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Construction Practices and Regulations Q&A, Exams of Business Administration

A series of questions and answers related to construction practices, regulations, and compliance, primarily focusing on oregon-specific requirements. It covers topics such as contractor licensing, lien laws, safety regulations (osha), and environmental compliance. The questions address various aspects of construction management, including project scheduling, cost estimation, material management, and legal obligations. It serves as a study aid for construction professionals or students learning about the regulatory landscape of the construction industry in oregon, offering insights into the responsibilities and requirements for contractors and related parties. The document also touches on financial aspects, such as tax obligations and cash flow management, providing a comprehensive overview of the key considerations for construction businesses.

Typology: Exams

2024/2025

Available from 06/04/2025

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Top Tips for Acing the Oregon Construction
Contractors CCB Exam.
A Comprehensive Study Guide to CCB Exam with
Guaranteed Pass A+
Current Updated Edition 2025/2026
A person who engages in a business or activity that involves construction new water wells
must possess a license from the: - ansOregon Water Resource Department (OWRD)
True or False
Prompt billing and prompt collections make for a healthier cash flow. - ansTrue
Oregon OSHA consultants WILL NOT: - ansIssue citations or propose penalties for
violations of OSHA standards.
1) Questions to answer when preparing your project schedule include all of these except:
- All of these are questions to ask
- What equipment will be needed?
- How long will each task take to complete?
- What type of crew will be needed to complete the activity? - ans- All of these are questions
to ask
- What equipment will be needed?
- How long will each task take to complete?
- What type of crew will be needed to complete the activity?
For Notice of Right Lien purpose, a commercial improvement is defined as: - ansA structure
that is not used or intended for use as a residential building
I am the residential original contractor and I provide labor and materials for the project. Who
do I need to give a notice of Right to Lien to? - ansMortgagee
A quantity survey is also referred to as a: - ansTake Off
Tagout involves placing a warning tag: - ansOn an energy-isolation device
Other than Take Off, other common construction estimate types include all, except: -
ansBallpark Estimates
True or False
An on-site of host employer is responsible for ensuring a safe place of employment for leased
or temporary workers. - ansTrue
The state unemployment tax rate varies base on: - ansThe history of unemployment claims
against the employer.
Stop work order violations can result in: - ans- Any of these could be the result of failure to
comply with a stop work order.
- Court action
- Permit or license revocation
- Civil penalties
The ___________________ gives an overview of the project, deadlines, and general
requirements. - ansInvitation to Bid
"Job Logic" refers to: - ansThe sequence of work
True or False
Self-employment taxes apply to all forms of business entities. - ansFalse
- Money earned and money spent are accounted for in the year they are received or paid,
respectively. - ansIn the Cash Method
The Itemized Summary is the basis for: - ansA complete and accurate estimate of project
costs and lists all major items of work in the order they are to be performed.
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A person who engages in a business or activity that involves construction new water wells must possess a license from the: - ansOregon Water Resource Department (OWRD) True or False Prompt billing and prompt collections make for a healthier cash flow. - ansTrue Oregon OSHA consultants WILL NOT: - ansIssue citations or propose penalties for violations of OSHA standards.

  1. Questions to answer when preparing your project schedule include all of these except:
  • All of these are questions to ask
  • What equipment will be needed?
  • How long will each task take to complete?
  • What type of crew will be needed to complete the activity? - ans- All of these are questions to ask
  • What equipment will be needed?
  • How long will each task take to complete?
  • What type of crew will be needed to complete the activity? For Notice of Right Lien purpose, a commercial improvement is defined as: - ansA structure that is not used or intended for use as a residential building I am the residential original contractor and I provide labor and materials for the project. Who do I need to give a notice of Right to Lien to? - ansMortgagee A quantity survey is also referred to as a: - ansTake Off Tagout involves placing a warning tag: - ansOn an energy-isolation device Other than Take Off, other common construction estimate types include all, except: - ansBallpark Estimates True or False An on-site of host employer is responsible for ensuring a safe place of employment for leased or temporary workers. - ansTrue The state unemployment tax rate varies base on: - ansThe history of unemployment claims against the employer. Stop work order violations can result in: - ans- Any of these could be the result of failure to comply with a stop work order.
  • Court action
  • Permit or license revocation
  • Civil penalties The ___________________ gives an overview of the project, deadlines, and general requirements. - ansInvitation to Bid "Job Logic" refers to: - ansThe sequence of work True or False Self-employment taxes apply to all forms of business entities. - ansFalse
  • Money earned and money spent are accounted for in the year they are received or paid, respectively. - ansIn the Cash Method The Itemized Summary is the basis for: - ansA complete and accurate estimate of project costs and lists all major items of work in the order they are to be performed.

