CCB Oregon FINAL EXAM PREP 2025/2026 COMPLETE QUESTIONS WITH CORRECT DETAILED ANSWERS || 100% GUARANTEED PASS LATEST VERSION

CCB Oregon FINAL EXAM PREP 2025/2026 COMPLETE QUESTIONS WITH CORRECT DETAILED ANSWERS || 100% GUARANTEED PASS LATEST VERSION 1. Unless exempt, to legally conduct construction activities in Oregon, the contractor must - ANSWER be licensed with the CCB. 2. A contractor's license is required for - ANSWER an individual contracting to build a home for a friend for compensation. 3. Which situation requires a CCB license? - ANSWER Anyone bidding and performing construction work. 4. Which of the following is not required by law? - ANSWER A CCB license to erect a shed on your own property 5. An independent contractor is one who - ANSWER is free from supervision over the means and manner for the way their work is to be done. 6. Even if you do NOT plan to have employees you will still need - ANSWER a surety bond. 7. What does RMI stand for? - ANSWER Responsible Managing Individual 8. The RMI's job is to - ANSWER supervise construction activities. 9. A company name should be - ANSWER distinctive and unique. 10. A contractor qualifies for a "Residential Limited" endorsement if - ANSWER income is less than $40,000 per year and contracts are for $5,000 or less each. 11. When a third party complains about the damage caused by a residential contractor, what is the maximum amount the contractor's surety bond payout to compensate the third party? - ANSWER $3,000 12. If the CCB determines that a contractor owes money to a customer and refuses to pay it, who pays? - ANSWER The contractor's bonding company 13. A contractor's license can be suspended for - ANSWER unpaid child support. unpaid income taxes. unpaid student loans. 14. If, after a thorough investigation, the CCB determines that a contractor has violated Oregon law, the CCB may - ANSWER issue a warning letter. invoke a civil penalty such as a fine. suspend or revoke the contractor's license. 15. The person who must exercise management or supervisory authority over the construction activities of the business is the - ANSWER (RMI) Responsible Managing Individual. 16. All of the following are required to operate a contracting business EXCEPT - ANSWER a driver's license. 17. A homeowner wants a new vanity installed in the bathroom. It's a pre assembled unit that needs to be installed, caulked, have the sink replaced, and install a backsplash. The licensed contractor agrees with a handshake to do all of this for $1,200. Which statement is TRUE about this situation? - ANSWER This job does not require a written contract; a handshake is just fine. 18. A nine-member board appointed by the _____ and confirmed by the _____ governs the CCB. - ANSWER Governor, Oregon Senate 19. Each year, the Oregon Construction Contractors Board (CCB) receives as many as ____ complaints about contractors. - ANSWER 1000 20. Oregon law requires individuals or businesses conducting construction activities to be licensed with the CCB. - ANSWER TRUE 21. The ccb manual does not include information specific to particular construction trades. - ANSWER TRUE 22. A nine-member board appointed by the _____ and confirmed by the _____ governs the CCB. - ANSWER Governor, Oregon Senate 23. Oregon Revised Statutes (ORS): The laws governing construction contracting can be found mainly in ORS chapter 701. The laws may be revised monthly. - ANSWER FALSE 24. Oregon Administrative Rules (OAR): The rules can be found at OAR chapter ___. Rules may change more than once a year. - ANSWER 812 25. Current rules and laws are available on the CCB's website - ANSWER TRUE 26. A "contractor" is an individual or business that, for compensation or with the intent to sell, arranges or undertakes or offers to undertake or submits a bid to construct, alter, repair, add to, subtract from, improve, inspect, move, wreck or demolish, for another, any building, highway, road, railroad, excavation or other structure, project, development or improvement attached to real estate, or to do any part thereof. - ANSWER TRUE 27. Unless exempt, those who clean and service chimneys are contractors - ANSWER TRUE 28. Contractors must have at least two Responsible Managing Individual's on the record at all times. - ANSWER FALSE 29. Some individuals or entities are not required to have CCB licenses even if they are acting as "contractors." - ANSWER TRUE 30. Licensed contractors must hold a surety bond in the amount required for the _____. - ANSWER license endorsement 31. Bond Amounts. A contractor endorsed for both residential and commercial work must maintain ______ surety bond(s) for each endorsement. - ANSWER separate 32. Public Works Bonds: Contractors working on qualifying public works projects with a total project cost of more than $100,000 must file a $______public works bond with the CCB. - ANSWER 30,000 (30%) 33. Insurance Requirements. A licensed contractor must maintain liability insurance to cover claims a client (or other third party) might file based on the contractor's work. - ANSWER TRUE 34. Maintaining a Contractor License. Address Changes: Contractors have _____ to notify the CCB of any address change. This applies while licensed and for one year following the license expiration. - ANSWER 10 days 35. Contractors that change business entities (such as a sole proprietor to corporation) must complete a new license application, pay new fees and provide a new bond and insurance. The CCB will re-issue the same license number. Typically, if a partner departs, the contractor must obtain a new license. - ANSWER TRUE 36. Contractors must notify the CCB when they add or remove official personnel such as corporate officers or members. - ANSWER TRUE 37. Contractors