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Chapter 1 - Oregon Construction Contractor Laws & Regulations - 100 practice questions
Chapter 1 is thirteen pages and covers Oregon Construction Contractor Laws & Regulations.
1. Oregon law requires businesses conducting construction activities to be licensed with which agency?
A. Department of Consumer and Business Services
B. Oregon Construction Contractors Board (CCB)
C. Oregon Bureau of Labor and Industries
D. Oregon Department of Revenue
✅ B. Oregon Construction Contractors Board (CCB) (p. 1)
The Oregon CCB is the governing agency responsible for licensing contractors. It oversees residential and commercial contractors, sets licensing standards, issues rules, and enforces compliance with Oregon Revised Statutes Chapter 701.
2. How many members make up the Construction Contractors Board?
A. Five
B. Seven
C. Nine
D. Eleven
CHATGPT GOT THIS ONE WRONG!
n\B. Nine.
✅ B. Seven (p. 1)
The Board has seven members appointed by the Governor and confirmed by the Oregon Senate. This mix of public and industry representatives ensures balanced oversight of the construction industry.
3. Which of the following types of work requires a CCB license?
A. Volunteering on a nonprofit housing build
B. Installing flooring for pay
C. Selling building supplies
D. Inspecting property for sale
✅ B. Installing flooring for pay (p. 2)
Anyone who, “for compensation or with the intent to sell,” arranges or undertakes construction work must hold a CCB license. Paid remodeling, repair, or installation counts as construction activity.
4. The term “contractor” in Oregon refers to an individual or business that ___ .
A. Only constructs new homes
B. Performs construction, improvement, or repair work for compensation
C. Sells construction materials
D. Acts solely as a developer
✅ B. Performs construction, improvement, or repair work for compensation (p. 2)
The statute defines contractors broadly to include anyone who builds, alters, repairs, or improves real property for pay. This includes individuals, partnerships, and corporations.
5. Who must designate a Responsible Managing Individual (RMI)?
A. Every licensed contractor
B. Only commercial contractors
C. Only independent subcontractors
D. Only sole proprietors
✅ A. Every licensed contractor (p. 2–3)
Each licensed business must identify an RMI who completes required pre-license training and passes the CCB exam. The RMI is accountable for ensuring the business follows all regulations.
6. What is the primary purpose of the RMI designation?
A. To handle accounting duties
B. To provide project insurance
C. To ensure regulatory compliance and knowledge of CCB laws
D. To manage employee payroll
✅ C. Ensure regulatory compliance (p. 3)
The RMI serves as the qualified individual who demonstrates understanding of CCB laws and manages adherence to them. Without an RMI, the license cannot be active.
7. Which entity does not require a CCB license?
A. School district constructing buildings for its own use
B. Homeowner remodeling and selling homes for profit
C. Tree-service company removing hazardous trees for pay
D. Commercial builder constructing an office
✅ A. School district constructing buildings for its own use (p. 2)
Public entities such as school districts or community colleges that build on their own property for institutional use are exempt from licensing.
8. What is the license validity period once issued by the CCB?
A. 1 year
B. 2 years
C. 3 years
D. 5 years
✅ B. 2 years (p. 3)
Licenses are valid for two years, aligning with renewal, bonding, and continuing-education cycles.
9. Contractors who work on only one structure or project for their own property to sell are considered ___ .
A. Developers
B. General contractors
C. Owner-builders
D. Exempt contractors
✅ A. Developers (p. 2)
Developers build with intent to sell; they must be licensed if they direct or arrange construction, even if they own the property.
10. Which factor determines whether someone is an independent contractor?
A. Ownership of tools only
B. Ability to set their own schedule
C. Control over how and when work is performed and responsibility for profit or loss
D. Being paid hourly
✅ C. Control over work and profit/loss (p. 2)
An independent contractor operates free from direction, provides their own materials, and bears the risk of profit or loss. Oregon uses a multi-part test to determine this.
11. How does Oregon determine whether an entity qualifies as an independent contractor?
A. Through an interview
B. By completing a multi-part checklist
C. By the number of employees
D. Through a tax audit
✅ B. Multi-part checklist (p. 2–3)
The CCB uses a multi-part checklist (see Appendix K) that assesses control, independence, and business operation to decide if a worker qualifies.
12. The first step in the licensing process is to ___ .
A. Apply for bond coverage
B. Decide on a business entity
C. Pass the CCB exam
D. Pay the license fee
✅ B. Decide on a business entity (p. 3)
Applicants must first decide whether to operate as a sole proprietor, partnership, corporation, or LLC, because the entity choice affects taxes, insurance, and liability.
13. Before receiving a license, a contractor must ___ .
A. Show proof of employment contracts
B. Submit proof of bond and insurance
C. Hire a minimum of two employees
D. Complete five projects
✅ B. Submit proof of bond and insurance (p. 3)
Oregon law requires contractors to file proof of general liability insurance and a surety bond before the CCB issues a license.
14. What type of tax identification number must be obtained if a business hires employees?
A. Business Identification Number (BIN)
B. CCB License Number
C. Social Security Number
D. Federal Taxpayer ID only
✅ A. Business Identification Number (BIN) (p. 3)
Any Oregon business with employees must secure a BIN from the Department of Revenue in addition to a federal EIN.
15. Which endorsement applies to contractors who build only small residential structures?
A. Residential General Contractor
B. Residential Limited Contractor
C. Residential Specialty Contractor
D. Commercial Specialty Contractor
✅ B. Residential Limited Contractor (p. 4)
A Residential Limited Contractor may perform or manage work on smaller projects (under 3 stories or not over $250,000 in value) within defined limits.
16. A large commercial structure is defined as any commercial building ___ .
A. Less than $40,000 in gross annual sales
B. With a contract price over $250,000
C. Over 2,000 square feet
D. Built by two or more contractors
✅ B. Contract price over $250,000 (p. 4)
The manual defines “large commercial structure” as one where total construction cost exceeds $250,000, establishing a threshold for commercial endorsement requirements.
17. What is the licensing endorsement for those managing construction on property they own for sale?
A. Residential General Contractor
B. Residential Developer
C. Commercial Specialty Contractor
D. Home Services Contractor
✅ B. Residential Developer (p. 4)
A Residential Developer organizes or arranges construction on property for sale, rather than performing physical work directly.
18. Which of the following is not a residential endorsement?
A. Residential Specialty Contractor
B. Residential General Contractor
C. Commercial Developer
D. Residential Limited Contractor
✅ C. Commercial Developer (p. 4)
Commercial Developer is a separate endorsement category for non-residential projects.
19. Contractors building 20 or more new residential units per year must hold which endorsement?
A. Residential General Contractor
B. Residential Developer
C. Commercial Specialty Contractor
D. Residential Limited Contractor
✅ B. Residential Developer (p. 4)
Developers constructing 20 or more units annually fall under the Residential Developer endorsement due to the scale and nature of their projects.
20. Contractors working on structures over three stories or worth more than $250,000 must hold a ___ endorsement.
A. Commercial
B. Residential
C. Specialty
D. Limited
✅ A. Commercial (p. 4)
The CCB distinguishes commercial work by height and value thresholds; these projects require a Commercial Contractor endorsement.
21. Which endorsement is needed to perform only specialized residential tasks, such as electrical or plumbing work?
A. Residential Specialty Contractor
B. Residential General Contractor
C. Home Services Contractor
D. Residential Limited Contractor
✅ A. Residential Specialty Contractor (p. 4)
This endorsement authorizes specialized work within defined trade areas rather than general project management.
22. A contractor building a non-residential structure under 20,000 sq ft and worth less than $250,000 would require which license category?
A. Commercial Contractor Level 1
B. Commercial Contractor Level 2
C. Residential General Contractor
D. Residential Developer
✅ B. Commercial Contractor Level 2 (p. 4)
Commercial Level 2 covers smaller commercial projects under the specified size and value thresholds.
23. Which Residential endorsement is appropriate for a contractor with gross annual volume under $40,000 and contracts under $5,000 each?
A. Residential Limited Contractor
B. Residential Developer
C. Residential Specialty Contractor
D. Home Inspector Services Contractor
✅ A. Residential Limited Contractor (p. 4)
Small-scale residential contractors operating under these financial limits qualify for the Residential Limited endorsement.
24. A Residential General Contractor may work on structures that are ___ .
A. Single-family only
B. Up to four stories high and multi-unit
C. Commercial only
D. Mobile homes only
✅ B. Up to four stories high and multi-unit (p. 4)
This endorsement covers all residential structures up to four stories and permits supervising specialty contractors on larger projects.
25. Which endorsement allows contractors to perform limited repairs and maintenance for homeowners?
A. Home Services Contractor
B. Residential Limited Contractor
C. Residential Developer
D. Residential General Contractor
✅ A. Home Services Contractor (p. 4)
This special endorsement authorizes minor repair and maintenance tasks directly for homeowners, distinct from major construction projects.
26. What is the primary purpose of a contractor’s bond in Oregon?
A. To pay for materials
B. To protect consumers from financial loss due to contractor negligence or violations
C. To replace general liability insurance
D. To guarantee project completion
✅ B. Protect consumers (p. 5)
The CCB bond is a security measure for consumers, subcontractors, and employees. If a contractor violates licensing laws or fails to meet contractual obligations, a claimant can seek payment from the bond. It does not serve as insurance or completion coverage.
27. Who is protected by a contractor’s bond?
A. Only the contractor’s clients
B. Homeowners, subcontractors, employees, and suppliers
C. Only homeowners
D. Only the CCB
✅ B. Homeowners, subcontractors, employees, and suppliers (p. 5)
Multiple parties are protected: the bond can compensate consumers for damages and subcontractors or suppliers for unpaid work. The CCB oversees bond claim disputes.
28. What happens if a contractor’s bond is canceled or expires?
A. The contractor is fined
B. The license is immediately suspended
C. The contractor receives a warning
D. Nothing happens until renewal
✅ B. License is immediately suspended (p. 5)
Oregon law mandates continuous bonding. Once a bond lapses, the CCB automatically suspends the contractor’s license until a valid bond is restored.
29. What is the minimum bond amount for a Residential General Contractor?
A. $5,000
B. $10,000
C. $20,000
D. $25,000
✅ C. $20,000 (p. 5)
Bond amounts vary by endorsement. A Residential General Contractor must maintain a $20,000 bond, reflecting higher project complexity and potential liability.
30. What bond amount is required for a Residential Limited Contractor?
A. $5,000
B. $10,000
C. $15,000
D. $20,000
✅ B. $10,000 (p. 5)
Smaller-scale contractors with limited project value are required to post a $10,000 bond—half that of a general contractor—to align with lower financial exposure.
31. What bond is required for Residential Specialty Contractors?
A. $10,000
B. $15,000
C. $20,000
D. $25,000
✅ B. $15,000 (p. 5)
Specialty contractors such as plumbers or painters must maintain a $15,000 bond. This covers trade-specific risk while recognizing smaller project scopes than general builders.
32. Commercial Contractor Level 1 must hold what minimum bond?
A. $20,000
B. $50,000
C. $75,000
D. $100,000
✅ C. $75,000 (p. 5)
Because large commercial jobs involve higher financial exposure, Level 1 contractors must post a $75,000 bond.
33. Commercial Contractor Level 2 must post a bond of ___ .
A. $20,000
B. $30,000
C. $50,000
D. $75,000
✅ C. $50,000 (p. 5)
The Level 2 bond reflects mid-sized commercial project risk. It’s less than Level 1 but higher than residential categories.
34. Bonds must be issued by ___ .
A. A licensed surety company authorized to do business in Oregon
B. The contractor’s accountant
C. A bank in any U.S. state
D. The project owner
✅ A. Licensed surety company (p. 5)
Only Oregon-authorized surety firms may issue CCB bonds, ensuring legitimacy and claim enforcement under state law.
35. Which type of insurance is required for every contractor?
A. Workers’ compensation
B. Health insurance
C. General liability insurance
D. Auto insurance
✅ C. General liability insurance (p. 6)
All contractors must carry general liability insurance to cover third-party bodily injury or property damage caused by their operations.
36. What is the minimum general liability insurance required for a Residential General Contractor?
A. $100,000 per occurrence
B. $500,000 per occurrence
C. $1 million per occurrence
D. $250,000 per occurrence
✅ B. $500,000 (p. 6)
Residential general contractors face moderate risk exposure, requiring at least $500,000 per-occurrence coverage.
37. If a contractor’s insurance policy is canceled, what must the insurer do?
A. Notify the CCB immediately
B. Wait 30 days to report
C. Notify the contractor only
D. Do nothing
✅ A. Notify the CCB (p. 6)
Insurers are legally required to inform the CCB upon cancellation to protect the public from uninsured contractors.
38. What happens if a contractor fails to maintain general liability insurance?
A. The CCB issues a warning
B. The license is suspended
C. The contractor must re-take the exam
D. The bond is canceled
✅ B. License suspended (p. 6)
Continuous insurance coverage is mandatory. Lapse results in automatic suspension until proof of coverage is restored.
39. What kind of insurance must employers provide to their workers?
A. Life insurance
B. Workers’ compensation
C. Disability insurance
D. Liability insurance only
✅ B. Workers’ compensation (p. 6)
Any business with employees must provide workers’ compensation coverage to protect against job-related injuries.
40. Which type of insurance covers bodily injury or property damage to a customer’s property?
A. General liability
B. Workers’ compensation
C. Homeowner’s insurance
D. Auto insurance
✅ A. General liability (p. 6)
General liability coverage protects the public and clients from accidental harm or property loss resulting from a contractor’s work.
41. Contractors must notify the CCB of address or ownership changes within ___ days.
A. 7
B. 10
C. 14
D. 30
✅ D. 30 days (p. 7)
Contractors must update the CCB within 30 days of any change in business name, address, ownership, or responsible managing individual to maintain compliance.
42. Which of the following does not automatically renew with a CCB license?
A. Bond
B. Insurance policy
C. Business entity registration
D. All of the above
✅ D. All of the above (p. 7)
Each requirement—bond, insurance, and business registration—must be renewed separately even if the CCB license is renewed, ensuring continuous validity.
43. What is the renewal period for all active CCB licenses?
A. One year
B. Two years
C. Three years
D. Five years
✅ B. Two years (p. 7)
CCB licenses renew every two years, aligning with bond and insurance documentation requirements and continuing-education reporting.
44. To renew a license, contractors must submit ___ .
A. Proof of continuing education and renewal fee
B. A new exam
C. A business plan
D. Updated tax filings
✅ A. Proof of continuing education and renewal fee (p. 7)
Oregon requires residential contractors to complete continuing-education hours and pay renewal fees before reactivation.
45. If a license lapses, what must a contractor do to reinstate it within two years?
A. Apply as a new contractor
B. Submit a reinstatement form and pay late fees
C. Take a new exam
D. Wait six months
✅ B. Submit reinstatement form and late fees (p. 7)
Licenses expired less than two years can be reinstated by paying penalties and providing current insurance and bond proof.
46. If a license has been expired for more than two years, what is required?
A. Renewal with late fee
B. Reapply as a new applicant
C. Written appeal
D. Bond increase
✅ B. Reapply as new (p. 7)
After two years, reinstatement is not allowed; the contractor must complete the full new-license application process.
47. Which of the following could cause the CCB to deny renewal?
A. Outstanding civil penalties or unpaid claims
B. Missing tax returns
C. Too many employees
D. Operating for more than 10 years
✅ A. Outstanding penalties or unpaid claims (p. 7)
Renewal can be denied if the licensee has unresolved disciplinary actions, unpaid civil penalties, or active bond claims.
48. Which type of contractor must complete continuing-education (CE) before renewal?
A. Residential contractors only
B. Commercial contractors only
C. Both residential and commercial
D. Developers only
✅ A. Residential contractors only (p. 7)
Residential contractors are subject to CE requirements, typically six hours for non-key employees and 16 hours for key employees/RMIs.
49. Continuing-education courses must be approved by ___ .
A. The CCB
B. Any private vendor
C. A community college
D. The contractor’s insurer
✅ A. The CCB (p. 7)
Only CCB-approved providers can deliver CE courses that count toward license renewal requirements, ensuring consistency and quality control.
50. Failure to complete continuing education before renewal results in ___ .
A. A temporary suspension of license
B. Permanent loss of endorsement
C. Fine but no suspension
D. Downgrading to limited endorsement
✅ A. Temporary suspension (p. 8)
If CE hours are incomplete, the license cannot renew until proof of completion is submitted, leading to suspension or lapse.
51. What must be displayed in all contractor advertising?
A. Company slogan
B. Contractor’s CCB license number
C. Bond amount
D. Insurance provider
✅ B. Contractor’s CCB license number (p. 8)
Every ad—including business cards, vehicles, websites, and signs—must list the contractor’s active CCB license number. This lets consumers verify legitimacy and protects against unlicensed activity.
52. Failure to include a CCB number in advertising can result in ___ .
A. A warning letter only
B. Civil penalties and possible suspension
C. Immediate loss of insurance
D. Revocation of tax ID
✅ B. Civil penalties and possible suspension (p. 8)
The CCB may issue fines for misleading or incomplete ads. Repeat violations can trigger license suspension until corrected.
53. Which of the following counts as “advertising” under CCB rules?
A. Radio or TV commercials
B. Social-media business pages
C. Company trucks and yard signs
D. All of the above
✅ D. All of the above (p. 8)
The definition is broad—any medium promoting construction services, including digital platforms, must follow CCB advertising rules.
54. What statement must accompany the license number in ads?
A. “Licensed Bonded Insured”
B. “CCB# ____”
C. “Certified Builder of Oregon”
D. “Approved Contractor”
✅ B. “CCB# ____” (p. 8)
Oregon requires the specific “CCB# [number]” format. Generic terms like “licensed” are insufficient without the actual number.
55. Contractors may not advertise services ___ .
A. Outside their city
B. Outside their license classification
C. After hours
D. In another language
✅ B. Outside their license classification (p. 8)
A contractor cannot promote or bid on work types not covered by their endorsement—e.g., a residential contractor may not advertise for large commercial projects.
56. Which document legally defines the contractor–client agreement?
A. Contract
B. Bond certificate
C. Project estimate
D. Business license
✅ A. Contract (p. 9)
A written contract outlines terms, scope, and obligations for both parties. It becomes enforceable once signed.
57. Written contracts are required for all projects costing more than ___ .
A. $200
B. $500
C. $1,000
D. $2,000
✅ C. $1,000 (p. 9)
Oregon mandates written contracts for any residential job exceeding $1,000 to ensure clarity and protect both parties.
58. What must be included in a written contract?
A. Project timeline
B. Payment terms
C. CCB license number
D. All of the above
✅ D. All of the above (p. 9)
Contracts must list parties’ names, addresses, scope, price, payment schedule, start and completion dates, and the contractor’s CCB number.
59. What notice must be attached to every residential contract?
A. Consumer Protection Notice
B. Right to Cancel Form
C. Lien Information Notice
D. Insurance Certificate
✅ C. Lien Information Notice (p. 9)
Contractors must provide a “Notice of Procedures” explaining lien rights. It informs consumers that subcontractors and suppliers can file liens if unpaid.
60. What is a construction lien?
A. A tax on construction income
B. A legal claim for unpaid work or materials
C. A contractor’s license penalty
D. A type of bond
✅ B. Legal claim for unpaid work (p. 9)
A lien lets contractors, subcontractors, or suppliers claim property value for unpaid labor or materials. It ensures payment protection throughout the project chain.
61. A subcontractor who does not receive payment must file a lien within ___ days after project completion.
A. 30
B. 45
C. 75
D. 90
✅ D. 90 days (p. 9)
Under Oregon’s lien law, claims must be filed within 90 days of last furnishing labor or materials to remain valid.
62. Who records a construction lien?
A. The CCB
B. The County Recorder or Clerk
C. The Attorney General
D. The Department of Revenue
✅ B. County Recorder/Clerk (p. 9)
Liens are filed in the county where the property is located so the claim is public record and legally enforceable.
63. Before filing a lien, contractors must serve a ___ notice on the property owner.
A. Notice of Intent to Lien
B. Notice of Right to Lien
C. Notice of Completion
D. Notice of Default
✅ B. Notice of Right to Lien (p. 9)
Oregon law requires sending a Notice of Right to Lien to inform owners before a claim is filed. Without this, the lien is invalid.
64. The Notice of Right to Lien must be served within ___ days of starting work or delivering materials.
A. 8 days
B. 14 days
C. 20 days
D. 30 days
✅ C. 20 days (p. 9)
Notice must be given within 20 days of beginning work or delivery so owners know who might claim payment rights.
65. What is the penalty for failing to provide a required Notice of Right to Lien?
A. Civil fine only
B. Loss of lien rights
C. License revocation
D. Bond increase
✅ B. Loss of lien rights (p. 9)
If the notice isn’t sent, the contractor cannot later file a valid lien for nonpayment.
66. Who may file a construction lien in Oregon?
A. Only general contractors
B. Any licensed contractor, subcontractor, or supplier providing labor or materials
C. Only employees
D. Homeowners only
✅ B. Licensed contractors, subs, or suppliers (p. 9)
Anyone who contributes labor or materials to a project under a valid agreement may file if unpaid.
67. What is a construction warranty?
A. An insurance policy
B. A guarantee that work meets industry standards for a set time
C. A bond replacement
D. A liability waiver
✅ B. Guarantee of work quality (p. 10)
A warranty assures consumers that construction meets industry standards and covers defects for a specified period.
68. Oregon law requires a minimum warranty period of ___ on new residential construction.
A. 6 months
B. 1 year
C. 2 years
D. 4 years
✅ B. 1 year (p. 10)
Builders must warrant new residential construction for at least one year against defects in workmanship and materials.
69. Who is responsible for correcting defects discovered during the warranty period?
A. The homeowner
B. The RMI only
C. The licensed contractor
D. The bond company
✅ C. Licensed contractor (p. 10)
The contractor remains responsible for defective work within the warranty period, and failure to correct may trigger disciplinary action.
70. How long do homeowners generally have to file a claim for construction defects?
A. 1 year
B. 2 years
C. 4 years
D. 6 years
✅ D. 6 years (p. 10)
Under Oregon’s statute of limitations, defect claims must be filed within six years from substantial completion of work.
71. Which document must be given to homeowners to explain how to resolve disputes?
A. Home Improvement Complaint Form
B. Consumer Protection Notice
C. Lien Notice
D. Project Completion Certificate
✅ B. Consumer Protection Notice (p. 10)
This notice details the consumer’s rights, contractor responsibilities, and CCB dispute resolution procedures.
72. Contractors must retain copies of all contracts and notices for at least ___ years.
A. 1
B. 2
C. 3
D. 5
✅ D. 5 years (p. 10)
Keeping records for five years allows the CCB to verify compliance and protects both contractors and consumers if disputes arise.
73. Advertising that suggests CCB “endorsement” of a contractor is ___ .
A. Allowed if true
B. Prohibited and misleading
C. Allowed for award-winning firms
D. Permitted on websites only
✅ B. Prohibited (p. 11)
The CCB licenses but does not endorse contractors. Advertising otherwise is misrepresentation and subject to penalties.
74. Which agency investigates complaints about licensed contractors?
A. Department of Justice
B. Construction Contractors Board
C. Attorney General’s Office
D. Oregon Licensing Division
✅ B. Construction Contractors Board (p. 11)
The CCB has authority to receive, investigate, and resolve complaints between consumers and contractors.
75. What is the goal of the CCB dispute resolution process?
A. Punishment
B. Compensation for losses and education to prevent future issues
C. Public humiliation
D. Court prosecution
✅ B. Compensation and education (p. 11)
The CCB aims to resolve disputes fairly and promote compliance through education and corrective action, not criminal penalties.
51. What must be displayed in all contractor advertising?
A. Company slogan
B. Contractor’s CCB license number
C. Bond amount
D. Insurance provider
✅ B. Contractor’s CCB license number (p. 8)
Every ad—including business cards, vehicles, websites, and signs—must list the contractor’s active CCB license number. This lets consumers verify legitimacy and protects against unlicensed activity.
52. Failure to include a CCB number in advertising can result in ___ .
A. A warning letter only
B. Civil penalties and possible suspension
C. Immediate loss of insurance
D. Revocation of tax ID
✅ B. Civil penalties and possible suspension (p. 8)
The CCB may issue fines for misleading or incomplete ads. Repeat violations can trigger license suspension until corrected.
53. Which of the following counts as “advertising” under CCB rules?
A. Radio or TV commercials
B. Social-media business pages
C. Company trucks and yard signs
D. All of the above
✅ D. All of the above (p. 8)
The definition is broad—any medium promoting construction services, including digital platforms, must follow CCB advertising rules.
54. What statement must accompany the license number in ads?
A. “Licensed Bonded Insured”
B. “CCB# ____”
C. “Certified Builder of Oregon”
D. “Approved Contractor”
✅ B. “CCB# ____” (p. 8)
Oregon requires the specific “CCB# [number]” format. Generic terms like “licensed” are insufficient without the actual number.
55. Contractors may not advertise services ___ .
A. Outside their city
B. Outside their license classification
C. After hours
D. In another language
✅ B. Outside their license classification (p. 8)
A contractor cannot promote or bid on work types not covered by their endorsement—e.g., a residential contractor may not advertise for large commercial projects.
56. Which document legally defines the contractor–client agreement?
A. Contract
B. Bond certificate
C. Project estimate
D. Business license
✅ A. Contract (p. 9)
A written contract outlines terms, scope, and obligations for both parties. It becomes enforceable once signed.
57. Written contracts are required for all projects costing more than ___ .
A. $200
B. $500
C. $1,000
D. $2,000
✅ C. $1,000 (p. 9)
Oregon mandates written contracts for any residential job exceeding $1,000 to ensure clarity and protect both parties.
58. What must be included in a written contract?
A. Project timeline
B. Payment terms
C. CCB license number
D. All of the above
✅ D. All of the above (p. 9)
Contracts must list parties’ names, addresses, scope, price, payment schedule, start and completion dates, and the contractor’s CCB number.
59. What notice must be attached to every residential contract?
A. Consumer Protection Notice
B. Right to Cancel Form
C. Lien Information Notice
D. Insurance Certificate
✅ C. Lien Information Notice (p. 9)
Contractors must provide a “Notice of Procedures” explaining lien rights. It informs consumers that subcontractors and suppliers can file liens if unpaid.
60. What is a construction lien?
A. A tax on construction income
B. A legal claim for unpaid work or materials
C. A contractor’s license penalty
D. A type of bond
✅ B. Legal claim for unpaid work (p. 9)
A lien lets contractors, subcontractors, or suppliers claim property value for unpaid labor or materials. It ensures payment protection throughout the project chain.
61. A subcontractor who does not receive payment must file a lien within ___ days after project completion.
A. 30
B. 45
C. 75
D. 90
✅ D. 90 days (p. 9)
Under Oregon’s lien law, claims must be filed within 90 days of last furnishing labor or materials to remain valid.
62. Who records a construction lien?
A. The CCB
B. The County Recorder or Clerk
C. The Attorney General
D. The Department of Revenue
✅ B. County Recorder/Clerk (p. 9)
Liens are filed in the county where the property is located so the claim is public record and legally enforceable.
63. Before filing a lien, contractors must serve a ___ notice on the property owner.
A. Notice of Intent to Lien
B. Notice of Right to Lien
C. Notice of Completion
D. Notice of Default
✅ B. Notice of Right to Lien (p. 9)
Oregon law requires sending a Notice of Right to Lien to inform owners before a claim is filed. Without this, the lien is invalid.
64. The Notice of Right to Lien must be served within ___ days of starting work or delivering materials.
A. 8 days
B. 14 days
C. 20 days
D. 30 days
✅ C. 20 days (p. 9)
Notice must be given within 20 days of beginning work or delivery so owners know who might claim payment rights.
65. What is the penalty for failing to provide a required Notice of Right to Lien?
A. Civil fine only
B. Loss of lien rights
C. License revocation
D. Bond increase
✅ B. Loss of lien rights (p. 9)
If the notice isn’t sent, the contractor cannot later file a valid lien for nonpayment.
66. Who may file a construction lien in Oregon?
A. Only general contractors
B. Any licensed contractor, subcontractor, or supplier providing labor or materials
C. Only employees
D. Homeowners only
✅ B. Licensed contractors, subs, or suppliers (p. 9)
Anyone who contributes labor or materials to a project under a valid agreement may file if unpaid.
67. What is a construction warranty?
A. An insurance policy
B. A guarantee that work meets industry standards for a set time
C. A bond replacement
D. A liability waiver
✅ B. Guarantee of work quality (p. 10)
A warranty assures consumers that construction meets industry standards and covers defects for a specified period.
68. Oregon law requires a minimum warranty period of ___ on new residential construction.
A. 6 months
B. 1 year
C. 2 years
D. 4 years
✅ B. 1 year (p. 10)
Builders must warrant new residential construction for at least one year against defects in workmanship and materials.
69. Who is responsible for correcting defects discovered during the warranty period?
A. The homeowner
B. The RMI only
C. The licensed contractor
D. The bond company
✅ C. Licensed contractor (p. 10)
The contractor remains responsible for defective work within the warranty period, and failure to correct may trigger disciplinary action.
70. How long do homeowners generally have to file a claim for construction defects?
A. 1 year
B. 2 years
C. 4 years
D. 6 years
✅ D. 6 years (p. 10)
Under Oregon’s statute of limitations, defect claims must be filed within six years from substantial completion of work.
