Exam Cheat Sheet · Quick Reference

Virginia Contractor General Portion

Virginia

Verified, not estimated. Every figure below is drawn from the official exam structure we maintain — question counts, passing standard and topic weighting. Practice questions are grounded in the source law with statute citations. We omit any figure we can't verify rather than guess at it.
Total questions
50
Passing score
70%
Exam time
100 min
Format
Reference materials allowed

Virginia State Portion 50 questions

Business Organization 2 Q · 4%
Types of business structures and their key characteristics (sole proprietorship, partnership, corporation, LLC)Liability exposure by business structure typeTaxation methods by business structure (pass-through vs. double taxation)Formation documents and Virginia Corporation Commission registration requirementsAdvantages and disadvantages of each business structureJoint ventures and Virginia contractor licensing requirements for joint venturesNaming a business and registering fictitious or assumed names in VirginiaBusiness plan purpose, elements, and functions (planning, loan, benchmarking)
Estimating and Bidding 10 Q · 20%
Bid documents and bid package componentsEthics in bidding: bid shopping, bid peddling, and bid riggingQuantity take-off estimating methodLabor cost calculation and labor burdenMaterials cost determination and equipment cost estimationProject overhead vs. company overhead and markup calculationEstimating pitfalls and common errorsJob cost recording system and cost code structure
Contract Management 10 Q · 20%
Required elements of a legally binding contract (offer, acceptance, consideration, competent parties, legal purpose)Virginia written contract requirements for residential projectsContract price and payment structures (lump-sum, unit-price, cost-plus)Progress payments, retainage, and final payment proceduresBreach of contract types, liquidated damages, and statute of limitationsChange orders and contract modificationsAlternative dispute resolution methods (negotiation, mediation, collaborative law, arbitration)Subcontracting requirements and obligations
Project Management 7 Q · 14%
Scheduling methods: calendar, bar chart/Gantt, and critical path method (CPM)Scheduling process: sequence of tasks, activity duration, contingency time, and float timeScheduling and cash flow managementProject manager and supervisory team roles (superintendent, foreman, materials expediter)Project life cycle phases: pre-construction, construction, and closeoutBudget and cost controls: tracking, cost overruns, and materials management (JIT, purchase orders)Quality assurance: specifications, shop drawings, internal inspections, and customer satisfaction surveysCustomer communication, change order handling, and negotiation basics
Risk Management 3 Q · 6%
Risk assessment principles and probability of loss evaluationProperty insurance types for contractors (builders risk, inland marine, equipment floater)Liability insurance types (CGL, umbrella, completed operations, professional liability)Employment-related insurance (workers' compensation Virginia requirements, unemployment insurance, SUTA dumping)Surety bond types (bid, performance, payment, maintenance, fidelity, lien bonds)Qualifying for a bond and surety underwriting processFederal and Virginia bonding laws (Miller Act, Virginia Public Procurement Act)Insurance coverage verification for subcontractors and indemnification clauses
Safety 5 Q · 10%
Fall protection systems requirements and trigger heights (guardrail, safety net, personal fall arrest)Guardrail system specifications and performance criteriaPersonal fall arrest system components, anchorage, and arresting force limitsLadder safety requirements (portable, fixed, and job-made ladders)Stairway requirements and stairrail/handrail specificationsFire protection and prevention programs, extinguisher placement, and flammable liquid storagePersonal protective equipment selection, provision, and employer payment obligationsOSHA recordkeeping, injury reporting, and employer responsibilities under VOSH
Labor Laws 3 Q · 6%
Fair Labor Standards Act (FLSA) minimum wage and overtime requirementsEmployee classification: exempt vs. non-exempt status under FLSAForm I-9 employment eligibility verification and documentationHiring minors: restricted hours, prohibited tasks, and penaltiesVirginia new hire reporting requirements and proceduresAmericans with Disabilities Act (ADA) employer obligations and reasonable accommodationVirginia workers' compensation coverage requirements and employer responsibilitiesVirginia unemployment insurance tax liability, reporting, and SUTA dumping
Financial Management 5 Q · 10%
Bookkeeping best practices and the accounting cycleFinancial statements (balance sheet, income statement, statement of cash flows)Financial ratio analysis (liquidity, quick, activity, debt, profitability ratios)Cash and accrual methods of accountingContract accounting methods (completed contract, percentage of completion, cost comparison)Cash flow management, progress payments, and accounts receivable collectionEquipment depreciation methods (straight-line and accelerated/MACRS)Payroll accounting (gross pay, tax deductions, net pay, payroll journal)
Federal and State Taxes 4 Q · 8%
Employer Identification Number (EIN) requirements and how to obtainFederal business tax types by entity (income tax, self-employment tax, employment taxes)Federal employment tax withholding and deposit schedules (FICA, FUTA, Form 941)Federal tax forms by business entity type (1040, 1065, 1120, Schedule C, Schedule SE)Information returns and 1099-MISC reporting requirementsFederal and Virginia tax penalties and interestVirginia withholding tax registration, filing frequency, and forms (VA-4, VA-5, VA-6)Virginia corporate income tax, sales and use tax, and business license tax
Lien Laws 1 Q · 2%
Who is entitled to a mechanics' lien (general contractors, subcontractors, sub-subcontractors, materialmen)Memorandum of lien requirements and filing deadlinesNotice to mechanics' lien agent for one- and two-family residential dwellingsSubcontractor and sub-subcontractor lien perfection requirements and claim limitsLien priorities among contractors, subcontractors, and materialmenEnforcement and foreclosure of mechanics' liensPenalties for misuse of funds, lien waiver forgery, and false statementsWaiver and forfeiture of lien rights