who temporarily stop working may not place their license on inactive status. - ANSWER FALSE 38. Contractor licenses renew every ____ year(s). - ANSWER 2 39. Written Contracts. A Contractor who works for an owner of a residential structure or a zero-lot-line dwelling must have a written contract with the owner if the contract price is more than $_______. - ANSWER 2000 40. A contract for work on residential property may limit a person's right to file a complaint for damages with CCB. - ANSWER FALSE 41. Warranties. Residential Warranties: A contractor must offer warranty against defects in materials and workmanship if the contractor does either of the following: - ANSWER enters into contract to construct a new residential structure or zero-lot-line dwelling AND sells a new residential structure or dwelling constructed as a "spec" home 42. Warranties. Commercial Warranties: A commercial general contractor who constructs a new, large commercial structure must provide the owner with a ___-year warranty against defects in materials and workmanship that covers the building envelope and penetration components. - ANSWER 2 43. Dispute Resolution. The CCB ___ complaints against licensed contractors - ANSWER Accepts 44. An employee may file a complaint against a licensed contractor within ___from the date the wages were earned. - ANSWER 1 year 45. An equipment or material supplier, or licensed subcontractor, may file a complaint against a licensed contractor within one year from the date the materials were sold or within one year from the date the work was performed. - ANSWER TRUE 46. ______ who wants to file a complaint against a contractor must notify the contractor before filing the complaint. - ANSWER None of the above 47. The CCB does not charge a processing fee for a complaint against a commercial contractor. - ANSWER TRUE 48. Complaints Against Residential Contractors. When both parties participate, CCB mediators help settle more than 70 percent of complaints that go to mediation. Settlement normally resolves the complaint with the least amount of time and money. - ANSWER TRUE 49. A licensed contractor may be sanctioned for knowingly assisting an unlicensed person to act as a contractor. - ANSWER TRUE 50. A contractor is not required to include their CCB license number on ____. - ANSWER permanent signs at a contractor's place of business 51. The laws governing construction contractors in Oregon are: - ANSWER ORS Chapter 701 52. Regarding CCB license endorsements, construction of a five-story apartment complex is considered: - ANSWER A Commercial Structure 53. If a contractor is endorsed as both a residential and commercial contractor with the CCB, the contractor must meet continuing education requirements for: - ANSWER Commercial contractors 54. Which of the following special license or certification is good for more than one year? - ANSWER Certified Home Inspector 55. Assisting an unlicensed contractor is a type of violation that involves: - ANSWER Allowing an unlicensed contractor to work under the licensed contractor's license 56. Which type of complaint will the CCB NOT accept? - ANSWER General contractor complaints against a homeowner 57. Which of the following contractors with a special endorsement, license or certification is not required to complete the 16 hour training and testing requirement? - ANSWER Home Services contractor 58. Which of the following contractors can perform work on residential or small commercial projects not exceeding $40,000 a year in gross volume and the projects can be no more than $5,000 per project, per site, per year? - ANSWER Residential Limited Contractor 59. How many members make up the Construction Contractors Board? - ANSWER 9 60. What is the fee the CCB charges an owner to file a complaint against a residential contractor: - ANSWER $50 61. A sole proprietor's wife who is not employed by the business may act as RMI for the company. T/F - ANSWER False 62. If a bonding company cancels a contractor's bond and the contractor is unable to reinstate or replace the bond, the CCB will suspend the contractor's license ____________ after receiving notice from the bonding company? - ANSWER 30 Days 63. A contractor builds a spec home and because of market conditions, can't sell it for 14 months after substantial completion. The owner buys the house and moves in immediately. How much longer after the owner moves in can the owner file a complaint against the contractor? - ANSWER 10 Months 64. Which of the following is NOT required to be submitted when applying for a contractor's license? - ANSWER Copy of Driver License 65. The name of the pamphlet that must be given prior to renovation on target housing or child-occupied facilities is: - ANSWER The Lead-Safe Certified Guide to Renovate Right 66. All of the following must be licensed as a contractor EXCEPT: - ANSWER An apartment owner's employee 67. To renew an active license with the CCB, an exempt contractor must submit all of the following to the CCB EXCEPT: - ANSWER Worker's compensation compliance number 68. Of the nearly 1,000 complaints received by the CCB annually, most of the complaints involve all of the issues below EXCEPT: - ANSWER Safety violations 69. All of the following are true regarding the RMI EXCEPT: - ANSWER The RMI is the person who is liable for construction debt of the company 70. Prime contractor complaints are complaints filed by the general contractor against: - ANSWER A Subcontractor 71. How often does a contractor's license need renewal? - ANSWER Every 2 Years 72. Services provided by the CCB include all of the following EXCEPT: - ANSWER Issuing Judgments against Contractors 73. If the business notifies the CCB of a temporary RMI appointment, how