A homeowner contracts for $35,000 worth of work. The contractor completes $28,000 worth of work but abandons the project. Under Oregon law, what is the maximum the homeowner can recover from the CCB's bond?
Correct Answer
B) $20,000
The CCB bond provides coverage up to $20,000 per claim for homeowner damages caused by licensed contractors.
Why This Is the Correct Answer
Option B is correct. The Oregon Construction Contractors Board (CCB) bond provides a maximum recovery of $20,000 per claim for residential homeowner damages caused by licensed contractors. Regardless of the actual damages (in this case, $7,000 in incomplete work), the bond cap is $20,000. Since actual damages ($7,000) are below the cap, the homeowner could recover up to $7,000 in practice — but the question asks for the maximum bond coverage, which is $20,000.
Why the Other Options Are Wrong
Option A: $28,000
Option A ($28,000) is wrong. This is the value of work completed, not the homeowner's damages. The bond covers damages suffered, not what was successfully delivered. Moreover, $28,000 exceeds the $20,000 bond cap.
Option C: $35,000
Option C ($35,000) is wrong. This is the total contract value. The bond does not cover the entire contract amount — it caps recovery at $20,000 per claim regardless of contract size.
Option D: $7,000
Option D ($7,000) is wrong in the context of this question. While $7,000 represents the actual outstanding damages (the unfinished $7,000 worth of work), the question asks for the maximum the homeowner can recover from the bond — which is $20,000. The bond cap does not reduce the maximum just because actual damages are lower.
Memory Technique
CCB bond = $20,000 max per residential homeowner claim. Remember: '$20K is the CCB key.' No matter how large the project or how much was lost, the bond only pays up to $20,000.
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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