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?
Correct Answer
D) No recovery possible - contractor was unlicensed
The CCB bond only covers licensed contractors. Unlicensed contractors have no bond coverage, so no recovery is available through the CCB.
Why This Is the Correct Answer
The Oregon Construction Contractors Board (CCB) bond system only provides coverage for licensed contractors who have posted the required surety bond. Since this contractor was unlicensed, they would not have been required to post a bond and therefore no bond exists to cover claims. The CCB's consumer protection mechanisms, including bond recovery, are exclusively available for work performed by properly licensed contractors. Without a license and corresponding bond, homeowners have no recourse through the CCB system.
Why the Other Options Are Wrong
Option A: Full $25,000 recovery from CCB bond
The CCB bond cannot provide any recovery because the contractor was unlicensed and therefore had no bond posted. Only licensed contractors are required to maintain bonds, so there is no $25,000 or any amount available for recovery through the CCB system.
Option B: Recovery limited to $15,000
There is no recovery limit to consider because no bond exists. The $15,000 figure is irrelevant since unlicensed contractors are not required to post bonds with the CCB, making any recovery through the board impossible regardless of amount.
Option C: Recovery possible only for materials cost
No recovery is possible for any costs, including materials, because the contractor was unlicensed. The CCB bond system only covers licensed contractors, so the type of costs (materials vs. labor) is irrelevant when no bond coverage exists.
Memory Technique
Remember 'No License = No Bond = No Recovery' - the CCB protection chain breaks at the first link when contractors are unlicensed.
More or-supplement 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 residential contractor completes a $35,000 kitchen remodel but fails to obtain required permits. Under Oregon law, what is the potential penalty?
Under Oregon residential contractor requirements, what is the minimum bond amount required for a CCB license?
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