Oregon Construction Contractors (CCB) Practice Test

Progress payments are those made after specific phases of construction are completed. This payment structure is typically outlined in a construction contract and is designed to provide financial support to the contractor as work on the project advances. By linking payments to milestones, this approach helps ensure that both the contractor and the client maintain a clear understanding of the work being completed and the financial obligations associated with it.

In the context of construction, progress payments offer a way to manage cash flow for contractors, allowing them to pay labor and materials as they go along without waiting for the entire project to be completed. This arrangement is beneficial for projects that take an extended period of time, as it helps to keep the project moving forward without financial strain on either party.

Other forms of payments, like initial payments, are generally made at the beginning of a project, while final payments typically occur at the end after all work has been satisfactorily completed. Advance payments are typically upfront and may not be tied to completed phases, making them different from progress payments. Understanding the purpose and timing of progress payments can help ensure project success and financial stability throughout the construction process.