A contractor's CCB license expires on June 30th. Work was started on June 15th and completed on July 15th. What is the consequence under ORS 701?
Correct Answer
A) Contractor cannot collect payment for any work performed
Under ORS 701, contractors cannot collect payment for work performed without a valid license, making the entire contract unenforceable.
Why This Is the Correct Answer
Under ORS 701, performing construction work without a valid CCB license renders the entire contract unenforceable. The contractor cannot collect payment for ANY work performed under the contract — including work done before the license expired. Oregon courts have held that contracts with unlicensed contractors are void as against public policy, stripping the contractor of the right to payment even for completed work.
Why the Other Options Are Wrong
Option B: No consequence if renewal is completed within 30 days
There is no 30-day grace period for collecting payment under ORS 701. Some administrative grace periods exist for license renewal applications, but the requirement for a valid license at the time of work performance is strictly enforced. If the license was expired during any part of the work, the entire contract is affected.
Option C: $500 fine but contract remains valid
A $500 fine with the contract remaining valid is not the consequence under ORS 701. While there may be administrative fines associated with unlicensed activity, the more severe consequence is the complete unenforceability of the contract — the contractor loses the right to collect payment entirely.
Option D: Only work performed after June 30th is affected
The consequence is not limited to just the work performed after June 30th. Oregon's approach is all-or-nothing: if the contractor was unlicensed during ANY portion of the work period, the entire contract becomes unenforceable and the contractor cannot collect payment for any of the work.
Memory Technique
No license = No payment, period. Think of the CCB license as a permission slip: if you don't have it for any part of the job, you're working without permission for the whole job, and the client owes you nothing. 'License expired = paycheck evaporated.'
More Oregon Questions
Under ORS 701, what is the minimum amount of public liability insurance required for a CCB licensed contractor?
An employee is injured on a job site. The contractor's workers compensation premium was $2,400 annually. If they were operating without coverage, what is the minimum penalty multiplier applied to the premium?
A contractor completes a $12,000 deck project but the homeowner claims defective work. Under ORS 87, how long does the contractor have to file a lien for unpaid amounts?
Under ORS 701, what is the maximum amount a residential contractor can collect as a down payment before starting work?
A homeowner cancels a $8,000 roofing contract within the 3-day right to cancel period. The contractor had already ordered $1,200 in custom materials. How much can the contractor retain?
A general contractor hires a subcontractor who performs $15,000 worth of electrical work. The property owner pays the general contractor but the general contractor fails to pay the subcontractor. Calculate the subcontractor's maximum lien claim under ORS 87.
A renovation project in a 1972 home will disturb 15 square feet of painted trim. The contractor is not RRP certified. What must they do under Oregon lead regulations?
What is the minimum experience requirement for obtaining an Oregon CCB contractor license?
A homeowner hired an unlicensed contractor who abandoned a $25,000 project. The homeowner wants to file a claim with the CCB. What is the likely outcome?
A residential contractor completes a $35,000 kitchen remodel but fails to obtain required permits. Under Oregon law, what is the potential penalty?
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