The Homeowner's Guide to Hiring a Contractor in Virginia — What to Know Before You Sign Anything

Hiring a contractor in Virginia is one of the most consequential decisions a homeowner can make. Get it right and your home improves, your investment grows, and the experience is something you'd do again. Get it wrong and you're dealing with delays, cost overruns, shoddy work, or worse — a contractor who takes your deposit and disappears. This guide is for homeowners in Virginia Beach, Chesapeake, Norfolk, and across Hampton Roads who want to go into the hiring process informed. We'll walk through exactly what to look for, what to verify, what every contract should include, and the red flags that are easy to miss until it's too late.

Understanding Virginia's Contractor License Classes

Virginia requires contractors to be licensed through the Department of Professional and Occupational Regulation (DPOR). There are three license classes, and the differences matter more than most homeowners realize. A Class C license covers projects up to $10,000. A Class B license covers projects up to $120,000. A Class A license covers unlimited project size and scope — there is no cap. What this means in practice is that a contractor with a Class B license cannot legally take on a $150,000 whole-home remodel or a full custom build. If they do anyway, the contract may be unenforceable and your legal recourse becomes significantly more complicated. Before you hire anyone for a project over $10,000, ask for their license class and verify it. For any project over $120,000 — or any full build — a Class A license is non-negotiable.

VIRGINIA CONTRACTOR LICENSE CLASSES AT A GLANCE

Class C  —  Projects up to $10,000  —  Limited scope, often sole proprietors or small specialty trades

Class B  —  Projects up to $120,000  —  Mid-range projects, multi-room remodels, some additions

Class A  —  Unlimited project size  —  Full builds, large additions, whole-home remodels of any scale

Verify any license free at:  DPOR.virginia.gov  (search by contractor name or license number)

💡  Phipps Construction holds a Class A contractor license in Virginia. License #2705173668.

Insurance — What to Ask For and Why It Matters

A licensed contractor is not automatically an insured contractor. These are two separate requirements. Before signing any contract, you should request and verify two types of insurance. General Liability insurance protects you if the contractor or their crew causes damage to your home or property during the project. Without it, you may be responsible for repairs. Workers Compensation insurance protects you if a worker is injured on your property. In Virginia, if a contractor does not carry Workers Comp and a worker is hurt on your job site, you could be held liable. Ask for certificates of insurance — not just verbal assurance — before work begins. A reputable contractor will have these documents ready and will not hesitate to provide them. If a contractor balks at this request, that is your answer.

INSURANCE CHECKLIST — Request Both Before Signing

General Liability Insurance  —  Ask for the certificate and confirm it is current (not expired)

Workers Compensation Insurance  —  Required if the contractor has employees; confirm coverage

Subcontractor Coverage  —  Ask whether subs carry their own insurance or are covered under the GC's policy

Named as Additional Insured  —  For larger projects, ask to be listed as an additional insured on the policy

How to Vet a Contractor Before You Meet Them

Before you spend an hour on a site visit or consultation, do your homework. This takes about 15 minutes and can save you from a very expensive mistake. Start at DPOR.virginia.gov and search the contractor's name or license number. Confirm the license is active, check the class level, and look for any disciplinary actions or complaints on record. Next, search Google, Yelp, and the Better Business Bureau for reviews. Look for patterns, not outliers. One bad review out of 30 tells you less than three reviews that all mention the same problem. Check whether the contractor has a website with real project photos. Stock photos and vague descriptions are a yellow flag. Ask for references from projects completed in the last 12 months that are similar in scope to yours. Follow up on those references — most homeowners never call them, which is a missed opportunity. A contractor who has done excellent work will have clients who are genuinely happy to talk about it.

PRE-MEETING VETTING CHECKLIST

☐  Verify license at DPOR.virginia.gov — confirm active status and license class

☐  Check for disciplinary actions or complaints on the DPOR record

☐  Read Google reviews — look for patterns across multiple reviews

☐  Check BBB rating and complaint history at bbb.org

☐  Review their website — do they show real project photos with context?

☐  Ask for 2–3 references from similar projects in the last 12 months

☐  Call at least one reference before the site visit

Getting Quotes — What a Good Bid Looks Like

Get at least three quotes for any project over $10,000. Not because you should automatically choose the lowest one — you shouldn't — but because comparing bids teaches you what the market looks like and reveals which contractors are actually paying attention to your scope. A good bid is specific. It should describe the exact work to be done, the materials to be used (by type, grade, or brand where relevant), what is and is not included, the payment schedule tied to milestones, and an estimated timeline with start and completion dates. A vague bid — one that says 'kitchen remodel, all materials, $28,000' with nothing else — is a risk. Vague bids give a contractor room to cut corners, substitute cheaper materials, and dispute what was agreed upon if something goes wrong. If a bid comes in dramatically lower than the others, ask why in detail. Sometimes a lower bid reflects efficiency. More often it reflects either a missing scope item or a plan to cut costs somewhere you haven't anticipated.