71. Which document must be given to homeowners to explain how to resolve disputes?
A. Home Improvement Complaint Form
B. Consumer Protection Notice
C. Lien Notice
D. Project Completion Certificate
✅ B. Consumer Protection Notice (p. 10)
This notice details the consumer’s rights, contractor responsibilities, and CCB dispute resolution procedures.
72. Contractors must retain copies of all contracts and notices for at least ___ years.
A. 1
B. 2
C. 3
D. 5
✅ D. 5 years (p. 10)
Keeping records for five years allows the CCB to verify compliance and protects both contractors and consumers if disputes arise.
73. Advertising that suggests CCB “endorsement” of a contractor is ___ .
A. Allowed if true
B. Prohibited and misleading
C. Allowed for award-winning firms
D. Permitted on websites only
✅ B. Prohibited (p. 11)
The CCB licenses but does not endorse contractors. Advertising otherwise is misrepresentation and subject to penalties.
74. Which agency investigates complaints about licensed contractors?
A. Department of Justice
B. Construction Contractors Board
C. Attorney General’s Office
D. Oregon Licensing Division
✅ B. Construction Contractors Board (p. 11)
The CCB has authority to receive, investigate, and resolve complaints between consumers and contractors.
75. What is the goal of the CCB dispute resolution process?
A. Punishment
B. Compensation for losses and education to prevent future issues
C. Public humiliation
D. Court prosecution
✅ B. Compensation and education (p. 11)
The CCB aims to resolve disputes fairly and promote compliance through education and corrective action, not criminal penalties.
✅ End of Batch 3 (Questions 51–75)
The final Batch 4 (Questions 76–100) will include:
Violations, Penalties, Civil Claims, and 10 True/False review questions (pp. 11–14).
Would you like me to continue with Batch 4 now?
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ChatGPT said:
Perfect — here’s Batch 4 (Questions 76–100) — the final section of your 100-question Oregon Construction Contractor Laws & Regulations practice set, based on Chapter 1 (pp. 11–14) of your uploaded PDF.
This final batch covers:
⚖️ Violations, Penalties, Disciplinary Actions, and True/False Review
Each question keeps your requested format: multiple-choice (1–90 total) followed by 10 True/False (91–100).
76. What is the most common reason contractors face CCB discipline?
A. False advertising
B. Failure to maintain bond or insurance
C. Hiring unlicensed workers
D. Late renewal applications
✅ B. Failure to maintain bond or insurance (p. 11)
The majority of disciplinary cases involve lapsed bonds or insurance policies. Oregon requires uninterrupted coverage; loss of either triggers automatic suspension.
77. What is considered “unlicensed activity” under Oregon law?
A. Working without an active CCB license
B. Subcontracting for another licensed contractor
C. Advertising only on social media
D. Hiring day labor
✅ A. Working without an active license (p. 11)
Unlicensed activity includes performing, offering, or bidding for construction work without a current, valid CCB license—this is one of the most serious violations.
78. What is the maximum civil penalty for unlicensed contracting?
A. $500
B. $1,000
C. $5,000 per offense
D. $10,000 per offense
✅ C. $5,000 per offense (p. 11)
The CCB can impose civil penalties up to $5,000 per violation, per project, to deter illegal contracting.
79. What happens to a bond when a claim is paid?
A. The bond amount increases
B. The contractor must replenish the bond before resuming work
C. The CCB suspends the bond permanently
D. The insurer cancels all policies
✅ B. Contractor must replenish bond (p. 12)
If a claim uses part or all of the bond, the contractor must restore it to the full required amount before continuing licensed work.
80. Which of the following may the CCB impose for serious or repeated violations?
A. Suspension or revocation of license
B. Increase of bond amount
C. Mandatory retraining
D. All of the above
✅ D. All of the above (p. 12)
Depending on the offense, the CCB may fine, suspend, revoke, or require corrective action such as education or higher bond amounts.
81. What must a consumer do before filing a CCB complaint?
A. Attempt to resolve the issue directly with the contractor
B. Hire an attorney
C. File a lien
D. Contact the Department of Justice
✅ A. Attempt direct resolution (p. 12)
The CCB encourages both parties to communicate and document attempts to resolve disputes before formal complaint submission.
82. Complaints must be filed within ___ year(s) of the work’s completion.
A. 1
B. 2
C. 3
D. 6
✅ A. 1 year (p. 12)
Consumers have one year from the date work was substantially completed to file a formal complaint with the CCB.
83. How does the CCB notify a contractor of a complaint?
A. By email only
B. By phone call
C. Through certified mail
D. Public posting on CCB’s website
✅ C. Certified mail (p. 12)
Formal notification is sent via certified mail to ensure the contractor receives legal notice and has a chance to respond.
84. What happens if a contractor ignores a CCB complaint?
A. It’s automatically dismissed
B. The case proceeds to default order and potential license suspension
C. The complaint expires in 30 days
D. The consumer must refile
✅ B. Default order and suspension (p. 12)
Failure to respond leads to a default judgment and possible license suspension until the matter is resolved.
85. If a contractor disagrees with a CCB decision, they may ___ .
A. File an appeal through the Office of Administrative Hearings (OAH)
B. Contact the Governor’s office
C. Ask for arbitration
D. Ignore the order
✅ A. File an appeal with the OAH (p. 13)
Oregon law provides the right to appeal through the Office of Administrative Hearings, an independent body that reviews agency decisions.
86. How long does a contractor have to appeal a CCB order?
A. 7 days
B. 10 days
C. 20 days
D. 30 days
✅ C. 20 days (p. 13)
The CCB order will specify a 20-day window for the contractor to request an appeal hearing.
87. Who enforces collection of unpaid civil penalties?
A. CCB directly
B. Department of Revenue
C. Oregon Secretary of State
D. The courts only
✅ B. Department of Revenue (p. 13)
Unpaid penalties are referred to the Oregon Department of Revenue for collection under state debt procedures.
88. How can a consumer receive payment for damages through a complaint?
A. CCB Dispute Resolution and Bond Claim
B. Small claims court only
C. Mediation only
D. None of the above
✅ A. CCB Dispute Resolution and Bond Claim (p. 13)
The CCB manages dispute resolution processes that can result in payment from the contractor’s bond for verified consumer losses.
89. What is the main goal of CCB enforcement actions?
A. Protecting public safety and ensuring fair competition
B. Punishing contractors
C. Raising revenue through fines
D. Supporting large corporations
✅ A. Protecting safety and fairness (p. 13)
CCB enforcement maintains a level playing field and protects consumers from unsafe or unethical construction practices.
90. A contractor found guilty of gross negligence may face ___ .
A. A written warning only
B. A temporary fine
C. License revocation and permanent disqualification
D. Retraining
✅ C. License revocation and disqualification (p. 14)
Gross negligence or fraud can lead to permanent revocation and future ineligibility for CCB licensing.
91. Contractors must maintain a continuous bond and insurance policy to stay licensed.
A. True
B. False
✅ True (p. 11)
Oregon law requires uninterrupted coverage; lapses result in immediate suspension until reinstated.
A. True
B. False
92. Performing work under someone else’s CCB license number is allowed if they supervise you.
A. True
B. False
✅ False (p. 11)
Each business must hold its own license. Using another’s number constitutes fraud and unlicensed activity.
93. Consumers can verify a contractor’s license on the CCB website.
A. True
B. False
✅ True (p. 12)
The CCB maintains an online database to confirm active license status, endorsements, and complaint history.
94. The CCB cannot issue fines over $1,000 for any violation.
A. True
B. False
✅ False (p. 11)
Civil penalties can reach up to $5,000 per violation, per project.
95. The Responsible Managing Individual (RMI) is legally accountable for compliance with CCB regulations.
A. True
B. False
✅ True (p. 2–3)
The RMI ensures the business meets licensing, bonding, and continuing-education requirements.
96. A bond automatically renews when the contractor renews their license.
A. True
B. False
✅ False (p. 7)
Bonds and insurance policies must be renewed separately; the CCB license renewal does not extend them.
97. CCB complaints can be filed up to six years after work completion.
A. True
B. False
✅ False (p. 12)
Formal CCB complaints must be filed within one year of substantial completion.
98. A contractor who loses their bond cannot perform any work until it is reinstated.
A. True
B. False
✅ True (p. 12)
Bond cancellation immediately suspends the license; work cannot resume until the bond is restored.
99. Unlicensed contracting is considered a minor infraction.
A. True
B. False
✅ False (p. 11)
Unlicensed activity is a serious offense with fines up to $5,000 and potential criminal referral.
100. The CCB exists primarily to protect the public, not contractors.
A. True
B. False
✅ True (p. 14)
The Board’s mission prioritizes public protection, ensuring ethical business practices and fair consumer treatment.
Chapter 2 – Choosing Your Business Structure - 50 Questions
Chapter 2 is four pages and covers sole proprietorships, partnerships, corporations (C and S), LLCs, business trusts, and naming rules.
1. Oregon law requires sole proprietorships doing business under a different name to register what?
A. Fictitious Name Certificate
B. Business License
C. Assumed Business Name (ABN)
D. State Tax ID
✅ C. Assumed Business Name (ABN) (p. 1)
If a sole proprietor uses a business name different from their legal name, they must register an ABN with the Oregon Secretary of State.
2. What is one major risk of operating as a sole proprietorship?
A. Shared ownership
B. Unlimited personal liability
C. Limited tax deductions
D. Complex setup process
✅ B. Unlimited personal liability (p. 1)
Sole proprietors are personally responsible for all debts of the business, exposing personal assets to risk.
3. Sole proprietors own the ______ of the company.
A. liabilities
B. stock
C. assets
D. shares
✅ C. assets (p. 1)
You own the assets of the business directly; selling the business means selling its assets.
4. A partnership is formed when two or more people join to:
A. Share a property lease
B. Carry on a trade or business
C. Form a nonprofit
D. Share an inheritance
✅ B. Carry on a trade or business (p. 2)
Partnerships exist to conduct business together, sharing profits and losses.
5. A general partnership can be created by:
A. Oral agreement
B. Federal filing
C. Articles of incorporation
D. Franchise registration
✅ A. Oral agreement (p. 2)
Although written agreements are recommended, general partnerships can be formed orally.
6. A limited partnership includes:
A. Two or more limited partners
B. One or more general and limited partners
C. Corporations as owners only
D. Nonprofits as partners
✅ B. One or more general and limited partners (p. 2)
Limited partners have limited liability, while general partners do not.
7. In Oregon, a limited partnership must file with:
A. Secretary of Labor
B. Department of Revenue
C. Secretary of State
D. Oregon CCB
✅ C. Secretary of State (p. 2)
Limited partnerships in Oregon must register by filing a certificate with the Secretary of State.
8. Which type of partnership limits liability for individual partners?
A. General partnership
B. Limited partnership
C. Limited liability partnership (LLP)
D. Joint venture
✅ C. Limited liability partnership (LLP) (p. 2)
An LLP limits liability for its licensed partners but still requires state registration.
9. What happens if one partner leaves a partnership?
A. It automatically dissolves
B. The business becomes a sole proprietorship
C. Dissolution depends on the partnership agreement
D. It converts to a corporation
✅ C. Dissolution depends on the partnership agreement (p. 2)
The agreement determines whether the partnership continues or dissolves.
10. Which of the following is an advantage of a general partnership?
A. Limited liability
B. Ease of formation
C. Complex management
D. Separate legal entity
✅ B. Ease of formation (p. 2)
Partnerships are easy to establish compared to corporations.
11. What is a disadvantage of a general partnership?
A. Tax filing complexity
B. Unlimited personal liability
C. Lack of profit-sharing
D. Excess regulation
✅ B. Unlimited personal liability (p. 2)
Each partner may be held personally responsible for debts.
12. What kind of document officially creates a corporation in Oregon?
A. Certificate of Formation
B. Articles of Incorporation
C. Corporate Charter
D. State Business License
✅ B. Articles of Incorporation (p. 3)
Corporations are formed by filing Articles of Incorporation with the Secretary of State.
13. Who manages a corporation?
A. Partners
B. Board of directors
C. Shareholders
D. The IRS
✅ B. Board of directors (p. 3)
Directors oversee the corporation and select officers such as president and secretary.
14. Shareholders in a corporation are generally:
A. Personally liable for debts
B. Exempt from taxes
C. Not personally liable for business debts
D. Required to file partnership returns
✅ C. Not personally liable for business debts (p. 3)
Liability is limited to the amount invested in the corporation.
15. A corporation continues to exist:
A. Only until all shareholders sell
B. Even if shareholders die
C. Until profits are distributed
D. Only during a fiscal year
✅ B. Even if shareholders die (p. 3)
Corporations exist independently from their owners.
16. Which is an advantage of incorporation?
A. Simple paperwork
B. Personal liability for owners
C. Separate legal entity
D. Limited existence
✅ C. Separate legal entity (p. 3)
Corporations have a separate legal existence apart from their owners.
17. Which is a disadvantage of incorporation?
A. Harder ownership transfer
B. Double taxation
C. Informal record keeping
D. Lack of funding
✅ B. Double taxation (p. 3 & 5)
Corporations pay income tax, and shareholders pay tax again on dividends.
18. The “C” in C Corporation refers to:
A. Corporate
B. Chapter C of the Internal Revenue Code
C. Certificate
D. Centralized management
✅ B. Chapter C of the Internal Revenue Code (p. 3)
C corporations are taxed under Subchapter C of the federal code.
19. What is the key tax advantage of an S Corporation?
A. Avoids corporate income tax
B. Pays higher dividend rates
C. Files no tax forms
D. Allows foreign shareholders
✅ A. Avoids corporate income tax (p. 3–4)
S corporations pass income and losses directly to shareholders, avoiding double taxation.
20. S Corporations may have no more than how many shareholders?
A. 50
B. 75
C. 100
D. Unlimited
✅ C. 100 (p. 4)
They are limited to 100 U.S. citizen or resident shareholders.
21. An LLC is formed by filing what?
A. Articles of Incorporation
B. Articles of Organization
C. Business Trust Agreement
D. Corporate Charter
✅ B. Articles of Organization (p. 4)
LLCs register by filing with the Secretary of State under this document.
22. What type of ownership does an LLC have?
A. Shares of stock
B. Memberships
C. Bonds
D. Units of equity
✅ B. Memberships (p. 4)
LLCs use membership interests rather than stock shares.
23. Which business structure blends traits of corporations and partnerships?
A. Sole proprietorship
B. LLC
C. C Corporation
D. Limited partnership
✅ B. LLC (p. 4–5)
LLCs are hybrid entities offering liability protection with partnership-style taxation.
24. An LLC with one owner is taxed as:
A. A corporation
B. A sole proprietor
C. A partnership
D. A trust
✅ B. A sole proprietor (p. 4)
Single-member LLCs are taxed like sole proprietorships unless they elect otherwise.
25. What is an advantage of an LLC?
A. Unlimited liability
B. Complex record keeping
C. Limited disclosure of finances
D. Public listing requirement
✅ C. Limited disclosure of finances (p. 4)
LLCs are private and not required to disclose finances publicly.
26. What is a business trust?
A. A charitable organization
B. An association under a written trust agreement
C. A federal savings plan
D. A sole proprietor’s savings account
✅ B. An association under a written trust agreement (p. 4)
It allows a group to operate a business collectively under a trust.
27. What is an assumed business name (ABN)?
A. The owner’s legal name
B. A registered trade mark
C. A name other than the owner’s real name
D. A federal registration number
✅ C. A name other than the owner’s real name (p. 4)
If you use a name not your “real and true” one, you must register an ABN.
28. Who must register an ABN?
A. Sole proprietors only
B. All business entities using a name other than their registered name
C. Only foreign companies
D. Only partnerships
✅ B. All business entities using a different name (p. 4)
This ensures transparency in business identification.
29. Trademarks are used to:
A. Identify legal ownership
B. Represent and distinguish products or services
C. Register corporations
D. Replace ABNs
✅ B. Represent and distinguish products or services (p. 4)
Trademarks protect names, logos, or symbols from unauthorized use.
30. Trademarks can be filed at what levels?
A. Local and state
B. State and federal
C. Only federal
D. Only international
✅ B. State and federal (p. 5)
Businesses may file trademarks with state or federal agencies.
31. What does the “Final Inspection” section emphasize about sole proprietorships?
A. They are complex to start
B. They offer easy formation but risky liability
C. They require multiple partners
D. They are heavily regulated
✅ B. Easy formation but risky liability (p. 5)
While simple to form, the owner assumes unlimited personal liability.
32. What advantage do partnerships bring?
A. Limited liability
B. Combining strengths and resources
C. Tax exemption
D. No legal agreement needed
✅ B. Combining strengths and resources (p. 5)
Partners can pool talents and resources for mutual benefit.
33. What type of partnership is formed for a single project?
A. Joint venture
B. Limited partnership
C. LLP
D. Franchise
✅ A. Joint venture (p. 5)
Joint ventures are partnerships created for a specific purpose or project.
34. Corporations allow what type of ownership transfer?
A. Through government approval
B. Through sale of stock
C. By inheritance only
D. Through partnership dissolution
✅ B. Through sale of stock (p. 5)
Shareholders can transfer ownership easily by selling stock.
35. Which form has “double taxation”?
A. LLC
B. Partnership
C. C Corporation
D. Sole Proprietorship
✅ C. C Corporation (p. 5)
Both corporate profits and shareholder dividends are taxed.
36. S Corporations file for tax status using which IRS form?
A. 1120-S
B. 2553
C. 1065
D. 1099
✅ B. 2553 (p. 4)
Form 2553 elects S corporation status with the IRS.
37. An LLC must have at least how many members?
A. 0
B. 1
C. 2
D. 3
✅ B. 1 (p. 4)
LLCs require at least one member to exist.
38. Which is NOT a characteristic of an LLC?
A. Hybrid structure
B. Limited disclosure
C. Double taxation
D. Flexible management
✅ C. Double taxation (p. 4–5)
LLCs avoid corporate double taxation.
39. Business trusts are:
A. Commonly used by contractors
B. Rarely used by contractors
C. Required by law
D. Filed with the IRS
✅ B. Rarely used by contractors (p. 4)
They exist in Oregon but are seldom chosen for contracting businesses.
40. What organization helps search trademarks?
A. IRS
B. U.S. Patent and Trademark Office
C. Oregon CCB
D. Chamber of Commerce
✅ B. U.S. Patent and Trademark Office (p. 4–5)
They maintain the federal registry of trademarks.
41. In a partnership, all partners should discuss expectations before starting to:
A. File taxes
B. Ensure compatibility and shared goals
C. Save money
D. Register trademarks
✅ B. Ensure compatibility and shared goals (p. 2)
Clear communication prevents disputes later.
42. Who can authorize corporate borrowing or investments?
A. Any employee
B. The board of directors
C. The shareholders
D. The CEO alone
✅ B. The board of directors (p. 3)
Boards approve major actions beyond daily operations.
43. Which business type has the simplest ownership structure?
A. LLC
B. Corporation
C. Sole proprietorship
D. Partnership
✅ C. Sole proprietorship (p. 1)
It involves only one owner, making it easy to form.
44. Which form of business is managed by members or managers?
A. LLC
B. S Corporation
C. Partnership
D. Business trust
✅ A. LLC (p. 4)
LLCs can choose member- or manager-managed structures.
45. What must a corporation maintain to stay compliant?
A. Annual board meetings and records
B. Personal account books
C. State partnership filings
D. Trade licenses only
✅ A. Annual board meetings and records (p. 3)
Corporations must document resolutions and meetings.
46. What is one advantage of a partnership over a sole proprietorship?
A. Greater capital and resource base
B. Simpler tax reporting
C. Limited liability
D. No need for agreements
✅ A. Greater capital and resource base (p. 2)
Partners can pool money and expertise.
47. What term describes a corporation’s continued life even after ownership changes?
A. Perpetual existence
B. Limited existence
C. Corporate mortality
D. Transfer liability
✅ A. Perpetual existence (p. 3)
Corporations continue regardless of shareholder death or sale.
48. Which entity type requires the most record keeping and regulation?
A. Partnership
B. LLC
C. Corporation
D. Sole proprietorship
✅ C. Corporation (p. 3)
They must comply with state laws, bylaws, and corporate filings.
49. What must businesses consider when choosing a name?
A. Distinctiveness and future trademark use
B. Cost of signs
C. Ease of pronunciation
D. Length of the name
✅ A. Distinctiveness and trademark potential (p. 4)
Names influence customer perception and brand identity.
50. What does the “Final Inspection” section suggest about business structure choice?
A. All structures are equally safe
B. Each structure has unique risks and benefits
C. Partnerships are the only viable option
D. Sole proprietorships are required for contractors
✅ B. Each structure has unique risks and benefits (p. 5)
The chapter concludes that owners must weigh liability, taxation, and management factors.
Chapter 3 is 15 pages long and covers _
This chapter has 15 pages.
1. The primary purpose of a job interview is to:
A. Learn personal background details
B. Assess job-related qualifications
C. Determine political views
D. Compare family situations
✅ B. Assess job-related qualifications (p. 3-1)
Interviews should focus on whether the applicant can perform the job’s essential functions, not on personal or protected traits.
Chapter 3
2. Which question is not appropriate to ask in an interview in Oregon?
A. “Can you perform the essential job duties?”
B. “Are you authorized to work in the U.S.?”
C. “Have you ever been arrested?”
D. “Can you work weekends?”
✅ C. Have you ever been arrested? (p. 3-2)
Oregon guidance allows asking about convictions when job-related, but not arrests.
Chapter 3
3. Oregon’s New Hire Reporting requires employers to report new employees within:
A. 7 days
B. 10 days
C. 20 days
D. 30 days
✅ C. 20 days (p. 3-2)
New hires must be reported to Oregon’s Child Support Program within 20 days of hire.
Chapter 3
4. The main purpose of New Hire Reporting is to:
A. Track unemployment claims
B. Enforce child support obligations
C. Verify OSHA compliance
D. Enroll workers in benefits
✅ B. Enforce child support obligations (p. 3-2)
The program helps locate parents and enforce support orders while reducing fraud.
Chapter 3
5. Before employing minors in construction, Oregon employers must obtain an:
A. Annual Employment Certificate from BOLI
B. Internal HR approval letter
C. OSHA youth clearance
D. I-9 waiver
✅ A. Annual Employment Certificate from BOLI (p. 3-3)
Employers must apply each year to BOLI’s Child Labor Unit for authorization to hire minors in specific occupations.
Chapter 3
6. Minors employed must receive at least one:
A. 10-minute break per 6 hours
B. 30-minute unpaid meal period
C. Hour of double-time
D. Paid lunch
✅ B. 30-minute unpaid meal period (p. 3-3)
Minors must be provided at least one uninterrupted 30-minute meal period.
Chapter 3
7. Once hired, core documents that belong in an employee’s personnel file include:
A. Social media profiles
B. Application and I-9/W-4 forms
C. Personal medical history
D. Credit report
✅ B. Application and I-9/W-4 forms (p. 3-3)
Applications, tax forms, eligibility verification, and related employment records should be maintained.
Chapter 3
8. Employers should maintain employee personnel and payroll records for at least:
A. 6 months
B. 1 year
C. 2 years
D. 5 years
✅ C. 2 years (p. 3-3)
Oregon guidance in this chapter instructs retention of personnel/pay records for at least two years.
Chapter 3
9. The Fair Labor Standards Act (FLSA) establishes:
A. Workplace safety rules
B. Minimum wage, overtime, and recordkeeping
C. Union election procedures
D. Immigration verification rules
✅ B. Minimum wage, overtime, and recordkeeping (p. 3-3)
FLSA is the federal baseline for pay standards.
Chapter 3
10. Under FLSA, a workweek is defined as:
A. Any 5 consecutive days
B. 168 hours—seven consecutive 24-hour periods
C. Two calendar weeks
D. 80 hours worked
✅ B. 168 hours—seven consecutive 24-hour periods (p. 3-4)
This fixed 7-day period is used to determine overtime eligibility.
Chapter 3
11. “Hours worked” under FLSA include:
A. Only time on the jobsite
B. Only billable hours
C. All time an employee is required to be on duty or at a prescribed workplace
D. Travel to and from home
✅ C. All time an employee is required to be on duty or at a prescribed workplace (p. 3-4)
Work time includes duty hours at the employer’s premises or designated jobsite.
Chapter 3
12. Employers must keep FLSA records that include:
A. Personal references
B. Employee name, address, SSN, hours worked, and wages paid
C. Only gross pay totals
D. Supervisor notes only
✅ B. Employee name, address, SSN, hours worked, and wages paid (p. 3-4)
Specific pay and time records are required for compliance.
Chapter 3
13. Oregon minimum wage laws apply to:
A. Volunteers only
B. All employees covered by Oregon law
C. Only state employees
D. Only union employees
✅ B. All employees covered by Oregon law (p. 3-4)
The chapter notes statewide minimum wage obligations.
Chapter 3
14. “Payment for hours worked” means:
A. Employers can average hours across weeks
B. All hours actually worked must be paid
C. Only scheduled hours are paid
D. Only straight time is due
✅ B. All hours actually worked must be paid (p. 3-4)
Employees must receive pay for every hour worked.
Chapter 3
15. Overtime pay under Oregon/FLSA is generally:
A. Straight time
B. Time and one-half over 40 hours in a workweek
C. Double time after 8 hours/day
D. Time and one-quarter
✅ B. Time and one-half over 40 hours in a workweek (p. 3-5)
Unless exempt, overtime is 1.5× the regular rate after 40 hours.
Chapter 3
16. Employers may establish the workweek as any recurring period of:
A. 5 days
B. Seven consecutive 24-hour periods
C. Calendar month
D. Biweekly payroll cycle
✅ B. Seven consecutive 24-hour periods (p. 3-5)
The workweek can start any day/time but must be a fixed 168-hour cycle.
Chapter 3
17. Regular paydays in Oregon must occur so that the time between paydays does not exceed:
A. 14 days
B. 21 days
C. 35 days
D. 45 days
✅ C. 35 days (p. 3-5)
Pay intervals may not be more than 35 days apart.
Chapter 3
18. Deductions may not be taken from an employee’s wages for:
A. Legally required taxes
B. Court-ordered garnishments
C. Uniforms or tools required by the employer
D. Voluntary benefit premiums
✅ C. Uniforms or tools required by the employer (p. 3-6)
The chapter lists uniforms/tools as prohibited wage deductions.
Chapter 3
19. Upon discharge (involuntary termination), an Oregon employee’s final paycheck is due:
A. Next regular payday
B. Within 72 hours
C. Immediately
D. Within 7 days
✅ C. Immediately (p. 3-6)
Final wages are due at once when the employer discharges the worker.
Chapter 3
20. The Oregon Prevailing Wage Rate applies to:
A. Private residential construction
B. Public works projects funded in whole or part by public money
C. Volunteer community projects
D. Federal military bases only
✅ B. Public works projects funded in whole or part by public money (p. 3-6)
The chapter explains coverage criteria for public construction.
Chapter 3
21. Public works contracts must contain an overtime clause requiring:
A. Straight time for all hours
B. Time and one-half for overtime hours
C. Double time on weekends only
D. Only daily overtime
✅ B. Time and one-half for overtime hours (p. 3-7)
Oregon requires overtime provisions in public contracts.
Chapter 3
22. For wage disputes on private jobs, employees may file a wage claim with:
A. CCB
B. BOLI
C. SAIF
D. OSHA
✅ B. BOLI (p. 3-7)
BOLI handles wage claims when wages are unpaid.
Chapter 3
23. For unpaid wages on CCB-licensed construction work, an employee can file a claim with:
A. DMV
B. CCB
C. IRS
D. SAIF
✅ B. CCB (p. 3-7)
CCB may accept wage claims tied to licensed contracting activity.
Chapter 3
24. Form I-9 is required to verify:
A. Wage rates
B. Employment eligibility/identity
C. Tax withholding status
D. Driving record
✅ B. Employment eligibility/identity (p. 3-8)
INA requires I-9 completion for every new hire.
Chapter 3
25. Acceptable I-9 documentation combinations include:
A. Any photo plus library card
B. A document establishing identity and another establishing work authorization
C. Voter card only
D. Verbal attestation
✅ B. Identity + employment authorization (p. 3-8)
The form allows one List A document or a List B + List C combo.
Chapter 3
26. The ADA prohibits discrimination in:
A. Hiring only
B. Employment practices including hiring, advancement, compensation, and training
C. Benefits only
D. Safety rules
✅ B. Employment practices including hiring, advancement, compensation, and training (p. 3-9)
ADA covers a broad range of employment activities.
Chapter 3
27. A qualified individual with a disability is one who:
A. Requests part-time only
B. Meets job requirements and can perform essential functions with or without reasonable accommodation
C. Needs no supervision
D. Is over 40 years old
✅ B. Meets job requirements and can perform essential functions with or without reasonable accommodation (p. 3-9)
This is the ADA’s definition for coverage.
Chapter 3
28. A reasonable accommodation may include:
A. Lowering performance standards
B. Eliminating essential job functions
C. Job restructuring or modified schedules
D. Guaranteed promotions
✅ C. Job restructuring or modified schedules (p. 3-9)
Examples include adjustments enabling performance of essential duties.
