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The exact deposit amount contractors ask for upfront varies and is especially dependent on the size of the project. For relatively small jobs, like a $16,000 bathroom remodel, contractors may ask for a 50% deposit. For large jobs, like a $100,000 full-home renovation, a 10%20% deposit is more typical.
If the contractor does not have a valid license, then the contractor may have violated 59.1-200(A)(46) of the VCPA, which allows the consumer homeowner to file a complaint against the unlicensed contractor to recover whatever financial damages were caused by the contractor in addition to reasonable attorneys fees (
Virginia doesnt require liability insurance for general contractors, but coverage may be required to obtain certain permits. It can offer important financial protection to keep your business moving forward.
A good rule of thumb is an initial deposit of no more than 10% down or $1,000, whichever is less. Unless the job requires custom-made items or special orders, in which case an initial down payment should be no more than 30% of the total value of the contract.
When you receive a job offer and start date, your employer will need to contact the Virginia Bond Coordinator to have a bond issued. A public service agency can also request a bond on your behalf by using the bond request form or by contacting the Virginia Bonding Program Coordinator.
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Who Needs a Contractors License? Anybody who is performing or managing construction, removal, repair, or improvements when the total value of a single project is over $1,000 must obtain a license from DPOR.
A subcontractor can be an individual contractor (known as an independent contractor) or a company (known as a general contractor). If youre a contractor and you want to hire a subcontractor, make sure you understand your contractual obligations.
General contractors. If youre working on projects valued in excess of $1,000 in Virginia, you need a contracting license. As mentioned, the agency that oversees Virginia contractor licensing is the Department of Professional and Occupational Regulation.
Anyone performing or managing a project or removing, repairing, or improving a project valued in excess of $1,000 requires a license. Tradesmen like plumbers, electricians, HVAC technicians, gas fitters, and other typical subcontractors must also carry a state-issued license.
If your business offers construction-related services in Virginia, a general contractor license is mandatory. However, the type of license youll need depends on the size and type of projects your business will perform.

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