What Are the Requirements for a Class B Virginia Contractor License?
A Class B contractor license allows a Virginia contractor to take on larger projects than a Class C license while remaining below the monetary limits established for Class A contractors.
Compared with Class C, obtaining a Class B license also comes with additional requirements, including more experience, a Designated Employee (DE) who passes the Class A/B contractor exam, and a financial qualification requirement.
If you're still deciding which license class your business needs, our Virginia Contractor License Classes Explained compares Virginia's Class A, Class B, and Class C licenses.
Here are the main requirements for obtaining a Virginia Class B contractor license.
Virginia Class B Monetary Limits
Your contractor license class determines the monetary value of the projects your business is allowed to perform.
Under the current Virginia contractor license class definitions, a Class B contractor may perform projects valued at $30,000 to less than $150,000 per project with total projects of $250,000 to less than $1 million during any 12-month period.
Virginia's contractor monetary limits changed in 2025, so older resources may still show the previous amounts. You can find the current limits for all three license classes in our Updated Virginia Contractor License Monetary Limits.
If your business plans to take on a single project worth $150,000 or more, or $1 million or more in projects during a 12-month period, you'll need a Class A license.
Class B Experience Requirement
For every classification or specialty on the contractor license, the business must designate a Qualified Individual (QI).
For a Class B license, the Qualified Individual must have at least 3 years of experience in the classification or specialty being requested.
The QI must also be at least 18 years old and either a full-time employee of the business or a member of its responsible management. These requirements are established in the Virginia Class B contractor regulations.
Does a Class B Contractor Have to Take an Exam?
Yes. A Class B contractor must have a Designated Employee (DE) who passes the required Class B contractor examination.
The Class B exam consists of two portions:
Virginia
General
Unlike the technical exam, the Class B examination is focused on business, law, regulations, and general contracting knowledge rather than a specific contractor classification or specialty.
The DE must be at least 18 years old and must be either a member of Responsible Management or a bona fide full-time employee of the business. DPOR's current contractor licensing guide confirms that Class B Designated Employees must successfully complete the Virginia and General portions of the examination.
What About the Technical or Classification Exam?
The Class B exam and technical exam are two different examinations with two different purposes.
The Designated Employee (DE) takes the Class B exam.
The Qualified Individual (QI) is responsible for meeting the experience and examination requirements for the classification or specialty being requested.
For example, if a Class B business is applying for the Residential Building Contractor (RBC) classification, its QI must meet the RBC requirements and take the RBC technical exam after the contractor application has been approved by DPOR.
The DE and QI do not necessarily have to be different people. The same person can serve in both roles if that individual meets the requirements for each.
Is the 8-Hour Pre-Licensing Course Required for Class B?
Yes. A new Class B contractor applicant must complete a Board-approved 8-hour contractor pre-license education course.
For Class B, the person who completes the course can be either:
the Designated Employee, or
a member of Responsible Management.
Importantly, the person who takes the 8-hour course does not have to be the same person who takes the Class B exam or the technical exam.
DPOR specifically describes pre-license education as a requirement separate from the Class B examination. The course itself is a basic business course covering relevant statutes, regulations, and requirements and is not specific to a particular classification or specialty.
You can learn more in What Is the Virginia Contractor 8-Hour Pre-Licensing Course? or view DPOR's official contractor pre-license education information.
What Is the Class B Financial Requirement?
Class B contractors must also satisfy a financial qualification requirement.
A Class B applicant must demonstrate at least $15,000 in net worth or equity.
Virginia provides different methods for documenting the financial requirement. The exact documentation you submit depends on the method you choose.
Can a Class B Contractor Use a Surety Bond Instead?
Yes.
Rather than satisfying the $15,000 net worth or equity requirement, a Class B applicant can obtain a $50,000 surety bond using the Virginia Board for Contractors' required bond form.
This is an alternative to the financial qualification requirement, not an additional requirement on top of it.
In other words, a Class B applicant does not have to demonstrate $15,000 in net worth/equity and obtain a $50,000 surety bond. DPOR instructs Class A and B applicants to select one method of financial verification.
Class B Contractor License Requirements at a Glance
The Class B licensing process can look complicated because different people may be responsible for different requirements. In simplified terms, the process generally looks like this:
Establish the business that will hold the contractor license.
Complete the required 8-hour contractor pre-license course. For a Class B application, either the Designated Employee or a member of Responsible Management can complete the course.
Choose your classification or specialty and identify your Qualified Individual. The QI must have at least three years of qualifying experience and meet the requirements for the classification or specialty being requested.
Have the Designated Employee take and pass the Class B contractor exam. The Class B DE must pass the Virginia and General portions of the examination.
Submit the Class B contractor license application to DPOR. The application identifies the business's Responsible Management, Designated Employee, Qualified Individual, license class, classification or specialty, financial qualification information, and other required information.
After DPOR approval, have the Qualified Individual take the required technical/classification exam, if an exam is required for the requested classification or specialty. Once the remaining requirements have been satisfied, DPOR can complete the licensing process.
Important: The Class B exam is taken before the contractor license application is submitted, while a required technical/classification exam is taken after DPOR approves the application for testing.
Who Does What on a Class B Contractor License?
There are three terms you'll see frequently during the Class B licensing process:
Responsible Management refers to the individuals who have management responsibility for the business. Who qualifies depends on the business structure.
The Designated Employee (DE) is responsible for satisfying the Class B examination requirement.
The Qualified Individual (QI) qualifies the business for a particular classification or specialty through the required experience, examination, or prerequisite qualifications.
One person can potentially fill more than one of these roles as long as that person meets the requirements for each role.
Class B vs. Class C
Moving from Class C to Class B changes more than the monetary limits.
A Class B license:
allows larger individual projects and a higher annual volume of work;
requires the QI to have at least 3 years of qualifying experience, rather than the 1 year required for Class C;
requires a Designated Employee;
requires the DE to pass the Class B contractor exam; and
has a financial qualification requirement.
Both Class B and Class C still require an appropriate classification or specialty and a Qualified Individual who meets the requirements associated with it.
Frequently Asked Questions
Is the Class B contractor exam different from the technical exam?
Yes. The Class A/B contractor examination and the technical/classification examination serve different purposes.
The Designated Employee takes the Class A/B examination, while the Qualified Individual must satisfy the applicable examination and qualification requirements for the classification or specialty.
Can the same person be the DE and QI?
Yes, provided that person independently meets the requirements for both roles. A person serving as the DE must meet the Class B Designated Employee requirements, while a person serving as the QI must meet the experience and qualification requirements for the requested classification or specialty.
Does the business itself need three years of experience?
The Class B regulation places the three-year experience requirement on the Qualified Individual, not simply on the age of the business. The QI must have at least three years of experience in the classification or specialty for which that person serves as qualifier.
Do I need both $15,000 in net worth and a $50,000 bond?
No. The $50,000 surety bond is an alternative to demonstrating the required net worth or equity. You do not need both to satisfy this Class B financial qualification requirement.
Can I upgrade from Class C to Class B?
Yes. A licensed contractor can apply to change its license class, but the business must meet the requirements of the new class, including the Class B experience, examination, Designated Employee, and financial requirements.
Is Class B a type of contractor work?
No. Class B is the license class, which primarily determines the monetary limits and qualification requirements of the license.
The classification or specialty determines the type of contracting work the business is authorized to perform. For example, a business could be licensed as a Class B Residential Building Contractor (RBC).