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A major difference between the EIN and the BIN is: - ansOne is federal and one is state Poor construction and storage practices can result in _________________ inside the structure walls. - ansMolds and fungus Builders now must use corrosion-resistance flashing in these specified locations, except: - ansSurrounding all interior bedroom doors. Compliance with environmental regulations can protect a contractor from:

  • All of these are correct
  • Private party lawsuits
  • Criminal and civil penalties
  • Liability claims - ans- All of these are correct
  • Private party lawsuits
  • Criminal and civil penalties
  • Liability claims Using the Quantity Take-Off method for estimating, you begin by estimating the cost of _________________ for each individual task. - ansLabor and materials Contractors must apply for permits through: - ansTheir local building department A cost effective method for managing material costs and keeping inventory costs down is the:
  • ansJIT - Just In Time These are materials prohibited form open burning in Oregon except for: - ansUnpainted and untreated scrap wood An owner-seller may comply with the Homebuyers Protection Act (HPA) by:
  • Doing any of these
  • Purchasing title insurance that does not exclude filed or unfiled claims of lien,
  • Obtaining lien waivers or releases
  • Retaining at least 25% of the sales price in escrow - ans- Doing any of these
  • Purchasing title insurance that does not exclude filed or unfiled claims of lien,
  • Obtaining lien waivers or releases
  • Retaining at least 25% of the sales price in escrow What are the possible consequences that a contractor may face if he or she fails to provide the information to the Owner About Construction Liens when required?
  • All of these are correct
  • Contractor may be fined
  • Contractor may lose lien rights
  • Contractor may have CCB license suspended - ans- All of these are correct
  • Contractor may be fined
  • Contractor may lose lien rights
  • Contractor may have CCB license suspended Withheld taxes are considered to be "_____________" funds that do not belong to the business and cannot be used for any other purpose. - ansTrust

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  • A nonresidential unit in a large structure if the unit is 12,000 square feet or less and the unit is not more than 20 feet tall - ans- All of these are small commercial structures
  • Any appurtenance to a small commercial structure
  • A nonresidential structure with a ground area of 10,000 square feet or less and the structure is not more than 20 feet tall
  • A nonresidential unit in a large structure if the unit is 12,000 square feet or less and the unit is not more than 20 feet tall True or False A license can change business entities without changing CCB license number(s). - ansFalse Which of these is NOT a special entity license of certification: - ansRegistered architect A party is most likely to be considered an independent contractor if the party: - ansIs free from direction and control, beyond the right of the service recipient to specify the desired result Which of the following persons must have a contractor's license? - ansA person who for money cleans chimneys Which of these is not a violation subject to penalty from the CCB? - ansFailure to complete a job on original deadline date To file a complaint, an owner of a new structure has: - ansOne year after the date the structure was first occupied or two years after completion (whichever is first) Complaints are accepted only when specific relationships exist, including:
  • All of these are qualifying relationships
  • The respondent contractor must have been licensed during all or part of the work period
  • A direct contract relationship between the party filing the complaint and the contractor
  • An employment relationship between the complainant and the employer - ans- All of these are qualifying relationships
  • The respondent contractor must have been licensed during all or part of the work period
  • A direct contract relationship between the party filing the complaint and the contractor
  • An employment relationship between the complainant and the employer True or False A material or equipment supplier can file a complaint through the CCB against a licensed contractor for non-payment of materials purchased. - ansTrue True or False The CCB will accept and determine damages against an unlicensed contractor. - ansFalse True or False AN exempt contractor may employ as many individuals as desired regardless as to whether the employees are family members. - ansFalse Which of the following individuals is NOT required to have a contractor's license?
  • None of these are required to have a contractor's license
  • An owner who contracts for work to be performed by a licensed contractor
  • A registered architect

