Oregon Construction Contractors (CCB) Practice Test

Which type of contract is best suited for jobs where the extent of work cannot be fully determined in advance?

1. Fixed-Price Contract

2. Unit-Price Contract

3. Time and Materials Contract

4. Cost-Plus Contract

The correct answer is: Time and Materials Contract

The type of contract best suited for jobs where the extent of work cannot be fully determined in advance is the Time and Materials Contract. This contract allows for flexibility and adaptability in situations where the scope of work may change or evolve as the project progresses. In a Time and Materials Contract, the contractor is paid for the actual costs of labor and materials used on the project, along with an agreed-upon markup for overhead and profit. This is particularly useful for jobs that involve uncertainty or variable tasks where a comprehensive estimate is difficult to prepare upfront. Such contracts are commonly used in maintenance work, renovations, or projects that require a high degree of client interaction and adjustments over time. They ensure that the contractor is compensated fairly for the amount of work performed, regardless of any changes that might arise during the execution of the project. This dynamic nature provides the necessary flexibility to effectively manage unpredictable elements in construction work.