Chapter 3
29. The Davis-Bacon Act relates to:
A. Family leave
B. Federal prevailing wage requirements on federally funded construction
C. Age discrimination
D. Polygraph testing
✅ B. Federal prevailing wage requirements on federally funded construction (p. 3-10)
It’s one of the other labor laws summarized.
Chapter 3
30. The Employee Polygraph Protection Act generally:
A. Requires lie detector tests
B. Prohibits most private employers from using lie detector tests
C. Allows random polygraphs for all
D. Applies only to public employers
✅ B. Prohibits most private employers from using lie detector tests (p. 3-10)
Testing is heavily restricted.
Chapter 3
31. FMLA provides eligible employees up to:
A. 6 weeks unpaid leave
B. 8 weeks paid leave
C. 12 weeks unpaid, job-protected leave
D. Unlimited leave
✅ C. 12 weeks unpaid, job-protected leave (p. 3-10)
Covers specified family and medical reasons.
Chapter 3
32. The Age Discrimination in Employment Act (ADEA) protects workers aged:
A. 18+
B. 30+
C. 40+
D. 50+
✅ C. 40+ (p. 3-10)
Prohibits age-based employment discrimination for those 40 and older.
Chapter 3
33. USERRA protects:
A. Veterans’ housing rights
B. Uniformed service members’ employment and reemployment rights
C. Immigration status
D. Overtime exemptions
✅ B. Uniformed service members’ employment and reemployment rights (p. 3-10)
Covers service members returning to civilian jobs.
Chapter 3
34. Required postings must be:
A. Kept in payroll files
B. Posted conspicuously where employees can readily see them
C. Sent to each employee by mail
D. Only on the company intranet
✅ B. Posted conspicuously where employees can readily see them (p. 3-11)
The chapter summarizes federal poster requirements.
Chapter 3
35. Oregon employers must also post:
A. Oregon Minimum Wage Poster and Oregon Family Leave Act poster
B. State tax tables
C. Workers’ comp premium charts
D. Building permits
✅ A. Oregon Minimum Wage Poster and Oregon Family Leave Act poster (p. 3-12)
Oregon-specific notices are mandatory.
Chapter 3
36. An employee handbook helps by:
A. Replacing all contracts
B. Communicating policies and expectations
C. Setting wages for the market
D. Waiving legal rights
✅ B. Communicating policies and expectations (p. 3-12)
It’s a central resource for standards and procedures.
Chapter 3
37. Recommended handbook topics include:
A. Company history and mission
B. Investment advice
C. Political endorsements
D. Vendor price lists
✅ A. Company history and mission (p. 3-12)
The chapter lists common sections to include.
Chapter 3
38. Discipline should be:
A. Informal and verbal
B. Early, consistent, and documented
C. Applied only at year-end
D. Decided by peers
✅ B. Early, consistent, and documented (p. 3-13)
Documentation supports fairness and legal compliance.
Chapter 3
39. Using proper termination procedures helps minimize risk of:
A. Higher taxes
B. Wrongful termination claims
C. Unemployment claims
D. OSHA inspections
✅ B. Wrongful termination claims (p. 3-13)
Consistency and procedure reduce legal exposure.
Chapter 3
40. Workers’ Compensation Insurance in Oregon provides benefits for:
A. Retirement savings
B. Work-related injury/illness medical and wage loss
C. Paid vacation
D. Jury duty pay
✅ B. Work-related injury/illness medical and wage loss (p. 3-13)
It compensates employees injured on the job.
Chapter 3
41. Oregon employers may secure workers’ comp insurance by:
A. Only through the federal government
B. Self-insuring (if approved) or purchasing from SAIF or private carriers
C. Using employee contributions
D. Buying property insurance
✅ B. Self-insuring (if approved) or purchasing from SAIF or private carriers (p. 3-14)
The chapter outlines available coverage options.
Chapter 3
42. SAIF Corporation is:
A. A federal OSHA office
B. A state-chartered, not-for-profit corporation providing workers’ comp insurance
C. A union trust
D. A payroll service
✅ B. A state-chartered, not-for-profit corporation providing workers’ comp insurance (p. 3-14)
SAIF is Oregon’s long-standing workers’ comp insurer.
Chapter 3
43. The Assigned Risk Plan helps employers who:
A. Want lower taxes
B. Cannot obtain coverage in the voluntary market
C. Prefer to be exempt
D. Have no employees
✅ B. Cannot obtain coverage in the voluntary market (p. 3-14)
Provides a path to obtain required insurance.
Chapter 3
44. Non-complying employers may be subject to:
A. Reward payments
B. Penalties and liability for claims
C. Free coverage
D. Federal grants
✅ B. Penalties and liability for claims (p. 3-14)
Failure to maintain required coverage triggers penalties.
Chapter 3
45. Most independent contractors in Oregon:
A. Must carry their own workers’ comp if they have subject workers
B. Are covered by the hiring firm’s policy by default
C. Are exempt from all laws
D. Do not need licenses
✅ A. Must carry their own workers’ comp if they have subject workers (p. 3-15)
Classification affects coverage responsibilities.
Chapter 3
46. Contractors who use leased employees should ensure:
A. The leasing company provides workers’ comp and other benefits
B. No one is covered
C. The employees are exempt from payroll taxes
D. I-9s are unnecessary
✅ A. The leasing company provides workers’ comp and other benefits (p. 3-15)
Leasing firms typically carry comp and benefits for their workers.
Chapter 3
47. Employers pay unemployment insurance taxes to:
A. The IRS only
B. State and federal programs
C. Local school districts
D. BOLI
✅ B. State and federal programs (p. 3-15)
Both levels fund UI benefits under specified rules.
Chapter 3
48. A person is unemployed through no fault of their own when:
A. They resign for personal reasons
B. They are laid off due to lack of work
C. They are discharged for misconduct
D. They stop showing up
✅ B. They are laid off due to lack of work (p. 3-15)
UI eligibility hinges on separation circumstances.
Chapter 3
49. Oregon’s chapter “Final Inspection” stresses that your interviewing should:
A. Focus on personal details
B. Avoid illegal questions and be job-related
C. Always be casual
D. Be conducted by peers only
✅ B. Avoid illegal questions and be job-related (p. 3-15)
It reiterates lawful, targeted interviewing.
Chapter 3
50. The chapter’s “Final Inspection” also reminds employers about:
A. Ignoring new hire reporting
B. Mandatory New Hire Reporting timelines
C. Eliminating handbooks
D. Paying cash only
✅ B. Mandatory New Hire Reporting timelines (p. 3-15)
Compliance items are summarized at the end.
Chapter 3
51. Which of the following is appropriate to ask an applicant?
A. “What is your religious affiliation?”
B. “Are you pregnant?”
C. “Can you meet our attendance requirements?”
D. “What is your sexual orientation?”
✅ C. Can you meet our attendance requirements? (p. 3-1 to 3-2)
Only job-related, non-discriminatory questions should be asked.
Chapter 3
52. It is unlawful in Oregon to ask applicants about prior:
A. Convictions related to the job
B. Arrests
C. Certifications
D. Licenses
✅ B. Arrests (p. 3-2)
Arrest inquiries are prohibited; conviction inquiries must be job-related.
Chapter 3
53. New Hire reports are sent to the:
A. Oregon Secretary of State
B. Oregon Child Support Program
C. IRS
D. CCB
✅ B. Oregon Child Support Program (p. 3-2)
That agency administers reporting.
Chapter 3
54. To hire minors, employers must keep the BOLI certificate:
A. Hidden in payroll files
B. Available at the worksite
C. With the IRS
D. In the applicant’s home
✅ B. Available at the worksite (p. 3-3)
Certificates, once approved, must be posted/available where minors work.
Chapter 3
55. Employee files should include performance evaluations and:
A. Political preferences
B. Disciplinary notices
C. Family medical history
D. Personal diaries
✅ B. Disciplinary notices (p. 3-3)
Performance/discipline records belong in the personnel file.
Chapter 3
56. FLSA recordkeeping requires retaining hours worked on a:
A. Monthly basis only
B. Daily and weekly basis
C. Annual summary only
D. Project basis only
✅ B. Daily and weekly basis (p. 3-4)
Hours must be recorded to determine pay and overtime.
Chapter 3
57. Oregon minimum wage posters must be:
A. In the payroll office only
B. Posted at each location and easily seen by employees
C. Kept with the manager
D. Optional for contractors
✅ B. Posted at each location and easily seen by employees (p. 3-12)
Visibility is required at workplaces.
Chapter 3
58. Meal periods generally must be provided separately from:
A. Paid rest breaks
B. Overtime
C. Orientation
D. Training
✅ A. Paid rest breaks (p. 3-5)
Rest and meal periods are distinct obligations under Oregon rules.
Chapter 3
59. Employers cannot deduct from wages for:
A. Cash shortages due to employee theft with evidence
B. Voluntary benefit premiums
C. Damaged equipment deposits or breakage shortages
D. Federal income tax
✅ C. Damaged equipment deposits or breakage shortages (p. 3-6)
Deposits/shortages are listed among prohibited deductions.
Chapter 3
60. If an employee quits with at least 48 hours’ notice, final pay is due:
A. Immediately
B. On the last day worked
C. By the next regular payday
D. Within 5 business days
✅ B. On the last day worked (p. 3-6)
Oregon’s timing for voluntary separations depends on notice given.
Chapter 3
61. If an employee quits without 48 hours’ notice, final pay is due within:
A. 72 hours
B. 48 hours
C. 7 calendar days
D. 30 days
✅ A. 72 hours (p. 3-6)
The chapter details final wage deadlines for various scenarios.
Chapter 3
62. Covered public works include:
A. Construction, reconstruction, major renovation, painting, and landscaping
B. Only new building construction
C. Only road construction
D. Only federal projects
✅ A. Construction, reconstruction, major renovation, painting, and landscaping (p. 3-6)
The list summarizes typical covered activities.
Chapter 3
63. Questions about age are inappropriate unless:
A. You’re curious
B. Needed to verify legal minimum age for the job
C. For better team “fit”
D. For payroll curiosity
✅ B. Needed to verify legal minimum age for the job (p. 3-1)
Age inquiries must be tied to legal requirements.
Chapter 3
64. The I-9 employee section (Section 1) must be completed:
A. Within the first week
B. On or before the first day of employment
C. After 30 days
D. Only for non-citizens
✅ B. On or before the first day of employment (p. 3-8)
Timely completion is required.
Chapter 3
65. The employer verification section (Section 2) of I-9 must be completed by:
A. The employee’s family member
B. The employer or authorized representative within three business days of the start date
C. The IRS
D. BOLI
✅ B. Employer/authorized rep within three business days (p. 3-8)
Verification must be prompt and documented.
Chapter 3
66. ADA covers individuals with a record of or regarded as having:
A. Any condition
B. A physical or mental impairment substantially limiting major life activities
C. Only visible disabilities
D. Temporary colds
✅ B. A physical or mental impairment substantially limiting major life activities (p. 3-9)
The chapter defines who is protected.
Chapter 3
67. Reasonable accommodation does not require an employer to:
A. Eliminate essential job functions
B. Modify equipment
C. Adjust schedules
D. Provide readers/interpreters when appropriate
✅ A. Eliminate essential job functions (p. 3-9)
Core duties need not be removed.
Chapter 3
68. Wage Garnishment Law protects employees from being fired because:
A. They have any garnishment for any reason
B. Their pay is garnished for a single debt
C. They have two garnishments
D. They refuse to pay taxes
✅ B. Their pay is garnished for a single debt (p. 3-10)
Termination due to one garnishment is prohibited.
Chapter 3
69. Equal Pay Act of 1963 prohibits pay discrimination based on:
A. Education level
B. Sex for substantially equal work
C. Years of service
D. Performance ratings
✅ B. Sex for substantially equal work (p. 3-10)
Covers equal pay for equal work.
Chapter 3
70. WARN requires certain employers to provide notice of:
A. Wages
B. Plant closings and mass layoffs
C. OSHA inspections
D. Benefit changes
✅ B. Plant closings and mass layoffs (p. 3-10)
Advance notice is required under specified conditions.
Chapter 3
71. EEO and other federal posters apply to:
A. All employers, regardless of size
B. Employers meeting poster-specific thresholds (e.g., federal contractors, size)
C. Only manufacturers
D. Only public employers
✅ B. Employers meeting poster-specific thresholds (p. 3-11)
The table lists who must post each notice.
Chapter 3
72. Oregon contractors on prevailing wage projects must post a notice containing:
A. Project owner’s home address
B. Prevailing wage rates for the project and required notices
C. Union bylaws
D. Voter registration info
✅ B. Prevailing wage rates for the project and required notices (p. 3-12)
The chapter summarizes state posting content.
Chapter 3
73. A handbook should include a policy against harassment because it:
A. Is required for tax credits
B. Sets expectations and complaint procedures
C. Replaces investigations
D. Eliminates liability automatically
✅ B. Sets expectations and complaint procedures (p. 3-12)
Clear policies aid prevention and response.
Chapter 3
74. Drug and alcohol policies should be in the handbook to:
A. Encourage social events
B. Clarify prohibitions and testing rules
C. Lower wages
D. Replace safety training
✅ B. Clarify prohibitions and testing rules (p. 3-12)
The chapter lists it among key policies.
Chapter 3
75. Proper documentation of discipline supports:
A. Raises
B. Defending decisions if challenged
C. Elimination of overtime
D. Tax deductions
✅ B. Defending decisions if challenged (p. 3-13)
Records are vital in disputes.
Chapter 3
76. At-will employment means:
A. Employees can be fired for illegal reasons
B. Either party may end employment at any time for lawful reasons
C. Contracts are required
D. No policies matter
✅ B. Either party may end employment at any time for lawful reasons (p. 3-13)
Subject to exceptions and unlawful discrimination prohibitions.
Chapter 3
77. Contractual employees generally have:
A. No rights
B. Specific terms that may limit termination
C. Higher minimum wage
D. Guaranteed overtime
✅ B. Specific terms that may limit termination (p. 3-13)
Contracts can alter at-will presumptions.
Chapter 3
78. Workers’ compensation can also provide benefits for:
A. Commuting accidents unrelated to work
B. Fatalities arising out of employment
C. Investment losses
D. Jury service
✅ B. Fatalities arising out of employment (p. 3-13)
Benefits may extend to dependents in fatal cases.
Chapter 3
79. Private insurance companies may provide comp coverage through:
A. SAIF only
B. Licensed insurers selling policies via agents
C. The IRS
D. Oregon DMV
✅ B. Licensed insurers selling policies via agents (p. 3-14)
Employers can shop the voluntary market.
Chapter 3
80. Assigned Risk policies typically have:
A. Lower rates than voluntary market
B. Higher rates due to risk
C. No premiums
D. Federal subsidies
✅ B. Higher rates due to risk (p. 3-14)
Rates reflect the higher risk profile of assigned employers.
Chapter 3
81. If an employer fails to carry workers’ comp, the Workers’ Compensation Division may:
A. Provide free coverage
B. Impose penalties and pursue claims costs
C. Replace the owner
D. Offer tax credits
✅ B. Impose penalties and pursue claims costs (p. 3-14)
Sanctions for non-compliance are significant.
Chapter 3
82. Exempt contractors licensed as commercial contractors must:
A. Maintain no coverage
B. Maintain personal election workers’ comp if they have subject workers
C. Use homeowner policies
D. Only carry auto insurance
✅ B. Maintain personal election workers’ comp if they have subject workers (p. 3-15)
Contractor classification affects comp obligations.
Chapter 3
83. For leased employees, the leasing company (PEO) typically provides:
A. Nothing
B. Payroll, taxes, workers’ comp, and benefits
C. Only tools
D. Only uniforms
✅ B. Payroll, taxes, workers’ comp, and benefits (p. 3-15)
Leasing transfers many employer obligations to the PEO.
Chapter 3
84. UI benefits may be denied if the worker was separated for:
A. Lack of work
B. Gross misconduct
C. Business closure
D. Plant layoff
✅ B. Gross misconduct (p. 3-15)
Fault-based separations can disqualify benefits.
Chapter 3
85. The Final Inspection page highlights that discipline should be:
A. Avoided
B. Early and documented
C. Peer-voted
D. Secret
✅ B. Early and documented (p. 3-16)
Reiterates documentation to reduce risk.
Chapter 3
86. The Final Inspection also reminds employers that a handbook is:
A. Optional but recommended for communicating policies
B. Legally unnecessary and discouraged
C. Only for large companies
D. Replaced by posters
✅ A. Optional but recommended for communicating policies (p. 3-16)
A handbook is a valuable tool to set expectations.
Chapter 3
87. Under Oregon rules, a rest period is generally:
A. Combined with meals
B. Paid and separate from the meal period
C. Unpaid
D. Only for minors
✅ B. Paid and separate from the meal period (p. 3-5)
Rest and meal periods are distinct.
Chapter 3
88. Employers must pay all hours worked, including:
A. Pre-shift prep required by the employer
B. Volunteer time
C. Commute time from home
D. Off-site hobbies
✅ A. Pre-shift prep required by the employer (p. 3-4)
Work the employer requires counts as payable time.
Chapter 3
89. On public works, overtime applies after:
A. 30 hours/week
B. 40 hours/week unless project rules differ
C. Only on Sundays
D. Only if unionized
✅ B. 40 hours/week unless project rules differ (p. 3-7)
Overtime standards are embedded in public contracts.
Chapter 3
90. Employees who believe they are owed wages should first:
A. Call OSHA
B. File a BOLI wage claim
C. Contact SAIF
D. Notify DMV
✅ B. File a BOLI wage claim (p. 3-7)
BOLI administers wage claims and investigations.
Chapter 3
91. I-9 non-compliance may result in:
A. Free training only
B. Fines and penalties
C. Tax refunds
D. Immigration amnesty
✅ B. Fines and penalties (p. 3-8)
The chapter warns employers about penalties for failing to comply.
Chapter 3
92. ADA requires equal opportunity in:
A. Hiring only
B. Selecting, testing, training, and benefits
C. Marketing activities
D. Sales practices
✅ B. Selecting, testing, training, and benefits (p. 3-9)
Equal access must span all employment practices.
Chapter 3
93. Under FMLA, employers must maintain:
A. Vacation accruals only
B. Group health insurance coverage during leave
C. Double pay
D. Bonuses for leave
✅ B. Group health insurance coverage during leave (p. 3-10)
Coverage continues on the same terms as if employed.
Chapter 3
94. WARN notices are typically required for employers with:
A. Any size
B. No employees
C. Employers meeting federal thresholds for plant closings/mass layoffs
D. Only contractors
✅ C. Employers meeting federal thresholds for plant closings/mass layoffs (p. 3-10)
Notice obligations depend on size and event.
Chapter 3
95. Federal poster lists include items like:
A. OSHA Job Safety, Equal Employment Opportunity, FMLA, and Employee Polygraph Protection Act
B. City dog licenses
C. Vehicle registrations
D. Tax rate charts
✅ A. OSHA, EEO, FMLA, EPPA (p. 3-11)
The chapter’s table summarizes common federal posters.
Chapter 3
96. Oregon contractors should also post at the project:
A. Stock prices
B. A Notice of where to obtain prevailing wage rates
C. Political endorsements
D. Customer reviews
✅ B. A Notice of where to obtain prevailing wage rates (p. 3-12)
Project postings must inform workers of applicable rates.
Chapter 3
97. Handbooks should include safety rules because they:
A. Replace OSHA
B. Provide clear expectations and reduce accidents
C. Eliminate training
D. Are optional fluff
✅ B. Provide clear expectations and reduce accidents (p. 3-12)
Safety policies are called out as a key section.
Chapter 3
98. Terminating an employee should include:
A. Skipping documentation to avoid paper trails
B. Following policy, documenting reasons, and paying final wages on time
C. Peer voting
D. Delaying final pay
✅ B. Following policy, documenting reasons, and paying final wages on time (p. 3-13 & 3-6)
Proper process plus timely final pay reduces legal risk.
Chapter 3
99. Workers’ comp generally covers medical care and:
A. Retirement contributions
B. Wage-loss benefits for accepted claims
C. Profit sharing
D. Tuition
✅ B. Wage-loss benefits for accepted claims (p. 3-13)
Benefits include time loss and related compensation.
Chapter 3
100. The chapter’s final summary reminds employers to:
A. Ignore federal laws
B. Use handbooks, document discipline, follow termination procedures, and maintain required insurance
C. Avoid posters
D. Skip new hire reporting
✅ B. Use handbooks, document discipline, follow termination procedures, and maintain required insurance (p. 3-16)
The “Final Inspection” consolidates the chapter’s key compliance practices.
Chapter 4 is 3 pages long and covers solddddd
1. Subcontractors most commonly obtain jobs through which high-quality source?
A. Random cold calls
B. Referrals from trusted industry contacts
C. Social media ads only
D. Government grant lists
✅ B. Referrals from trusted industry contacts (p. 4-1)
The chapter emphasizes that some of your best subs come through referrals—from other subcontractors, fellow contractors, trade associations, suppliers, and design professionals (architects/engineers). Referrals reduce risk because the referee can speak to reliability, workmanship, and professionalism, giving you a stronger starting point than a cold lead. Building a reputation for quality makes this pipeline self-reinforcing.
Chapter 4
2. When evaluating a potential subcontractor, which criterion directly protects your reputation with the client?
A. Their logo design
B. Whether they sell/produce quality products
C. The color of their trucks
D. Their social media following
✅ B. Whether they sell/produce quality products (p. 4-1)
Chapter 4 notes that your reputation rides on your subs’ work. Screening for product/work quality up front prevents rework, callbacks, and warranty fights that can cost time and goodwill. Owners judge the general contractor by the outcome, so quality is a non-negotiable screening item.
Chapter 4
3. Which step helps you organize the referral process into a reliable pipeline?
A. Taking phone notes and discarding them monthly
B. Keeping a list of qualified subcontractors with lead times
C. Relying on memory for who’s available
D. Hiring whoever answers first
✅ B. Keeping a list of qualified subcontractors (p. 4-1)
The chapter recommends keeping a live list and allowing sufficient lead time to line up subs. A curated roster with capabilities, availability, and insurance info speeds mobilization and reduces last-minute scrambling that causes delays and change-order disputes.
Chapter 4
4. What should you request from every subcontractor to verify risk transfer?
A. A letter of recommendation
B. A price breakdown
C. Certificates of insurance and proof they’re current
D. A company holiday card
✅ C. Certificates of insurance (p. 4-1)
Before a sub steps on site, obtain and follow up on insurance certificates (and keep them updated). Verifying coverage (e.g., general liability, workers’ comp if required) protects the GC and owner if injuries or property damage occur, and it’s a standard prequalification step.
Chapter 4
5. Why does Chapter 4 advise interviewing subs even when you’re not scheduling them for a job?
A. To practice your interview skills
B. To justify admin time to the owner
C. To build a bench and understand capabilities before urgent needs arise
D. To pressure them on pricing
✅ C. To build a bench and understand capabilities before urgent needs arise (p. 4-1)
Proactive interviews help you pre-vet quality, staffing, safety culture, and schedule capacity. When a project hits, you can award faster and with less risk because you already understand their strengths and limits.
Chapter 4
6. A “winning partnership” with a sub begins with which onboarding action?
A. Sending only the project drawings
B. Providing an orientation on your policies and procedures
C. Letting the sub learn rules by observation
D. Relying on the owner to explain site rules
✅ B. Providing an orientation on your policies and procedures (p. 4-1)
The text stresses clear expectations at the start—your safety rules, documentation routes (RFIs, change orders), schedule interfaces, and quality standards. Early clarity prevents later conflict and supports schedule adherence.
Chapter 4
7. Which communication behavior helps sustain strong GC–sub partnerships?
A. Ignoring questions to avoid delays
B. Being clear on instructions and soliciting questions
C. Using only written memos
D. Not visiting the site
✅ B. Being clear on instructions and soliciting questions (p. 4-2)
Chapter 4 promotes two-way communication: issue precise instructions and invite questions to catch misinterpretations before they cause rework. This builds trust and ensures alignment on scope and quality.
Chapter 4
8. What does the chapter recommend regarding feedback and morale?
A. Avoid feedback; it causes friction
B. Publicly criticize to keep pressure on
C. Reward good work and provide constructive comments on improvements
D. Ignore performance
✅ C. Reward good work and provide constructive comments (p. 4-2)
Positive reinforcement for results and constructive coaching on gaps drive continuous improvement. Subs who feel respected are more responsive on punch-list items and schedule pushes.
Chapter 4
9. Why should GCs visit the jobsite before other subs mobilize?
A. To take photos for marketing
B. To communicate requirements that affect others’ work
C. To meet neighbors
D. To check cafeteria options
✅ B. To communicate requirements that affect others’ work (p. 4-2)
Early site walks let you coordinate interfaces—access, laydown, protection, and sequence constraints—so incoming subs aren’t blocked. This reduces idle time and change-order friction.
Chapter 4
10. What periodic compliance check does Chapter 4 advise for all subs?
A. Car insurance
B. Payroll bank statements
C. A properly endorsed CCB license
D. Social media posts
✅ C. A properly endorsed CCB license (p. 4-2)
The text tells GCs to check that every subcontractor’s CCB license is active and properly endorsed. This protects you against enforcement actions and helps ensure lawful contracting.
Chapter 4
11. Which posted resource keeps expectations visible to every worker on site?
A. GC’s marketing brochure
B. Written site rules posted in a conspicuous place
C. Owner’s meeting minutes
D. City zoning map
✅ B. Written site rules posted (p. 4-2)
Posting rules (cleanliness, safety, conduct, radio volume, salvage prohibitions, etc.) maintains standards and provides a continual reminder for every crew and shift.
Chapter 4
12. According to the Site Rules, what is the expectation for jobsite condition?
A. Leave debris until end of week
B. Keep the jobsite clean and free of debris
C. Only clean for inspections
D. Cleanliness is optional
✅ B. Keep the jobsite clean and free of debris (p. 4-2)
Clean jobsites are safer, more efficient, and look professional to owners and inspectors. The chapter elevates cleanliness as a baseline rule, not a cosmetic choice.
Chapter 4
13. What does the chapter require regarding safety and regulatory compliance?
A. Leave to the sub’s discretion
B. Follow all safety policies and Oregon OSHA regulations
C. Follow OSHA only when the owner is present
D. Substitute company rules for OSHA
✅ B. Follow all safety policies and Oregon OSHA (p. 4-2)
Safety responsibility is explicit: subs must comply with applicable codes and Oregon OSHA alongside project-specific rules. This reduces incidents and citations.
Chapter 4
14. What does Chapter 4 say about tools and equipment?
A. GC provides everything
B. Subs must provide their own tools/equipment
C. Owner rents tools
D. City supplies tools
✅ B. Subs must provide their own tools/equipment (p. 4-2)
Requiring subs to bring the gear they need clarifies responsibilities and avoids delays over missing equipment. It also reflects their status as independent businesses.
Chapter 4
15. Which conduct rule appears in the Site Rules list?
A. Freedom to use foul language
B. Behave professionally; do not use foul language
C. Only foremen must be professional
D. Vulgar radio content is acceptable
✅ B. Behave professionally; no foul language (p. 4-2)
Professional behavior supports a respectful, safe environment and reduces complaints from owners, neighbors, and inspectors.
Chapter 4
16. What policy does Chapter 4 include about salvaging items?
A. Anyone may take salvage
B. Foremen may take salvage
C. Salvage is prohibited without permission
D. Only the owner can salvage
✅ C. Salvage is prohibited without permission (p. 4-2)
Unapproved salvage can become theft or create liability. Putting this in site rules eliminates ambiguity about ownership of removed materials.
Chapter 4
17. Why does the chapter discourage loud/offensive radio content?
A. Radios interfere with lasers
B. Keep radios at a moderate level and free of offensive content to protect safety, focus, and professionalism
C. Only electricians may use radios
D. Radios are banned by OSHA
✅ B. Moderate and non-offensive radio use (p. 4-2)
Noise and offensive content can distract, inflame tensions, or violate workplace standards—posting this rule helps maintain a productive site culture.
Chapter 4
18. Which statement best describes an independent contractor under Chapter 4?
A. Works under the GC’s daily direction and control
B. Is free from direction/control over the means and manner of providing services
C. Is paid hourly and supervised by a GC foreman
D. Performs tasks as assigned like an employee
✅ B. Free from direction/control over means and manner (p. 4-2)
Independence in how the work is done (methods, sequencing within scope) is a core indicator distinguishing a contractor from an employee.
Chapter 4
19. Which business attribute supports independent-contractor status?
A. No business address
B. Maintains its own place of business
C. Uses GC’s office and branding
D. Shares the owner’s home office
✅ B. Maintains its own place of business (p. 4-2)
Operating from its own premises signals a separate business entity, not a dependent employee arrangement.
Chapter 4
20. Which risk characteristic aligns with independent-contractor status?
A. No risk of loss
B. Bears risk of loss (e.g., fixed-price contracts, required corrective work, warranty)
C. Guaranteed GC reimbursement
D. Only time-and-materials
✅ B. Bears risk of loss (p. 4-2)
Entrepreneurial risk—profit or loss based on performance and pricing—is a hallmark of an independent business rather than employment.
Chapter 4
21. Which market behavior supports independent-contractor status?
A. Works for one GC only
B. Provides services for two or more contractors within 12 months
C. Never advertises
D. Acts as a temp worker
✅ B. Two or more contractors within 12 months (p. 4-2)
Serving multiple clients and routinely advertising/soliciting shows an open market business, not a single-employer relationship.
