If you know anything about the licensing journey of a contractor in Virginia, you will agree that it can feel more complicated than the work you intend to perform. From the different licence classes and specialisation classifications to financial requirements, there surely is a lot you have to consider.
But there is some good news. Taking the time to understand what the Department of Professional and Occupational Regulation requires of you will make the entire process easier. So, here's what you need to know to make the licensing process easier.
1. Understanding Your Business Plans Will Help A Lot
It's not uncommon for aspiring contractors to choose their licence class based on what seems easiest. But the best plan is to determine what your business is actually going to do, as there are three licence classes to choose from based on this alone.
A Class C licence, for instance, allows you to take on projects valued at more than $1,000 but less than $30,000. The total annual limit for your projects is $250,000. In contrast, a Class A licence removes these restrictions, allowing you to take on projects with a total value of more than $1 million annually.
And while it's a good thing that you're probably excited to take your Virginia contractors license initial courses so you'll get started on this journey, take the time to pause and understand this requirement. Even more importantly, look at the projects you realistically expect to pursue during the next few years.
2. Know the Distinction Between Your Licence Class and Specialisation Classification
Many new contractors are often surprised to learn that they also have to choose the right specialisation classification after finding the licence class that works best for their needs. Here's how to make this easy for yourself. The licence class you choose tells DPOR the value of work you expect to undertake, while the classification or speciality says the type of work you want to perform.
Once you understand this distinction, it should feel much easier to organise your licensing process. So, before applying, write down the actual services your company intends to sell, and then compare those with the scope classifications provided by the Board for Contractors.
3. Take Your Time to Choose the Qualified Individual
Another area where many contractors go wrong and then struggle to handle when it's almost too late is choosing the qualified individual for the required classifications and specialities. The part that makes it a tad difficult is that this employee has to meet specific experience and qualification requirements. For a Class B licence, for instance, they need to have three years of experience. A Class A licence, in contrast, requires five years of experience.
That's why it's never a good idea to leave the selection of your QIs until the last minute. This gives the employee enough time to gather the required documentation before you start the application process. Also, understand that the qualified individual must be a full-time employee, meaning they work at least 30 hours per week for your business and receive a W-2 each year.
4. Don't Confuse the Qualified Individual With the Designated Employee
You probably didn't know this, but for Class A and B contractor licences, Virginia has yet another role, and that's the Designated Employee. The designated employee should be either a member of responsible management or a bona fide full-time employee. Class B designated employees are required to pass the General and Virginia portions of the exam, while Class A designated employees should pass the General, Virginia, and Advanced portions.
So, if you are building a small contracting company, which would generally require a Class C licence, it's a good idea to think about who will actually carry your regulatory responsibilities as the business grows. Don't choose someone simply because they are available, as this can complicate your licensing later if they leave the company or no longer satisfy the requirements.
Ready to Get Started?
The licensing process for contractors in Virginia is often seen as a complicated one, but that's only when you haven't taken enough time to understand how it works. This is why you want to involve RocketCert in this journey.
Their exam preparation courses not only help you pass your exam on the first try, but their team of experts also does a great job of helping you understand the actual licensing requirements and process. You now know what to do if success matters to you.