How to hire a contractor in Virginia — and what the license classes really mean

Q: How much should I pay a contractor up front in Virginia?

There is no statutory cap on deposits in Virginia, but the consistent consumer guidance is: never pay large sums up front, tie payments to completed milestones in a written contract, and walk away from anyone demanding most of the price before work starts.

Q: Why does it matter that my remodeler is backed by a homebuilder?

A remodeler backed by an active licensed homebuilder brings new-construction-grade structural knowledge, crews, and permitting experience to remodeling work. That matters most on structural projects — additions, garage conversions, basement finishes — where remodel-only outfits most often get in over their heads.

Virginia rewrote its contractor licensing thresholds effective July 1, 2025. Most advice online — and most contractor websites — still show the old numbers. Here's the current law, how to verify any contractor in two minutes, and the questions that protect you.

License classes

Class A vs. Class B vs. Class C — the 2025 thresholds

Virginia licenses contractors in three classes based on the size of work they may legally contract. The General Assembly raised the thresholds effective July 1, 2025 (Va. Code § 54.1-1100):

Class	Single contract	12-month total	What that means for you
Class C	Over $1,000, under $30,000	Under $250,000	Small-job outfits. Your kitchen refresh may already exceed their legal limit.
Class B	$30,000 to under $150,000	$250,000 to under $1M	Mid-size remodelers. A major addition, ADU, or whole-home renovation can exceed it.
Class A	$150,000+ — no limit	No limit	The unlimited license. The only class that can contract large projects — legally.

Why it matters: if your project grows past a contractor's class limit, the law — not your plans — decides what happens next. Projects get artificially split, under-scoped, or re-bid mid-stream. CORELOT Home Improvement has held a Virginia Class A license (#2705128906) since 2009, so no project outgrows us.

How to verify any contractor's license (2 minutes)

Ask for their DPOR license number — a licensed contractor gives it without hesitation.
Look it up free at DPOR's License Lookup (dpor.virginia.gov) or call (804) 367-8500.
Check the class, the classifications (building, home improvement, etc.), the expiration date, and any disciplinary actions.
Never accept a photocopy of a license card as proof — cards outlive revoked licenses.

Ours is #2705128906 — look us up.

The $30,000 safety net only licensed contractors carry

Virginia's Contractor Transaction Recovery Fund can reimburse homeowners up to $30,000 per transaction for losses caused by a licensed contractor's improper or dishonest conduct (Va. Code § 54.1-1123, limits raised July 2025). Hire unlicensed, and that protection doesn't exist — you're left to civil court against someone who ignored licensing law to begin with.

Five questions to ask before you sign

"What's your DPOR license number and class?" — then actually look it up.
"Can I see proof of general liability and workers' comp insurance?" — certificates, not promises.
"Who will be on my site?" — employees, long-term crews, or whoever answered a text this morning?
"Can I talk to two local customers with projects like mine?"
"What's the payment schedule?" — it should follow completed milestones in a written contract, never front-load the money.

Quick answers

Common hiring questions

How much should I pay a contractor up front in Virginia?

There's no statutory cap on deposits in Virginia — which is exactly why the guidance matters: never pay large sums up front, tie every payment to a completed milestone in a written contract, and walk away from anyone who wants most of the money before work starts.

Handyman vs. contractor — which do I need?

In Virginia, anyone doing work totaling $1,000 or more (labor + materials) must hold a contractor license — and plumbing, electrical, and HVAC require licensed tradesmen at any price. For anything beyond a truly small job, a licensed contractor is the legal answer, and it keeps you eligible for the Recovery Fund.

Why does it matter that my remodeler is backed by a homebuilder?

Because structural work is where remodels go wrong. A remodeler backed by an active licensed homebuilder — ours is CORELOT Homes — brings new-construction-grade structural knowledge, crews, and permitting experience to additions, garage conversions, basements, and sunrooms.

License and Recovery Fund facts current as of the July 1, 2025 law change (Va. Code §§ 54.1-1100, 54.1-1123).

Talk to a Class A contractor about your project.

Tell us what you're planning — a real builder reviews every request, usually within one business day.

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