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  • A licensed landscape contractor building a deck - ans- None of these are required to have a contractor's license
  • An owner who contracts for work to be performed by a licensed contractor
  • A registered architect
  • A licensed landscape contractor building a deck A residential contractor who has been licensed for four years must take a total of _________ hours of training which may include construction business practices, safety and codes. - ans A contractor who performs work for an owner of a residential structure must have a written contract with the owner if the contract price is more than: - ans$ A CCB surety bond is: - ansA promise by bonding agency to provide limited payment to a consumer if a contractor fails to pay a CCB determination True or False A licensed contractor is required to maintain insurance for third parties. - ansTrue A Responsible Managing Individual is: - ansEither an owner or the business that is applying for the licesne or an employee that is designated by the applicant. A sole proprietor may have: - ans1 Owner The different forms of business entities available to structure your business include:
  • Sole Proprietorships
  • Partnerships
  • All of these forms are available
  • Limited Liability Companies - ans- Sole Proprietorships
  • Partnerships
  • All of these forms are available
  • Limited Liability Companies Corporation forms considered for small businesses include types: - ans"C" and "S" True or False Your business entity form has little impact on your business. - ansFalse A person is disqualified from receiving unemployment benefits for any of the these except:
  • A single controlled substance abuse violation if that person is participating in a recognized drug rehabilitation program
  • Misconduct
  • Multiple controlled substance abuse violations in a 12-month period
  • Voluntarily abandoning the job without good cause - ansA single controlled substance abuse violation if that person is participating in a recognized drug rehabilitation program When an employer discharges an employee or terminates by mutual agreement, all of the employee's unpaid wages must be paid by: - ansEnd of the next business day following discharge or termination The form used for documenting an employee's eligibility to work is called: - ansI- 9 True or False

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  • Protect both Parties in the event of a contract breach on either side.
  • Allow the contractor to pay for labor and materials expenditures as they occur. - ans- Protect the owner by holding the contractor responsible for following the planned schedule.
  • All of these are correct
  • Protect both Parties in the event of a contract breach on either side.
  • Allow the contractor to pay for labor and materials expenditures as they occur. The CCB is Governed by a ____#___ member board appointed by the Governor and confirmed by the Oregon State Senate.
  • 8
  • 9
  • 10
  • 7 - ans Contractors who have both endorsements need to fulfill the continuing education requirements:
  • For commercial contractors only (with residential credits counting toward the commercial requirements)
  • Fully and separately for each endorsement
  • For residential requirements only.
  • For commercial-specific course only - ansFor commercial contractors only (with residential credits counting toward the commercial requirements) Complaints are accepted only when specific relationships exist between the party filling the complaint and the contractor, and included all except:
  • A direct contract relationship between the party filling the complaint and the contractor
  • An employment relationship between the complainant and the employer
  • A trustee who is authorized to receive employee benefit payments from the contractor for the benefit of the contractor's employee
  • An owner and a contractor who has never been licensed - ansAn owner and a contractor who has never been licensed Which one of the following entities is required to carry workers compensation?
  • An LLC when all members are family members, with no employees
  • A corporation with two members that are not family and is classified as a residential contractor
  • A limited liability partnership when all four employees are family members, but not members of the LLP
  • A sole proprietor who does not have any employees and only works on residential homes - ansA limited liability partnership when all four employees are family members, but not members of the LLP If the license is currently active, or the contractor wants to reactivate an inactive license, the following must be on file in order to renew:
  • A current Certificate of Insurance in the proper amount
  • All of these are needed
  • Evidence of completed continuing education
  • A current bond in the proper amount - ansAll of these are needed

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Items to include in a Project Manuel generally would include all except:

