Is it illegal to hire an unlicensed contractor in Virginia?

Virginia's contractor law makes contracting without a licence the offence, and its penalties are aimed at the contractor. The statute is plain: "No person shall engage in, or offer to engage in, contracting work in the Commonwealth unless he has been licensed."^[2] Whether any part of the law could reach a private homeowner who hires an unlicensed business is a question for a Virginia attorney. What is clear is that you give up most of the protection the licensing system exists to provide.

What the law prohibits

Under Va. Code § 54.1-1115, contracting for, or bidding on, construction, removal, repair or improvement of someone else's property without a licence, or without the right class of licence for the value of the work, is a Class 1 misdemeanor.^[1] Someone who undertakes the work without a licence also faces a fine of up to $500 for each day of the violation, on top of the misdemeanor penalties.^[1] And working without any valid licence in a consumer transaction is also a prohibited practice under the Virginia Consumer Protection Act.^[1]

One rule in the section is aimed at the hiring side: it applies to an awarding authority that receives or considers a bid from someone it knows is not properly licensed.^[1] Whether a private homeowner counts as an awarding authority is a legal question to put to an attorney.

When a licence is needed at all

Not every paid job needs a state contractor's licence. The licence classes start above $1,000: a Class C licence covers a single contract over $1,000 but less than $30,000.^[3] A handyman who fixes a door, hangs shelves and patches drywall for a few hundred dollars does not need one.

A local business licence is a separate matter. A contractor applying for or renewing a business licence with a Virginia city, county or town must show the locality a state contractor's licence or a written statement, supported by an affidavit, that it is not subject to licensing.^[5]

Trade work is the exception. Virginia defines a tradesman as anyone who does electrical, plumbing or HVAC work for the public for pay, and requires that person to be licensed,^[7][8] with no dollar threshold. Swapping a light fixture or a faucet for pay is trade work whatever the bill comes to.

The law also exempts some work. Among the exemptions are a person working on no more than one primary residence they own, for their own use, during any 24-month period,^[4] and a person who removes building detritus or provides janitorial, cleaning or sanitizing services incidental to the construction, removal, repair or improvement of real property.^[4] An owner doing exempt work who applies for a building permit files a written statement that they are not subject to contractor licensing, in place of a licence number.^[5]

What you lose by hiring without a licence

Help from the Board. DPOR's consumer guide is direct: "If you contract with someone who does not hold a license, the Board for Contractors may not be able to help you resolve a complaint, leaving you with little recourse against the unlicensed contractor."^[10] It explains that regulatory boards do not have jurisdiction over unlicensed individuals, and prosecution of unlicensed activity is at the discretion of local officials.^[10]

The Recovery Fund. Virginia's Contractor Transaction Recovery Fund pays some unpaid court judgments against contractors, but only for improper or dishonest conduct by someone during a period when they were a regulant,^[6] that is, a licensed contractor. See how the recovery fund works.

The paperwork. Licensed contractors doing residential work must use a written contract with set terms, including their licence number and class.^[9] An unlicensed business has no Board rules to follow.

One protection you keep. If a dispute turns on payment, the law limits the unlicensed side: an unlicensed contractor cannot enforce the construction contract against you unless it performed the work substantially, in good faith, and did not actually know a licence was needed.^[1] That is a narrow rule, not a reason to hire unlicensed, and how it applies to a real dispute is a question for an attorney.

Permits and the homeowner trap

Anyone applying for a building permit must show the building official a contractor's licence or file a written statement that they are not subject to licensing.^[5] An unlicensed contractor who cannot do that sometimes asks the homeowner to pull the permit. DPOR warns against it: "The permit holder becomes the general contractor and assumes responsibility for the overall job"^[10], which can include taxes, workers' compensation and other legal liabilities.

Subcontracting has its own rules. Under the Board's regulations, contracting with an unlicensed or improperly licensed contractor or subcontractor in the delivery of contracting services is a violation for a licensed contractor,^[9] and practicing in a classification, specialty service or class of licence the contractor does not hold is also a violation.^[9] The law does exempt some subcontracted work: a person doing work valued at $25,000 or less per project on behalf of a properly licensed contractor needs no licence of their own, as long as that contractor holds a residential, commercial or home improvement building licence, and work that requires an individual licence or certification must still be done by someone who holds it.^[4] Ask who will actually be on the job, and check the licence of anyone doing electrical, plumbing or HVAC work.

How to check before you hire

Check the licence status on the DPOR License Lookup^[11] or by calling the Board for Contractors at (804) 367-8511.^[10] Do this even when you are handed a number. As DPOR's guide puts it, "A license number in an advertisement or on a business card does not necessarily mean the contractor’s license is valid."^[10] Our guide to checking a contractor's licence in Virginia walks through the record, and how to file a complaint covers what to do when a job goes wrong.

Stop and call a pro if

• The job is over $1,000, involves wiring, plumbing, HVAC or gas, or needs a permit, and the person quoting cannot show a current licence for that work.
• Someone has asked you to pull the permit in your own name for work they will do.
• You have already paid an unlicensed contractor and the work is unfinished or unsafe. Talk to a Virginia attorney about your options, and have a licensed contractor assess the work.

Hiring through Loclis

Every business in the Loclis directory is listed from DPOR's register with its licence number, class and the date the record was read, and plumbing, HVAC, electrical and gas work need a licence on Loclis at any job size. See how Loclis checks businesses, browse small repairs, find handyman businesses around Blacksburg, read what a handyman costs in Virginia or the other handyman answers, or describe your repair and licensed local businesses quote it.