WHAT EVERY WRITTEN BID SHOULD INCLUDE

Detailed scope of work — room by room, system by system

Specific materials — brand, type, grade, or allowance amounts

What is explicitly excluded from the scope

Payment schedule tied to milestones, not arbitrary dates

Estimated start date and projected completion date

Contractor's license number and insurance information

Process for handling changes to scope (change orders)

Warranty on labor and materials

The Contract — What Must Be in Writing

In Virginia, any construction contract over $1,000 should be in writing. For projects of significant size, a verbal agreement is not a contract — it is a handshake with no legal weight when something goes wrong. A solid construction contract will include the full scope of work, the total contract price, a payment schedule (milestone-based is strongly preferred over time-based), a start and estimated completion date, a change order process requiring written approval before additional work proceeds, what happens if either party defaults or needs to exit the contract, a dispute resolution clause specifying jurisdiction, and warranty terms for both labor and materials.

Never pay more than 10–15% as a deposit upfront. Payments should be tied to completion milestones — for example, a payment when framing is complete, another when rough-ins pass inspection, another at substantial completion, and a final payment at your approved walkthrough. A contractor who demands 50% or more upfront before work begins is a significant red flag. Legitimate contractors with established businesses do not need large deposits to fund materials — they have supplier accounts and credit relationships for that purpose.

CONTRACT RED FLAGS — Walk Away if You See These

Request for more than 30–40% upfront before any work begins

No written contract offered — 'we just work on a handshake'

Pressure to sign immediately or 'lose the spot'

No change order process — scope changes handled verbally

Reluctance to provide license number or proof of insurance

No warranty terms mentioned anywhere in the agreement

Cash-only payment requests

No physical business address — only a cell number and an email

Permits — Why They Protect You

Permits are not bureaucratic obstacles. They are your protection. A permitted project is inspected by the city or county at key stages — framing, mechanical rough-ins, insulation, and final — which means an independent professional verifies that the work meets code before it gets covered up. When you sell your home, unpermitted work is a serious liability. Buyers and their agents will ask about permits. Lenders may require permits to be pulled retroactively as a condition of financing. In some cases, unpermitted work must be torn out and redone before a sale can close. Any contractor who suggests skipping permits to save time or money is either operating outside the law or asking you to take on a risk they are not willing to carry themselves. A reputable contractor pulls permits as a standard part of doing business and includes permit costs in the project budget.

💡  In Virginia Beach, you can check the permit history of any property at the city's online permit portal. If you are purchasing a home or hiring a contractor for a property with prior work, this is worth checking before you begin.

Questions to Ask on the First Call or Site Visit

The first conversation with a contractor tells you a lot — not just about their answers, but about how they communicate. A contractor who listens carefully, asks clarifying questions, and gives honest rather than optimistic answers is a better partner than one who quotes instantly and tells you everything you want to hear.

12 QUESTIONS TO ASK EVERY CONTRACTOR YOU CONSIDER

1.  What is your contractor license class, and can I have your license number to verify?

2.  Can you provide certificates of general liability and workers compensation insurance?

3.  Will you be on site daily, or will a crew lead manage the day-to-day?

4.  Do you use subcontractors? If so, are they licensed and insured?

5.  Can you provide two or three references from similar projects in the last year?

6.  How do you handle change orders — verbally or in writing?

7.  What does your payment schedule typically look like?

8.  What is your current availability, and what is a realistic start date?

9.  How do you communicate during the project — calls, texts, a project tool?

10. Have you pulled permits for similar projects in this city or county before?

11. What warranty do you provide on your labor?

12. What happens if you find something unexpected — like water damage behind a wall?

A Note on Reviews and Referrals

Referrals from people you trust are still the most reliable way to find a good contractor. If a neighbor, friend, or colleague had a genuinely great experience — not just 'it was fine' but actually great — that is worth more than any review platform. When a referral is not available, Google reviews are the most reliable public source because they are harder to fake at volume and are tied to verified Google accounts. Read the negative reviews as carefully as the positive ones. A contractor who responds to negative reviews professionally and takes responsibility tells you something important. One who argues, deflects, or insults the reviewer tells you something equally important. The total number of reviews matters too — 27 reviews over several years paints a more reliable picture than 4 reviews posted in the same week.

 Phipps Construction — How We Measure Up

We wrote this guide because we believe homeowners who understand the process make better decisions — and better decisions lead to better projects for everyone. So in the spirit of full transparency, here is how Phipps Construction stacks up against every standard in this guide. Jared Phipps holds a Class A contractor license in Virginia — the highest classification available, with no project size limitations. License number: 2705173668. Phipps Construction carries both general liability and workers compensation insurance. Certificates are available on request before any contract is signed. We pull permits on every project that requires one — no exceptions. We use licensed and insured subcontractors for specialty trades. All scope changes are handled in writing via change orders before work proceeds. Our payment schedules are milestone-based. We do not ask for large upfront deposits. We have 27 Google reviews and counting, and we welcome you to read every one of them — including any that are less than five stars.

Ready to Have a Conversation?

If you have a project in Virginia Beach, Chesapeake, or Norfolk and you want to talk to a contractor who will give you a straight answer, we'd like to hear from you. No pressure, no obligation — just an honest conversation about what your project involves and what it would realistically take to get it done right.

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