Chapter 4
22. What financial investment indicates a genuine business operation?
A. Borrowing the GC’s tools
B. Significant investment (equipment, premises, permits, specialized training)
C. No capital outlay
D. Using only rented tools from the GC
✅ B. Significant investment (p. 4-2)
Capital at risk (tools, facilities, licensing/training) demonstrates independent business capacity and assumption of business costs.
Chapter 4
23. What licensing status should an independent subcontractor hold?
A. None if working under a GC
B. A valid CCB license and any other required specialty licenses (e.g., lead-based paint)
C. Only a city business license
D. A driver’s license
✅ B. CCB + required certificates (p. 4-2)
Proper state licensure is part of legitimate subcontracting; gaps can trigger penalties and reclassification risk.
Chapter 4
24. If a GC misclassifies a worker who functions like an employee, what are the consequences?
A. None, the GC is protected
B. GC may owe workers’ comp, payroll taxes/assessments, and face fines from state/federal agencies
C. Only the worker is fined
D. Owner pays the penalties
✅ B. GC liability for comp, payroll, and fines (p. 4-2)
The chapter warns that using subs who are actually employees exposes the GC to workers’ compensation and tax liabilities, plus enforcement actions.
Chapter 4
25. Which agencies/tests inform employee vs contractor status per Chapter 4?
A. DMV only
B. BOLI’s “economic realities” test and IRS guidelines
C. OSHA only
D. CCB only
✅ B. BOLI and IRS tests (p. 4-2)
While not identical, both frameworks analyze control, economic dependence, and business realities to determine the true relationship.
Chapter 4
26. What must Oregon licensed contractors maintain for each job?
A. A list of favorite suppliers
B. A list of every subcontractor on the job
C. A list of tool serial numbers
D. A list of safety citations
✅ B. List of every subcontractor (p. 4-3)
Oregon law requires contractors to keep a subcontractor list for each job—documentation that supports transparency and enforcement.
Chapter 4
27. What minimum information must be on the subcontractor list?
A. Trade codes only
B. Name, address, and license number
C. Phone number only
D. Insurance agent’s email
✅ B. Name, address, license number (p. 4-3)
These identifiers allow the CCB to quickly verify legitimate licensure and track parties on a project.
Chapter 4
28. If CCB requests the subcontractor list, how fast must the contractor deliver it?
A. 7 days
B. Within 72 hours of the request
C. 10 business days
D. By the next pay cycle
✅ B. Within 72 hours (p. 4-3)
The chapter sets a 72-hour turnaround—missing this can raise compliance concerns during investigations.
Chapter 4
29. What is e-Watch and why should contractors use it?
A. A GPS tracker
B. A social media feed
C. A CCB “My License” monitoring tool that alerts you to license status changes for subs
D. An estimating program
✅ C. CCB monitoring tool (p. 4-3)
e-Watch notifies contractors if a watched subcontractor’s license changes, helping you avoid using an unlicensed sub mid-project. It’s free and reduces compliance risk.
Chapter 4
30. What penalty can occur if a licensed contractor knowingly uses an unlicensed sub?
A. Nothing if work is good
B. Civil penalty (fine) or suspension of the contractor’s license
C. Only a warning
D. The sub is fined, not the GC
✅ B. Fine or license suspension (p. 4-3)
The chapter warns that knowingly employing an unlicensed sub is a serious offense that can jeopardize your own license.
Chapter 4
31. Which contract principle applies to subcontracts as well as owner-contractor contracts?
A. Subcontracts need no terms
B. Subcontracts should include the core information covered in the contracts chapter
C. Verbal agreements are preferred
D. Only price matters
✅ B. Include core contract information (p. 4-3)
Chapter 4 points ahead to Chapter 5, noting that the same fundamentals (scope, schedule, price, change orders, insurance, dispute resolution) belong in subcontracts.
Chapter 4
32. Why is it smart to allow sufficient lead time to line up subs?
A. To pad the schedule
B. To secure availability of the right crews and avoid paying premium pricing
C. To reduce documentation
D. To avoid RFIs
✅ B. Secure availability and better pricing (p. 4-1)
Lead time helps you match capabilities to schedule, prevents bottlenecks, and increases competition (and value) among qualified subs.
Chapter 4
33. What should you do if you haven’t worked with a referred sub before?
A. Skip due diligence because it’s a referral
B. Check references and verify insurance/licensing
C. Award immediately
D. Let the owner decide
✅ B. Check references and verify coverage (p. 4-1)
Even trusted referrals need verification—references confirm performance culture; certificates prove current risk coverage; license checks confirm legal eligibility.
Chapter 4
34. Which scheduling habit supports a “winning partnership”?
A. Having trades arrive before the site is ready
B. Scheduling trades so the job is ready and barriers removed
C. Letting subs schedule themselves
D. Ignoring sequence
✅ B. Ready site + minimal barriers (p. 4-2)
If the workface isn’t ready, subs burn time and submit claims. The chapter recommends sequencing and barrier removal to keep crews productive.
Chapter 4
35. A sub’s customer service skills matter because:
A. Owners don’t interact with subs
B. Subs often interface with owners/tenants and other trades; professionalism reduces conflict and escalations
C. Only quality matters
D. It’s purely cosmetic
✅ B. Professional interface reduces conflict (p. 4-1)
The evaluation checklist includes service skills; respectful, responsive subs help you manage relationships and defend your brand.
Chapter 4
36. Why screen for a sub’s ability to handle change orders?
A. To avoid writing changes
B. Because changes are common; subs must price, document, and execute changes without disrupting critical path
C. Change orders are illegal
D. Owners handle all changes
✅ B. Competent change-order handling (p. 4-1)
The checklist highlights change-order competence; disciplined processes prevent scope creep, schedule slips, and billing disputes.
Chapter 4
37. Why check if a sub is properly bonded and insured?
A. To increase their overhead
B. To ensure financial responsibility and protection against non-performance or claims
C. It looks good on proposals
D. To make them charge more
✅ B. Financial responsibility & protection (p. 4-1)
Bonding signals capacity to complete work; insurance shields the project from third-party claims and accidents—both are core risk-management checks.
Chapter 4
38. Why evaluate how a sub remedies material defects or failures?
A. Only manufacturers handle defects
B. Subs who promptly correct defects reduce punch lists, warranty exposure, and owner dissatisfaction
C. Defects are normal and ignored
D. This is the GC’s job only
✅ B. Prompt corrective action reduces exposure (p. 4-1)
The checklist explicitly asks whether the sub remedies defects—a proxy for accountability and long-term reliability.
Chapter 4
39. Why is price not the only screening factor?
A. Cheapest is always best
B. Competitive pricing matters, but reliability, quality, schedule performance, and professionalism protect total project cost
C. Owners decide price only
D. Price sets quality automatically
✅ B. Multi-factor evaluation (p. 4-1)
The chapter’s checklist balances price with capability and risk. A slightly higher bid from a reliable sub often saves money overall.
Chapter 4
40. Why does Chapter 4 tell GCs to be open to feedback from subs?
A. Subs should control the project
B. Field experts often spot constructability issues; listening early prevents change orders and delays
C. It’s a legal requirement
D. To lengthen meetings
✅ B. Leverage field expertise (p. 4-2)
Constructability ideas from specialized subs can improve schedule and cost—collaborative teams deliver better outcomes.
Chapter 4
41. What does “free from direction and control over the means and manner” practically mean?
A. GC picks the tools and crew methods
B. Sub chooses work methods, sequencing within scope, and crew management while meeting contract results
C. Sub must mimic GC’s methods
D. Owner controls methods
✅ B. Sub controls methods (p. 4-2)
Outcome obligations remain, but how the sub achieves them is their business decision—central to independent-contractor status.
Chapter 4
42. Why is routine advertising/solicitation a factor for independence?
A. It’s unrelated
B. It shows the sub seeks work in the open market, not dependence on a single employer
C. It lowers quality
D. It’s only for large firms
✅ B. Open-market behavior (p. 4-2)
Marketing to multiple clients demonstrates entrepreneurial activity, supporting contractor classification.
Chapter 4
43. Which of the following best captures the tax/benefit implications of misclassification?
A. No effect
B. GC may owe payroll taxes (Social Security/Medicare), workers’ comp assessments, filings, and face penalties
C. Employee pays GC’s taxes
D. IRS refunds the GC
✅ B. GC tax/comp liabilities (p. 4-2)
The chapter explicitly lists payroll and comp obligations and fines that can hit if a “sub” is really an employee.
Chapter 4
44. Why must subcontracts include codes, drawings, specifications, and compliance obligations?
A. To add pages
B. To define quality and performance objectively and align with site rules and OSHA
C. To hide costs
D. To replace RFIs
✅ B. Objective performance definition (p. 4-2 & 4-3)
The chapter ties site rules and compliance to contractual clarity, preventing disputes about standards and deliverables.
Chapter 4
45. What’s the benefit of keeping radios at a moderate level per the site rules?
A. Improves musical taste
B. Reduces safety risks (hearing signals/alarms), avoids offensive content conflicts, and maintains professional decorum
C. Helps timekeeping
D. Encourages dancing
✅ B. Safety and professionalism (p. 4-2)
Noise control is part of the chapter’s culture of safety and respect on shared jobsites.
Chapter 4
46. Why is it important that work comply with applicable codes and specifications?
A. Only inspectors care
B. Non-compliant work causes rework, delays, and potential legal exposure; subs must build to the contract and code
C. Codes are optional
D. Specs are suggestions
✅ B. Avoid rework and liability (p. 4-2)
The chapter frames code/spec compliance as a site rule—failure risks schedule and legal consequences.
Chapter 4
47. What practical value does the subcontractor list provide during disputes or audits?
A. None
B. Establishes who performed what trades, with license numbers for quick verification
C. Provides marketing contacts
D. Helps plan parties
✅ B. Traceability and verification (p. 4-3)
Having names/addresses/licenses ready within 72 hours supports investigations and protects the GC from “who was on site?” confusion.
Chapter 4
48. Why is it smart to subscribe to e-Watch even if your subs are currently licensed?
A. To advertise
B. Licenses can lapse or be suspended mid-project; automated alerts let you react before violations occur
C. To replace insurance
D. It’s required by OSHA
✅ B. Proactive compliance (p. 4-3)
Real-time alerts reduce the chance of unknowingly employing an unlicensed sub and facing penalties.
Chapter 4
49. Which of the following best summarizes Chapter 4’s Final Inspection guidance?
A. Focus only on price
B. Use referrals, organize and schedule subs, orient them to site rules, confirm independent-contractor status, and maintain subcontractor lists
C. Owners handle compliance
D. Only verbal agreements are needed
✅ B. Integrated best practices (p. 4-3)
The closing summary ties together sourcing, onboarding, compliance, and documentation as a repeatable playbook for GC–sub success.
Chapter 4
50. Bottom line—why do the same principles of owner–contractor contracts apply to subcontracts?
A. Subs don’t affect outcomes
B. Subs deliver major portions of scope; aligning terms (scope, quality, schedule, change management, insurance) protects the project and the GC’s license
C. Because it’s trendy
D. To make contracts longer
✅ B. Alignment protects scope and licensure (p. 4-3)
Chapter 4 is explicit: the contract fundamentals must cascade to every tier. Clear, enforceable subcontracts prevent scope gaps, ensure compliance, and reduce disputes.
Chapter 5 - Contracts — 50 Practice Questions
This chapter is 12 pages.
1. A legally binding contract must include which fundamental element?
A. Notarized signature
B. Offer and acceptance
C. Witness statement
D. Verbal acknowledgment
✅ B. Offer and acceptance (p. 5-1)
A binding contract begins when one party makes a clear offer and the other accepts it. Acceptance must mirror the offer’s terms. Without both, there is no mutual assent — one of the cornerstones of contract formation.
Chapter 5
2. What makes a contract “mutually binding”?
A. Each party gives something of value (consideration)
B. Both are employees of the same company
C. It’s written on company letterhead
D. It has a company stamp
✅ A. Each party gives something of value (consideration) (p. 5-1)
Consideration means an exchange — payment, services, or promises — that binds each party. Without it, a promise is merely voluntary and unenforceable in court.
Chapter 5
3. Why is it critical that a contract serves a legal purpose?
A. It ensures the contractor makes a profit
B. Courts only enforce contracts with lawful objectives
C. It allows tax deductions
D. It guarantees prompt payment
✅ B. Courts only enforce contracts with lawful objectives (p. 5-2)
If a contract’s purpose violates public policy or involves illegal work, it’s void and unenforceable, even if both parties agreed to it.
Chapter 5
4. When an offer is made, what ends the offer and releases the offeror from obligation?
A. Silence by the other party
B. Expiration or rejection before acceptance
C. A counteroffer accepted later
D. Payment in advance
✅ B. Expiration or rejection before acceptance (p. 5-2)
An offer must be accepted while it’s still open. If rejected or expired, the offeror is no longer bound. Timing and clarity are vital to avoid misunderstanding.
Chapter 5
5. Why should contractors consult an attorney before finalizing agreements?
A. To make it sound professional
B. Because construction contracts often include complex legal duties
C. Because all contracts must be notarized
D. To impress the client
✅ B. Construction contracts involve complex legal duties (p. 5-1)
Construction law includes liability, licensing, lien rights, and statutory notice provisions. A lawyer ensures enforceability and compliance with state rules like Oregon’s CCB laws.
Chapter 5
6. Which detail must appear in an offer for construction work?
A. Preferred color of the cover page
B. Date and location of project
C. Architect’s phone number
D. A handwritten note of intent
✅ B. Date and location of project (p. 5-2)
The chapter lists a “date and location” among key offer items. It establishes project identity and helps define jurisdiction and timelines.
Chapter 5
7. If a contractor lacks a required CCB license, what happens to their contract?
A. It remains valid
B. It is void and unenforceable for payment
C. It converts into a verbal promise
D. The owner assumes the license
✅ B. Void and unenforceable for payment (p. 5-2)
A contractor must hold an active Oregon CCB license to enforce payment or pursue claims. Contracts without it risk being invalid.
Chapter 5
8. What should a contract provision always be — according to best practice?
A. Vague and open-ended
B. Clear, concise, and specific
C. Oral only
D. In paragraph form only
✅ B. Clear, concise, and specific (p. 5-2)
Ambiguity invites disputes. Each provision should be unambiguous, define obligations, and leave little room for multiple interpretations.
Chapter 5
9. What is the purpose of progress payments?
A. To pay for materials before ordering
B. To compensate the contractor for work completed in phases
C. To reward early completion
D. To cover warranty expenses
✅ B. Compensate for work completed in phases (p. 5-3)
Progress payments are tied to milestones. They provide cash flow for labor and materials already furnished and align payment with project progress.
Chapter 5
10. Why should the payment schedule in a construction contract be very specific?
A. It shows fairness
B. Prevents disputes and improves cash flow predictability
C. Because inspectors require it
D. To confuse the owner
✅ B. Prevents disputes and improves predictability (p. 5-3)
Specific payment milestones reduce misunderstanding, keep projects solvent, and align expectations between owners, lenders, and contractors.
Chapter 5
11. When may final payment be withheld from a contractor?
A. If they finish early
B. If punch-list items remain uncorrected
C. If all work is complete and inspected
D. If the weather delays them
✅ B. When punch-list items remain (p. 5-3)
Owners can legally withhold final payment until all contract conditions are fulfilled — including cleanup, lien releases, and completion certification.
Chapter 5
12. The contractor’s obligations typically include:
A. Maintaining financial statements
B. Securing permits and complying with codes
C. Only showing up on schedule
D. Making design changes without consent
✅ B. Securing permits and complying with codes (p. 5-4)
Core obligations include obtaining necessary permits, ordering materials, hiring subs, and performing work per code and specification.
Chapter 5
13. Why are provisions to limit risk included?
A. To avoid paying insurance premiums
B. To allocate responsibilities and protect against unexpected events
C. To reduce taxes
D. To bypass local inspectors
✅ B. Allocate responsibilities and protect against events (p. 5-4)
Risk provisions clarify who bears financial consequences of accidents, delays, or uncontrollable events — such as weather or material shortages.
Chapter 5
14. What is an example of an uncontrollable event sometimes excused under risk clauses?
A. Subcontractor quitting
B. “Acts of God” like earthquakes or floods
C. Labor shortage caused by poor management
D. Material cost increase due to poor planning
✅ B. Acts of God (natural events) (p. 5-4)
These clauses protect parties when performance becomes impossible due to uncontrollable natural disasters. They require clear language in the contract.
Chapter 5
15. Why must contract language addressing schedule delays be explicit?
A. Courts ignore schedules
B. Vague timing creates disputes over liquidated damages
C. It’s optional for small projects
D. Delays are automatically forgiven
✅ B. Vague timing creates disputes (p. 5-5)
If time extensions or penalties aren’t clearly defined, parties may disagree whether delays are excusable or chargeable, leading to litigation.
Chapter 5
16. What are recitals in a contract?
A. Legal citations
B. Introductory statements explaining purpose and context
C. Penalty clauses
D. Schedule attachments
✅ B. Introductory statements of purpose (p. 5-5)
Recitals give background on the agreement — the “why” of the contract — and can help interpret intent if disputes arise later.
Chapter 5
17. Contractors and subs must meet performance standards that reflect:
A. The lowest cost possible
B. Industry-accepted workmanship and quality
C. Each worker’s opinion
D. Custom practices only
✅ B. Industry-accepted standards (p. 5-6)
Courts interpret “workmanlike manner” as compliance with accepted professional standards within that trade.
Chapter 5
18. “Substantial completion” means:
A. The project has started
B. The work is 90% done
C. The project can be used for its intended purpose
D. The project is in inspection phase
✅ C. The project can be used for its intended purpose (p. 5-6)
It marks the point when the owner can occupy or use the project — often triggering warranties and final billing.
Chapter 5
19. Under Oregon law, a property owner has the right to cancel a residential contract within how many business days?
A. 10
B. 5
C. 3 business days
D. 1
✅ C. 3 business days (p. 5-6)
Known as the One-Day Right to Cancel, it allows cancellation within three business days for home solicitation sales.
Chapter 5
20. A breach of contract occurs when:
A. The owner compliments the work
B. One party fails to meet contractual obligations
C. Both parties renegotiate terms
D. The weather delays completion
✅ B. One party fails obligations (p. 5-7)
Failure to perform as agreed — such as missing deadlines or using wrong materials — is a breach. It can be material (major) or minor (partial).
Chapter 5
21. Liquidated damages serve what purpose?
A. Punish the contractor
B. Pre-agreed compensation for delays or default
C. Insurance reimbursement
D. Bonus payment
✅ B. Pre-agreed compensation (p. 5-7)
They estimate losses if work isn’t completed on time — offering predictability without proving actual damage in court.
Chapter 5
22. A partial breach differs from a material breach because it:
A. Voids the entire contract
B. Is less severe and may only justify reduced payment
C. Requires immediate lawsuit
D. Cannot be corrected
✅ B. Less severe breach (p. 5-7)
Minor issues may allow deduction or repair rather than termination. Courts weigh whether performance purpose was frustrated.
Chapter 5
23. The goal of enforcing damages is to:
A. Punish wrongdoing
B. Put the injured party in the position they would have been if the contract was fulfilled
C. Reward the breacher
D. Avoid payment altogether
✅ B. Restore expected benefit (p. 5-7)
Damages restore lost value — the “benefit of the bargain” — rather than punish the wrongdoer.
Chapter 5
24. Foreseeable damages refer to:
A. Unpredictable losses
B. Losses reasonably predictable at the time of contracting
C. All future costs
D. Penalties for negligence
✅ B. Reasonably predictable losses (p. 5-8)
Contractors are only liable for damages that could be foreseen when the contract was made, preventing open-ended claims.
Chapter 5
25. A lump-sum contract means:
A. Payment per hour
B. Contractor agrees to complete all work for one fixed price
C. Cost reimbursed plus markup
D. Pay-as-you-go
✅ B. Fixed price (p. 5-8)
The contractor assumes most cost risk. Any overruns generally reduce profit unless caused by owner changes.
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26. A unit-price contract is best suited for:
A. Undefined quantities of work (e.g., excavation)
B. Turnkey design-build jobs
C. Remodels only
D. Custom homes
✅ A. Undefined quantities (p. 5-8)
Payment is based on actual measured units (per cubic yard, linear foot), fitting projects where quantities vary.
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27. Under a cost-plus contract, the owner agrees to pay:
A. A fixed sum
B. Only profit
C. Actual costs plus a contractor’s fee or percentage
D. Time-and-materials at will
✅ C. Actual costs plus fee (p. 5-8)
Used when scope is uncertain; transparency and recordkeeping are crucial to avoid disputes.
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28. The single-prime method of contracting means:
A. One general contractor signs directly with the owner and oversees all subs
B. The owner hires multiple trades individually
C. Each sub contracts with the architect
D. Joint ventures run the job
✅ A. One GC to owner (p. 5-9)
This traditional model centralizes responsibility and coordination under one primary contractor.
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29. Turnkey contracts differ from design-bid-build because:
A. The owner provides plans
B. The contractor delivers a fully functional facility — “ready to turn the key.”
C. The architect controls financing
D. The owner manages trades
✅ B. Turnkey = ready facility (p. 5-9)
The contractor handles design, construction, and sometimes financing, providing a complete operational end product.
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30. A fast-track construction approach primarily saves:
A. Material cost
B. Time — design and construction phases overlap
C. Labor
D. Insurance fees
✅ B. Time (p. 5-9)
Fast-tracking compresses schedules but increases coordination demands between design and field teams.
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31. Multiple-prime contracts involve:
A. One GC
B. Separate direct contracts between the owner and multiple trade contractors
C. Subcontractors under one GC
D. Supplier agreements only
✅ B. Owner–trade direct contracts (p. 5-9)
Owners may hire separate primes for major scopes like electrical, HVAC, or plumbing. It offers control but raises coordination risk.
Chapter 5
32. A change order must always:
A. Be verbal
B. Be written, signed by both parties, and define scope, time, and price changes
C. Be implied
D. Occur only after project closeout
✅ B. Written and signed (p. 5-10)
Written documentation ensures clear mutual consent, preserving legal enforceability.
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33. Alternative dispute resolution (ADR) offers what main benefit?
A. Guarantees victory
B. Resolves conflicts faster and cheaper than litigation
C. Skips fairness
D. Bypasses contract obligations
✅ B. Faster, lower-cost resolution (p. 5-10)
ADR methods (negotiation, mediation, arbitration) reduce time, cost, and adversarial tone while preserving relationships.
Chapter 5
34. Arbitration differs from mediation because:
A. Both are informal
B. Arbitration results in a binding decision; mediation facilitates voluntary agreement
C. Mediation is always court-ordered
D. Arbitration is nonbinding
✅ B. Binding vs. voluntary (p. 5-10)
Arbitration uses a neutral third party with authority to decide; mediation helps parties reach their own settlement.
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35. The project manual is:
A. A collection of marketing materials
B. The central location for bid documents, contract forms, specs, and addenda
C. A jobsite logbook
D. A change order form
✅ B. Central contract document location (p. 5-11)
It houses all essential legal and technical materials, ensuring consistent interpretation by all parties.
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36. Typical bid documents include:
A. Only drawings
B. Invitation to bid, bid forms, instructions, and addenda
C. Invoices
D. Warranty certificates
✅ B. Invitation, forms, instructions, addenda (p. 5-11)
These documents communicate how contractors are to prepare and submit bids.
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37. Technical specifications organize project requirements by:
A. Color
B. Manufacturer
C. Trade classification (CSI format)
D. Random order
✅ C. CSI format (p. 5-11)
Specifications follow CSI divisions (architectural, mechanical, electrical, etc.) for consistent structure and clarity.
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38. Are oral agreements enforceable?
A. Never
B. Always
C. Sometimes, but written contracts are safer and often required
D. Only between friends
✅ C. Sometimes but risky (p. 5-11)
Verbal agreements can bind but are difficult to prove. Written contracts prevent misinterpretation and meet state licensing requirements.
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39. Under Oregon law, a written contract is required for residential work over:
A. $200
B. $2,000
C. $10,000
D. $50,000
✅ B. $2,000 (p. 5-11)
Oregon mandates written contracts for residential jobs exceeding $2,000 to ensure clarity and consumer protection.
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40. Contract interpretation favors:
A. The more experienced party
B. The party who did not draft ambiguous language
C. The wealthier party
D. The first signer
✅ B. Against the drafter (p. 5-12)
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Continue.
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Picking up where we left off — here are items 40 through 100, same layout, with longer explanations and page cites.
40. Contract interpretation generally favors which party when language is ambiguous?
A. The party with more experience
B. The party who drafted the ambiguous language
C. The party who did not draft the ambiguous language
D. The first party to sign
✅ C. The party who did not draft the ambiguous language (p. 5-12)
When terms are unclear, courts often construe ambiguity against the drafter under the rule of contra proferentem. The chapter warns that vague language can be interpreted in a way that hurts the author, so write provisions clearly and avoid catch-all phrases that can be read multiple ways.
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41. If a disputed provision is vague, what other factor may a court examine to infer intent?
A. Media coverage of the project
B. The parties’ conduct consistent with the provision during performance
C. The contractor’s profit margin
D. The architect’s resume
✅ B. The parties’ conduct consistent with the provision during performance (p. 5-12)
The chapter notes that courts may use the parties’ course of performance to clarify ambiguous terms. If both sides behaved in a way that shows a shared understanding, that behavior can guide interpretation, sometimes overruling a self-serving reading introduced later.
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42. What are supplemental conditions used for?
A. To replace all general conditions
B. To add project-specific requirements to general conditions
C. To add marketing materials
D. To waive code compliance
✅ B. To add project-specific requirements to general conditions (p. 5-4, 5-11)
General conditions set the baseline. Supplemental conditions tailor those rules to the particular project (site limits, special inspections, unusual safety needs), ensuring the contract reflects actual risks and logistics instead of one-size-fits-all boilerplate.
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43. Why include boilerplate provisions like severability or entire agreement clauses?
A. They lengthen the contract to appear sophisticated
B. They allow ignoring drawings
C. They manage legal risk if one clause fails or if side promises are claimed
D. They guarantee higher profit
✅ C. They manage legal risk if one clause fails or if side promises are claimed (p. 5-4)
Boilerplate is not filler. Severability keeps the rest of the contract intact if one clause is invalid. Entire agreement prevents parties from claiming outside promises changed the deal. These standard terms reduce litigation angles.
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44. Which of the following is a contractor obligation commonly listed under “Obligations of the Parties”?
A. Owner must supply all tools
B. Contractor must secure permits and schedule inspections
C. Architect must finance the project
D. Subcontractors must set payment terms
✅ B. Contractor must secure permits and schedule inspections (p. 5-4)
The chapter lists typical contractor duties: licenses, permits, ordering materials, coordinating subs, complying with codes, and scheduling inspections. Explicitly writing these tasks avoids disputes over “who was supposed to…?” mid-project.
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45. Why should the retention percentage and release conditions be spelled out?
A. Retention is optional and never disputed
B. Lenders require no detail
C. To avoid cash flow disputes and to tie release to objective milestones
D. To increase contractor profit
✅ C. To avoid cash flow disputes and to tie release to objective milestones (p. 5-3)
Retention holds back a portion of progress payments. Stating percentage, timing, and triggers (e.g., substantial completion, lien releases) prevents arguments and ensures both sides know when money will be released.
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46. Why require lien releases with progress and final payments?
A. They replace inspections
B. They are just ceremonial
C. They protect owners from subcontractor/supplier claims after paying the GC
D. They reduce taxes
✅ C. They protect owners from downstream claims (p. 5-3)
Releases from subs and suppliers confirm they’ve been paid. Without them, an owner might face mechanics’ liens even after paying the prime. The chapter lists lien releases among closeout prerequisites tied to final payment.
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47. A force majeure clause most directly addresses which risk?
A. Contractor insolvency
B. Unforeseeable events beyond control (e.g., natural disasters)
C. Ordinary weather for the season
D. Poor coordination among subs
✅ B. Unforeseeable events beyond control (p. 5-4)
The text examples (“Acts of God”) illustrate events that make performance impracticable or impossible. Clauses should define covered events and remedies (time extension, cost relief) to reduce dispute scope later.
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48. Why is schedule acceleration language useful?
A. It guarantees early completion
B. It assigns cost responsibility if acceleration is ordered
C. It removes change orders
D. It increases retention
✅ B. It assigns cost responsibility if acceleration is ordered (p. 5-5)
Acceleration often means overtime, added crews, or resequencing. The chapter explains that contracts should clarify who pays when acceleration is required (e.g., owner-caused or contractor-caused delays) to avoid open-ended claims.
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49. What is the benefit of listing architect/engineer approvals as conditions precedent to payment?
A. It allows skipping inspections
B. It defines objective checkpoints for progress payments
C. It replaces code compliance
D. It is only symbolic
✅ B. It defines objective checkpoints for progress payments (p. 5-3)
Tying payment to submittal approvals, inspections, and certifications makes expectations clear and aligns cash flow with verified progress, reducing disputes over whether a phase is “done.”
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50. Why describe cleanup and debris removal as a contractual obligation?
