Surety Bond Professionals is a family-owned and operated bonding agency with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all of your Virginia contractor license bond needs. Learn how to get a contractor’s license in Virginia, below.
What Contractor Licenses Are Issued in Virginia?
Virginia licenses contractors through the Department of Professional and Occupational Regulation, Virginia Board for Contractors.
Virginia contractor licenses are classified in two different ways:
- The value of the projects undertaken
- The type of work done (general or specialty).
The three main classes of Virginia contractor licenses are:
|License Class||Single Project Value||Total 12-Month Value of All Projects|
|A||Over $120,000||$750,000 plus|
|B||$10,000 to $120,000||$150,000 – $750,000|
|C||$1,000 to $10,000||$150,000 or less|
All contractor licenses are issued to businesses, not individuals. This means that you must register your business with the state, even if you operate as a sole proprietor with only yourself as an employee.
What Are the Steps in the Licensing Process?
The licensing process is relatively straightforward:
- Register your business with the state.
- Complete the required eight hours of pre-licensing training and pass the exam.
- Download and complete the Virginia Contractor License application.
- Purchase a contractor license bond in the amount of $50,000.
- Pay the applicable application fee (currently $385 for Class A, $370 for Class B, or $235 for Class C).
- Submit the completed application, supporting documents, and Virginia contractor license bond to the Department of Professional and Occupational Regulation. Send the entire package by U.S. mail to 9960 Maryland Drive, Suite 400, Richmond, VA 23233-1485.
Why is a Contractor License Bond Required?
Until a few years ago, applicants for licensure as a Class A or Class B contractor in Virginia were required to submit financial documents proving a net worth of $45,000 or $15,000 respectively. You now have the option of providing a Virginia contractor license bond instead of a financial statement. Many contractors choose the license bond option.
A Virginia contractor license bond is a contractor’s guarantee to operate in accordance with the Contractor statutes found in Chapter 11 of Title 54.1 in the Code of Virginia. Any violation that results in a financial loss to the commonwealth of Virginia or a client gives the injured party the right to file a claim for damages and be compensated if the claim is valid.
How Are Contractor License Bond Claims Paid?
A Virginia contractor license bond is a legally binding contract between the Virginia Department of Professional and Occupational Regulation (the bond’s “obligee”), the contractor (the bond’s “principal”), and the surety company that authorizes the bond (the “surety”).
The surety bond agreement indemnifies the obligee and the surety, making the principal solely responsible for paying valid claims. However, if the surety is unable to negotiate a settlement that’s agreeable to all parties, and the principal does not pay the claim promptly, the surety will typically pay it and wait to be reimbursed by the principal.
How Much Does A Virginia Contractor License Bond Cost?
The surety will assign you a premium rate based on an assessment of how much risk would be involved if it became necessary to pay a claim on your behalf and wait for repayment. Consequently, the main factor considered is your personal credit score. With good credit, you should pay an annual premium that’s in the range of 1-3% of the $50,000 bond amount, or $500 to $1,500.
Get A Quote
Our surety bond professionals will get you the Virginia contractor license bond you need at a competitive rate.