long may the contractor operate with the temporary RMI? - ANSWER 14 Days 74. When contracting directly with a residential property owner and the contract is more than $2,000, a contractor must include all of the following consumer notices EXCEPT: - ANSWER Homebuyer Protection Act Notice 75. Lead based paint activities include all of the following EXCEPT: - ANSWER Lead paint renovation 76. A(n) ____ specifically outlines the obligations of the contract, including the work to be done and compensation for this work. - ANSWER offer 77. True or False A situation where parties may not have legal capacity might be if you contracted with someone who is heavily under the influence of drugs or alcohol. - ANSWER True 78. True or False A contractor must be licensed and properly endorsed by the Oregon Construction Contractors Board (CCB) to enforce a construction contract. A commercial contractor working on a residential structure is properly endorsed. - ANSWER False 79. Contracts are full of _____, but a few key ones you will want to include: 1) Contracts Price and Payment Terms 2) Obligation of the Parties 3) Supplemental Conditions 4) Breach of Contract - ANSWER provisions 80. ____ payments are partial made after specified phases of construction are complete. - ANSWER Progess 81. Retainage is used by the owner to ensure completion of the construction project and provide protection against liens, claims and defaults. It is calculated as a percentage withheld from each progress payment. (Oregon law limits the percentage to no more than ______ percent). - ANSWER 5 82. The __________ conditions modify the general conditions of the contract and are often prepared in a separate document. Supplemental conditions are tailored specifically to each project. They may outline items such as specific insurance requirements, projects procedures and local law requirements. - ANSWER supplemental 83. 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. - ANSWER Acts of God 84. 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. - ANSWER Owner and owner 85. 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. - ANSWER owner 86. Progress payments have ___ function(s). - ANSWER two 87. 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 _____. - ANSWER Contract conditions 88. 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. - ANSWER boilerplace 89. True or False Indemnification absolves the indemnified party from any payment for losses and damages incurred by a third party. - ANSWER True 90. 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 ________ . - ANSWER time period 91. ________ clauses addresses changes made by the architect or design professional during the course of the project for artistic or creative purposes. - ANSWER Artistic changes 92. 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. - ANSWER True 93. True or False Contractors and subcontractors are obligated to perform their contractual duties at all times. - ANSWER True 94. 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. - ANSWER True 95. 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. - ANSWER geographic 96. 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 _______. - ANSWER excused 97. Oregon law permits a buyer to cancel a home solicitation sale contract on _____ notice. - ANSWER three days' 98. 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. - ANSWER True 99. 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). - ANSWER True 100. 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). - ANSWER True 101. Unless otherwise specified, a contractor has fulfilled a contract when the project is __________. - ANSWER Substantially complete 102. Oregon law permits a property owner to cancel any initial contract for construction, improvement or repair or a residential structure with _______ notice. - ANSWER one day's 103. What is the deadline for a licensed subcontractor to file a complaint against a licensed contractor? CHOOSE ONE ANSWER A. Within one year from the date the contract was signed B. Within one year from the date materials were delivered C. Within one year from the date work was performed D. Within one year from the date materials were sold - ANSWER C. Within one year from the date work was performed 1-10 104. When does a contractor need to publicly display his or her CCB license number? CHOOSE ONE ANSWER A. On any advertisement, on written bids, on all contracts B. On both personal and company vehicles C. On personal Facebook posts D. On permanent signs at the contractor's place of business - ANSWER A. On any advertisement, on written bids, on all contracts 1-12 105. A commercial general contractor must provide an owner with a two year warranty upon completion of substantial work. What does this warranty cover? CHOOSE ONE ANSWER A. It protects against defects in materials and workmanship in the building envelope and penetration components B. It protects against defects caused by the original contractor C. It covers the building perimeter and foundation D. It covers damages caused by owner's failure to follow maintenance schedule - ANSWER A. It protects against defects in materials and workmanship in the building envelope and penetration components 1-19 106. A contractor is breaking the law if he or she bids, advertises, or works without a CCB license. What are possible penalties the CCB can impose for these violations? CHOOSE ONE ANSWER A. The CCB can report offenders to the Oregon Department of Revenue B. The CCB can report offenders to BOLI C. The CCB can report offenders to the Oregon OSHA D. The CCB can enforce a felony indictment with a civil penalty of up to $5000 - ANSWER A. The CCB can report offenders to the Oregon Department of Revenue 1-11