Contractor License Bond in Virginia

What this bond requires in Virginia

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.

Who requires it

The contractor license bond is required by the Department of Professional and Occupational Regulation under 18 VAC 50-22 (Board for Contractors regulations).

How to file in Virginia

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.

Common questions

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