Oregon Construction Contractors (CCB) Practice Test

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What is the minimum contract price for which a written contract is required between a contractor and a residential structure owner?

  1. $500

  2. $1000

  3. $2000

  4. $3000

The correct answer is: $2000

A written contract is required between a contractor and a residential structure owner when the contract price is $2,000 or more. This threshold is designed to protect both parties by providing a clear, legally binding agreement that outlines the terms of the contract, including payment details, scope of work, and other necessary conditions. Contracts under this amount may still be verbal or informal agreements, but having a written contract for transactions of $2,000 and above helps establish clear expectations and reduces the potential for disputes. Understanding this requirement is crucial for contractors operating in Oregon, as it not only fosters professionalism but also aligns with state regulations aimed at ensuring consumer protection in the construction industry.