Key Distinctions

Bid peddlingvsBid shopping

Bid peddling is when a subcontractor approaches the general contractor after award to undercut the original bid-day price, while bid shopping is when the general contractor initiates contact with non-bidding subs and reveals original bid prices to get a lower quote.

NASCLA Contractors Guide, Bidding and Estimating chapter — Bid Peddling section (Page 7-2)
Bid riggingvsBid shopping / bid peddling

Bid rigging is collusion among competing contractors who coordinate bids to fix which firm wins, whereas bid shopping and bid peddling involve the GC or a sub trying to lower a subcontract price.

NASCLA Contractors Guide, Bidding and Estimating chapter — Bid Rigging section (Page 7-2)
Project overheadvsCompany overhead

Project overhead items (bonds, temporary storage and offices, security guards, utilities, dumpsters, portable toilets) are needed to complete a specific project but are not direct labor/materials, while company overhead (office rent, accounting and legal fees, administrative labor) cannot be linked to any one project.

NASCLA Contractors Guide, Bidding and Estimating chapter — Add Project Overhead section (Page 7-6)
MediationvsArbitration

In mediation an independent third-party mediator only facilitates dialogue and the parties themselves set the terms of agreement, while in arbitration the arbitrator acts as a judge and renders an arbitral award that legally binds all parties.

NASCLA Contractors Guide, Virginia (11th ed.), Chapter 8 (Contract Management) — Alternative Dispute Resolution, Mediation
ArbitrationvsCollaborative law

Arbitration uses a binding third-party decision-maker, whereas collaborative law involves no neutral third party — the parties agree at the onset to negotiate a mutually beneficial settlement through their own advocates (usually lawyers) without further ADR or litigation.

NASCLA Contractors Guide, Contract Management chapter — Arbitration section
Material breachvsImmaterial (partial) breach

A material breach is a serious violation (e.g., contractor refuses to perform or owner refuses to pay) that may void the contract and likely leads to litigation, while an immaterial/partial breach usually does not terminate the contract and the injured party may sue only for the value of the damages caused.

