Virginia Business and Law Exam: What Contractors Need to Know

If you’re planning to become a licensed contractor in Virginia, you’ll likely need to pass the Virginia Business and Law Exam. This exam is a critical step for contractors in the state because it ensures that you understand the legal, financial, and business management aspects of running a contracting business. Whether you plan to work in residential, commercial, or specialty contracting, passing this exam is essential. At @HomePrep, we’ve helped thousands of contractors prepare for and pass the Virginia Business and Law Exam. In this guide, we’ll break down everything you need to know, including what’s on the test, how to study effectively, and how to ensure you pass on your first attempt.

Why the Virginia Business and Law Exam Matters

The Virginia Business and Law Exam is designed to ensure that contractors not only have technical skills in their trade, but also understand the essential principles of:

Business organization
Financial management
Contract law
Risk management
OSHA safety standards
Project management

Contractors who understand these concepts are more likely to run successful, compliant businesses. Passing the exam is not just about getting your license—it’s about preparing to run a professional, reputable contracting business.

Who Needs to Take the Virginia Business and Law Exam?

The Virginia Business and Law Exam is required for:

Class A Contractors – Allowed to work on any size project.
Class B Contractors – Limited to projects up to $120,000 per job and $750,000 in annual gross revenue.
Class C Contractors – Limited to projects up to $10,000 per job and $150,000 in annual gross revenue.

Regardless of your specialty—whether you’re a general contractor, electrician, plumber, HVAC technician, or roofer—if you want to hold a Class A, B, or C license, you must pass the Business and Law Exam.

What’s on the Virginia Business and Law Exam?

The Virginia Business and Law Exam is a 50-question, multiple-choice test administered by PSI. The exam is open-book, but you must use the approved reference materials efficiently to pass.

Exam Topics Include:

Business Organization – Legal structures, licensing, and taxation.
Financial Management – Accounting, payroll, budgeting, and cash flow.
Contract Management – Bidding, agreements, performance, and disputes.
Risk Management – Insurance, bonds, and liability.
Regulatory Compliance – OSHA safety standards, lien laws, and employment law.
Virginia Laws and Regulations – State-specific contractor requirements and rules.

Exam Details:

Format: 50 multiple-choice questions.
Time Limit: 120 minutes.
Passing Score: 70% (35 correct answers).
Open-Book: Candidates can use the approved reference manual.
Administered by: PSI Testing Centers (online or in-person).

What Reference Materials Are Allowed?

The Virginia Business and Law Exam is an open-book test, but only the official reference manual is permitted:

Virginia Contractor’s Business and Law Reference Manual – This book covers all of the key topics tested on the exam.

We strongly recommend that you become familiar with this book before test day. Learn how to quickly navigate to sections using the table of contents, index, and chapter headings.

How to Prepare for the Virginia Business and Law Exam

Even though the exam is open-book, that doesn’t mean it’s easy. To pass with confidence, you need to be both knowledgeable and fast at finding answers.

Step 1: Use a State-Specific Prep Course

At @HomePrep, we offer a complete Virginia Business and Law Exam Prep Course designed to help you pass on your first try. Our course includes:

Video Lessons – Breaking down complex concepts into easy-to-understand modules.
Study Guides and Reading Assignments – Aligned with the reference manual.
Practice Exams – Simulate the real test, helping you build confidence and speed.
Open-Book Navigation Tips – Learn how to quickly find answers in the manual.

Step 2: Master the Key Concepts

Don’t just rely on the book—learn the core principles:

Understand Contract Law: How to draft, interpret, and enforce contracts.
Study Basic Accounting: Know how to track expenses, manage cash flow, and calculate profit.
Know Virginia’s Regulatory Requirements: Licensing, lien laws, and insurance rules.

Step 3: Practice Under Timed Conditions

Since the exam is timed, you must be efficient. Our practice exams are designed to match the format and difficulty of the real test.

Take full-length practice tests.
Track your time per question.
Review missed questions to identify weak areas.

Step 4: Use Effective Navigation Techniques

Because the exam is open-book, you must be able to find answers quickly:

Tab Key Sections – Use labeled tabs for quick reference.
Highlight Important Topics – Mark critical information in the manual.
Use the Index – Quickly locate sections by keyword.

Exam Day Tips

On the day of your Virginia Business and Law Exam, remember these final tips:

Arrive Early: If taking the exam at a testing center, give yourself plenty of time.
Bring Your Reference Manual: Make sure it is the approved version.
Use Your Time Wisely: Don’t spend too long on any single question.
Stay Calm: If you’ve prepared, you’ve got this.

After You Pass: Getting Your Contractor License

Once you pass the Business and Law Exam, you can apply for your contractor license through the Virginia Department of Professional and Occupational Regulation (DPOR).

Application Checklist:

Completed Application Form
Proof of Passing Exam Score
Proof of General Liability Insurance
Fee Payment

Once your application is processed, you’ll receive your Virginia contractor license and can legally start taking on projects in the state.

Fast-Track Your Success with @HomePrep

The Virginia Business and Law Exam is a critical step for contractors, but it doesn’t have to be a barrier. With the right preparation, you can pass quickly, confidently, and on your first attempt. At @HomePrep, we offer:

State-Specific Virginia Business and Law Exam Prep Courses
Online, self-paced learning so you can study on your schedule
Practice exams and navigation guides to help you succeed
Customer support if you have questions or need help

👉 Get started with our Virginia Business and Law Exam Prep Course at athomeprep.com 👉 Pass your exam, get your license, and start your contracting career in Virginia with confidence. Don’t let the exam hold you back—let @HomePrep help you succeed.