Under Oregon CCB regulations, what is the maximum amount a residential contractor can collect as a down payment before starting work?
Correct Answer
C) 10% of contract price or $1,000, whichever is less
Oregon CCB law limits down payments to 10% of contract price or $1,000, whichever is less, before work begins.
Why This Is the Correct Answer
The Oregon Construction Contractors Board (CCB) limits residential contractor down payments to 10% of the contract price OR $1,000, whichever is LESS. This consumer protection rule prevents contractors from collecting large sums before any work begins, reducing the risk of homeowner loss if a contractor abandons the project.
Why the Other Options Are Wrong
Option A: 50% of contract price with no dollar limit
50% of the contract price with no dollar limit would allow a contractor on a $100,000 project to collect $50,000 before lifting a hammer. This has no basis in Oregon CCB law and would defeat the consumer protection purpose of the regulation.
Option B: 25% of contract price or $5,000, whichever is less
25% of the contract price or $5,000, whichever is less, is not Oregon's rule. These figures are not codified in CCB regulations. This option appears plausible because it uses the correct format (percentage + dollar cap + whichever is less) but uses wrong numbers.
Option D: 33% of contract price or $1,000, whichever is less
33% of contract price or $1,000, whichever is less, is the Arizona rule — not Oregon's. This is a classic cross-state trap question. Arizona uses one-third; Oregon uses 10%. The dollar cap ($1,000) is the same in both states, making the percentage the critical differentiator.
Memory Technique
Oregon CCB = '10% or $1,000' — think of Oregon's area code 503: the '10' in 10% rhymes with 'ten,' and Oregon is a 'ten' state. Arizona is a 'third' state (1/3). State abbreviation AZ → 'A Third'; OR → 'Oregon Ten.'
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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