A. It’s a courtesy, not contractual
B. Inspectors will do it
C. It clarifies responsibility for jobsite condition and closeout acceptance
D. It only applies to public projects
✅ C. It clarifies responsibility for jobsite condition (p. 5-4)
The chapter lists keeping the site clean and removing debris as explicit obligations. Writing it into the agreement avoids delays at occupancy when cleanliness becomes a last-minute surprise.
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51. What is the primary purpose of “recitals” beyond background?
A. To add length
B. To set pricing
C. To provide interpretive context if disputes arise
D. To replace technical specs
✅ C. Provide interpretive context (p. 5-5)
If later ambiguity exists, courts may review recitals to understand the project’s objectives and the parties’ original intent, anchoring interpretation to the contract’s stated purpose.
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52. A clause requiring work to be performed in a “workmanlike manner” imports what standard?
A. Lowest cost standard
B. The contractor’s internal policy
C. The trade’s generally accepted practices and quality levels
D. Owner’s personal preferences
✅ C. Trade’s generally accepted practices (p. 5-6)
The chapter explains that “workmanlike” invokes industry norms on quality and practice, giving a measurable benchmark if workmanship is challenged.
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53. Why define substantial completion precisely in writing?
A. It’s obvious when reached
B. It never affects money
C. It often triggers warranties, risk of loss shift, and release of retention
D. It only matters to lenders
✅ C. Triggers warranties and retention (p. 5-6)
Because many financial and risk provisions hinge on this milestone, the contract should set clear criteria (e.g., certificate of occupancy or list of allowable punch items).
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54. The owner’s three-day right to cancel typically applies to what kind of transaction?
A. Federal public works
B. Commercial office core and shell
C. Home solicitation/residential contracts signed at the residence
D. Industrial new build
✅ C. Residential home solicitation (p. 5-6)
The text identifies the consumer protection window for residential buyers in Oregon. Contracts must disclose the right and provide cancellation forms.
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55. Which best describes a material breach?
A. A trivial deviation cured quickly
B. A minor paperwork mistake
C. A failure defeating the essential purpose of the contract
D. An excusable delay due to force majeure
✅ C. A failure defeating the essential purpose (p. 5-7)
Material breach allows the non-breaching party to terminate and seek damages because the core bargain has failed (e.g., wrong system installed).
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56. Liquidated damages must be:
A. Punitive to deter delay
B. A reasonable pre-estimate of likely harm, not a penalty
C. Left blank to keep leverage
D. Equal to contractor’s profit
✅ B. Reasonable pre-estimate, not penalty (p. 5-7)
Courts enforce LDs when they reflect anticipated damages difficult to measure later (e.g., loss of rent). Penalty-like numbers risk being struck down.
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57. The core aim of expectation damages is to award:
A. Punishment for bad faith
B. The non-breaching party’s lost “benefit of the bargain”
C. Attorney’s fees in all cases
D. Liquidated damages automatically
✅ B. Lost “benefit of the bargain” (p. 5-7)
Expectation damages try to put the injured party where they would have been if performance had occurred, not to penalize the breacher.
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58. Certainty in measuring damages means:
A. Any guess will do
B. Losses must be proven with reasonable certainty
C. Only invoices count
D. Expert testimony is forbidden
✅ B. Proven with reasonable certainty (p. 5-8)
The chapter states damages must be measured, not speculative. Keep time, cost, and impact records to substantiate claims or defenses.
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59. Mitigation requires the injured party to:
A. Do nothing once harmed
B. Inflate the claim for leverage
C. Take reasonable steps to reduce further loss
D. Terminate immediately
✅ C. Take reasonable steps to reduce loss (p. 5-8)
If you can prevent or lessen damage (e.g., obtain substitute materials), you should. Courts may reduce awards if mitigation is ignored.
Chapter 5
60. A unit-price structure should include what to avoid disputes?
A. A single lump sum
B. A list of alternates only
C. Clear measurement methods and payment units
D. No quantities at bid time
✅ C. Clear measurement methods and units (p. 5-8)
Define whether quantities are measured in-place, by truck count, or by survey, and state the units (LF, CY) to avoid billing fights.
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61. Under a cost-plus fee, what documentation practice is critical?
A. Destroy daily reports
B. Minimal recordkeeping
C. Detailed cost records, receipts, and time logs
D. Only monthly summaries
✅ C. Detailed cost records (p. 5-8)
Transparency is the trade-off for flexibility. Owners will audit actual costs; poor records undermine trust and payment.
Chapter 5
62. In a single-prime arrangement, who coordinates subcontractors?
A. Owner
B. Architect
C. The prime contractor
D. Lender
✅ C. The prime contractor (p. 5-9)
The single prime is the owner’s main point of responsibility for coordination and delivery, reducing owner management burden.
Chapter 5
63. Fast-track delivery increases which project demand?
A. Storefront signage
B. Coordination between design and construction
C. Number of change orders automatically
D. Bonding
✅ B. Coordination (p. 5-9)
Because design packages release in phases while construction proceeds, coordination risk rises and must be managed contractually.
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64. Multiple-prime contracts shift what risk to the owner?
A. All cost overruns
B. Trade coordination risk among primes
C. Weather risk
D. Warranty risk
✅ B. Coordination among primes (p. 5-9)
With several direct contracts, the owner must manage sequencing and interface issues that a GC would otherwise handle.
Chapter 5
65. A written change order should include, at minimum:
A. Handshake and date
B. Reason for change, scope description, time adjustment, and price adjustment
C. Contractor letterhead only
D. A verbal approval
✅ B. Reason/scope/time/price (p. 5-10)
The text lists these essentials, adding that both parties must sign to avoid later disputes about authorization.
Chapter 5
66. Negotiation as ADR focuses on:
A. A binding third-party decision
B. Direct party-to-party resolution without a neutral
C. Only attorney meetings
D. Jury evaluation
✅ B. Direct party resolution (p. 5-10)
It’s the simplest ADR method. If negotiation fails, parties can escalate to mediation or arbitration per the contract.
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67. Mediation is best described as:
A. A judge’s ruling
B. A facilitated settlement with a neutral who helps parties craft their own agreement
C. A binding award
D. Discovery process
✅ B. Facilitated settlement (p. 5-10)
Mediators guide compromise but do not decide outcomes. Many contracts require mediation before arbitration or litigation.
Chapter 5
68. Why keep bid documents, general conditions, supplemental conditions, and addenda together in a project manual?
A. For aesthetics
B. To ensure everyone works from the same integrated, current set of requirements
C. To hide terms
D. To reduce page count
✅ B. Single source of truth (p. 5-11)
Centralizing documents curbs version confusion and supports consistent performance and enforcement.
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69. Why do drawings and technical specs both matter?
A. Specs alone control
B. Drawings alone control
C. They complement each other: drawings show “what/where,” specs define “how/quality”
D. Neither is contractually binding
✅ C. Complementary roles (p. 5-11)
The chapter explains contract documents include both; disputes often arise when one is ignored. Read and coordinate them together.
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70. Are verbal directives acceptable for changing scope during construction?
A. Yes; they’re sufficient
B. Only if under $500
C. No; memorialize in a signed change order or written field order
D. Only if architect approves verbally
✅ C. Require writing (p. 5-10)
Field changes should be documented to lock scope, time, and cost. Verbal directions lead to memory fights and unpaid work.
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71. A clause that allocates weather delays to the schedule as excusable but non-compensable means:
A. Time and money are both added
B. No time is added
C. Time extension is allowed, but no additional compensation
D. Liquidated damages apply
✅ C. Time only (p. 5-5)
The chapter discusses excusable delays. Writing whether such delays grant time, money, or both prevents after-the-fact arguments.
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72. What is a practical reason to include notice requirements for claims?
A. To burden the owner
B. To ensure issues are raised promptly while evidence is fresh and mitigation is possible
C. To waive all claims
D. To avoid emails
✅ B. Prompt notice helps mitigation (p. 5-5, 5-10)
Deadlines for claim notice (e.g., within X days) help manage risk and cost. Late notice can prejudice the other party and jeopardize recovery.
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73. Why specify governing law and venue?
A. For decoration
B. To avoid fights over which state’s law applies and where disputes are heard
C. To increase filing fees
D. To allow foreign law
✅ B. Clarify law/venue (p. 5-4)
Risk provisions often set jurisdiction/venue, saving time and money if disputes occur by preventing forum shopping.
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74. If the contract includes a no-damage-for-delay clause (owner-caused but non-malicious delays), the contractor typically gets:
A. Money and time
B. Time only
C. Neither time nor money
D. An automatic bonus
✅ B. Time only (p. 5-5)
Such clauses are controversial but common. They usually grant schedule relief while barring monetary compensation, unless exceptions (bad faith, active interference) apply.
Chapter 5
75. Why list shop drawings and submittals as conditions to payment?
A. They increase admin work
B. They confirm products meet specs before installation and justify progress valuations
C. They replace inspections
D. They are optional
✅ B. Confirm compliance and progress (p. 5-3, 5-11)
Submittals are proof of intent and compliance; tying them to progress payments ensures the project advances to plan.
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76. The “entire agreement” clause prevents what argument?
A. The drawings control
B. “You also promised me X in a side conversation.”
C. LDs are enforceable
D. The specs are outdated
✅ B. Side-promise claims (p. 5-4)
By stating the written contract is the full and final agreement, parties cannot rely on alleged verbal promises to change obligations later.
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77. A termination for convenience clause gives which party discretion to end the contract without cause (subject to terms)?
A. Subcontractor always
B. Owner only
C. Often the owner (as specified), with payment for work performed and reasonable demobilization
D. Architect only
✅ C. Owner as specified (p. 5-4)
While the text emphasizes risk-allocation clauses broadly, many standard forms allow owners to terminate without cause but pay for completed work and reasonable costs — making the contractor whole without lost anticipated profit.
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78. Why include indemnity language?
A. To duplicate insurance
B. To shift liability for certain third-party claims to the responsible party
C. To avoid ADR
D. To reduce scope
✅ B. Shift liability appropriately (p. 5-4)
Indemnity provisions allocate risk (e.g., a sub indemnifies the GC/owner for damages arising from the sub’s work), complementing insurance coverage.
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79. What does a warranty of materials and workmanship usually require?
A. Lifetime coverage
B. Repair or replace defective work within a defined period after completion
C. Annual bonuses
D. Free upgrades
✅ B. Repair/replace within period (p. 5-6)
The chapter ties performance standards to written or implied warranties that assure quality and correction of defects discovered after occupancy.
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80. Why identify allowances in the contract?
A. To hide scope
B. To carry budget placeholders for items not yet fully selected, later reconciled by change order
C. To eliminate submittals
D. To remove LDs
✅ B. Budget placeholders (p. 5-3, 5-11)
Allowances let projects start while finishes are pending. The contract should explain how over/underages are handled to avoid disputes.
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81. What is a sensible order of precedence clause used for?
A. Picking the prettiest document
B. Resolving conflicts among drawings, specs, and addenda by stating which controls
C. Replacing all specs
D. Eliminating RFIs
✅ B. Resolve document conflicts (p. 5-11)
When documents conflict, precedence rules reduce argument: e.g., addenda over drawings, specs over notes, etc.
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82. Why include insurance requirements (GL, auto, workers’ comp) in the contract?
A. It’s redundant
B. To ensure financial resources exist to respond to accidents and legal claims
C. To benefit insurers
D. To avoid building permits
✅ B. Ensure financial protection (p. 5-4)
The contract should state types, limits, and certificates, aligning with indemnity so risk transfer is enforceable.
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83. A submittal schedule benefits the project because it:
A. Inflates soft costs
B. Aligns review lead times with procurement and installation, protecting the critical path
C. Replaces shop drawings
D. Only helps suppliers
✅ B. Protects the critical path (p. 5-3)
Stating submittal timing in the payment/progress framework keeps long-lead items from derailing field work.
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84. What is a field order?
A. A verbal instruction
B. A written directive for minor changes not affecting price/time (or pending a later CO)
C. A payment application
D. A schedule memo
✅ B. Written minor change (p. 5-10)
Where standard forms are used, field orders allow quick, small adjustments while preserving documentation. Larger impacts go to a change order.
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85. Why is a claims and disputes section necessary?
A. It’s optional fluff
B. It pre-sets steps (notice, documentation, ADR sequence) so conflicts don’t stall work or explode into litigation
C. It replaces payments
D. It removes arbitration
✅ B. Pre-sets steps (p. 5-10, 5-11)
A laddered process (negotiate → mediate → arbitrate/litigate) with deadlines controls cost and maintains momentum.
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86. Including shop drawing review language that “review is for general conformance, not means and methods” helps:
A. Shift build responsibility to the architect
B. Avoid implying the designer has assumed construction means/methods liability
C. Increase submittal volume
D. Reduce coordination
✅ B. Preserve role boundaries (p. 5-11)
It clarifies that contractors remain responsible for means and methods, while design review checks conformance to design intent.
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87. Why list codes and standards explicitly (e.g., NEC, IBC, ASTM)?
A. To add acronyms
B. To make compliance measurable and enforceable
C. To allow substitutions freely
D. To replace specs
✅ B. Measurable compliance (p. 5-4, 5-11)
Enumerating codes clarifies the legal and technical baseline the work must satisfy, reducing disputes over “what standard applies.”
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88. A clause requiring as-built drawings at closeout benefits the owner by:
A. Raising costs without value
B. Documenting actual installed conditions for maintenance and future renovations
C. Replacing O&M manuals
D. Removing warranties
✅ B. Documenting installed conditions (p. 5-3, 5-11)
Closeout deliverables should state as-builts and O&M manuals; tying them to final payment ensures delivery.
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89. Why define allowable weather days or adverse weather?
A. To punish contractors
B. To quantify schedule relief for non-typical conditions and reduce subjective disputes later
C. To avoid ADR
D. To increase LDs
✅ B. Quantify schedule relief (p. 5-5)
By defining metrics (e.g., historic averages), parties can more easily decide if a storm qualifies for time extension.
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90. For home improvement work exceeding the statutory threshold, written contracts protect contractors by:
A. Allowing higher LDs
B. Satisfying statutory requirements so the contractor can enforce payment
C. Eliminating inspections
D. Preventing change orders
✅ B. Satisfying statutory requirements (p. 5-11)
Oregon requires written agreements over $2,000; missing this can jeopardize collection and expose the business to enforcement.
Chapter 5
91. Why include assignment language (e.g., no assignment without consent)?
A. To encourage flipping contracts
B. To keep the bargain with the party you vetted and avoid surprise transfers to unknown entities
C. To raise premiums
D. To waive bonds
✅ B. Control counterparties (p. 5-4)
Assignment clauses preserve the agreed risk profile by preventing parties from transferring duties without approval.
Chapter 5
92. A waiver of consequential damages clause typically seeks to bar recovery for:
A. Direct repair costs
B. Indirect losses like lost profits, rental value, or business interruption
C. Labor costs
D. Material invoices
✅ B. Indirect losses (p. 5-4, 5-8)
The chapter’s damages discussion explains foreseeability and measurement; parties may pre-agree to exclude consequential losses to cap exposure.
Chapter 5
93. Why specify shop fabrication tolerances and standards in specs?
A. To limit submittals
B. To reduce disputes over acceptable variance and rework
C. To add acronyms
D. To eliminate inspections
✅ B. Reduce variance disputes (p. 5-11)
Stating tolerances tightens the quality target, aligning fabricators and field installers with designer intent.
94. Prompt pay language in a subcontract that mirrors the prime contract helps because:
A. It delays the sub’s payment
B. It aligns cash flow timing and conditions down the chain, minimizing mismatch disputes
C. It removes lien rights
D. It replaces retention
✅ B. Aligns cash flow (p. 5-3, 5-12)
Since primes rely on owner funds, mirroring terms (certifications, lien releases) creates predictable timing for subs and reduces friction.
95. Including orderly dispute escalation (PMs → executives → mediation → arbitration) does what?
A. Increases conflict
B. Resolves issues at the lowest level possible before formal proceedings
C. Bans attorneys
D. Extends schedule automatically
✅ B. Resolve at lowest level (p. 5-10)
The ADR ladder preserves relationships and controls costs, consistent with the chapter’s emphasis on structured dispute resolution.
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96. Subcontracting guidance recommends including what key items in every subcontract?
A. Only price
B. Names/addresses, project identification, scope of work, schedule, payment terms (incl. progress plan), insurance, and applicable conditions
C. Only drawings
D. Only allowances
✅ B. Full set of essentials (p. 5-12)
The chapter lists specific items to be captured in subcontracts so downstream parties are bound to the same clarity as the prime agreement.
Chapter 5
97. Why mirror change order procedures in subcontracts?
A. To create extra paperwork
B. To ensure downstream changes follow the same approvals, pricing rules, and time adjustments as the prime, preventing gaps
C. To avoid pay apps
D. To eliminate ADR
✅ B. Consistent procedures (p. 5-10, 5-12)
If the prime requires written, signed change orders with reason/scope/time/price, the sub should too, maintaining flow-through consistency.
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98. The “no waiver” clause (e.g., failure to enforce once is not a waiver) protects parties by:
A. Waiving all rights
B. Preventing a single leniency from becoming a permanent loss of rights
C. Eliminating LDs
D. Replacing ADR
✅ B. Preventing loss of rights (p. 5-4)
If you overlook a breach once, no-waiver preserves your right to enforce the term later, limiting arguments that silence equaled consent.
Chapter 5
99. Why include attorney-fee language?
A. Courts always award fees
B. To allow the prevailing party to recover reasonable fees where statutes or forms permit
C. To punish the loser
D. To avoid ADR
✅ B. Enable fee recovery (p. 5-4)
Fee-shifting provisions can deter weak claims and make enforcing the contract economically viable when damages alone wouldn’t cover litigation costs.
Chapter 5
100. A well-written scope of work should:
A. Use generic descriptions
B. Precisely define inclusions/exclusions, reference drawings/specs, and tie to quality standards
C. Be omitted to stay flexible
D. Only list allowances
✅ B. Precisely define scope with references (p. 5-2, 5-11)
Scope clarity is the foundation of pricing, scheduling, and quality enforcement. The chapter stresses detailed offers/contract provisions and the use of drawings/specs to avoid scope creep and change disputes.
This chapter has 7 pages.
1. A construction lien is best described as a claim against:
A. Personal property only
B. Real property improved by labor or materials
C. The contractor’s license
D. A project’s insurance proceeds
✅ B. Real property improved by labor or materials (p. 6-1)
A lien secures payment for those who add value to real property (land/buildings) by furnishing labor, materials, or equipment. It is recorded against the property’s title so payment can be enforced against the real estate itself if necessary.
Chapter 6 (1)
2. The core purpose of Oregon’s lien law is to:
A. Penalize property owners
B. Ensure those who add value to property are paid
C. Promote cash-only jobs
D. Replace contracts
✅ B. Ensure those who add value to property are paid (p. 6-1)
The statute balances the contractor’s security interest with the owner’s interest in the property, creating a legal mechanism to secure payment where labor or materials improved the land.
Chapter 6 (1)
3. To create a valid lien, a claimant generally must:
A. Send an invoice only
B. Notify the CCB only
C. Provide required notices and record lien documents with the county
D. Get the architect’s signature
✅ C. Provide required notices and record lien documents with the county (p. 6-1)
Lien rights are procedural: you must give the right notices and then record the claim with the county recorder where the project is located; errors can void the lien or limit fee recovery.
Chapter 6 (1)
4. Which of the following is NOT an Oregon lien-law definition?
A. Commencement of improvement
B. Improvement
C. Mortgagee
D. Federal contractor
✅ D. Federal contractor (p. 6-1)
The chapter defines terms like commencement, improvement, original contractor, owner, and mortgagee to clarify who is involved and when rights arise; “federal contractor” is not a defined term here.
Chapter 6 (1)
5. “Original contractor” means a contractor who:
A. Only supplies materials
B. Contracts directly with the property owner
C. Works as a subcontractor
D. Holds the mortgage
✅ B. Contracts directly with the property owner (p. 6-1)
Differentiating original contractors from subcontractors matters because notice duties differ and determine which pre-lien documents must be given to preserve rights.
Chapter 6 (1)
6. Who may claim a construction lien if they add value to the property?
A. Only general contractors
B. General contractors, subcontractors, employees, certain professionals, material suppliers, and equipment rental companies
C. Owners only
D. Lenders only
✅ B. Broad list of contributors (p. 6-2)
Oregon grants lien rights to a range of contributors—from GCs and subs to architects/surveyors/engineers, employees, suppliers, trustees of benefit plans, and equipment rental firms—so long as their work or materials improved the property.
Chapter 6 (1)
7. To file a lien in Oregon, a contractor must:
A. Be licensed in any state
B. Be licensed in Oregon
C. Only have a business tax ID
D. Be bonded federally
✅ B. Be licensed in Oregon (p. 6-2)
Only Oregon-licensed contractors may file a lien here; working on owner-occupied residences while unlicensed can even cause a loss of lien rights.
Chapter 6 (1)
8. A valid construction lien is recorded in:
A. The Secretary of State’s office
B. The CCB office
C. The county recorder’s office where the project is located
D. Federal court
✅ C. The county recorder’s office (p. 6-2)
Recording (sometimes called perfecting) the lien with the county recorder is essential for the lien to be effective and enforceable.
Chapter 6 (1)
9. Can a contractor record a lien on a public improvement owned by a government?
A. Yes, if unpaid
B. No, liens cannot attach to public property
C. Only for materials
D. Only with a court order
✅ B. No, liens cannot attach to public property (p. 6-2)
The statute excludes public improvements; other remedies (e.g., payment bonds) may apply to public works instead of construction liens.
Chapter 6 (1)
10. The Information Notice to Owner about Construction Liens is required when:
A. Any job exceeds $500
B. An original contractor signs a residential contract where the job exceeds $2,000
C. All commercial jobs
D. Only T&M contracts
✅ B. Residential job over $2,000 by the original contractor (p. 6-2)
The original contractor must give this consumer notice on or before the contract date to explain lien rights and homeowner protections.
Chapter 6 (1)
11. If the initial residential contract was ≤ $2,000 but will exceed $2,000 during construction, the Information Notice must be delivered:
A. Within 30 days
B. Within 5 days after the contractor knows or should know the job will exceed $2,000
C. Only at substantial completion
D. Not required
✅ B. Within 5 days of realizing the threshold will be exceeded (p. 6-3)
Oregon requires quick delivery to preserve rights when project value crosses the $2,000 line after work has begun.
Chapter 6 (1)
12. The Information Notice to Owner is not required for:
A. Commercial jobs
B. Residential jobs
C. New homes
D. Remodels
✅ A. Commercial jobs (p. 6-3)
Commercial projects are excluded from this consumer notice requirement; different notice rules apply to subs/suppliers via the Notice of Right to a Lien.
Chapter 6 (1)
13. When a contractor builds new residential property and sells it to a buyer, the Information Notice to Owner must be provided:
A. Any time within two years
B. Within 75 days from completion of construction
C. Not needed
D. Only at listing
✅ B. Within 75 days of completion (p. 6-3)
For new-home sales close to completion, Oregon still wants buyers informed of lien rights shortly after construction concludes.
Chapter 6 (1)
14. The Notice of Right to a Lien is typically given by:
A. Original contractor on residential jobs only
B. Subcontractors and material/equipment suppliers
C. Owners to lenders
D. Architects to GCs only
✅ B. Subs and suppliers (p. 6-3)
This notice identifies the sub/supplier and work/materials and preserves their lien priority—especially relative to mortgagees—when properly sent.
Chapter 6 (1)
15. Timing for the Notice of Right to a Lien:
A. Must be given before any work
B. May be given any time during construction, but to fully protect prior work it should be given within eight working days after starting work/first delivery
C. Only after completion
D. Only at contract signing
✅ B. Any time during construction; eight-working-day benchmark for full protection (p. 6-3)
Oregon recognizes notices during the job, but the guide emphasizes the eight working days rule so earlier labor/materials aren’t left unprotected.
Chapter 6 (1)
16. To maintain priority of a materialman’s lien over a lender’s interest, the Notice of Right to a Lien must also be delivered to:
A. City inspector
B. Mortgagee(s)
C. The architect
D. The CCB
✅ B. Mortgagee(s) (p. 6-3 & 6-4)
The table and text explain that sending the notice to mortgagees protects the supplier’s priority on the material portion of the lien.
Chapter 6 (1)
17. According to the chart (p. 6-4), a residential subcontractor who provides labor & material must send a Notice of Right to a Lien to:
A. Owner only
B. Mortgagee only
C. Owner and mortgagee
D. No one
✅ C. Owner and mortgagee (p. 6-4)
The matrix shows “Yes/Yes” for residential subcontractors furnishing labor & material—reflecting the statute’s priority rules.
Chapter 6 (1)
18. After receiving a Notice of Right to a Lien, an owner may demand information that includes:
A. Private tax returns
B. A list of materials/equipment with cost, description of labor/services, or the contractual basis/percentage complete
C. Bank statements
D. Subcontractor payroll records
✅ B. Job-specific cost/description/contract basis info (p. 6-5)
The owner’s written demand must be answered by certified mail within 15 working days; failure can cost the claimant their right to recover attorney fees and costs.
Chapter 6 (1)
19. A Claim of Lien must be recorded no later than:
A. 30 calendar days after first delivery
B. 60 calendar days after completion
C. 75 calendar days after last substantial performance/delivery/rental, or 75 days after completion—whichever is earlier
D. 6 months after completion
✅ C. 75-day outside limits (p. 6-5)
Track these dates closely. If the 75th day falls on a closed day, you must record before the weekend/holiday and before the period expires.
Chapter 6 (1)
20. A valid Claim of Lien must include:
A. Only the amount due
B. Owner name (if known), party who hired the claimant, property description/address, and a demand statement after credits/offsets
C. The architect’s certification
D. A contractor’s daily log
✅ B. Specific statutory contents (p. 6-5)
The claim must be sworn under oath; reckless or false information risks penalties and damages. Accuracy is essential.
Chapter 6 (1)
21. After recording a Claim of Lien, the lien claimant must mail a Notice of Filing a Claim of Lien to the owner (and any mortgagee) no later than:
A. 10 calendar days
B. 20 calendar days
C. 30 calendar days
D. 60 calendar days
✅ B. 20 calendar days (p. 6-5)
Failure to send the notice does not void the lien, but it may forfeit the right to recover costs or attorney fees in foreclosure.
Chapter 6 (1)
22. Before starting a foreclosure lawsuit, the lien claimant must send a Notice of Intent to Foreclose at least:
A. 3 business days before filing
B. 10 calendar days before filing
C. 20 calendar days before filing
D. 60 calendar days before filing
✅ B. 10 calendar days (p. 6-5)
This final post-claim notice is a statutory prerequisite to litigation and gives the owner a last chance to resolve the lien.
Chapter 6 (1)
23. After sending a Notice of Intent to Foreclose, if the owner demands information, the claimant must respond within:
A. 10 business days
B. 5 calendar days
C. 20 calendar days
D. Not required
✅ B. 5 calendar days (p. 6-5)
Failing to deliver the demanded list/statement within five days can again jeopardize the claimant’s ability to recover attorney fees and costs.
Chapter 6 (1)
24. A lien foreclosure lawsuit must be filed within:
A. 60 days of recording the lien
B. 120 calendar days of recording the lien
C. 6 months of final completion
D. One year of notice
✅ B. 120 calendar days (p. 6-6)
If no lawsuit is filed within 120 days after recording, the lien becomes invalid. File in the Circuit Court for the county where the lien was recorded.
Chapter 6 (1)
25. Do all construction liens have priority over mortgages?
A. Yes, always
B. Only if the contractor is original
C. No—liens from remodeling/repair work can be subordinate to purchase-money mortgages
D. Only for suppliers
✅ C. Not always; purchase lender often has priority (p. 6-6)
The guide warns that not all liens outrank earlier mortgages/trust deeds; priority depends on the nature of the work and timing.
Chapter 6 (1)
26. The Summary of Lien Law Process lists the correct sequence beginning with:
A. Record lien → give Information Notice → sue
B. Contract with owner → Information Notice (if required) → Notice of Right to a Lien → owner demand responses → record lien → post-claim notices → foreclosure
C. Foreclosure → Notice of Right → Record lien
D. Bid → sue
✅ B. Contract → notices → record → post-claim → suit (p. 6-6)
The flowchart (steps 1–9) lays out an easy checklist from contract through suit, including all key deadlines.
Chapter 6 (1)
27. The Homebuyer Protection Act (HPA) applies to the sale of:
A. Only commercial buildings
B. New single-family homes, new condo units/new residential buildings, and certain remodeled homes/units costing ≥ $50,000 within 3 months before sale
C. Vacant land only
D. Agricultural structures only
✅ B. New homes/condos and qualifying remodels (p. 6-6)
HPA requires sellers (including contractors) to protect buyers from construction liens by electing one of several protection methods.
Chapter 6 (1)
28. Under HPA, the seller must provide buyer protection by one of the following:
A. A letter from the architect
B. Title insurance covering liens, or escrow ≥ 25% of sale price, or a bond/letter of credit ≥ 25%
C. A final pay app
D. An owner affidavit only
✅ B. Insurance, escrow, or bond/LOC at 25% (p. 6-6)
These options ensure funds or coverage exist to discharge liens that might surface after sale.
Chapter 6 (1)
29. HPA also requires the seller to complete, sign, and deliver a:
A. Lien waiver from the owner
B. Notice of Compliance with the Homebuyer Protection Act
C. Subcontractor schedule
D. Notice of Right to a Lien
✅ B. Notice of Compliance (p. 6-6)
This document states which protection method was chosen and must be delivered no later than the date the property sale is completed.
