Which statement about licensing for joint ventures and their parties is true?

Which statement about licensing for joint ventures and their parties is true?

• A. The joint venture or each contracting party must be licensed.
• B. Only the joint venture must be licensed.
• C. Only one contracting party needs a license.
• D. No license is required for joint ventures.

Answer: (A)

Licensing in Virginia covers anyone who bids or performs contracting work, and a joint venture (as a business entity) is treated as a single entity for this purpose. If the joint venture will perform the project, it must hold its own license. If the joint venture doesn’t have a license, the individual contracting parties can still perform the work only if each of those parties holds a valid Virginia contractor license. In other words, either the joint venture is licensed, or every contracting party involved is licensed. This ensures the work is performed under proper, authorized supervision and accountability.

Licensing in Virginia covers anyone who bids or performs contracting work, and a joint venture (as a business entity) is treated as a single entity for this purpose. If the joint venture will perform the project, it must hold its own license. If the joint venture doesn’t have a license, the individual contracting parties can still perform the work only if each of those parties holds a valid Virginia contractor license. In other words, either the joint venture is licensed, or every contracting party involved is licensed. This ensures the work is performed under proper, authorized supervision and accountability.