Virginia Contractor License Bond

Exact requirements, real costs, and how to file the bond without paying a broker 30% to do it for you.

$50K

Optional bond — alternative to proving net worth

The Short Version

What Virginia Actually Requires

→ Virginia's $50,000 bond is an ALTERNATIVE to proving net worth, not a hard requirement
→ Class A contractors: prove $45,000 net worth OR post the bond
→ Class B contractors: prove $15,000 net worth OR post the bond
→ Class C contractors: no bond and no net worth requirement
→ Bond term is 2 years and must end on the last day of the license expiration month

When You Actually Need It

Virginia's Bond Is Optional — Here's When It Makes Sense

Virginia is the only state in our first five where you might not need a bond at all. Here's the full picture:

Class A (projects over $120,000 or contracts over $750,000 annually): You need to prove either $45,000 in net worth or post a $50,000 surety bond. Most contractors with stable books just provide a financial statement.
Class B (projects $10,000–$120,000): You need $15,000 in net worth or the $50,000 bond. The bond makes sense for newer contractors who haven't built up cash reserves.
Class C (projects under $10,000): No bond. No net worth. You just pay the licensing fee and pass the exam.

The bond almost always costs less per year than what you'd pay in opportunity cost to keep $45,000 sitting in a business savings account. For Class A contractors without the net worth, a $50,000 bond at 2% credit is only $1,000/year — cheaper than tying up $45,000 in working capital.

Cost Breakdown

What Your Virginia Bond Actually Costs

You don't pay the full bond amount. You pay a premium — a percentage of the bond based on your credit score. Here's what the annual premium looks like on the Virginia bond:

On a $50,000 bond — Class A Contractor (alternative to $45,000 net worth)

Credit Tier	Annual Premium
Excellent (720+)	$500 – $1,000
Good (680–719)	$1,000 – $1,750
Fair (620–679)	$2,000 – $3,000
Poor (580–619)	$3,000 – $4,000
Bad (Below 580)	$4,000 – $5,000

On a $50,000 bond — Class B Contractor (alternative to $15,000 net worth)

Credit Tier	Annual Premium
Excellent (720+)	$500 – $1,000
Good (680–719)	$1,000 – $1,750
Fair (620–679)	$2,000 – $3,000
Poor (580–619)	$3,000 – $4,000
Bad (Below 580)	$4,000 – $5,000

Premium ranges are based on standard surety industry rates. Your exact rate depends on credit, experience, and the specific surety company. These are annual premiums — the bond itself doesn't cost you the face amount unless there's a claim.

Filing

How to File Your Virginia Bond

The surety bond is filed with DPOR on the Board for Contractors' A501-27BOND form. The bond must match the 2-year license term and expire on the last day of the month the license expires.

Obligee

Commonwealth of Virginia — Board for Contractors

Term

2 years (matches the license term)

Licensing Authority

Department of Professional and Occupational Regulation (DPOR)

Statute

18 VAC 50-22 (Board for Contractors regulations)

FAQ

Frequently Asked Questions

Do I really not need a contractor bond in Virginia? +

It depends on your license class. Class C contractors (projects under $10,000) don't need a bond or a net worth requirement. Class A and Class B contractors must prove net worth OR post a $50,000 bond — the bond is an alternative, not a hard requirement. Most established contractors use financial statements instead of a bond.

What are Virginia's contractor license classes? +

Class C is for single projects under $10,000 and annual contracts under $150,000. Class B is for projects between $10,000 and $120,000, or annual contracts under $750,000. Class A has no project size limit and is required for larger work. Each class has different exam, net worth, and bond requirements.

How much net worth does Virginia require for Class A and Class B? +

Class A requires $45,000 in net worth. Class B requires $15,000. You can prove this with financial statements, or you can skip the net worth requirement entirely by posting the $50,000 surety bond. Class C has no net worth requirement.

Should I post the bond or prove net worth? +

Run the math. A $50,000 Virginia bond at 2% costs $1,000/year (2-year term = $2,000 upfront). Proving $45,000 in net worth means keeping that cash tied up in the business instead of earning returns elsewhere. For most contractors with stable finances, proving net worth is cheaper. For newer contractors without $45,000 in the bank, the bond is the more accessible path.

Why is the Virginia bond term 2 years? +

Virginia contractor licenses run on a 2-year cycle, and DPOR requires the bond to match the license term. The bond must expire on the last day of the month the license expires. You pay 2 years of premium upfront when the bond is issued.

What's the Virginia contractor bond form? +

DPOR requires their specific form A501-27BOND. Generic surety bond forms will get rejected. The surety must be licensed to write business in Virginia and the bond must name the Commonwealth of Virginia Board for Contractors as the obligee.

NoBro Take

Our Editorial Insight

Virginia is the most interesting state in our first five because it's the only one where the answer might be "you don't actually need a bond at all."

If you have $45,000 in net worth as a Class A contractor, or $15,000 as a Class B, just prove it. A clean balance sheet and a financial statement. No bond, no premium, no 2-year upfront cost. The Commonwealth is genuinely indifferent as to which path you pick.

The contractors who should post the bond instead are the ones where tying up $45,000 in demonstrable net worth actually costs them money. A growing contractor who needs every dollar working in the field is better off paying $1,000 a year for a $50,000 bond than keeping $45,000 parked in a business savings account. The math works out in favor of the bond whenever your opportunity cost of capital exceeds 2%. For most contractors, it does.

What you don't want is a broker convincing you the bond is "required" in Virginia when it isn't. It's an alternative. If anyone tells you Class A and Class B contractors "must" post a bond, they're either uninformed or they're trying to sell you one.

Verified & Sources

The requirements on this page were last verified on 2026-04-07 against the sources below. Bond amounts and regulations can change — always confirm with the DPOR before filing.

Other State Requirements

Georgia

Bond optional — alternative to net worth

North Carolina

Bond optional — alternative to net worth

California

$25,000 flat requirement

Browse All States

State Contractor Bonds by Structure

Every state sets its own rules. Here's how all the states we've researched group together — find your state or browse by the structure that matches yours.