Under ORS 701, what is the minimum bond amount required for a residential contractor performing work valued at $75,000?
Correct Answer
C) $20,000
ORS 701 requires residential contractors to maintain a bond of $20,000 for work contracts exceeding $1,000.
Why This Is the Correct Answer
$20,000 is correct. ORS 701 requires residential general contractors to maintain a surety bond of $20,000. This bond amount applies when the contractor's work contracts exceed $1,000 in value. The $75,000 project value in the question confirms this is a bonding-required situation, and the standard residential bond is $20,000.
Why the Other Options Are Wrong
Option A: $15,000
$15,000 is incorrect. This amount is below the required residential contractor bond. ORS 701 sets $20,000 as the minimum, not $15,000.
Option B: $25,000
$25,000 is incorrect. While this exceeds the minimum, it is not the required amount under ORS 701 for residential contractors. This distractor tests whether you know the exact figure.
Option D: $10,000
$10,000 is incorrect. This is well below the ORS 701 requirement. A $10,000 bond would be inadequate to protect consumers on projects of significant value.
Memory Technique
Associate $20,000 with the CCB bond like this: 'Twenty-thousand to work in the Beaver State.' The number 20 appears in ORS 701 bond requirements — just as 20 is the speed limit in school zones (safety and bonding both protect people).
More Oregon Questions
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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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A contractor performs $8,500 worth of work on a residential property in Oregon. The homeowner refuses to pay. Under ORS 87, what is the deadline to file a construction lien?
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