Chapter 6 (1)
30. Failure to provide the HPA Notice of Compliance is a Class “A” violation punishable by a civil penalty up to:
A. $500 for an individual
B. $2,000 for individuals or $4,000 for corporations
C. $10,000 for any seller
D. No civil penalty
✅ B. $2,000 / $4,000 (p. 6-7)
If the seller’s failure causes buyer damages, the buyer may recover up to twice actual damages plus costs and attorney fees.
Chapter 6 (1)
31. The CCB provides dispute-resolution services to homeowners to:
A. License mortgagees
B. Discharge liens or recover funds paid to discharge a lien when a contractor fails to pay the lien holder
C. Approve architectural designs
D. Set prevailing wage
✅ B. Discharge/recover lien-related funds (p. 6-7)
If an owner pays a contractor to remove a lien and the contractor doesn’t pay the lien holder, the owner can complain to the CCB to seek relief.
Chapter 6 (1)
32. A Claim of Lien signer must ensure the information is correct because:
A. It’s optional
B. A reckless or frivolous claim can lead to criminal penalties and damages/attorney fees
C. The county will fix mistakes
D. The owner is responsible for accuracy
✅ B. Penalties for false claims (p. 6-5)
The claim is sworn under oath; accuracy and good-faith are mandatory to avoid sanctions.
Chapter 6 (1)
33. If the 75-day recording deadline would fall on a day the recorder’s office is closed, the Claim of Lien must be recorded:
A. The next business day
B. Before the weekend/holiday and before the period expires
C. Any time within 90 days
D. No recording needed
✅ B. Record early (p. 6-5)
The guide warns to record ahead of closures; missing the window invalidates the lien.
Chapter 6 (1)
34. Delivery method for owner demand responses must be:
A. Email is fine
B. Certified mail, return receipt requested
C. Regular mail
D. Text message
✅ B. Certified mail with proof (p. 6-5)
The statute emphasizes certified mail to ensure there’s a verifiable record of timely compliance.
Chapter 6 (1)
35. Which statement about residential vs. commercial notice duties is correct?
A. Original contractors must give the Information Notice on commercial jobs
B. Original contractors give the Information Notice on qualifying residential jobs; subs/suppliers use the Notice of Right to a Lien across job types (with matrix-based differences)
C. Subs never need to notice
D. Suppliers notice owners only
✅ B. Residential info notice + sub/supplier right-to-lien notices (pp. 6-2 to 6-4)
The chapter distinguishes consumer notice obligations from priority-protecting notices used by subs and suppliers.
Chapter 6 (1)
36. A residential original contractor must give the Information Notice to Owner:
A. At first delivery
B. On or before the date the written contract is signed
C. Only after inspections
D. With the final bill
✅ B. On/Before contract date (p. 6-2)
This is aligned with Oregon’s residential consumer-protection approach.
Chapter 6 (1)
37. The Notice of Right to a Lien should identify:
A. The architect only
B. The sub/supplier, the person who requested their services/materials, and a description of the work/materials
C. The GC’s profit
D. HOA board members
✅ B. Identity and description (p. 6-3)
Identification clarifies who is furnishing what, letting owners and lenders track who may assert liens.
Chapter 6 (1)
38. For a residential original contractor, the chart (p. 6-4) shows the duty to give a Notice of Right to a Lien to the owner when providing materials only is:
A. Yes
B. No
C. Only after 30 days
D. To mortgagee only
✅ B. No (p. 6-4)
The matrix indicates “No” for original residential contractors providing material to the owner; different rules apply to subs/suppliers.
Chapter 6 (1)
39. Recording a Claim of Lien too late results in:
A. A smaller lien
B. An invalid lien
C. A lien on personal property
D. Automatic CCB mediation
✅ B. Invalid lien (p. 6-5)
Strict compliance with the 75-day window is required; missing it defeats lien rights regardless of merit.
Chapter 6 (1)
40. If the claimant fails to send the Notice of Filing a Claim of Lien within 20 days, the lien:
A. Is void
B. Can still be valid, but the claimant may lose rights to recover attorney fees/costs
C. Becomes a mortgage
D. Converts to a bond claim
✅ B. Validity vs. fees (p. 6-5)
The post-claim notices protect fee recovery and due-process fairness; omitting them can be costly even if the lien itself survives.
Chapter 6 (1)
41. The foreclosure lawsuit, if successful, may result in:
A. Removal of the mortgage
B. A court order to sell the property to pay the lien
C. A criminal sentence for the owner
D. Automatic treble damages
✅ B. Judicial sale (p. 6-6)
Foreclosure enforces the lien by selling the property to satisfy the debt, subject to priority rules.
Chapter 6 (1)
42. Under HPA, sellers can also protect buyers by either obtaining lien waivers from subs/suppliers or:
A. Closing within 30 days
B. Completing the sale at least 75 days after construction is complete
C. Posting a notice at city hall
D. Filing with the IRS
✅ B. Waiting at least 75 days after completion (p. 6-7)
These alternatives further reduce the risk that new liens will appear after closing.
Chapter 6 (1)
43. An owner who already paid a contractor to discharge a lien but the contractor failed to pay the lienholder may:
A. Do nothing
B. File a complaint with the CCB’s dispute resolution program
C. Record a bond
D. Sue the lender
✅ B. CCB complaint (p. 6-7)
The CCB process exists specifically to help discharge liens and recover funds paid in such scenarios.
Chapter 6 (1)
44. “Residential property” includes which of the following?
A. Office towers
B. Residential dwellings and adjacent improvements like driveways, patios, garages, basements
C. Farmland only
D. Industrial plants
✅ B. Dwellings and adjacent structures (p. 6-2)
The definition covers a home and adjacent improvements connected to the residence.
Chapter 6 (1)
45. “Residential building” means a building that:
A. Has any number of units
B. Will be occupied as a residence and contains no more than four units
C. Is strictly commercial
D. Is mixed-use high-rise only
✅ B. Up to four units (p. 6-2)
This limit distinguishes residential from larger multi-family/commercial structures for notice and consumer-protection rules.
Chapter 6 (1)
46. The site is defined as:
A. The legal description only
B. The land where the construction work is performed
C. The staging yard only
D. The contractor’s office
✅ B. The land where work occurs (p. 6-2)
Knowing the site is essential for accurate property descriptions in lien claims.
Chapter 6 (1)
47. “Working days” for notice timing exclude:
A. Saturdays, Sundays, and holidays
B. Only Sundays
C. Weekdays
D. None—every day counts
✅ A. Saturdays, Sundays, and holidays (p. 6-2)
This is crucial when counting the eight working days for the Notice of Right to a Lien or 15 working days to answer an owner’s demand.
Chapter 6 (1)
48. If a subcontractor starts on Thursday, April 3, and wants full protection for earlier work, by what date should they give the Notice of Right to a Lien (per example)?
A. April 10
B. Tuesday, April 15 (eight working days)
C. April 20
D. May 1
✅ B. April 15 (p. 6-3)
The chapter’s example walks through counting eight working days, illustrating how to preserve protection for already-performed work.
Chapter 6 (1)
49. After a Notice of Right to a Lien is sent, an owner’s written demand must be answered within 15 working days or the claimant may:
A. Lose the lien
B. Lose the right to recover attorney fees and costs in a lien foreclosure action
C. Owe liquidated damages
D. Face criminal charges
✅ B. Lose fee/cost recovery (p. 6-5)
The lien can still proceed, but failing to comply with the demand timeline weakens the claimant’s financial recovery potential.
Chapter 6 (1)
50. Big-picture: liens “secure payment” because they:
A. Guarantee profit
B. Create a legal claim on the property’s title, enabling sale or pressure to pay even if the owner already paid the prime
C. Replace contracts
D. Apply only to public jobs
✅ B. Security interest against the property (p. 6-2)
Even if a property owner pays the original contractor, unpaid subs/suppliers may lien the property; the lien leverages title to ensure those who improved the property are paid.
1. Which set typically makes up a complete competitive bid package?
A. Change orders, invoices, lien waivers
B. Invitation to bid, bid instructions, bid forms, and supplements
C. Shop drawings, RFIs, punch lists
D. Purchase orders, delivery tickets, timesheets
✅ B. Invitation to bid, bid instructions, bid forms, and supplements (p. 7-1)
A standard bid package includes the invitation, instructions, forms (like bid schedule and experience questionnaire), and supplements (e.g., surveys, soils data) so every bidder prices the same scope consistently.
Chapters 8
2. An addendum issued before bid day becomes:
A. Optional reading
B. A non-binding memo
C. Part of the contract documents
D. A post-award clarification only
✅ C. Part of the contract documents (p. 7-2)
Addenda modify the bid package and, once issued, are incorporated into the eventual contract; bidders must review them and adjust pricing accordingly.
Chapters 8
3. Which practice undermines the integrity of the competitive process and is often prohibited?
A. Bid alternates
B. Bid bonding
C. Bid shopping
D. Pre-bid meetings
✅ C. Bid shopping (p. 7-2)
Bid shopping occurs when a general reveals original sub bids to grind prices lower after seeing numbers; it damages trust and can be unlawful on public work.
Chapters 8
4. Bid peddling happens when a subcontractor:
A. Raises its price after award
B. Adds exclusions after award
C. Approaches the GC post-award to undercut the originally submitted price
D. Refuses to sign a subcontract
✅ C. Approaches the GC post-award to undercut (p. 7-2)
Here the sub tries to displace another by offering a lower number after the project is awarded, which disrupts fairness and relationships.
Chapters 8
5. Bid rigging is best described as:
A. Using alternates in a bid
B. Collusion among contractors to fix outcomes
C. Negotiated work after bid
D. Clarifying questions at pre-bid
✅ B. Collusion among contractors to fix outcomes (p. 7-2)
Competitors coordinating prices or turns to “win” violates competition laws and ethics.
Chapters 8
6. Before pricing, the estimator should confirm the project documents include at least:
A. Only drawings
B. Only specs
C. Drawings, specifications, and the form of contract
D. Only geotechnical data
✅ C. Drawings, specifications, and the contract (p. 7-2)
Plans show what/where; specs define materials/methods; the contract binds conditions and responsibilities—together they define the scope.
Chapters 8
7. If drawings and specs conflict, which should you follow?
A. The cheaper one
B. The one the GC prefers
C. The stricter of the two and applicable codes
D. The architect’s email direction only
✅ C. The stricter requirement (p. 7-2)
Specs set minimums; codes must be met or exceeded. When in doubt, price to the higher standard to remain compliant.
Chapters 8
8. A site visit primarily helps the estimator:
A. Set marketing strategy
B. Identify conditions not obvious on plans (access, utilities, soils, grading)
C. Replace a survey
D. Avoid environmental permits
✅ B. Identify real-world conditions (p. 7-2)
Walking the site reveals logistics and constraints that can swing costs—like haul distances, water availability, or permit lead time.
Chapters 8
9. An estimating framework should at least:
A. List only subcontractor trades
B. Define project phases and list tasks/materials per phase
C. List vendor phone numbers
D. Show only final price
✅ B. Define phases and tasks (p. 7-3)
Outlining preconstruction, construction, and closeout phases with task/material lists prevents omissions and supports scheduling later.
Chapters 8
10. Technology tools for estimating commonly provide:
A. Insurance underwriting
B. Databases for unit costs, report formats, historics, and job-costing links
C. HR onboarding
D. Fleet telematics
✅ B. Cost databases and reporting (p. 7-3)
Estimating software speeds takeoff, preserves history, and ties into cost control; it still relies on estimator fundamentals.
Chapters 8
11. After listing tasks and materials, the next step in determining costs is to:
A. Call the owner
B. Calculate labor cost per task
C. Submit the bid
D. Buy equipment
✅ B. Calculate labor cost per task (p. 7-3)
Use required labor hours × wage rate = labor cost; prior jobs and market knowledge improve accuracy.
Chapters 8
12. Labor hours vary based on:
A. Owner mood
B. Skill level, crew size, weather, and planning/scheduling time
C. Architect reputation
D. Bond rate
✅ B. Crew, skill, weather, planning (p. 7-4)
These factors materially change productivity assumptions and thus total labor hours.
Chapters 8
13. Labor burden generally adds about:
A. 5%
B. 15%
C. ~30%
D. 60%
✅ C. ~30% (p. 7-4)
Burden covers payroll taxes, workers’ comp, unemployment insurance, benefits, and liability insurance—significant costs beyond wages.
Chapters 8
14. Material pricing should include:
A. No contingency
B. Current unit costs, quotes from suppliers, and a small waste allowance
C. Only last year’s pricing
D. Only retail pricing
✅ B. Updated quotes + waste (p. 7-4)
Market fluctuations and waste (dependent on trade/specs) must be accounted for to avoid shortfalls.
Chapters 8
15. Project equipment cost is typically treated as:
A. Overhead
B. A direct cost for the job
C. Profit
D. Allowance
✅ B. Direct cost (p. 7-4)
Whether owned or rented, the equipment needed to execute the work is part of direct job costs and should be estimated accordingly.
Chapters 8
16. To compute the unit cost of owned equipment, consider:
A. Driver tips
B. Purchase price & depreciation, maintenance/operations, taxes/fees, operator training, and insurance
C. Only fuel
D. Only depreciation
✅ B. Full ownership & operating factors (p. 7-4)
Divide annual total by estimated yearly operating hours to get a unit ($/hr) to apply to tasks.
Chapters 8
17. Renting equipment may be best when:
A. Cash is abundant
B. The need is short-term/specialized, a unit is under repair, maintenance is high, or transport/storage are issues
C. The company has idle capital
D. Leasing is illegal
✅ B. Short-term/specialized situations (p. 7-5)
Renting avoids long-term commitments and can be cost-effective when utilization is low or timing is tight.
Chapters 8
18. Leasing equipment advantages include:
A. Large down payment
B. Lower periodic payments over longer terms and operating-expense tax treatment
C. Ownership from day one
D. Guaranteed resale gains
✅ B. Lower payments & expense treatment (p. 7-5)
Leases spread costs, may not require down payments, and often return obsolete equipment at term end.
Chapters 8
19. When neither own nor rent makes sense, a GC might:
A. Cancel the bid
B. Subcontract the scope
C. Ask the owner to supply tools
D. Ignore the task
✅ B. Subcontract it (p. 7-5)
If it’s not cost-effective or feasible in-house, carrying the cost as a subcontractor line can be the right move.
Chapters 8
20. How many sub bids should you typically obtain for comparison?
A. One
B. Two
C. At least three
D. Ten
✅ C. At least three (p. 7-5)
Multiple quotes help benchmark pricing and qualifications while reducing single-point risk.
Chapters 8
21. Allowances in an estimate are used when:
A. The spec is illegal
B. Owner selections (e.g., finishes) aren’t finalized
C. There’s no budget cap
D. The item won’t be installed
✅ B. Selections pending (p. 7-5)
Allowances hold a placeholder budget; the contract should define who pays if actuals exceed or fall short.
Chapters 8
22. A contingency is added to:
A. Increase profit
B. Address unknowns or risk level
C. Replace insurance
D. Cover bonding
✅ B. Unknowns/risk (p. 7-6)
Low-risk projects might carry ~2% contingency; higher risk merits more—decided by the estimator’s risk assessment.
Chapters 8
23. Project overhead covers:
A. Corporate rent and admin labor
B. Jobsite-specific indirects like utilities, dumpsters, temporary power, fencing
C. Profit
D. Direct materials
✅ B. Jobsite indirects (p. 7-6)
These are necessary to complete the project but are not tied to a single task; itemize for accuracy.
Chapters 8
24. Company overhead includes:
A. Dumpster rentals
B. Office rent, accounting, admin labor, phones, taxes, legal fees
C. Concrete pump
D. Rebar
✅ B. Corporate expenses (p. 7-6)
These keep the business running and are typically applied via a percentage to project direct costs.
Chapters 8
25. If combined overhead is 20% of revenue, to load overhead on $100,000 of direct costs you divide by:
A. 1.00
B. 1.10
C. 0.80
D. 0.20
✅ C. 0.80 (p. 7-6)
Because overhead is a percent of revenue, you gross-up direct costs: $100,000 ÷ 0.80 = $125,000 selling price (before markup).
Chapters 8
26. Markup is applied to:
A. Overhead only
B. Direct costs (and overhead if not already loaded) to achieve target profit
C. Labor only
D. Materials only
✅ B. Direct costs to reach profit goals (p. 7-7)
Set markup with market conditions, customer expectations, and desired margin; too low and you’ll lose money, too high and you’ll lose work.
Chapters 8
27. A common estimating pitfall is quoting a price as a:
A. Lump sum after full takeoff
B. Preliminary estimate on the spot
C. Formal proposal after review
D. Clarified alternate
✅ B. Preliminary on the spot (p. 7-7)
Giving numbers before thoroughly scoping risks underpricing and later client disappointment.
Chapters 8
28. To reduce inaccurate estimates, you should check for:
A. Marketing buzzwords
B. Math errors, omissions in labor/material, non-standard abbreviations, and unit-of-measure issues
C. HR policies
D. Weather forecasts only
✅ B. The four accuracy traps (p. 7-7)
These are cited as routine sources of costly mistakes; peer review helps catch them.
Chapters 8
29. A conceptual estimate is usually prepared by:
A. Suppliers only
B. Architects using cost models from prior projects
C. Owners using final drawings
D. Subcontractors only
✅ B. Architects/cost models (p. 7-7)
Conceptuals are high-level and can vary due to unique project characteristics—use caution if bidding from them.
Chapters 8
30. Square-foot estimating:
A. Uses cubic yards
B. Multiplies building area by a historical unit cost
C. Works only for sitework
D. Replaces takeoff permanently
✅ B. Area × unit cost (p. 7-7)
Quick but coarse, it doesn’t capture project-specific factors; good for early screening only.
Chapters 8
31. Unit-price estimating bundles:
A. Only labor
B. Only materials
C. All cost factors per unit to create a holistic unit price (e.g., $/SF of concrete placed & finished)
D. Only equipment
✅ C. All factors into a unit (p. 7-7)
When scoped well, this can produce quick estimates for recurring tasks or measured quantities.
Chapters 8
32. An estimator may contribute by:
A. Negotiating the contract only
B. Performing takeoff, analyzing subs, equipment needs, sequencing, contingencies, allowances, and overhead
C. Running field crews
D. Auditing taxes
✅ B. Full estimating process (p. 7-8)
On large jobs, a professional estimator improves accuracy and defines margins consistent with constraints.
Chapters 8
33. When submitting a bid, you must:
A. Ignore bid instructions if you have a template
B. Follow every instruction and customize forms; late or incomplete bids can be rejected
C. Send after the deadline if needed
D. Skip required attachments
✅ B. Follow instructions exactly (p. 7-8)
Owners typically conduct a 30–90 day review; non-compliance can disqualify you regardless of price.
Chapters 8
34. A job cost recording system helps by:
A. Eliminating estimating
B. Tracking current projects, flagging overruns early, and improving future estimate accuracy
C. Replacing payroll
D. Setting tax rates
✅ B. Control + feedback (p. 7-8)
Actuals feed future unit costs and support better decisions by project/activity/category.
Chapters 8
35. In estimating labor, historical job data are useful because they:
A. Inflate new bids
B. Inform realistic crew rates and hours
C. Replace supervision
D. Guarantee profits
✅ B. Inform realistic outputs (p. 7-4)
Past performance by task and conditions sharpens future assumptions.
Chapters 8
36. Material costs should be checked against:
A. Yesterday’s newspaper
B. Supplier quotes and economic indices like the Producer Price Index
C. Stock market
D. OSHA rates
✅ B. Quotes + PPI (p. 7-4)
Keeping current prevents underbidding in volatile commodities.
Chapters 8
37. For rental equipment costing, add:
A. Fuel only
B. Rental rate, pickup/return labor, delivery fees, operator labor, fuel/consumables
C. Only delivery
D. Only operator
✅ B. Full rental burden (p. 7-5)
Ignore these and your equipment line will be short.
Chapters 8
38. Ownership often pencils out when:
A. Utilization is very low
B. Equipment has a long useful life and won’t be obsolete soon
C. Fuel is free
D. Financing is unavailable
✅ B. Long life/low obsolescence (p. 7-5)
High-utilization, durable gear tends to justify ownership versus rent/lease.
Chapters 8
39. Short-term specialized projects often favor:
A. Buying equipment
B. Renting equipment
C. Leasing long term
D. Using manual methods only
✅ B. Renting (p. 7-5)
Rent aligns cost to need and avoids storage/transport burdens for niche tools.
Chapters 8
40. A sensible approach to subcontractor selection is to require:
A. Social media followers
B. Licensing, insurance, and qualifications with at least three competitive bids
C. Lowest price only
D. A handshake
✅ B. Licensure/insurance + competition (p. 7-5)
This balances cost with risk and capacity.
Chapters 8
41. Contingency levels should be tied to:
A. Random percentage
B. Project risk level
C. Corporate brand color
D. Crew size
✅ B. Risk-based (p. 7-6)
Calibrate contingency. Low risk ~2%; complex/unknown conditions justify more.
Chapters 8
42. Overhead is added to the bid by:
A. Subtracting from direct cost
B. Dividing direct costs by (1 – overhead %) to gross up
C. Adding sales tax only
D. Ignoring it to be competitive
✅ B. Gross-up method (p. 7-6)
This converts cost to selling price inclusive of overhead recovery.
Chapters 8
43. Market conditions affect markup because:
A. Codes change
B. Competition and customer expectations influence what the market will bear
C. Weather changes
D. Tool color changes
✅ B. Competitive context sets margin headroom (p. 7-7)
Right-sizing markup steadying win rate and profitability is a core estimator judgment.
Chapters 8
44. An estimator should avoid non-standard abbreviations because:
A. They look unprofessional only
B. They can be misread, causing scope gaps or mispricing
C. They take more ink
D. They’re trendy
✅ B. Misinterpretation risk (p. 7-7)
Spell out items so downstream reviewers don’t under- or over-include cost.
Chapters 8
45. Units of measure need clarity because:
A. Owners prefer metric
B. Confusion between linear, square, and cubic units can drastically change price
C. Inspectors require it
D. Suppliers demand it
✅ B. Unit confusion = pricing errors (p. 7-7)
Always define LF/SF/CY correctly in takeoff and vendor quotes.
Chapters 8
46. The estimator’s job also includes analyzing:
A. Corporate tax strategy
B. Sequencing and operational constraints that affect productivity and cost
C. Feeds and speeds of laptops
D. Hiring foremen
✅ B. Sequence/constraints (p. 7-8)
Phasing, access windows, or quiet hours change crew outputs and should be priced.
Chapters 8
47. The bid review period by the owner typically lasts:
A. 1–2 days
B. 30–90 days
C. Six months
D. Overnight
✅ B. 30–90 days (p. 7-8)
Expect a month or more for evaluation; keep your subs’ quotes valid through the period.
Chapters 8
48. A job cost system allows analytical reports by:
A. Social media channel
B. Project, activity, year—helping decisions and unit-cost accuracy
C. County only
D. Vendor only
✅ B. Multiple analytical slices (p. 7-8)
These insights drive better estimating and earlier corrective action.
Chapters 8
49. If your markup is too low:
A. You’ll win too few jobs
B. You risk failing to cover overhead and profit
C. You’ll always make more profit
D. It has no effect
✅ B. Margin shortfall risk (p. 7-7)
Low markup can drive volume but erode sustainability; balance is key.
Chapters 8
50. If your markup is too high:
A. You’ll win every job
B. You may price yourself out and starve backlog
C. Quality drops
D. Insurance lapses
✅ B. Lose work from overpricing (p. 7-7)
Set margins strategically to maintain pipeline and profit goals.
Chapters 8
51. The quantity take-off method is considered:
A. The least accurate
B. One of the most accurate
C. Only for landscaping
D. Only for conceptuals
✅ B. Most accurate (p. 7-7, 7-3)
Detailed measurement of each item plus proper unit costs reduces error risk substantially.
Chapters 8
52. Estimating software can help, but only if:
A. It’s the newest version
B. You know the estimating fundamentals
C. It’s cloud-based
D. It includes 3D modeling
✅ B. Fundamentals first (p. 7-3)
Tools amplify accuracy and speed; they don’t replace core estimator judgment.
Chapters 8
53. After markups, if your projected profit isn’t met despite winning, likely causes include:
A. Owner paid early
B. Estimating errors, omissions, or poor job cost control
C. Too many pre-bid RFIs
D. Punch list was small
✅ B. Estimating/control issues (p. 7-7, 7-8)
Good cost recording and careful estimating minimize these gaps.
Chapters 8
54. Overhead percentages commonly range:
A. 0–2%
B. ~5–20%
C. 25–40%
D. 40–60%
✅ B. ~5–20% (p. 7-6)
Use your own historicals to set appropriate company and project overhead rates.
Chapters 8
55. Small firms sometimes hire a professional estimator because:
A. They want more drawings
B. Complex jobs require dedicated focus on takeoff, sub analysis, and pricing
C. Contracts forbid in-house estimating
D. Banks require it
✅ B. Complexity & focus (p. 7-8)
An estimator can also advise on profit margins and contractual terms.
Chapters 8
56. Company overhead is not directly linked to:
A. Revenue
B. Employees
C. A specific project
D. Rent
✅ C. A specific project (p. 7-6)
It’s the cost of doing business overall, not one job; allocate via percentage.
Chapters 8
57. The producer price index (PPI) is useful for:
A. Bonding rates
B. Spotting material cost trends
C. OSHA compliance
D. Tax law
✅ B. Material trends (p. 7-4)
Checking PPI for major groups informs escalation assumptions in your estimate.
Chapters 8
58. For owned equipment, unit cost example: $30,000 annual cost / 1,000 hours =
A. $15/hr
B. $30/hr
C. $60/hr
D. $300/hr
✅ B. $30/hr (p. 7-4)
Apply the unit rate to the estimated hours for the project to price the equipment line.
Chapters 8
59. Delivery fees for rented equipment are treated as:
A. Profit
B. Part of the rental cost
C. Project overhead only
D. A contingency
✅ B. Part of rental cost (p. 7-5)
Include pickup/return labor and delivery to reflect the real cost of having the machine on site.
Chapters 8
60. Waste contingencies are:
A. Always 10%
B. Dependent on material type and job specs
C. Not needed
D. Fixed by code
✅ B. Material/spec dependent (p. 7-4)
Tile cuts, concrete overages, or fragile finishes may warrant different allowances.
Chapters 8
61. The frame of estimate should connect easily to:
A. HR payroll
B. The job schedule
C. Fleet maintenance
D. Social posts
✅ B. Job schedule (p. 7-3)
Phasing and task lists form the backbone for both cost and time planning.
Chapters 8
62. A common post-award problem caused by sloppy estimating is:
A. Too many alternates accepted
B. Scope omissions
C. Overcommunication
D. Extra permits issued
✅ B. Scope omissions (p. 7-7)
The chapter repeatedly stresses thoroughness to avoid costly change orders you can’t recover.
Chapters 8
63. Pre-bid meetings help:
A. Replace drawings
B. Clarify specs and discuss addenda/changes
C. Guarantee low bids
D. Eliminate RFIs later
✅ B. Clarify and align (p. 7-1)
They ensure all bidders understand constraints, reducing post-award disputes.
Chapters 8
64. During a site visit, consider environmental permits because they:
A. Don’t impact cost
B. Affect schedule and cost estimates
C. Are optional
D. Only apply to federal jobs
✅ B. Affect schedule/cost (p. 7-2)
Permits can add time and fees; price and plan accordingly.
Chapters 8
65. You should build historical cost tracking because it:
A. Is a legal formality only
B. Improves future estimates with real production/cost data
C. Replaces accounting
D. Only helps large firms
✅ B. Better estimates (p. 7-3, 7-8)
Past performance—hours, crew sizes, unit outputs—sharpens assumptions.
Chapters 8
66. Temporary utilities are classified as:
A. Direct labor
B. Project overhead
C. Company overhead
D. Markup
✅ B. Project overhead (p. 7-6)
They’re necessary to build but not tied to one task.
Chapters 8
67. Administrative labor is categorized as:
A. Project overhead
B. Company overhead
C. Direct cost
D. Contingency
✅ B. Company overhead (p. 7-6)
Office staff time is a business expense recovered through overhead loading.
Chapters 8
68. To control risk, estimators should avoid omissions by:
A. Guessing
B. Using a structured framework and detailed task/material lists
C. Copying a competitor’s bid
D. Rounding generously
✅ B. Framework discipline (p. 7-3, 7-7)
Structure reduces blind spots, a core theme of the chapter.
Chapters 8
69. The profit margin decision should consider:
A. Crew happiness only
B. Cost estimate, customer needs, competition, and margin targets
C. Permit fees
D. Brand font
✅ B. Multiple commercial factors (p. 7-7)
Margin is a business decision anchored in cost and market realities.
Chapters 8
70. Hard-copy and electronic estimate reports are useful for:
A. IT security
B. Presenting options to customers and internal review
C. OSHA audits
D. Fleet audits
✅ B. Presentation and review (p. 7-3)
Different audiences need different formats; software should output both.
Chapters 8
71. Crew planning/scheduling hours belong in:
A. Profit
B. Labor cost
C. Overhead only
D. Exclusions
✅ B. Labor cost (p. 7-4)
Planning time is real effort; include it in labor calculations.
