Introduction
In West Virginia, if you are performing residential construction projects over $5,000 or commercial projects over $25,000 you will need to have a contractors license. It is a good idea to get your contractor’s license to not limit your work value. To start planning for your contractor’s license, you should become familiar with the testing, application process, and the West Virginia contractors license requirements.
Becoming knowledgeable in application process and becoming familiar with the West Virginia Contractor Licensing Board is helpful. It is important to know what the application requirements are before you start studying for the exams that you will be taking. This will make the application process much less stressful and allow you to focus on studying.
We will be discussing the West Virginia General Contractor license. This license gives you the ability to bid, build, and improve any size of commercial or residential project. There is also a residential and multifamily contractor license option. However, we recommend getting the general contractor license, as this license does not limit you. The below list outlines a checklist that we have put together to help you prepare for your contractor license in West Virginia:
- Take a NASCLA Exam study course
- Pass the NASCLA Exam – submit NASCLA Exam transcript with application
- Get approved for and pass the Business and Law Exam – Submit pass notification with application
- Form your entity that you will be performing work under. Register your business with the WV Secretary of State
- Provide proof of worker’s compensation and unemployment compensation for all employees working in West Virginia
- Include a wage bond status affidavit
- Submit the application fee ($90)
The NASCLA Exam
The NASCLA exam is a 23 book, open book exam. You have 5 ½ hours to complete the exam. There are 125 questions on this exam, however only 115 questions count. The remaining 10 questions are potential future test questions. This means that you will need to get 81 of the 115 counted questions correct to pass with a score of 70%. The exam is open book, so being able to navigate the books is the most important piece to this exam. Having a quality study course is our recommendation, as studying 23 books on your own will not be efficient.
In West Virginia, the NASCLA exam will serve as the trades exam to become a General Building Contractor. A General Building Contractor is licensed to perform commercial and residential projects. The NASCLA exam is a fairly universal exam to allow contractors to get their license in multiple states. Currently, the NASCLA exam is accepted as the trades exam in 16 different states and the U.S. Virgin Islands, so the reciprocity is unmatched. If you are planning to become licensed in West Virginia, NASCLA is a great testing option. You must apply for the NASCLA exam, which takes about 7 business days to return. Once receiving your application back, you can schedule your exam through PSI Exams.
The West Virginia Business and Law Exam
There are 50 questions on the West Virginia Business and Law Exam. You must answer 35 of the 50 questions correct to receive a passing grade of 70%. The exam is 180 minutes long. The book used for this exam is NASCLA Contractors Guide to Business, Law and Project Management – West Virginia edition. Just like the NASCLA Exam, you will complete the Business and Law Exam through PSI Exams.
We do not offer a course for this exam. There are a few reasons for this. One being that it is a single book, open book exam. Also, the NASCLA trades exam includes a business and law book within the 23 books that you are tested on. Much of the information on the Business and Law Exam is from that same book! The specific West Virginia rules and regulations should be a top focus on this exam as you will probably already have the other information memorized from your NASCLA exam studying. Many other course providers will try to sell you on a Business and Law study package. We have confidence that you can study this one book on your own to pass this exam.
According to the PSI Exams candidate information bulletin the content on the Business and Law Exam is broken out as shown below:
- Business Organization: Questions – 2
- Contracts: Questions – 4
- Estimating and Bidding: Questions – 4
- Financial Management: Questions – 5
- Labor Law: Questions – 3
- Licensing: Questions – 7
- Lien Law: Questions – 4
- Project Management: Questions – 8
- Risk Management: Questions – 4
- Safety – OSHA: Questions – 5
- Tax Laws: Questions – 4
Insurance Requirements
Having worker’s compensation and unemployment insurance coverage is part of the West Virginia contractors license requirements. If you are an out of state company and do not have any employee’s that live in West Virginia, you should provide your state worker’s compensation certificate and the most recent quarterly report showing that you pay unemployment.
If you are a contractor that does have employees that live in West Virginia you must register with the appropriate agencies to obtain coverage.
Also, when you are renewing your license, you will need to email the verification of coverage to the board for your renewal to begin processing.
Wage Bond Information
A wage bond is a requirement in West Virginia for a contractor who has not been actively and actually engaged in construction work in West Virginia for at least one year preceding the completion date of the application/affidavit form. You may however be exempt from the requirements if you meet one of the following:
- Has at least $100,000 in assets
- Has been in business in another state for at least five years
- Is a subsidiary of a parent company that has been in business for at least five years
A wage bond is also not a requirement for a contractor who ONLY performs residential, single family dwelling work. The bond should be equal to the total of four weeks gross payroll at full capacity or production, plus fifteen percent for benefits.
Conclusion
Whether you are trying to create your own company, move up in your company, or even just boost your resume; a general contractor license is a great skillset and qualification to have. It will let your clients know that you are qualified and have taken the time to become qualified. Not only that, it is a requirement if you are performing residential construction projects over $5,000 or commercial projects over $25,000. If you do not have your West Virginia contractor’s license, you will be limited to the type of work that you can do. This will constantly create snags as you try to price work under a limit. We hope that this article was helpful in providing recommendations and helping you better understand the West Virginia contractors license requirements and application process. Good luck!