  • Employee personnel files
  • Change orders
  • Supplements & addenda to bids
  • Invitation to bid - ansEmployee personnel files The owner of an existing structure can file a complaint regarding construction within one year after the date:
  • Payment for the job clears
  • Hiring the contractor
  • Discovering the problem
  • The work was substantially complete - ansThe work was substantially complete A commercial specialty contractor level 1 is a contractor whose business:
  • Requires the use of two or fewer unrelated business trades and who undertakes or offers to undertake work in connection with residential or small commercial structures
  • Is developing that is zoned for a intended for use compatible with a residential or small commercial structure
  • Requires use of two or fewer unrelated business trades and who undertakes or offers to undertake work in connection with small or large commercial structures
  • (including subcontractors) requires the use of more than two unrelated business trades and who undertake or offers to undertake work in connection with small or large commercial structure - ansRequires use of two or fewer unrelated business trades and who undertakes or offers to undertake work in connection with small or large commercial structures True or False Exempt commercially endorsed contractors are NOT required to have worker's comp insurance with personal election coverage - ansFalse An employee/person is NOT disqualified from unemployment benefits if:
  • The person was dismissed for misconduct
  • The person was laid off
  • The person was dismissed for more than one controlled substance abuse in a 12-month span
  • The person voluntarily left without good cause - ansThe person was laid off Failure to fully and properly comply with a material portion of contract is called:
  • Insufficient funds
  • An extension
  • Breach of contract
  • A void of contract - ansBreach of contract If the CCB requests a general contractor's subcontractors list, it must be delivered within _______?
  • 1 week
  • 14 days
  • 72 hours
  • 30 days - ans72 hours Consideration in a contract is:
  • Deadlines provided in the contract

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  • Limited partners take no part in daily operations and decisions - ansThe number of partners involved Special endorsements include lead-based activities, except for:
  • All of these are lead-based activity endorsements
  • Lead Inspectors
  • Lead Assessors
  • Lead Workers - ansAll of these are lead-based activity endorsements Notice of compliance with the Homebuyers Protection Act is required for sale of new residential property costing at least ________ completed within 3 months of the sale of property
  • 50000
  • 200000
  • 20000
  • 100000 - ans Which one of the following businesses is classified as exempt from providing workers compensation?
  • A sole proprietor who employs his brother
  • Partnerships with employees who are not family members but are only paid minimum wage
  • Partnerships with no employees where all of the partners are immediate family members
  • Corporation with three corporate officers that are family members and one employee that works part time - ansPartnerships with no employees where all of the partners are immediate family members A limited liability company (LLC) is an unincorporated association that has:
  • One or more members
  • Absolute personal liability protection
  • Ownership through cash buy-in only
  • A requirement that managers be members - ansOne or more members True or False Minors 14 & 15 years of age cannot work at construction sites or where power-driven machinery is being used - ansTrue As of 2018, Oregon's minimum wage of the 15 non-rural counties outside of Portland was set as follows: - ans$10.75 per hour If your company uses a policy guide, list, or employee handbook, all new hires should:
  • Be expected to commit it to memory
  • Sign a form confirming that they received that information
  • Be tested on it
  • Be asked to keep it confidential - ansSign a form confirming that they received that information Commercial general contractor's level 1 with 5 or more employees must complete ____ hours of continuing education requirements
  • 48
  • 80
  • 64

