work with contracts that total $150,000 or more, but less than $170,000, within one year

• Class C: For contractors who work on single contracts of at least $1,000 or more, but less than $10,000, or totaling less than $150,000 within one year

Contractors must then determine their area of specialty within the contractor classification:

• Building

• Electrical

• Plumbing

• HVAC

• Highway/heavy

Identify your responsible management

All members, officers, partners, and owners of the business entity must be identified as they are responsible for ensuring all statutes and regulations are followed by individual employees and the business. All listed individuals must provide their name, birthdate, Social Security number or Virginia DMV Control Number, address, and a copy of their government-issued photo ID.

Identify your qualified individual

All Virginia contractor business must identify a qualified individual for their class, with their specialty (or specialties) indicated on the application. Qualified individuals must be eligible according to the following specifications:

• Full-time employee working a minimum of 30 hours per week or a member of the responsible management of the business applying

• Hold minimum amounts of work experience within their specialty (linked to the license class).

  • Class A: 5 years of experience

  • Class B: 3 years of experience

  • Class C: 2 years of experience

• Indicate their name, birthdate, Social Security Number or DMV control number, and address and provide a copy of a photo ID

• A license/certification or a technical exam may be required based on the individual’s area of specialty

Appoint a Designated Employee

The designated employee must be at least 18 years of age and either a full-time employee or appointed as a member of the Responsible Management.

Class A and B contractors are required to have the Designated Employee pass the required sections of the contractor’s exam. Candidates can contact PSI or access its website for registration. The exam fees are as follows, based on the parts of the exam that must be completed:

• One section of the exam: $40

• Two sections of the exam: $72

• Three sections of the exam: $85

• Class A exam: $60

• Class B exam: $40

• Tradesman examination fee: $130

Candidates for a company’s Designated Employee designation can get more information on locations and the exam, including exactly which exam(s) and which sections they must pass, from PSI on the Contractor Examination Candidate Information Bulletin.

Note: There are no requirements for a Designated Employee for Class C licensure.

Once applicants for the Designated Employee designation successfully complete the contractor’s examination, they are eligible to become a Designated Employee. On the application, they must include their name, birthdate, Social Security number or Virginia DMV Control Number, and address, as well as a copy of their government-issued photo ID.

Complete the pre-licensure education

Eight hours of pre-license education must be completed for applicants to be licensed as a Class A, B, or C contractor. Class A and B applicants must have a Designated Employee or member of Responsible Management complete this requirement. Class C applicants must have a member of Responsible Management complete the education requirement.

After completion of the education course, request proof of completion from the course provider to submit electronically to the Board. The proof must identify the course, provider, date of course completion, and the name of the student who completed the course.

Post a surety bond

A $50,000 contractor license bond is required by the Virginia Department of Professional and Occupational Regulation to protect consumers from potential negligence or shady business practices conducted by the contractor. This requirement is in place of providing financial statements to prove net worth if the contractor cannot meet the minimum requirement for Class A or B licenses. 

Note: Class C contractors are exempt from this requirement.

Bond requirements may differ between cities and counties within the state, so it is important to check with your city and/or county to determine which specific bond coverage may be required.

Compile all documentation, pay the fees, and submit the application

Contractors can apply for licensure via an online interactive application, completed electronically or via a static application printed and completed by hand.

The following must be included with the application:

• Surety bond or financial statements

• Contractor Experience Verification Form (must be filled out by the applicant)

• Any other required verification forms

• Applicable fees via money order or check payable to “Treasurer of Virginia”

  • Class A license: $385

  • Class B license: $370

  • Class C license: $235

Submit your printed and completed static license applications to:

Commonwealth of Virginia, Department of Professional and Occupational Regulation,

9960 Maryland Drive, Suite 400

Richmond, Virginia 23233-1485

Interactive applications can be emailed to [email protected].

How long are Virginia contractor licenses effective?

Virginia contractor licenses are valid for a two-year term, starting from the last day of the month in which the licensed was issued. These licenses must be renewed before their expiration date.

Home Service Contract Providers Bond

The state of Virginia Department of Agriculture and Consumer Services requires home service contract providers to post a contractor bond as a requirement of registering as a home service contract provider in the state. The bond amount requirements are as follows:

• $10,000 contractor bond: $50,000 or less in total amount of unexpired or home service contracts

• $40,000 contractor bond: $50,001 to $300,000 in total amount of unexpired or home service contracts

• $65,000 contractor bond: $301,000 to $750,000 in total amount of unexpired or home service contracts

• $90,000 contractor bond: $750,001 or more in total amount of unexpired or home service contracts

City- and county-specific Virginia surety bonds

Various cities and counties throughout the state of Virginia have their own contractor bond requirements for licensing, registration, or permit purposes.

Fairfax County Home Improvement Contractor Bond

The Fairfax County, VA Board of Supervisors of Fairfax County of the Department of Public Works/Environmental Services requires home improvement contractors to post a contractor license bond as a requirement of becoming licensed as a home improvement contractor. Contractors must bond a bond in the amount of either $5,000 or $10,000 and submit the completed bond forms with the required financial statement documentation.

ContractorBonds.com can issue both a $5,000 and $10,0000 Fairfax County home improvement contractor license bond for a $100 premium instantly online without a credit check.

City of Falls Church Tree Contractor Bond

The City of Falls Church Department of Development Services Urban Forestry/Arborist Division requires tree contractors to post a $1,000 contractor license bond to become licensed as a tree contractor. This bond is issued instantly online for a one-year term expiring June 30. This means that the price of this bond may be prorated depending on when the bond is issued. However, there is a minimum cost to this bond of $100 for a one-year term.

City of Newport News Contractor License Bond

Class C contractors or Master Tradesmen are required to post a $5,000 contractor bond by the City of Newport News Department of Code Compliance to register as a contractor. This bond can be purchased instantly online for a $100 premium.

City of Petersburg Excavation Contractor Bond

The City of Petersburg requires excavation contractors to obtain an excavation permit. A requirement of obtaining an excavation permit is to post a $1,000 contractor bond, which can be obtained instantly online for $100.

City of Danville Contractor Bond

A $5,000 contractor bond is required of all Class B and C contractors in Danville to obtain a business license. This bond costs just $100 for a one-year term of bonding. Purchase your Danville contractor bond online today!

Prince William County Home Improvement Contractor Bond

The County of Prince William mandates that all home improvement contractor license applicants provide a $10,000 contractor bond. These bonds can be issued instantly online for a $100 premium through ContractorBonds.com.

NOTE: This list is not inclusive of every contractor bond that could be required in Virginia. View our detailed list below to find the specific bond you need!