Oregon Construction Contractors (CCB) Practice Test

Contracts with residential property owners for what amount must be in writing?

1. $1,000

2. $2,000

3. $5,000

4. $10,000

The correct answer is: $2,000

In Oregon, contracts with residential property owners for work that exceeds a specific threshold must be documented in writing to ensure clarity and protect both parties involved. The correct amount that necessitates a written contract is $2,000. This rule is intended to prevent disputes and miscommunications regarding the terms of the agreement, which can include payment, scope of work, and other important details. The requirement for a written contract helps ensure that all parties have a clear understanding of their obligations and the expectations for the work to be performed. When a contract exceeds this amount, having it in writing becomes crucial for legal enforceability and helps to provide protection for both the contractor and the homeowner in case of any disagreements or misunderstandings. In contrast, agreements below this amount may not have the same formal requirement, leaving more room for verbal agreements which can lead to complications without clear documentation.