A residential contractor in Oregon begins work on a $45,000 kitchen remodel without obtaining required permits. Under CCB regulations, what is the maximum civil penalty that can be imposed?
Correct Answer
D) $10,000
Under ORS 701, civil penalties for working without permits can reach up to $10,000 per violation.
Why This Is the Correct Answer
The correct answer is D ($10,000). Under ORS 701, the Construction Contractors Board may impose civil penalties of up to $10,000 per violation. Working without required permits is a violation subject to this maximum penalty, regardless of the contract value.
Why the Other Options Are Wrong
Option A: $1,000
$1,000 is incorrect. While $1,000 appears in other Oregon contractor regulations (such as the maximum down payment limit), it is not the maximum civil penalty the CCB can impose for permit violations.
Option B: $5,000
$5,000 is incorrect. This is a common distractor representing a mid-range penalty figure, but ORS 701 authorizes penalties up to $10,000 per violation — double this amount.
Option C: $15,000
$15,000 is incorrect. This exceeds the statutory maximum civil penalty under ORS 701. The $15,000 figure may be confused with one-third of the contract price in down payment calculations, but it does not apply here.
Memory Technique
Associate CCB civil penalties with '$10K per violation.' Think: 'Ten grand for each CCB offense.' The contract amount is a red herring — the penalty cap is fixed by statute, not proportional to the job size.
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?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Contract Administration
60 questions · 70% to pass
Project Management
60 questions · 70% to pass