Oregon Construction Contractors (CCB) Practice Test

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What must a construction contract specifically outline?

  1. Design aesthetics only

  2. Obligations including work and compensation

  3. Time frames for construction completion

  4. Minimum wage requirements for workers

The correct answer is: Obligations including work and compensation

A construction contract is a crucial document that serves to formalize the agreement between parties involved in a construction project. It must specifically outline the obligations of each party, which encompass both the scope of work to be performed and the compensation arrangements. Clearly defining these obligations helps to establish expectations, responsibilities, and accountability for both the contractor and the client. By including details about the work to be completed, the parties have a clear understanding of what is required, minimizing the potential for disputes or misunderstandings. Additionally, outlining compensation ensures that payments are tied to specific milestones or deliverables, which aids in managing the financial aspects of the project. While time frames for construction completion and minimum wage requirements are important aspects of construction projects, they contribute to the overall management of the project rather than representing the essential obligations between parties. Similarly, focusing solely on design aesthetics does not encompass the full scope of what a construction contract should entail. Therefore, the emphasis on obligations, including work and compensation, represents the foundational elements necessary for a comprehensive construction contract.