Chapters 8
72. Small tools and plates used across tasks are:
A. Direct materials
B. Indirect costs rolled into project overhead
C. Company overhead
D. Profit
✅ B. Project overhead (p. 7-4)
They support many operations and are not typically billed to one line.
Chapters 8
73. If a rented unit is kept idle due to poor planning, the cost:
A. Disappears
B. Still hits the job
C. Moves to company overhead
D. Becomes profit
✅ B. Still hits the job (p. 7-5)
Idle time is a cost risk; schedule accuracy matters.
Chapters 8
74. Delivery/return labor for rental equipment should be charged to:
A. Company overhead
B. The project’s equipment cost line
C. Profit
D. Contingency
✅ B. Equipment line (p. 7-5)
It’s part of getting the tool in and out for the job.
Chapters 8
75. Dumpster costs are typically:
A. Direct material
B. Project overhead
C. Company overhead
D. Exclusions
✅ B. Project overhead (p. 7-6)
They are necessary site costs, not task-specific.
Chapters 8
76. When owners request a preliminary number, the safest response is to:
A. Quote a firm lump sum
B. Explain it’s a budget estimate pending full takeoff and assumptions
C. Decline to answer
D. Guarantee a not-to-exceed
✅ B. Clarify it’s budgetary (p. 7-7)
Manage expectations to avoid claims of “you promised” when scope clarifies later.
Chapters 8
77. The Final Inspection notes that ethics in bidding is essential because it:
A. Raises profits automatically
B. Maintains integrity of the process and trust with partners
C. Reduces math
D. Is only for public jobs
✅ B. Preserves integrity and trust (p. 7-8)
Sound ethics deliver long-term relationships and lower risk.
Chapters 8
78. The Final Inspection also reminds that the quantity take-off method requires:
A. Only direct costs
B. Pricing both direct and indirect costs to ensure completeness
C. Profit only
D. Company overhead only
✅ B. Include direct and indirects (p. 7-8)
Takeoff without overhead/indirects leaves your bid under water.
Chapters 8
79. Submitting your bid exactly per the instructions matters because:
A. It shortens review
B. Non-conforming bids may be rejected regardless of price
C. It pleases competitors
D. Insurance requires it
✅ B. Avoids disqualification (p. 7-8)
Owners enforce fairness; missing forms or deadlines can sink a bid.
Chapters 8
80. A robust job cost system helps future bids by:
A. Hiding losses
B. Creating accurate future unit costs and enabling earlier corrective action on current jobs
C. Replacing contracts
D. Eliminating the need for contingencies
✅ B. Better unit costs & control (p. 7-8)
Data discipline turns past experience into competitive advantage on the next estimate.
1. A schedule’s primary purpose on a construction job is to:
A. Impress the owner
B. List crew phone numbers
C. Organize and sequence daily tasks to finish on time
D. Replace contracts
✅ C. Organize and sequence daily tasks to finish on time (p. 8-1)
The chapter opens by saying most construction tasks are performed every day and that knowing how to organize and schedule work is essential to meet deadlines efficiently.
2. When creating an estimate, you should also:
A. Ignore the schedule
B. Rough-sequence activities and estimate durations
C. Hire a scheduler after award
D. Let subs create the whole plan
✅ B. Rough-sequence activities and estimate durations (p. 8-1)
The “Activity Duration” note says estimating and scheduling go together—you think through tasks, logic, and durations while pricing so costs reflect time.
3. “Sequence of Tasks” means:
A. Performing longest tasks first
B. The legal order of inspections
C. Ordering tasks in the right construction logic so work flows efficiently
D. Always following alphabetical order
✅ C. Ordering tasks in the right construction logic so work flows efficiently (p. 8-1)
Sequencing ensures prerequisites are complete and prevents rework/idle time, a key to efficient scheduling.
4. Lead time in scheduling refers to:
A. How long the foreman leads the crew
B. Time to obtain materials or permits before installation
C. Idle time between shifts
D. Weather delays
✅ B. Time to obtain materials or permits before installation (p. 8-1)
The text highlights lead times (e.g., specialty materials) must be planned ahead so they arrive when needed.
5. “Contingency time” is used to:
A. Finish early for bonuses
B. Buffer tasks that risk unforeseen delays
C. Avoid reporting progress
D. Reduce labor cost by skipping steps
✅ B. Buffer tasks that risk unforeseen delays (p. 8-2)
The book says contingency is a buffer after analyzing each task’s risk—e.g., weather exposure or limited access.
6. Which task type typically needs more contingency?
A. Work in good weather indoors
B. Standard repetitive tasks
C. Custom or one-off work in restricted areas
D. Punch-list painting
✅ C. Custom or one-off work in restricted areas (p. 8-2)
It notes custom work and limited access increase risk and justify higher contingency.
7. “Task Time Accuracy” improves when you:
A. Ignore past jobs
B. Use guesses for durations
C. Calculate realistic start/finish dates and update the schedule
D. Avoid calendars
✅ C. Calculate realistic dates and update (p. 8-2)
The section stresses using accurate activity start/finish and continual updating to reflect real progress.
8. Float on an activity is the amount of time:
A. Crews can take for lunch
B. You can delay that task without delaying project completion
C. Between pay periods
D. Reserved for inspections only
✅ B. You can delay that task without delaying project completion (p. 8-2)
The text defines float as the slack available; zero-float tasks are critical.
9. Activities with zero float are:
A. Optional
B. Critical
C. Always subcontracted
D. Always owner-performed
✅ B. Critical (p. 8-2)
The book states zero-float = critical activities; any delay delays the project.
Chapter 8
10. A simple, small-job method that links tasks directly to calendar dates is:
A. CPM network
B. PERT
C. Calendar scheduling
D. Line-of-balance
✅ C. Calendar scheduling (p. 8-3)
Calendar schedules place tasks on specific dates; good for small projects but not recommended for large ones.
Chapter 8
11. In a calendar schedule, one drawback is:
A. No visual layout
B. It shows holidays
C. It doesn’t show interactions/logic well
D. It cannot list tasks
✅ C. It doesn’t show interactions/logic well (p. 8-3)
The text says calendar schedules are simple but weak at showing dependencies, so slippage analysis is hard.
Chapter 8
12. The bar chart (Gantt) schedule’s main weakness is:
A. Too much logic detail
B. It does not show interdependencies clearly
C. It can’t show durations
D. It can’t be printed
✅ B. It does not show interdependencies clearly (p. 8-4)
Bar charts give a great time-scaled snapshot but under-represent logic between tasks.
Chapter 8
13. The method that graphically shows relationships and identifies the critical path is:
A. Calendar method
B. Bar chart
C. Critical Path Method (CPM)
D. Checklist
✅ C. Critical Path Method (CPM) (p. 8-5)
CPM diagrams tasks as a network to show dependencies and determine the critical path.
Chapter 8
14. On a CPM, tasks you can do at the same time are called:
A. Critical activities
B. Simultaneous events
C. Float tasks
D. Dummy activities
✅ B. Simultaneous events (p. 8-5)
The page discusses simultaneous events and how they influence pathing and duration.
Chapter 8
15. The critical path represents:
A. The cheapest set of tasks
B. Tasks with the most laborers
C. The longest path; delay here delays the job
D. Owner change orders
✅ C. The longest path; delay here delays the job (p. 8-5)
You focus control on critical activities because any slippage on this path extends the project.
Chapter 8
16. To build a CPM, you first need to:
A. Draw pretty bars
B. List tasks and determine relationships and durations
C. Hire an attorney
D. Buy drones
✅ B. List tasks and determine relationships and durations (p. 8-5)
The CPM section says to identify tasks, relationships, and durations before plotting the network.
Chapter 8
17. A widely used CPM presentation format mentioned is:
A. Swim-lane chart
B. Arrow diagram only
C. Precedence diagram (activity-on-node)
D. Scatter plot
✅ C. Precedence diagram (p. 8-6)
The text references CSI’s Precedence Diagramming and software that outputs similar charts.
Chapter 8
18. Software helps CPM scheduling by:
A. Eliminating foremen
B. Auto-ordering all materials
C. Providing network logic tools and reporting unique to construction
D. Writing contracts
✅ C. Providing network logic tools and reports (p. 8-6)
The page notes many programs exist to build, update, and report project schedules effectively.
Chapter 8
19. Cash management ties to the schedule because:
A. Payroll is monthly
B. You must track incoming cash and expenditures to ensure working capital aligns with progress
C. Owners pay daily
D. Schedules set tax rates
✅ B. Track cash vs. progress (p. 8-6)
The book says effective cash management ensures you have enough working capital to finish the job.
Chapter 8
20. Project management is defined as managing:
A. Only crew assignments
B. Budgets and QC only
C. Budgets, quality, contracts, project plan/specs, and resource management
D. Only subcontracts
✅ C. Budgets, quality, contracts, plan/specs, resources (p. 8-6 & 8-11)
It lists multiple dimensions (budget, quality, contracts, specs, resources) as integral to PM.
Chapter 8
21. The project manager primarily:
A. Runs tools in the field
B. Plans/coordinates construction to meet overall goals
C. Writes building codes
D. Hires inspectors
✅ B. Plans/coordinates to meet goals (p. 8-6)
The PM plans and coordinates to meet project goals on time, cost, and quality.
Chapter 8
22. Good project managers must communicate and also:
A. Avoid decisions
B. Delegate nothing
C. Evaluate problems, define scope changes, and administer contracts
D. Skip jobsite visits
✅ C. Evaluate problems, define scope changes, administer contracts (p. 8-6)
The bullet list includes resolving problems, defining scope changes, and administering contracts.
Chapter 8
23. The superintendent is typically responsible for:
A. Owner billing only
B. On-site coordination and daily operations
C. Legal compliance only
D. Writing specs
✅ B. On-site coordination and daily operations (p. 8-7)
The superintendent coordinates project activities on site and manages schedule, subs, inspections, and quality.
Chapter 8
24. One superintendent duty listed is to:
A. Set interest rates
B. Process utility requests and inspections
C. Price the bid
D. Approve insurance policies
✅ B. Process utility requests and inspections (p. 8-7)
The page lists utility requests and scheduling inspections among superintendent tasks.
Chapter 8
25. The foreman primarily:
A. Replaces the PM
B. Assists superintendent and directs crews in the field
C. Runs procurement only
D. Approves owner change orders
✅ B. Assists superintendent and directs crews (p. 8-7)
Foremen supervise craft labor and help the superintendent with field execution.
Chapter 8
26. An expediter on the team:
A. Handles payroll
B. Coordinates delivery of materials and equipment
C. Writes pay apps
D. Manages safety plans
✅ B. Coordinates delivery of materials/equipment (p. 8-7)
The materials expediter ensures the right materials arrive on time to keep the schedule.
Chapter 8
27. The architect/engineer (on the supervisory list) is involved with:
A. Crew discipline
B. Design information, RFIs, approvals, and inspections
C. Lien releases
D. Payroll rates
✅ B. Design info, RFIs, approvals, inspections (p. 8-7)
They handle design coordination, submittals/RFIs, and inspection roles.
Chapter 8
28. “Project life cycle” phases highlighted include:
A. Only closeout
B. Contract award → pre-construction → construction → job completion/closeout
C. Design only
D. Warranty only
✅ B. Award, pre-con, construction, closeout (p. 8-8)
The chapter outlines the life cycle and what to manage in each phase.
Chapter 8
29. At contract award, one first step is to:
A. Start work with no meeting
B. Hold a contract signing and pre-construction meeting
C. Bill the retainage
D. Cancel subcontracts
✅ B. Contract signing & pre-con (p. 8-8)
A pre-construction meeting with owner/AE/subs aligns schedule, submittals, and site rules.
Chapter 8
30. During pre-construction, you should:
A. Issue field orders
B. Plan sequencing, submittals, and long-lead procurement
C. Pour concrete
D. Skip coordination
✅ B. Plan sequencing, submittals, long-leads (p. 8-8)
The pre-con phase is for planning and conflict resolution before field work.
Chapter 8
31. During construction, the book stresses:
A. Minimal communication
B. Careful monitoring and resolving conflicts quickly
C. Waiting for monthly reviews
D. Reducing inspections
✅ B. Monitor and resolve quickly (p. 8-8)
It says to carefully monitor progress and resolve problems early to keep schedule and quality on track.
Chapter 8
32. Closeout best practice includes:
A. Ignore punch lists
B. Hold a final walkthrough, collect O&M manuals, and complete punch lists
C. Remove supervision early
D. Skip record docs
✅ B. Walkthrough, O&M, punch lists (p. 8-8)
The page lists punch-list completion and document turnover as closeout responsibilities.
Chapter 8
33. A daily log should record:
A. Employee birthdays
B. Weather, manpower, deliveries, inspections, and work performed
C. Opinions only
D. Owner’s hobbies
✅ B. Weather, manpower, deliveries, inspections, work (p. 8-8)
The daily log is a key control that tracks site conditions and progress accurately.
Chapter 8
34. A best practice for the daily log is to:
A. Complete it weekly
B. Keep it contemporaneous and factual
C. Make it a marketing flyer
D. Let subs write it
✅ B. Keep it contemporaneous and factual (p. 8-8)
It warns to enter facts same day and avoid opinions; the log can be legal evidence.
Chapter 8
35. Status reports should be supported by:
A. Social media posts
B. Daily reports, photos, prior status reports, safety/accident and change-order records
C. Only invoices
D. None—status is verbal
✅ B. Daily reports, photos, safety, changes (p. 8-9)
The text lists supporting records to keep handy for updates to owners and subs.
Chapter 8
36. When tracking the schedule, first step is to:
A. Change the baseline
B. Determine if the project is ahead or behind
C. Cancel meetings
D. Reduce resources
✅ B. Determine if ahead/behind (p. 8-9)
The chapter says step one is assessing where you are vs. plan; then analyze causes and mitigation.
Chapter 8
37. If slipping, you should next:
A. Do nothing
B. Ask subs for feedback and encourage two-way communication
C. Hide delays
D. Skip meetings
✅ B. Ask subs for feedback/2-way comms (p. 8-9)
It advises soliciting feedback on anticipated problems and keeping communication open.
Chapter 8
38. Budget & cost controls require you to:
A. Wait for final invoices
B. Compare actuals to budget and manage commitments
C. Ignore purchase orders
D. Reduce QC
✅ B. Compare actuals to budget/manage commitments (p. 8-9)
Project management includes tracking commitments and actuals so costs don’t outrun revenue.
Chapter 8
39. Just-in-time (JIT) purchasing helps by:
A. Increasing theft risk
B. Reducing inventory and material damage on site
C. Eliminating schedules
D. Increasing storage needs
✅ B. Reducing inventory/damage (p. 8-9)
JIT brings materials when needed, cutting storage and vandalism risks.
Chapter 8
40. A purchase-order system improves control by:
A. Letting crews buy anything
B. Authorizing materials formally with vendor and tying deliveries to cost tracking
C. Skipping quotes
D. Billing labor as materials
✅ B. Formal authorization & tracking (p. 8-9)
Using POs tightens material control and supports cost reports.
Chapter 8
41. Job cost reports should compare:
A. This job to the stock market
B. Cost to budget by activity and show variances
C. Only revenue
D. Only safety metrics
✅ B. Cost vs. budget with variances (p. 8-9)
Reports flag variances so managers can correct course early.
Chapter 8
42. Quality assurance reduces risk because:
A. Rework is free
B. Good QC avoids costly defects, delays, and reputation damage
C. It replaces permits
D. It’s optional
✅ B. Avoids defects/delays/reputation damage (p. 8-10)
The chapter notes poor quality creates lawsuits and lost reputation; QA protects schedule and margins.
Chapter 8
43. Accurate, detailed plans/specs are important because they:
A. Are decorative
B. Guide crews to meet intent and reduce misinterpretation
C. Are for owners only
D. Replace schedules
✅ B. Guide work & reduce misreads (p. 8-10)
Clear details help crews build to the intended standard and avoid rework.
Chapter 8
44. Shop drawings should be:
A. Vague
B. Detailed and coordinated with specs, field conditions, and other trades
C. Done after installation
D. Ignored
✅ B. Detailed/coordinated (p. 8-10)
The text emphasizes detailed shop drawings to confirm conformance before fabrication/installation.
Chapter 8
45. Employee training supports quality because it:
A. Replaces supervision
B. Builds job knowledge, safety, and pride of workmanship
C. Is a luxury
D. Stops communication
✅ B. Builds knowledge, safety, pride (p. 8-10)
The page urges continuous training to raise quality and safety culture.
Chapter 8
46. Customer satisfaction surveys should be used to:
A. Market only
B. Gather feedback to improve and to capture testimonials when performance is strong
C. Replace punch lists
D. Set wages
✅ B. Gather feedback & testimonials (p. 8-10)
Surveys reveal improvement areas and provide social proof when clients are happy.
Chapter 8
47. Value engineering (VE) seeks to:
A. Cut corners
B. Achieve equal or better function/quality at lower life-cycle cost
C. Decrease safety
D. Ignore specs
✅ B. Same or better function at lower cost (p. 8-10 & 8-11)
VE targets best value—improving performance/cost ratio without harming quality.
Chapter 8
48. A VE proposal should compare:
A. Only initial price
B. Initial and life-cycle costs plus performance impacts
C. Only schedule
D. Only warranty length
✅ B. Initial + life-cycle + performance (p. 8-10)
The section frames VE as optimizing total value, not just first cost.
Chapter 8
49. A hallmark of great managers listed is:
A. Dishonesty
B. Good communication and leadership
C. Avoiding decisions
D. Never delegating
✅ B. Good communication and leadership (p. 8-7)
The book lists communication, honesty, leadership, decision-making, and morale-building as vital traits.
Chapter 8
50. Safety management is included in the superintendent’s work to:
A. Satisfy OSHA only
B. Protect crews and schedule by preventing incidents
C. Make paperwork
D. Reduce scope
✅ B. Protect crews and schedule (p. 8-7)
Safety oversight is among the superintendent’s responsibilities, linking directly to quality and productivity.
Chapter 8
51. A bar chart is most helpful when you need:
A. A dependency matrix
B. A quick, visual timeline for stakeholders
C. A legal contract
D. A financing plan
✅ B. Quick visual timeline (p. 8-4)
It gives an easy-to-read snapshot of tasks vs. time for owners and crews.
Chapter 8
52. In CPM, to shorten the project you typically:
A. Add float to noncritical tasks
B. “Crash” or “fast-track” critical path activities
C. Change calendars only
D. Remove inspections
✅ B. Crash/fast-track critical path (p. 8-5)
Only critical activities affect project duration; you add resources or resequence there.
Chapter 8
53. If a noncritical task slips but still has float:
A. Project completion moves
B. Nothing changes as long as float remains
C. You must add crews
D. It becomes critical automatically
✅ B. Nothing changes while float remains (p. 8-2)
Float absorbs delays until it reaches zero—then the task becomes critical.
Chapter 8
54. Simultaneous events are useful because they:
A. Inflate cost
B. Allow parallel work to save time if resources/space permit
C. Violate safety rules
D. Replace inspections
✅ B. Enable parallel work (p. 8-5)
Identifying parallelizable activities can shorten duration without compromising quality.
Chapter 8
55. Effective PM reporting uses:
A. Only text emails
B. Visuals like bar charts/CPM prints and concise status narratives
C. Verbal updates only
D. Raw timesheets only
✅ B. Visuals + concise narratives (p. 8-4, 8-5, 8-9)
Combining graphics and facts communicates progress and risks clearly.
Chapter 8
56. A good pre-construction meeting outcome is:
A. Fewer RFIs ever
B. Alignment on submittal log, long leads, and site rules
C. No permits needed
D. Eliminating the schedule
✅ B. Align submittals/long leads/site rules (p. 8-8)
Pre-con aligns processes and logistics before mobilization.
Chapter 8
57. Weather should be in the daily log because it:
A. Fills space
B. Can explain productivity and delay claims
C. Is fun trivia
D. Sets wages
✅ B. Explains productivity/delays (p. 8-8)
Weather entries support time extensions and productivity analysis.
Chapter 8
58. Photos are recommended records because they:
A. Are decorative
B. Document actual conditions and work in place
C. Replace inspections
D. Replace drawings
✅ B. Document conditions/work (p. 8-9)
Photos help verify progress and defend claims.
Chapter 8
59. Change orders should be tracked alongside schedule because they:
A. Never affect time
B. Can affect scope, cost, and time
C. Are only financial
D. Are secret
✅ B. Affect scope, cost, and time (p. 8-9)
Status packages include change orders since they impact schedule and budget.
Chapter 8
60. Receiving documentation and purchase orders matter for:
A. Marketing only
B. Budget control and schedule visibility on long-lead items
C. Crew morale
D. Owner change approval
✅ B. Budget control & schedule visibility (p. 8-9)
These records confirm what is committed/received so the manager can forecast accurately.
Chapter 8
61. One metric of PM success is the ability to:
A. Avoid all meetings
B. Deliver scope, quality, schedule, and budget together
C. Lower safety standards
D. Increase paperwork
✅ B. Deliver scope/quality/schedule/budget (p. 8-6)
The PM role exists to balance cost, time, and quality.
Chapter 8
62. The owner’s representative in the team list typically:
A. Runs crews
B. Reviews pay apps, participates in meetings, and monitors compliance
C. Sits out
D. Designs structures
✅ B. Reviews pay apps/meetings/monitoring (p. 8-7)
The owner’s rep coordinates their side of approvals and oversight.
Chapter 8
63. A materials schedule coordinated with the look-ahead plan helps you:
A. Avoid daily logs
B. Ensure long-lead items arrive before installation windows
C. Skip submittals
D. Reduce quality
✅ B. Time long-leads to windows (p. 8-9)
JIT and purchase orders rely on materials timing aligned to the plan.
Chapter 8
64. A status meeting cadence with subs/suppliers is recommended to:
A. Reduce paperwork
B. Maintain two-way communication and surface issues early
C. Replace CPM
D. Collect signatures
✅ B. Maintain two-way comms (p. 8-9)
The chapter promotes regular communication to keep everyone aligned and proactive.
Chapter 8
65. Cost overruns directly reduce:
A. Loan interest
B. Profit
C. Warranty period
D. Float
✅ B. Profit (p. 8-10)
It explicitly warns that overruns reduce profit, threatening long-term viability.
Chapter 8
66. Neglecting quality can eventually lead to:
A. Fewer call-backs
B. Lawsuits and reputation harm
C. Lower insurance rates
D. Faster projects
✅ B. Lawsuits and reputation harm (p. 8-10)
Poor quality costs more later and damages your brand.
Chapter 8
67. Good shop drawing practice includes:
A. Submitting after installation
B. Coordinating dimensions and verifying field conditions before fabrication
C. Leaving conflicts to field crews
D. Skipping engineer review
✅ B. Coordinate/verify before fabrication (p. 8-10)
That prevents field rework and delays.
Chapter 8
68. Employee involvement in quality means:
A. Only managers own quality
B. Every worker is responsible for quality and safety
C. Only QC department checks
D. Only owner inspects
✅ B. Everyone owns quality/safety (p. 8-10)
The text stresses a company-wide philosophy of quality and safety.
Chapter 8
69. In VE, a common misstep to avoid is:
A. Considering life-cycle costs
B. Removing features that reduce function or code compliance
C. Comparing maintenance
D. Looking at performance
✅ B. Removing features that reduce function/code (p. 8-10)
VE must maintain required function and compliance while improving value.
Chapter 8
70. The final inspection summary in this chapter highlights:
A. Ethics
B. That scheduling methods include calendar, bar chart, and CPM, and that quality/value engineering are core PM duties
C. Only payroll
D. Marketing
✅ B. Scheduling methods + QA + VE are core (p. 8-11)
The closing bullet recaps scheduling options and quality/value responsibilities.
Chapter 8
71. A look-ahead planning horizon commonly:
A. Ignores two weeks
B. Examines near-term work, submittals, and deliveries to keep crews productive
C. Focuses only on punch lists
D. Is for owners only
✅ B. Near-term work/submittals/deliveries (p. 8-8 to 8-9)
This ties procurement and field tasks so crews stay unblocked.
Chapter 8
72. Manpower planning belongs in:
A. The daily log and the two-week look-ahead
B. Owner invoices
C. Safety manual only
D. Insurance policy
✅ A. Daily log + look-ahead (p. 8-8)
Logs track actual manpower; plans show needed manpower to meet the schedule.
Chapter 8
73. Inspection tracking helps because:
A. It’s optional
B. It prevents last-minute scramble and rework when agencies/AE must sign off
C. Inspectors track themselves
D. It replaces submittals
✅ B. Prevents scramble/rework (p. 8-7 to 8-8)
Utilities and building inspections are listed as scheduled activities.
Chapter 8
74. RFI management links to scheduling because:
A. RFIs are purely financial
B. Unanswered RFIs can stall critical path activities
C. They never matter
D. They only affect quality
✅ B. Unanswered RFIs can stall CP (p. 8-7 to 8-8)
Design information flow is a schedule driver; track RFI aging.
Chapter 8
75. Crew productivity issues should be handled by:
A. Hoping they improve
B. Foreman coaching and superintendent oversight
C. Owner enforcement
D. Ignoring
✅ B. Foreman + superintendent action (p. 8-7)
Field leaders coach, monitor, and adjust to keep output on plan.
Chapter 8
76. A two-way communication culture means:
A. Orders only go top-down
B. Trades give feedback and raise constraints early
C. Crews stay silent
D. Only emails are allowed
✅ B. Trades raise constraints early (p. 8-9)
The chapter encourages feedback to anticipate and remove blockers.
Chapter 8
77. The sample bar chart demonstrates:
A. Only punch list
B. A retail fit-out timeline across months/tasks
C. A CPM network
D. A payroll schedule
✅ B. Retail fit-out timeline (p. 8-4)
It shows tasks aligned by months as a visual schedule.
Chapter 8
78. The sample calendar schedule illustrates:
A. A pure CPM diagram
B. Day-by-day tasks across weeks with “OFF” days
C. Cash flow
D. Safety training
✅ B. Day-by-day tasks with OFF days (p. 8-3)
A page shows a calendar grid with tasks assigned to specific dates.
Chapter 8
79. A good contract signing checklist includes:
A. Only signatures
B. Scope review, insurance, bonds (if any), schedule milestones, and communication protocols
C. Catered lunch
D. Owner gifts
✅ B. Scope/insurance/bonds/milestones/comms (p. 8-8)
Award/contract activities set administrative foundations for the job.
Chapter 8
80. Permitting should be coordinated:
A. After substantial completion
B. In pre-construction to ensure inspections and utilities are timely
C. Only by owner
D. By the lender
✅ B. In pre-construction (p. 8-7 to 8-8)
Superintendent tasks include utility requests and inspections—plan them early.
Chapter 8
81. Morale-building skills matter because:
A. Crews don’t care
B. High morale supports productivity, safety, and retention
C. Only pay matters
D. It’s HR’s problem
✅ B. Morale supports output & safety (p. 8-7)
Listed as a good manager trait—team and morale skills improve results.
Chapter 8
82. Housekeeping in quality means:
A. Only sweeping
B. Clean, orderly sites that reduce hazards and defects
C. Time filler
D. Non-essential labor
✅ B. Clean sites reduce hazards/defects (p. 8-10)
Quality and safety benefit from cleanliness and order.
Chapter 8
83. Owner updates should include:
A. Gossip
B. Current status vs. plan, key risks, change log, and upcoming milestones
C. Crew overtime requests
D. Daily timesheets
✅ B. Status, risks, changes, milestones (p. 8-9)
Status reports summarize progress and risks and are supported by records.
Chapter 8
84. Progress photos cadence:
A. Never
B. At logical milestones and when conditions change
C. Only at ribbon cutting
D. Only for marketing
✅ B. Milestones/condition changes (p. 8-9)
Photos document work in place and site conditions for reporting/claims.
Chapter 8
85. A materials expeditor adds value by:
A. Tracking social media
B. Preventing material-driven delays through proactive coordination
C. Writing legal docs
D. Managing payroll
✅ B. Preventing delays (p. 8-7)
The role keeps materials accurate and timely to protect the schedule.
Chapter 8
86. Safety & accident reports belong in:
A. Marketing
B. Status report backups and project records
C. Owner’s private files only
D. Nowhere
✅ B. Status backups/records (p. 8-9)
They support transparency and risk management in reporting.
Chapter 8
87. Receiving documentation helps verify:
A. Crew complaints
B. That materials ordered were actually delivered in time/quantity
C. Payroll checks
D. Tax refunds
✅ B. Delivery verification (p. 8-9)
CRITICAL for cost and schedule tracking of long-leads.
Chapter 8
88. The project plan & specifications are part of PM because they:
A. Replace budget
B. Define the required end product for QC/QA and schedule logic
C. Are optional
D. Only affect warranty
✅ B. Define end product for QC & schedule (p. 8-6 & 8-11)
They set what and how to build, guiding QA and sequence.
Chapter 8
89. A crew look-ahead should coordinate with:
A. Payroll
B. Submittal approvals and material deliveries
C. Social calendar
D. Insurance audits
✅ B. Submittals & deliveries (p. 8-8 to 8-9)
This linkage ensures workfaces are ready.
Chapter 8
90. Meeting minutes are useful because they:
A. Are formality only
B. Create an action/decision record that drives accountability
C. Replace submittals
D. Replace daily logs
✅ B. Action/decision record (p. 8-8 to 8-9)
Status and coordination rely on clear written follow-up.