NASCLA Contractors Guide, Contract Management chapter — Breach of Contract section
Lump-sum contractvsCost-plus contract

Under a lump-sum contract the contractor completes the work for a predetermined fixed price and assumes all risk, including unforeseen extra costs; under a cost-plus contract the contractor is reimbursed actual labor and material costs plus a markup fee (percentage or fixed fee) for overhead and profit.

NASCLA Contractors Guide, Virginia (11th ed.), Chapter 8 (Contract Management) — Lump-Sum Contract
Unit-price contractvsLump-sum contract

A unit-price contract is used when the extent of work or actual quantities cannot be accurately calculated in advance and pays the contractor per unit actually used, unlike a lump-sum contract's single fixed total price.

NASCLA Contractors Guide, Virginia (11th ed.), Chapter 8 (Contract Management) — Unit-Price Contract
Critical path method (CPM)vsCalendar and bar chart (Gantt) scheduling

CPM graphically illustrates the interdependent relationships between tasks, while calendar and bar chart methods share the weakness of not showing activity interdependencies or how a delay in one task affects others.

NASCLA Contractors Guide, Scheduling and Project Management chapter — Critical Path Method section (Page 9-5)
Float timevsContingency time

Float time is the remaining time after a task is complete and before the next task begins, whereas contingency time is a buffer deliberately built into the schedule to protect against unforeseen delays.

NASCLA Contractors Guide, Scheduling and Project Management chapter — Scheduling Process section (Page 9-2)
SuperintendentvsForeman

The superintendent is the onsite supervisor responsible for overall daily operations, while the foreman assists the superintendent and usually supervises specific areas by trade (e.g., carpentry or masonry).

NASCLA Contractors Guide, Scheduling and Project Management chapter — Project Supervisory Team section (Page 9-7)
AddendumvsModification

An addendum is a change issued to a bid package before bids are due (becoming part of the bid documents and later the contract), while a modification is a change made after the contract is signed and executed, executed legally through a change order.

NASCLA Contractors Guide, Bidding and Estimating chapter — Bid Documents section (Page 7-2)
Quick ratio (acid test)vsLiquidity/current ratio

The quick ratio subtracts inventory from current assets before dividing by current liabilities, while the current/liquidity ratio divides current assets by current liabilities without subtracting inventory.

NASCLA Contractors Guide, Virginia (11th ed.), Page 14-7
Liquidated damagesvsActual damages

They are mutually exclusive remedies — an owner who sues for the contract's liquidated damages (e.g., a per-day amount) cannot also sue for actual damages.

NASCLA Contractors Guide, Virginia (11th ed.), Chapter 8 (Contract Management) — Breach of Contract

