Oregon Construction Contractors (CCB) Practice Test

What is typically included in progress payment agreements?

1. Schedules for project delivery

2. Payment timelines and amounts

3. Material sourcing information

4. Subcontractor agreements

The correct answer is: Payment timelines and amounts

Progress payment agreements primarily focus on the financial aspects of a construction project, detailing payment timelines and amounts associated with various stages of project completion. This ensures that contractors receive compensation for their work as it progresses, rather than waiting until the end of the project. This is crucial for maintaining cash flow and ensuring that all parties are incentivized to adhere to the project schedule. While schedules for project delivery and material sourcing information are important elements of project management, they are not typically the focus of progress payment agreements. These agreements are specifically designed to outline the payments that will be made as certain milestones are achieved. Subcontractor agreements also serve a different purpose, as they are more concerned with the contractual relationships between general contractors and subcontractors, not the payment structure associated with progress in the overall project.