Oregon Construction Contractors (CCB) Practice Test

When is a contractor considered to have fulfilled a contract, unless otherwise specified?

1. When they receive final payment

2. When the project is substantially complete

3. When the project is 50% completed

4. When all inspections are passed

The correct answer is: When the project is substantially complete

A contractor is considered to have fulfilled a contract when the project is substantially complete, unless otherwise specified. Substantial completion typically means that the work is sufficiently complete in accordance with the contract documents, allowing the owner to occupy or utilize the project for its intended purpose. At this stage, only minor items or deficiencies may remain, which do not prevent the project’s intended use. This concept is important as it establishes a clear point at which the contractor's obligations under the contract are deemed to be fulfilled, which can trigger other contractual rights and obligations, such as the release of funds, issuance of warranties, or the start of the warranty period. By focusing on substantial completion, it ensures that the contractor has largely delivered the completed work while still allowing for minor work to be resolved thereafter. The other options do not align with the legal definition of fulfilling a contract in this context. For instance, receiving final payment may not occur until all aspects of the project are considered complete, and reaching just 50% completion does not meet the threshold necessary to consider the contract fulfilled. Passing all inspections relates to compliance but doesn’t inherently signify that the overall contractual obligations have been met.