Key Terms

C corporation NASCLA Contractors Guide, Choosing Your Business Structure chapter — C Corporations section (Page 2-3)
A business structure that files its own income tax returns and pays tax on profits, with dividends taxed again to each shareholder individually — commonly called 'double taxation.'
Limited partnership liability NASCLA Contractors Guide, Choosing Your Business Structure chapter — Partnerships section (Page 2-2)
General partners have personal, unlimited liability for all actions and debts undertaken in the name of the business, while limited partners have no personal liability beyond their previously agreed-upon contribution or investment.
Articles of Organization (Virginia LLC) NASCLA Contractors Guide, Choosing Your Business Structure chapter — Limited Liability Company (LLC) section (Page 2-4)
The formation document (Form LLC 1011) filed with the Virginia Corporation Commission to register a Virginia LLC, with a $100 filing fee and a $50 annual fee assessed each July 1.
Assumed (fictitious) name certificate — Virginia entities NASCLA Contractors Guide, Choosing Your Business Structure chapter — Naming Your Business section (Page 2-6)
Limited partnerships, LLCs, and corporations operating under a name other than their legal name must file the certificate with the Clerk of the Circuit Court and also file a copy attested by that Clerk with the Virginia Corporation Commission.
Business plan NASCLA Contractors Guide, Virginia (11th ed.), Page 1-2
A document serving three key functions: a planning tool/road map for growth, a loan or investor document, and a benchmarking tool to measure performance against projections.
Quantity take-off method NASCLA Contractors Guide, Bidding and Estimating chapter — Quantity Take-off section (Page 7-3)
An estimating method that individually estimates units of materials and labor for each task in the estimating framework, after which subcontractor fees, labor burden, project overhead, equipment, contingencies, allowances, company overhead, and profit are added.
Unit price method NASCLA Contractors Guide, Bidding and Estimating chapter — Other Methods of Estimating section (Page 7-5)
An estimating method that bundles all cost factors — labor, materials, equipment, and subcontractors — into a single unit price for an entire task (e.g., 2,000 sq ft slab at $2.00/sq ft = $4,000).
Square-foot method NASCLA Contractors Guide, Bidding and Estimating chapter — Other Methods of Estimating section (Page 7-7)
A quick estimating method multiplying project square footage by a unit cost; its primary limitation is that it does not account for project-specific factors that affect cost.
MasterFormat NASCLA Contractors Guide, Bidding and Estimating chapter — Estimating Checklist section (Page 7-3)
A classification system published by the Construction Specifications Institute (CSI) with numbers and job tasks grouped by major construction activity, used to set up an estimating framework so all materials and labor are accounted for.
Labor burden NASCLA Contractors Guide, Bidding and Estimating chapter — Labor Burden section (Page 7-4)
Employer obligations — Medicare and Social Security, federal and state unemployment insurance, workers' compensation, liability insurance, and company benefits — adding approximately 30 percent to labor costs.
Cost code system (job cost recording) NASCLA Contractors Guide, Bidding and Estimating chapter — Job Cost Recording System section (Page 7-8)
A three-part code made up of a project number, an activity classification code, and a distribution code, where the distribution letters are M = Material, L = Labor, E = Equipment, and P = Project Overhead (e.g., 06200M is finish carpentry materials).
Non-responsive bid NASCLA Contractors Guide, Bidding and Estimating chapter — Bid Documents section (Page 7-1)
A bid that may be rejected because required information was incorrectly submitted or omitted altogether, such as leaving out the bidder's questionnaire on experience and financial responsibility.
Bid package supplements NASCLA Contractors Guide, Bidding and Estimating chapter — Bid Documents section (Page 7-1)
Items important to the overall bid process such as a property survey and soil analysis, distinct from bid instructions, bid forms, and addenda.
Allowance (in an estimate) NASCLA Contractors Guide, Bidding and Estimating chapter — Add Allowances section
An amount included for materials not yet specified in the plans; if the owner's choices exceed or fall short of the allowance, a change order is created stating the amount over or under the contract figure.
Required contract elements NASCLA Contractors Guide, Virginia (11th ed.), Chapter 8 (Contract Management) — Required Contract Elements
The four elements of a legally binding contract are offer and acceptance, consideration, competent parties, and legal purpose — notarized signatures are not required.
Retainage NASCLA Contractors Guide, Virginia (11th ed.), Chapter 8 (Contract Management) — Retainage
A percentage (generally 10 percent) withheld from each progress payment to ensure project completion and protect the owner against liens, claims, and defaults; it may be reduced (e.g., to 5 percent) after a specified completion level such as 75 percent, if stated in the contract.
Indemnification clause NASCLA Contractors Guide, Contract Management chapter — Provisions to Limit Risk section
A risk-limiting provision that shifts payment or liability for losses or damages incurred by a third party from the indemnified party to another party, and must be examined carefully to ensure proper liability distribution.
All-risk builder's risk insurance NASCLA Contractors Guide, Managing Risk chapter — Property Insurance section (Page 4-3)
Property insurance covering owners and builders for buildings under construction, typically covering machinery, equipment, materials, supplies, and fixtures that are or will become part of the structure; construction must be in progress for coverage to exist.
Accrual method of accounting NASCLA Contractors Guide, Virginia (11th ed.), Chapter 14 (Financial Management) — Accrual Method section
The method — used by most construction businesses — under which expenses are recorded when incurred and income is recognized when services occur, not when cash is paid or collected.
Posting NASCLA Contractors Guide, Virginia (11th ed.), Chapter 14 (Financial Management) — Post Transactions section
The accounting-cycle step of transferring transactions recorded in the journals to the appropriate accounts in the general ledger so each account can be totaled for its balance.
Billings in excess of cumulative earnings NASCLA Contractors Guide, Virginia (11th ed.), Chapter 14 (Financial Management) — Percentage of Completion Method section
Under the percentage of completion method, the amount by which amounts billed exceed cumulative earnings, classified as a current liability on the balance sheet.
Virginia mechanics' lien forfeiture (Va. Code § 43-23.1) NASCLA Contractors Guide, Virginia (11th ed.), Appendix G; Virginia Code § 43-23.1, Page 274
Any person who, with intent to mislead, includes in a memorandum of lien work not performed on or materials not furnished for the described property forfeits any right to a lien under the entire chapter.