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  • 32 - ans Special types of Contracts intentionally entered into in construction include
  • Implied
  • Unilateral
  • Lump-sum
  • Quasi - ansLump-sum A residential contractor licensed by the CCB for less than 6 years, and his or her ___________ has less than 6 years' experience, an additional 8 hours of training is required
  • Subcontractor
  • Responsible managing individual (RMI)
  • Supervisor
  • General Contractor - ansResponsible managing individual (RMI) The prevailing wage rate (PWR), is also referred to as:
  • "Little Davis Bacon Act"
  • "Sarbanes-Oxley Act"
  • "Mason-Dixon Act"
  • "Sherman Antitrust Act" - ans"Little Davis Bacon Act" Privity of Contract is:
  • A covenant agreeing that no parts of the contract may be subcontracted
  • The direct relationship that exist between parties to the same contract
  • An agreement giving a party exclusive rights to all of a client's business
  • A guarantee of confidentiality - ansThe direct relationship that exist between parties to the same contract A non-breaching party's duty to minimize the damage he or she suffers as a result of the breach is called:
  • Liquidation
  • Consideration
  • Mitigation
  • Certainty - ansMitigation All of these are required to have a contractor's license except:
  • Anyone or any business that for compensation or with the intent to sell undertakes, organizes for profit, or bids on the opportunity to build, alter, repair, demolish, add to, or provide any similar service for any building.
  • City or county inspectors or building code inspectors
  • A school district using student project/labor for the intent to sell
  • Individuals working on structures on one's once property if the intent is to sell - ansCity or county inspectors or building code inspectors True or False How a complaint is files, when it may be filed, and how it is processed are determined by whether the complaint involves a residential or commercial contractor - ansTrue Which of these is NOT a commonly recommended site rule?
  • Keep job site clean and free of debris
  • All work must comply with all applicable codes, drawings/plans, and specifications

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  • 10 working days
  • 8 working days
  • 5 working days - ans8 working days A claim of lien must be recorded 75 days of:
  • When the first progress payment was made
  • The initial contract date
  • When the project is substantially complete
  • The date in which the information to owner about construction liens was provided - ansWhen the project is substantially complete Of the following, what would generally not be considered equipment?
  • Concrete
  • Power cord
  • Hand drill
  • A crane - ansConcrete A bid or proposal should never be submitted before:
  • A contractor posts a $30,000 bond
  • The contractor has tools services
  • All work is completed
  • A markup percentage is added to the project costs - ansA markup percentage is added to the project costs Project overhead would not include:
  • Construction and final cleanup
  • Project bonds and any added insurance consts
  • Utilities, dumpsters, portable toilets
  • Regular office supplies - ansRegular office supplies The quantity survey is defined as:
  • A listing of all the required materials and task items
  • A survey intended to provide the contractor with administrative based statistical data
  • The amount of insurance required for a specific class of contractor
  • The percentage of overhead that should be dedicated to a specific task - ansA listing of all the required materials and task items The _____________ is the basis for a complete and accurate estimate of project costs and lists all major items of work in the order they are to be performed.
  • Itemized summary
  • Labor Burden
  • Site Evaluation
  • Bid Sheet - ansItemized summary Which of these is NOT a recommended per-bid consideration?
  • What are the risks and are they manageable?
  • Is it the kind of work you are equipped to do?
  • What are the site conditions and do they present any special challenges?
  • Who else might be bidding? - ansWho else might be bidding? The _________ has the job of overseeing timely ordering and delivery of material.

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  • Materials Expediter
  • Owner
  • General Contractor
  • Superintendent - ansMaterials Expediter Which of these is not a common scheduling consideration?
  • How much will the materials costs?
  • When can each task start?
  • What equipment will be needed?
  • What type of crew will be need to complete the activity? - ansHow much will the materials costs? A purchase order system can:
  • Allow you to make any necessary change orders at the earliest possible juncture
  • Do all of these things
  • Assist in the effective timing and delivery of materials
  • Give you the opportunity to review purchase orders with clients, subcontractors, and suppliers - ansDo all of these things A schedule should not:
  • Be flexible throughout the project
  • Be written and posted
  • Help everyone with the project know when their work is required
  • Be solely in someone's head - ansBe solely in someone's head ______________ are tasked with coordinating and monitoring the day-to-day aspects and function of the project.
  • Architects
  • Owners
  • Inspectors
  • Supervisors - ansSupervisors True or False Oregon adopts all of the ICC International Residential Code. - ansFalse A licensed architect or engineer must prepare drawings is the floor area is ______ square feet or more, or the height of the structure is more than ___ feet.
  • 4000, 20
  • 3000, 10
  • 3000, 20
  • 4000, 30 - ans4000, 20 True or False Compliance with a Stop Work Order is optional - ansFalse BCD administers exams and issues license required for all of these except:
  • Plumbing
  • Electrical
  • Manufactured dwelling installation
  • Landscapers - ansLandscapers Who is responsible for providing personal protective equipment?

