Appendix E Virginia Board Of Contractors Licensing Law

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"Class A contractors" perform or manage construction, removal, repair, or improvements when (i) the total value referred to in a single contract or project is $120,000 or more, or (ii) the total value of all such construction, removal, repair, or improvements undertaken by such person within any 12-month period is $750,000 or more.

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"Class B contractors" perform or manage construction, removal, repair, or improvements when (i) the total value referred to in a single contract or project is $10,000 or more, but less than $120,000, or (ii) the total value of all such construction, removal, repair or improvements undertaken by such person within any 12-month period is $150,000 or more, but less than $750,000.

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"Class C contractors" perform or manage construction, removal, repair, or improvements when (i) the total value referred to in a single contract or project is over $1,000 but less than $10,000, or (ii) the total value of all such construction, removal, repair, or improvements undertaken by such person within any
12-month period is less than $150,000. The Board shall require a master tradesmen license as a condition of licensure for electrical, plumbing and heating, ventilation and air conditioning contractors.

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"Designated employee" means

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contractor's full-time employee, or a member of the contractor's responsible management, who is at least 18 years of age and who has successfully completed the oral or written examination required by the Board on behalf of the contractor

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Necessity for license; requirements for water well drillers and landscape irrigation contractors; exemption.

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Prior to a joint venture engaging in, or offering to engage in, contracting work in the Commonwealth, (i) each contracting party of the joint venture shall be licensed under the provisions of this chapter or (ii) a license shall be obtained in the name of the joint venture under the provisions of this chapter.

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Application for Class A license; fees; examination; issuance.

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In the event the designated employee leaves the full-time employ of the licensed contractor or is no longer a member of the contractor's responsible management, no additional examination shall be required of such designated employee, except in accordance with § 54.1-1110.1, and the contractor shall within 90 days of that departure provide to the Board the name of the new designated employee.

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Grounds for denial or revocation of license or certificate

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The Board may suspend, revoke, or deny renewal of an existing license or certificate, or refuse to issue a
license or certificate, to any contractor who is shown to have a substantial identity of interest with a
contractor whose license or certificate has been revoked or not renewed by the Board. A substantial
identity of interest includes but is not limited to (i) a controlling financial interest by the individual or
corporate principals of the contractor whose license or certificate has been revoked or nonrenewed, (ii)
substantially identical principals or officers, or (iii) the same designated employee as the contractor whose
license or certificate has been revoked or not renewed by the Board.

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Any person whose license is suspended or revoked by the Board shall not be eligible for a license or
certificate under any circumstances or under any name, except as provided by regulations of the Board
pursuant to

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Filing and hearing of charges.

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Any person may file complaints against any contractor licensed or certified pursuant to this chapter. The
Director shall investigate complaints and the Board may take appropriate disciplinary action if warranted.
Disciplinary proceedings shall be conducted in accordance with the Administrative Process Act (§ 2.2-
4000 et seq.). The Board shall immediately notify the Director and the clerk and building official of each
city, county or town in the Commonwealth of its findings in the case of the revocation of a license or
certificate, or of the reissuance of a revoked license or certificate.

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Virginia Contractor Transaction Recovery Act

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he minimum balance of the Fund shall be $400,000. Whenever the Director determines that the
balance of the Fund is or will be less than this minimum balance, the Director shall immediately inform the Board, which shall assess each regulant at the time of his license renewal a sum sufficient to bring the balance of the Fund to an amount of not less than $400,000, when combined with similar assessments of other regulants. No regulant shall be assessed a total amount of more than fifty dollars during any biennium.

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If no payment has been received by the Director within thirty days after mailing the second notice, the license of the regulant shall be automatically suspended and shall be restored only upon the actual receipt by the Director of the delinquent assessment.

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Recovery from Fund generally

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Whenever any person is awarded a judgment in a court of competent jurisdiction in the
Commonwealth of Virginia against any individual or entity which involves improper or dishonest conduct
occurring (i) during a period when such individual or entity was a regulant and (ii) in connection with a
transaction involving contracting, the claimant may file a verified claim with the Director to obtain a
directive ordering payment from the Fund of the amount unpaid upon the judgment,
-a verified claim shall be filed with the Director no later than twelve months after the judgment became final
-Any language in the order which supports the conclusion that the court found that the conduct of the regulant involved improper or dishonest conduct may be used by the Board to determine eligibility for recovery from the Fund.

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Limitations upon recovery from Fund; certain actions not a bar to recovery

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The maximum claim of one claimant against the Fund based upon an unpaid judgment arising out of
the improper or dishonest conduct of one regulant in connection with a single transaction involving
contracting, is limited to $20,000, regardless of the amount of the unpaid judgment of the claimant

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The aggregate of claims against the Fund based upon unpaid judgments arising out of the improper or
dishonest conduct of any one regulant involving contracting, is limited by the Board to $40,000 during
any biennium. If a claim has been made against the Fund, and the Board has reason to believe there may
be additional claims against the Fund from other transactions involving the same regulant, the Board may withhold any payment(s) from the Fund involving such regulant for a period of not more than one year
from the date on which the claimant is awarded in a court of competent jurisdiction in the Commonwealth
the final judgment on which his claim against the Fund is based. After this one-year period, if the
aggregate of claims against the regulant exceeds $40,000, during a biennium, $40,000 shall be prorated by the Board among the claimants and paid from the Fund in proportion to the amounts of their judgments
against the regulant remaining unpaid

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Excluded from the amount of any unpaid judgment upon which a claim against the Fund is based shall
be any sums representing interest, or punitive or exemplary damages, or any amounts that do not
constitute actual monetary loss to the claimants. Such claim against the Fund may include court costs and
attorneys' fees

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Revocation of license upon payment from Fund.

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Upon payment by the Director to a claimant from the Fund as provided in § 54.1-1125, the Board shall
immediately revoke the license of the regulant whose improper or dishonest conduct resulted in this
payment. Any regulant whose license is revoked shall not be eligible to apply for a license as a contractor
until the regulant has repaid in full the amount paid from the Fund on his account, plus interest at the
judgment rate of interest from the date of payment.

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No waiver by Board of disciplinary action against regulant

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This article shall not limit the authority of the Board to take disciplinary action against any regulant for
any violation of this title or the regulations of the Board. Full repayment of the amount paid from the
Fund on a regulant's account shall not nullify or modify the effect of any disciplinary proceeding against that regulant for any violation.