Formulas to Know

Labor cost per task (quantity take-off)Required Labor Hours per Task × Labor Rate = Labor Cost per Task (e.g., 120 hrs × $28 = $3,360); labor burden (~30%) is added separately
Total material costPrice per Unit × Number of Units Needed = Total Material Unit Cost (e.g., $12.50 × 400 = $5,000); add a small waste contingency separately
Owned equipment unit cost and project equipment costTotal Yearly Equipment Cost ÷ Estimated Hours of Use per Year = Unit Cost per Hour; then Unit Cost × Project Hours = Project Equipment Cost (e.g., $30,000 ÷ 1,000 = $30/hr; $30 × 40 = $1,200)
Bid price after adding overhead (overhead as a percentage of revenue)Bid Price = Direct Costs ÷ (100% − Project Overhead % − Company Overhead %) (e.g., $100,000 ÷ 0.80 = $125,000); adding the percentages to direct costs understates overhead recovery
Activity durationTotal Labor Hours ÷ Hours per Day Available for the Task = Duration in Working Days (e.g., 16 ÷ 4 = 4 working days)
Liquidated damages owedPer-Day Liquidated Damages × Days Late (no excused delays) = Amount Collectible (e.g., $500 × 20 = $10,000); owner cannot also sue for actual damages
Percentage of completion and cumulative earningsCosts Incurred to Date ÷ Total Estimated Costs = % Complete; % Complete × Contract Amount = Cumulative Earnings; Billings − Cumulative Earnings (if positive) = current liability
Straight-line depreciation(Initial Asset Cost − Salvage Cost) ÷ Useful Life in Years = Annual Depreciation (e.g., ($48,000 − $4,000) ÷ 8 = $5,500; ($30,000 − $6,000) ÷ 6 = $4,000)
Working capital, quick ratio, and debt ratioCurrent Assets − Current Liabilities = Working Capital ($26,400 − $8,200 = $18,200); (Current Assets − Inventory) ÷ Current Liabilities = Quick Ratio (a ratio of 1 or more is generally acceptable to creditors); Total Debt ÷ Total Assets = Debt Ratio ($210,000 ÷ $600,000 = 0.35)
Gross profit, profit margin, and net payIncome − Cost of Goods Sold (direct labor + direct materials) = Gross Profit ($545,600 − $120,500 − $257,000 = $168,100); Net Income ÷ Revenues = Profit Margin ($46,300 ÷ $545,600 ≈ 8.5%); Gross Pay − Taxes & Deductions = Net Pay ($2,800 − $816.20 = $1,983.80)
Virginia late-filing penalty for a withholding return6% of tax due × each month or part of a month late (max 30%); 2½ months = 3 partial months → 18% × $5,000 = $900; combined late-filing and late-payment penalties cannot exceed 30%
Form I-9 retention deadlineKeep for the later of 3 years after date of hire or 1 year after employment ends (hire 1/15/2020 → 1/15/2023; end 3/1/2022 → 3/1/2023; keep until 3/1/2023)
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