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  • 7 years - ans7 years All businesses with employees, or registered as anything other than __________, are required to obtain a federal Employer Identification Number (EIN).
  • Sole proprietorship
  • Limited Liability Companies
  • Corporations
  • Partnerships - ansSole proprietorship All forms of businesses are required to file annual income tax returns except:
  • C Corporations
  • Sole Proprietorships
  • S Corporations
  • Partnerships - ansPartnerships True or False Withheld taxes are considered to be "trust" funds that do not belong to the business and cannot be used for any other purpose. - ansTrue Oregon unemployment, transit taxes, and the Workers Benefit Fund assessment are due:
  • The last day of the month following the end of each quarter
  • The last day of each quarter
  • The last day of the following quarter
  • By Dec 31 of each year - ansThe last day of the month following the end of each quarter It is against Oregon law for any private sector employer of ______ or more employees to discriminate in employment because an otherwise qualified person has a disability. - anssix Family and Medical Leave Act (FMLA) applies to employers with ____ or more employees.
  • ans Oregon Family and Medical Act (OFLA) applies to employers with ____ or more employees.
  • ans Oregon has an age discrimination law that prohibits discrimination against individuals _______. - answho are 18 years and older Oregon employers may post an Oregon Minimum Wage Poster summarizing the requirements of Oregon wage and hour laws. - ansFalse "Must" Oregon contractors working on prevailing wage projects must post a notice containing _________ - ans- number of hours per day employees may be required to work
  • number of days per week employees may be required to work
  • applicable prevailing wage rates for the project True or False The Employee Polygraph Protection act allows most private employers to use lie detector test, either for pre-employment screening of job applicants or for testing current employees during the course of employment. - ansFalse The Contract Work Hours and Safety Standards Act sets overtime standards for services and construction contracts on ______ projects. - ansFederal The Equal Pay Act of 1963 prohibits employers from paying different wages to ______ who perform essentially the same work under similar conditions. - ansmen and women

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The Worker Adjustment and Restraining Notification Act (WARN) offers protection to workers, their families and communities by requiring employers to provided notice ____ days in advance covered plant closings and covered mass layoffs. - ans True or False Oregon employers must post an Oregon Family Leave Act poster. - ansTrue True or False An employee handbook is a document you put together that lists company policies and employee benefits and rights. - ansTrue True or False An employee handbook is a static document. You may not add items to the handbook later on. - ansFalse True or False Employment relationship are either contractual or at-will. - ansTrue In Oregon, __________ administers the state's workers' compensation law. - ansthe Workers' Compensation Division of the Oregon Department of Consumer and Business Services. True or False If an exempt contractor is licensed as a commercial contractor, it must maintain personal election workers' compensation coverage. - ansTrue True or False Contractors that use one or more workers supplied by a worker leasing company are exempt.

  • ansFalse It is important to hire the _____ subcontractors because their work impacts yours company's reputation. - ansright True or False In many states, the employee is considered an employment contract. - ansTrue Workers' compensation benefits pay for: - ans- hospital, medical and prescription drug charges
  • wage replacement for time lost from work: and compensation for partial or full disability
  • the cost of retraining The penalty for first offense of not having workers' compensation coverage is twice the amount of the premium that should have been paid or ______, whichever is higher. - ans$1, True or False Generally, non exempt contractors have, or intend to have employees. They may carry workers' compensation coverage. - ansFalse - They must carry Unemployment Insurance. Under certain circumstances, an employee that loses his or her job is entitled to receive benefits. In general, a person may receive benefits if a person: - ansunemployed, other than by their own fault; able to work; available for work; and actively seeking work. True or False Check periodically that all subcontractors have a properly endorsed CCB license. - ansTrue Oregon law requires licensed contractors to maintain a list of each subcontractor on a job. For each subcontractor on the job, the list must include: - ansName, address and license number

