The sticker price of a Virginia contractor license is reasonable; the trap is that the cost comes in pieces from different sources. Between the exam, the license application, the net worth or bond requirement, the 8-hour course, and business registration, the real total is higher than any single fee. Here is every verified number, grouped so you can budget.
Exam fees
PSI charges per portion: $40 for one portion, $72 for two, $85 for three. So a Class A designated employee taking all three portions pays $85 total, and a Class B designated employee taking two pays $72. Class C takes no business exam, so there is no exam fee for Class C. Fees are nonrefundable and nontransferable, and they are valid for one year from payment. If you fail and retest, you pay again, which is the cheapest argument for studying seriously the first time. Confirm current fees in the PSI bulletin before paying, since fees can change.
Initial application fees
Once the exam is passed, the firm applies to the Board for Contractors. Initial application fees:
- Class A: $400
- Class B: $380
- Class C: $235
The initial application also carries a $25 Transaction Recovery Fund assessment.
Renewal and reinstatement fees
Licenses run for 2 years from the last day of the month issued. Renewal fees:
- Class A: $240
- Class B: $225
- Class C: $195
Renewal is allowed within 30 days after expiration, but the license is not valid during that 30-day window, so working in the grace period is unlicensed contracting. After 30 days, you need reinstatement, allowed up to 24 months post-expiration, after which you apply as new. Reinstatement fees:
- Class A: $490
- Class B: $460
- Class C: $405
Set a calendar reminder well before expiration. A lapsed license that you work on can turn a $195 renewal into a $460 reinstatement plus exposure for unlicensed contracting.
Net worth or the bond alternative
Class A firms must show $45,000 net worth or equity; Class B must show $15,000; Class C has no net worth requirement. A $50,000 surety bond may substitute for the Class A or B net worth. Net worth is proved by a board financial statement, a CPA-reviewed statement, or a CPA audit. If your firm cannot show the net worth, the bond route has an annual premium cost from the surety market, so price that into your budget rather than discovering it at application time.
Other costs people forget
- The 8-hour basic business course. Required by board regulation for the designated employee or responsible-management member. Course providers set their own prices, so shop around, but do not skip it: it is a licensing requirement, not a suggestion.
- Business registration. If you form an LLC, the State Corporation Commission charges $50 per year as the annual registration fee (the $25 figure in some prep materials is the late penalty, not the fee). Nonstock corporations pay $25; stock corporations pay $100 for 5,000 or fewer authorized shares plus $30 per additional 5,000 shares or fraction, capped at $1,700.
- Reference books. The open-book exam assumes you own the NASCLA Virginia 11th Edition guide, and for the Virginia Portion you will want the USBC 2021 edition. Budget for both before exam day.
- What non-compliance costs. Unlicensed contracting is a Class 1 misdemeanor with fines up to $500 per day. Board discipline runs to a monetary penalty of up to $2,500 per violation, plus suspension or revocation. Compared with those, the license fees are cheap.
A rough budget by class
Add the pieces for a first license (excluding the bond premium and course price, which vary):
- Class A: $85 exam + $400 application + $25 Fund assessment = $510 before books, course, and bond/net worth.
- Class B: $72 exam + $380 application + $25 Fund assessment = $477 before books, course, and bond/net worth.
- Class C: no exam fee + $235 application + $25 Fund assessment = $260 before books and course.
Then the license runs 2 years, and you renew for $240/$225/$195. See the full licensing requirements and the step-by-step how to get licensed to plan the sequence. This is an independent study aid, not affiliated with DPOR, the Board for Contractors, PSI, or NASCLA; always confirm fees against the current bulletin and Board fee schedules before paying.
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