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Force unnatural addresses "_____" and other external events such as war or labor strikes. This provision is written to either observer the owner or contractor of costs associated with these occurrence. - ansActs of God Different site conditions provision allocates the responsibility for extra costs dud to unexpected site conditions. Investigate and consider site conditions when putting together the bid. The _____ is responsible for disclosing all site information during the bid process. If errors or omissions occur, the _____ may be responsible for incurring the extra construction cost. - ansOwner and owner Schedule acceleration provides assignment of costs of costs incurred to complete a project ahead of schedule. in general, if the owner requires the contractor to accelerate the schedule, the _____ is responsible for all associated costs. - ansowner Progress payments have ___ function(s). - anstwo The obligation of the parties should be specifically outlined in the contract and include both the contractor's obligations and the owner's obligations. The obligations of the parties are the _____. - ansContract conditions The terms " ______________" refers to standard language or clauses used in legal contract. Sometimes they are referred to as "miscellaneous" clauses. They generally appear at the end of the contract and one of their purposes is to protect the business in the event of lawsuit. - ansboilerplace True or False Indemnification absolves the indemnified party from any payment for losses and damages incurred by a third party. - ansTrue Warranties or guarantees define the contractor's responsibility for the repair of defects to the construction project after the completion of work. Warranties are often set for a defined ________. - anstime period ________ clauses addresses changes made by the architect or design professional during the course of the project for artistic or creative purposes. - ansArtistic changes True or False Since legal language is often difficult to understand, it is recommended that you consult with a knowledgeable construction attorney when drafting and/or interpreting these provisions. - ansTrue True or False Contractors and subcontractors are obligated to perform their contractual duties at all times. - ansTrue True or False The general contractor also has the duty to provide for overall workplace safety. While both the prime contract and subcontracts may address this issue, the general contractor has control over the job site and must maintain safe working conditions. - ansTrue The general contractor, subcontractors and suppliers are held to the generally accepted performance standards and practices of the industry in the ______ where the work is performed. - ansgeographic

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Current Updated Edition 2025/

Conditions precedent is a legal term that describes an act of event that must occur before performance under a contract is required. If the act or event does not occur, then the performance is _______. - ansexcused Oregon law permits a buyer to cancel a home solicitation sale contract on _____ notice. - ansthree days' True or False Recitals are languages at the beginning of the contract that provide background to the contract, such as the parties entering into the contract, the contract contents are reasons for the parties' entering into the contract. - ansTrue True or False The general contractor on a major project is usually the only contractor in a direct contract relationship to the owner. (This relationship is called privity of contract). - ansTrue True or False The subcontractor ordinarily provides labor and services. The general contractor and subcontractor enter into a subcontract. The owner is not a party to the subcontract. Therefore. the subcontractor must look only to the general contractor in the event of a breach. (The subcontractor may, however, have lien rights). - ansTrue Unless otherwise specified, a contractor has fulfilled a contract when the project is __________. - ansSubstantially complete Oregon law permits a property owner to cancel any initial contract for construction, improvement or repair or a residential structure with _______ notice. - ansone day's True or False If the contract qualifies as a home solicitation sale, it must contain certain information about cancellation rights. - ansTrue True or False An immaterial breach of contract is a serious violation of the contract. For example contractor refuses to perform or complete a job or if a n owner refuses to pay for completed or partial jobs, this is considered a breach of contract. This type of breach may void the contract and will most likely end up in mitigation. - ansFalse Damages compensate the non-breaching party for economic losses arising from a(n) ______.

  • ansbreach of contract __________ are the amount agreed upon by the parties as fair compensation to the non- breaching party if a breach occurs. - ansLiquidated or Stated Damages True or False Certainly: To recover damages, the non-breaching party must prove the amount with reasonable mitigation. - ansFalse In a __________ contract, the contractor agrees to complete the project for a predetermined, specified price. - anslump-sum Using the ______ contract method, the contractor is reimbursed for the actual cost of labor and materials and is paid a markup fee for overhead and profits. - anscost-plus True or False