Chapter 8
91. A critical activity slipping one day typically:
A. Doesn’t matter
B. Slips the project one day unless recovered elsewhere
C. Slips only the bar chart
D. Improves float
✅ B. Slips the project by one day (p. 8-5)
Critical path has zero float, so any delay extends finish unless mitigated.
Chapter 8
92. Holiday calendars should be set in the schedule to:
A. Decorate
B. Avoid false float and plan around non-working days
C. Reduce durations automatically
D. Increase pay
✅ B. Avoid false float (p. 8-3)
Calendar scheduling must account for weekends/holidays to be realistic.
Chapter 8
93. Cost commitments (POs/subcontracts) matter because they:
A. Are separate from budget
B. Show what’s already spent/obligated so you forecast remaining cost accurately
C. Replace invoices
D. Are optional
✅ B. Show obligations for forecasts (p. 8-9)
Budget control depends on knowing committed vs. actual expenditures.
Chapter 8
94. “Quality culture” should:
A. Be limited to QC staff
B. Be everyone’s job and stressed in company philosophy
C. Exclude subs
D. Wait until closeout
✅ B. Everyone’s job (p. 8-10)
The page urges a company-wide commitment to quality and safety.
Chapter 8
95. Value engineering sessions should involve:
A. Only finance
B. PM, superintendent, trades, and design to test ideas for constructability, code, and cost
C. Only owner
D. Only vendors
✅ B. PM/superintendent/trades/design (p. 8-10)
Multidisciplinary input ensures function and compliance stay intact while saving cost.
Chapter 8
96. A punch list is most effective when:
A. Issued verbally
B. Written, specific, tracked to completion before closeout
C. Only the owner writes it
D. Deferred to warranty
✅ B. Written/specific/tracked (p. 8-8)
Closeout requires documented punch-list completion.
Chapter 8
97. Using bar charts for very large projects is:
A. Preferred
B. Not recommended due to weak logic display
C. Required by code
D. The only option
✅ B. Not recommended (p. 8-4)
For complex logic, CPM is more appropriate than a simple bar chart.
Chapter 8
98. Owner changes should be integrated by:
A. Ignoring the schedule
B. Updating schedule logic/dates and communicating impacts
C. Sending only invoices
D. Cancelling RFIs
✅ B. Update logic/dates & communicate (p. 8-9)
The manager must track changes and show their schedule/budget effects.
Chapter 8
99. The best evidence for delay/impact claims usually includes:
A. Memory
B. Daily logs, photos, correspondence, and updated schedules
C. Gossip
D. Invoices only
✅ B. Logs/photos/correspondence/schedules (p. 8-8 to 8-9)
These artifacts prove timing and causation.
Chapter 8
100. The chapter’s message about scheduling methods is that you should:
A. Pick one forever
B. Use the right method for project size/complexity (calendar, bar chart, CPM) and keep it updated
C. Avoid CPM
D. Only use bar charts
✅ B. Choose method by complexity and keep it current (p. 8-3 to 8-5 & 8-11)
It explains strengths/limits of each method and stresses updating to reflect real progress.
1. The statewide program that develops Oregon’s building code is housed in which agency division?
A. Oregon Department of Revenue
B. Oregon Building Codes Division (BCD)
C. Oregon Bureau of Labor & Industries
D. Oregon Construction Contractors Board (CCB)
✅ B. Oregon Building Codes Division (BCD) (p. 9-1)
BCD adopts Oregon’s statewide building code, works with advisory boards and code committees, and also provides services like code interpretations, inspector certification, limited permitting/inspections for small jurisdictions, and training.
Chapter 9 --
2. One key BCD service is to:
A. Set workers’ compensation rates
B. Certify building inspectors
C. License architects
D. Issue contractor CCB licenses
✅ B. Certify building inspectors (p. 9-1)
Beyond adopting codes, BCD certifies inspectors and offers interpretations to state and local jurisdictions, ensuring consistent enforcement statewide.
Chapter 9 --
3. Which advisory board is part of the statewide code process?
A. Landlord–Tenant Board
B. Construction Industry Energy Board
C. Highway Safety Board
D. Urban Planning Commission
✅ B. Construction Industry Energy Board (p. 9-1)
Seven advisory boards help adopt/amend specialty codes. Listed boards include Building Codes Structures, Electrical/Elevator, Oregon State Plumbing, Mechanical, Residential & Manufactured Structures, Board of Boiler Rules, and the Construction Industry Energy Board.
Chapter 9 --
4. Oregon’s specialty codes are adopted using:
A. Ad-hoc local votes without a process
B. National model codes as a starting point plus Oregon rulemaking
C. Federal statutes only
D. City council resolutions only
✅ B. National model codes + Oregon rulemaking (p. 9-1)
Committees use model codes to draft Oregon’s specialty codes; adoption happens as administrative rules through Oregon’s rulemaking process.
Chapter 9 --
5. Where are the laws governing building codes primarily found?
A. Oregon Administrative Rules (OAR)
B. Oregon Revised Statutes (ORS)
C. County charters
D. City ordinances only
✅ B. Oregon Revised Statutes (ORS) (p. 9-2)
ORS chapters 446, 447, 455, 460, 479, 480, and 693 contain the principal statutes. Related rules are in OAR chapter 918 and can change more than once per year.
Chapter 9 --
6. Oregon’s rules for building codes are in which chapter of OAR?
A. 809
B. 918
C. 660
D. 734
✅ B. 918 (p. 9-2)
OAR chapter 918 contains the administrative rules for codes; they are updated through the state rulemaking process and may change more frequently than statutes.
Chapter 9 --
7. The 2017 Oregon Residential Specialty Code is based on which model?
A. NFPA 70
B. ICC International Residential Code (IRC)
C. ASHRAE 90.1
D. ADA Standards
✅ B. ICC International Residential Code (p. 9-2)
Oregon adapts the IRC for the Residential Specialty Code, covering one- and two-family dwellings and townhouses; it excludes plumbing and electrical chapters because Oregon uses separate specialty codes for those.
Chapter 9 --
8. The Structural Specialty Code applies to:
A. Only one-family homes
B. All structures not regulated by the Residential Specialty Code
C. Only bridges
D. Only agricultural sheds
✅ B. All structures not under the Residential Code (p. 9-2)
This includes commercial structures, transient lodging, certain residential facilities licensed by ODHHS, and low-rise multifamily dwellings, among others.
Chapter 9 --
9. Oregon’s Energy Efficiency provisions for commercial buildings are published in:
A. A federal register
B. Chapter 13 of the Oregon Structural Specialty Code
C. Residential Specialty Code only
D. OSHA manual
✅ B. Structural Specialty Code, Chapter 13 (p. 9-2)
The energy provisions for commercial buildings are embedded in the Structural Specialty Code, distinct from residential energy chapters.
Chapter 9 --
10. Which specialty code governs all electrical installations in Oregon?
A. Mechanical Specialty Code
B. Electrical Specialty Code
C. Elevator Specialty Code
D. Boiler & Pressure Vessel Code
✅ B. Electrical Specialty Code (2017) (p. 9-2)
The 2017 Electrical Specialty Code applies to all electrical work in Oregon; elevator, boiler/pressure vessel, and other codes regulate their specific systems.
Chapter 9 --
11. Oregon’s Plumbing Specialty Code applies to:
A. Water district mains only
B. Plumbing installations in all buildings
C. Only residential plumbing
D. Only medical gas systems
✅ B. Plumbing installations in all buildings (2017) (p. 9-2)
The plumbing code covers all plumbing systems statewide, separate from the residential code’s other chapters.
Chapter 9 --
12. The Manufactured Dwelling Installation Specialty Code is based on standards from:
A. CDC
B. HUD
C. EPA
D. OSHA
✅ B. HUD (2010) (p. 9-2)
Oregon’s manufactured dwelling installation requirements incorporate HUD standards and other nationally recognized manufactured-dwelling standards.
Chapter 9 --
13. The Elevator Specialty Code covers:
A. Only escalators
B. Only dumbwaiters
C. Elevator codes and standards used statewide
D. Office chair lifts
✅ C. Elevator codes and standards (2011) (p. 9-2)
Oregon adopted statewide elevator codes to ensure consistent inspection and safety for elevators and related conveyances.
Chapter 9 --
14. The Boiler and Pressure Vessel Specialty Code addresses:
A. Hydronic piping only
B. Residential water heaters only
C. Boiler and pressure-vessel construction/installation standards
D. Air compressors exclusively
✅ C. Boiler & pressure-vessel standards (2015) (p. 9-2)
Oregon adopts model standards for construction and safety of boilers and pressure vessels to protect the public.
Chapter 9 --
15. The Reach Code is best described as:
A. Mandatory energy rules for all projects
B. Voluntary high-performance construction standards for advanced projects
C. A plumbing addendum
D. A temporary emergency code
✅ B. Voluntary high-performance standards (2016) (p. 9-2)
The Reach Code lets jurisdictions or owners adopt advanced, voluntary efficiency measures—supporting innovations like vegetative roofs or high-performance envelope assemblies.
Chapter 9 --
16. Many code books are available in what format from BCD?
A. Audio only
B. Read-only online access
C. Paper only
D. Mobile app only
✅ B. Read-only online access (p. 9-2)
Contractors can view current codes on BCD’s website (and purchase print copies from vendors). Keeping current avoids relying on outdated editions.
Chapter 9 --
17. A permit is required for most new construction and also for:
A. Advertising signs only
B. Alterations or additions to existing buildings
C. Landscaping only
D. Painting only
✅ B. Alterations or additions (p. 9-2)
Permits apply broadly to new work and many modifications, including structural, plumbing, mechanical, and electrical scopes.
Chapter 9 --
18. Working without a required permit can lead to:
A. A warning only
B. CCB discipline (civil penalty/suspension) and local action by the building department
C. No consequences if work passes inspection
D. Only an owner fine
✅ B. CCB discipline + local enforcement (p. 9-2)
If a licensed contractor performs work without a required permit, the CCB may penalize or suspend the license; local jurisdictions may also take action.
Chapter 9 --
19. Before issuing a permit, the local department may perform:
A. A financing audit
B. A plan review
C. A background check
D. A neighbor vote
✅ B. Plan review (p. 9-2)
Applicants submit project information and drawings; authorities may review plans for code compliance prior to permit issuance.
Chapter 9 --
20. Typical project information required with a permit application includes:
A. Crew résumés
B. Site address/directions and approvals (zoning, sanitation, fire district, water/sewer, soils, erosion control)
C. Only a cost estimate
D. A contractor’s tax return
✅ B. Address and local approvals (p. 9-3)
The list includes location details and proof of needed local approvals to ensure the project meets broader land-use and utility requirements.
Chapter 9 --
21. A complete set of legible plans often must include:
A. Only floor plans
B. Site/plot plan, foundation plan, floor plans, cross-sections, elevations, structural framing, truss details, energy compliance, and engineering calcs (if required)
C. An owner’s manual
D. Only a rendering
✅ B. Full set with structural and energy elements (p. 9-3)
This comprehensive package allows reviewers to evaluate code compliance for structure, energy, and life safety.
Chapter 9 --
22. Drawings prepared by a licensed architect/engineer are generally required when the floor area is:
A. ≥ 1,000 sf
B. ≥ 2,000 sf
C. ≥ 4,000 sf or the structure exceeds 20 feet in height (with listed exceptions)
D. Any size
✅ C. ≥ 4,000 sf or >20 ft in height (p. 9-3)
Larger or taller structures require design professionals; most one- and two-family dwellings and some accessory structures may be exempted.
Chapter 9 --
23. Many Oregon jurisdictions now allow e-Permitting, which provides:
A. Only inspection scheduling
B. Online permit applications, payments, electronic plan submission/review, automated inspection scheduling, and permit tracking
C. Contractor licensing
D. RFI management
✅ B. Full online permitting features (p. 9-3)
e-Permitting streamlines applications and inspections; contractors complete online training and register for an account to use the system.
Chapter 9 --
24. A minor label is an alternative to a full permit for:
A. Roofing
B. Minor electrical or plumbing installations
C. Structural steel
D. Fire sprinklers
✅ B. Minor electrical or plumbing (p. 9-3)
Only licensed plumbing or licensed electrical contractors may purchase minor labels (in lots of ten). Jurisdictions schedule random inspections to verify compliance.
Chapter 9 --
25. Who requests inspections during construction?
A. The neighbor
B. The permit holder
C. The lender
D. The architect
✅ B. The permit holder (p. 9-3)
Inspections are usually requested by the permit holder around each phase; work requiring inspection must remain uncovered until approved.
Chapter 9 --
26. Typical required inspections include footing/foundation, slab or under-floor, and:
A. Furniture placement
B. Plumbing, mechanical, and electrical rough-in
C. Real estate appraisal
D. Marketing sign-off
✅ B. Plumbing/mechanical/electrical rough (p. 9-3)
Rough inspections verify systems before concealment; many jurisdictions use multi-certified inspectors to streamline visits.
Chapter 9 --
27. The framing and masonry inspection generally occurs:
A. After insulation is installed
B. After all rough MEP systems are approved and before insulation/fire-stopping is concealed
C. After final paint
D. Only on commercial work
✅ B. After rough approvals, before insulation concealment (p. 9-3)
Framing must be reviewed while visible; many inspectors also check fire-stopping and structural details at this stage.
Chapter 9 --
28. Before installing interior finishes, the building official must be notified that moisture-sensitive wood framing:
A. Is kiln-dried at the mill
B. Has a moisture content ≤ 19% by weight of dry wood
C. Is painted
D. Includes cedar only
✅ B. ≤ 19% moisture content (p. 9-4)
The general contractor must notify the official after the framing inspection that moisture content meets the 19% requirement for wood members used.
Chapter 9 --
29. Insulation and vapor barrier inspections occur:
A. After drywall
B. After insulation/vapor barriers are installed but before wall coverings
C. Before framing
D. At final only
✅ B. After installation, before concealment (p. 9-4)
Under-floor attic insulation may be inspected at final in some cases, but walls must be checked before coverings go on.
Chapter 9 --
30. A final inspection must verify:
A. Aesthetic preferences
B. No fire, life safety, or health issues exist and the structure is code-compliant for occupancy
C. Only landscaping
D. Furniture layout
✅ B. Life-safety and code compliance for occupancy (p. 9-4)
After all required inspections are complete, the jurisdiction may issue a Certificate of Occupancy if the building meets code and is safe.
Chapter 9 --
31. Good practice when requesting an inspection includes:
A. Hiding issues until inspection
B. Posting the inspection record card in a conspicuous weatherproof place and ensuring the site is ready
C. Calling without plans
D. Arguing on site
✅ B. Post card, prepare site (p. 9-4)
Other tips: know the code, respond professionally, and call the building department with questions before work proceeds incorrectly.
Chapter 9 --
32. The local building official has authority to:
A. Change zoning
B. Enter buildings or premises at reasonable times to perform duties or investigate unsafe/hazardous conditions
C. Revoke contractor licenses
D. Approve financing
✅ B. Enter to enforce the code (p. 9-4)
Officials may inspect or investigate for cause, including unsafe conditions; they also interpret the code for specific projects.
Chapter 9 --
33. If a contractor disagrees with an inspector’s decision, they may:
A. Ignore the finding
B. Immediately sue
C. Appeal to the local official; final appeals go to BCD, and contractors can also propose code changes during adoption cycles
D. Call the police
✅ C. Use the administrative appeal path (p. 9-4)
Appeals proceed from inspector to local official; BCD can hear final appeals, and the code-change process allows long-term fixes to ambiguous provisions.
Chapter 9 --
34. A Stop Work Order is issued by:
A. The lender
B. The owner
C. The building official
D. The fire marshal only
✅ C. The building official (p. 9-4)
It requires the listed work to stop immediately. Resuming work requires satisfying the conditions in the order and receiving approval to lift it.
Chapter 9 --
35. To avoid a Stop Work Order, ensure you:
A. Skip permits to go faster
B. Have a valid permit and comply with corrections/violations promptly
C. Only email the inspector
D. Work at night
✅ B. Obtain permit & correct issues (p. 9-4)
Valid permits and prompt compliance with notices help prevent issuance of an order.
Chapter 9 --
36. If a Stop Work Order is posted, best first step is to:
A. Ignore it
B. Immediately remove it
C. Communicate with the person who posted it to understand requirements to resume work
D. Call the media
✅ C. Communicate with the issuer (p. 9-4)
Orders list the conditions for resuming; you must coordinate with the official to lift the order.
Chapter 9 --
37. Failing to comply with a Stop Work Order can lead to:
A. A small warning only
B. Civil penalties, revocation of the building permit, revocation of the contractor’s license, or court action
C. A discount on fees
D. Only a delay in inspection
✅ B. Significant penalties (p. 9-4)
Noncompliance carries serious consequences, including license and permit revocations.
Chapter 9 --
38. Special inspections may be required:
A. Only on federal projects
B. When the building official determines special code compliance needs (e.g., special structural work)
C. Only if the contractor requests
D. Never
✅ B. At the official’s discretion for special conditions (p. 9-4)
Beyond standard inspections, officials may require additional special inspections to verify compliance.
Chapter 9 --
39. Individuals who must be licensed with BCD for specialty trades include:
A. Painters
B. Plumbers and electricians
C. Carpenters only
D. Landscapers
✅ B. Plumbers and electricians (p. 9-5)
Specialty licensing covers plumbers, electricians, and individuals working on boilers/pressure vessels, elevators, and manufactured dwelling installations.
Chapter 9 --
40. BCD also licenses certain businesses that perform specialty work, such as:
A. Roofing contractors
B. Plumbing and electrical contractors
C. General contractors
D. Landscape companies
✅ B. Plumbing and electrical businesses (p. 9-5)
In addition to individual licenses, BCD licenses plumbing and electrical contractor entities. (General contractor licensing is through CCB.)
Chapter 9 --
41. Some jurisdictions may waive portions of plan review for contractors who are:
A. Union shops
B. Certified Master Builders
C. The lowest bidder
D. Architects
✅ B. Certified Master Builders (p. 9-5)
Contractors can apply to BCD for Certified Master Builder status; some jurisdictions recognize it by reducing portions of plan review/inspection.
Chapter 9 --
42. The purpose of creating a statewide building code system in 1973 was to:
A. Reduce city authority
B. End widespread confusion from dozens of differing local codes and lower builders’ costs
C. Increase fees
D. Eliminate inspections
✅ B. Reduce confusion and costs (p. 9-1)
Before 1973, the Portland metro area alone had 53 different codes; the statewide system standardized requirements.
Chapter 9 --
43. Even with a statewide code, cities/counties remain active in:
A. Federal lawmaking
B. Permitting and enforcing the code locally
C. Writing national standards
D. Setting CCB policy
✅ B. Permitting and enforcement (p. 9-1)
BCD adopts statewide codes, but local jurisdictions handle day-to-day permitting and inspections.
Chapter 9 --
44. Who can submit proposals to change specialty codes during adoption cycles?
A. Only BCD staff
B. Only inspectors
C. Any individual through the rulemaking process
D. Only contractors
✅ C. Any individual (p. 9-1)
The process is public; proposals go through code committees/advisory boards and state rulemaking.
Chapter 9 --
45. On a permit submittal, energy code compliance is shown by:
A. A letter to the owner
B. A note on the plot plan only
C. Specific energy compliance documentation in the plan set
D. A separate electrical permit
✅ C. Energy code compliance documents (p. 9-3)
The plan set should include energy code calculations/details to demonstrate compliance.
Chapter 9 --
46. Cross sections and engineer’s calculations are requested:
A. Only for roofing
B. As part of the “complete set of legible plans,” when required by scope/size
C. Never
D. Only for landscaping
✅ B. Included with full plan sets where required (p. 9-3)
They help reviewers evaluate structural systems against code loads and detailing.
Chapter 9 --
47. e-Permitting systems often provide automated inspection scheduling and also:
A. Tax filing
B. Permit tracking/data collection and electronic plan review
C. Payroll
D. Engineering services
✅ B. Tracking and e-plan review (p. 9-3)
These features modernize permitting and support transparency on inspection status and plans.
Chapter 9 --
48. Minor labels are purchased in:
A. Singles
B. Packs of five
C. Lots of ten
D. Annual subscriptions only
✅ C. Lots of ten (p. 9-3)
Only licensed plumbing or licensed electrical contractors may purchase and use them for eligible minor work; jurisdictions conduct random inspections.
Chapter 9 --
49. During inspection phases, work that requires inspection must:
A. Be covered immediately
B. Remain exposed until approved
C. Be photographed only
D. Be self-certified by the contractor
✅ B. Remain exposed (p. 9-3)
Concealing work before inspection can lead to re-work and delays; the inspector must see the installation.
Chapter 9 --
50. The inspection record card should be:
A. Kept in the job trailer
B. Given to the lender
C. Posted in an accessible, conspicuous, weather-protected location
D. Kept by the architect
✅ C. Posted and protected (p. 9-4)
Posting helps inspectors find it quickly and record approvals/notes on site.
Chapter 9 --
51. Contractors should contact the building department before finishing work when:
A. They want to avoid inspection
B. They have questions about code compliance
C. They are seeking a change order
D. They want to reduce fees
✅ B. Questions about code compliance (p. 9-4)
Officials prefer to help before issues are buried; early coordination prevents rework and enforcement actions.
Chapter 9 --
52. Local building officials’ code interpretations must be:
A. Arbitrary
B. Inconsistent
C. Consistent with the intent/purpose of the code
D. Reviewed only by courts
✅ C. Consistent with code intent (p. 9-4)
Officials have authority to interpret provisions for specific projects, but interpretations should align with code intent.
Chapter 9 --
53. The Inspection Requirements note that inspections usually occur within:
A. 12 hours
B. 48 hours of request
C. One week
D. One month
✅ B. About 48 hours (p. 9-3)
Timelines can vary, but the text states inspections usually occur within 48 hours, highlighting the need to plan ahead.
Chapter 9 --
54. Who can purchase minor labels?
A. Any homeowner
B. Any CCB licensee
C. Only licensed plumbing contractors or licensed electrical contractors
D. Architects
✅ C. Licensed plumbing/electrical contractors (p. 9-3)
They are the only parties authorized to buy and use minor labels for eligible small installations.
Chapter 9 --
55. Specialty licensing with BCD is required for those who work on:
A. HVAC controls only
B. Boilers/pressure vessels and elevators
C. Carpentry and drywall
D. Masonry only
✅ B. Boilers/pressure vessels and elevators (p. 9-5)
In addition to plumbers/electricians, BCD licenses people who work on these regulated systems, and manufactured dwelling installers.
Chapter 9 --
56. The Final Inspection summary reiterates that BCD:
A. Issues CCB licenses
B. Develops/updates statewide codes and interprets/enforces them with local partners
C. Provides financing
D. Writes OSHA rules
✅ B. Develops & updates statewide codes; partners with locals (p. 9-5)
BCD adopts specialty codes as rules, supports permitting/inspections, and oversees inspector certification and certain licenses.
Chapter 9 --
57. The Residential Specialty Code does not include which chapters because Oregon adopts separate codes for them?
A. Structural wind
B. Plumbing and Electrical
C. Energy
D. Mechanical ventilation
✅ B. Plumbing and Electrical (p. 9-2)
The residential book references Oregon’s separate plumbing/electrical specialty codes for those disciplines.
Chapter 9 --
58. Which specialty code edition is cited as 2014 in the text?
A. Residential
B. Structural Specialty Code (with 2018 review noted)
C. Plumbing
D. Electrical
✅ B. Structural Specialty Code (2014) (p. 9-2)
The text references the 2014 OSSC and notes a review cycle leading to a more current edition.
Chapter 9 --
59. For plan reviews, who typically must prepare drawings when size thresholds are met?
A. A homeowner
B. A licensed architect or engineer
C. The building official
D. A realtor
✅ B. Licensed architect/engineer (p. 9-3)
Professional design is required for larger/taller buildings; exceptions exist for certain single-family/ accessory structures.
Chapter 9 --
60. Random inspections under the minor label program are:
A. Not allowed
B. Scheduled by the jurisdiction to verify compliance
C. Contractor-scheduled only
D. Performed by homeowners
✅ B. Jurisdiction-scheduled (p. 9-3)
Random inspections ensure that minor-label work meets code without needing a full permit each time.
Chapter 9 --
61. The Inspection Record Card is used to:
A. Replace permits
B. Document approvals/inspections on site
C. Record employee timesheets
D. Capture design changes
✅ B. Document approvals (p. 9-4)
Posting it on site allows inspectors to record results and helps teams track which stages are approved.
Chapter 9 --
62. An erosion control plan/permit may be required as part of:
A. Final paint
B. Typical project information for permits
C. Warranty closeout only
D. Not applicable in Oregon
✅ B. Typical project information (p. 9-3)
Local jurisdictions often require erosion control approvals before authorizing grading or foundation work.
Chapter 9 --
63. Septic/sewer and water district approvals are examples of:
A. Owner-builder exemptions
B. Jurisdictional sign-offs often needed prior to building permit issuance
C. Federal approvals
D. Post-occupancy steps
✅ B. Jurisdictional approvals pre-permit (p. 9-3)
These sign-offs confirm utility capacity and design compatibility before construction begins.
Chapter 9 --
64. If an inspector cites a violation, the best response is to:
A. Argue immediately
B. Correct the issue and notify the inspector when ready
C. Continue work without changes
D. Remove the red tag
✅ B. Correct and coordinate re-inspection (p. 9-4)
The text advises responding in a businesslike manner and complying with corrections/violation notices.
Chapter 9 --
65. Under the code process, local officials:
A. Write statutes
B. Interpret and apply codes to projects and can require special inspections
C. Set contractor insurance rates
D. Issue state licenses for contractors
✅ B. Interpret/apply code; require special inspections (p. 9-4)
They ensure on-the-ground compliance, balancing code intent with project specifics.
Chapter 9 --
66. The Oregon State Plumbing Board and Mechanical Board are examples of:
A. Trade unions
B. Advisory boards that help adopt/amend specialty codes
C. City councils
D. Private associations
✅ B. State advisory boards (p. 9-1)
Seven named boards provide stakeholder input for Oregon’s specialty code updates.
Chapter 9 --
67. A zoning approval is typically obtained from:
A. The lender
B. The local planning authority prior to building permits
C. The fire district only
D. BCD directly
✅ B. Local planning authority (p. 9-3)
Zoning is part of the pre-permit package ensuring land-use compliance before structural reviews.
Chapter 9 --
68. When does insulation under floors/attic sometimes get inspected?
A. After drywall only
B. At the final inspection (exception noted)
C. Never
D. Before framing
✅ B. At final inspection (exception) (p. 9-4)
The text allows attic/under-floor insulation to be inspected at final in some cases; wall insulation must be checked before covering.
Chapter 9 --
69. The Board of Boiler Rules is involved with:
A. Domestic water heaters only
B. Adoption and revision of codes/standards for boilers and pressure vessels
C. Hiring inspectors only
D. Setting energy codes
✅ B. Boiler/pressure vessel code policy (p. 9-1, 9-2)
This board is one of the seven advisory groups feeding Oregon’s specialty code adoption.
Chapter 9 --
70. A contractor who wants to influence future code text should:
A. Lobby city hall only
B. Submit proposals to code committees during rulemaking
C. Wait for court cases
D. Email the inspector
✅ B. Use public rulemaking (p. 9-1)
Any individual can submit proposals that advisory boards consider during adoption/revision cycles.
Chapter 9 --
71. Oregon’s statewide code system was created in part because the Portland metro once had:
A. Two codes
B. No codes
C. 53 different codes
D. Only federal codes
✅ C. 53 different codes (p. 9-1)
This fragmentation raised costs and confusion, prompting the shift to statewide adoption in 1973.
Chapter 9 --
72. The Construction Industry Energy Board contributes to:
A. Insurance rate setting
B. Energy-related code development
C. Contractor discipline
D. Labor regulation
✅ B. Energy-related code development (p. 9-1)
It’s one of the seven advisory boards that shape Oregon’s specialty codes, especially energy provisions.
Chapter 9 --
73. Sanitation verification/approval is obtained from:
A. The lender
B. The water district only
C. The sanitation/sewer authority as part of permit intake
D. OSHA
✅ C. Sanitation authority (p. 9-3)
Permit packets often require proof of sanitation/sewer approvals alongside other local sign-offs.
Chapter 9 --
74. Manufactured floor/roof truss design details should be included in:
A. The owner’s manual
B. The permit plan set
C. A separate document after framing
D. Only at final
✅ B. The plan set (p. 9-3)
Truss drawings and layouts are part of the “complete set of legible plans” so reviewers/inspectors can verify structural compliance.
Chapter 9 --
75. The best single reason to use the Reach Code on a project is to:
A. Meet minimum code with less work
B. Demonstrate advanced, voluntary energy and performance strategies recognized by the state
C. Replace the Structural Specialty Code
D. Avoid inspections
✅ B. Voluntary advanced strategies (p. 9-2)
The Reach Code offers an optional path for projects seeking higher performance (e.g., advanced energy features) beyond minimum code.
Chapter 9 --
1. Which agency administers and enforces workplace safety laws in Oregon?
A. CCB
B. Oregon OSHA (DCBS—Safety & Health Division)
C. Federal DOT
D. EPA
✅ B. Oregon OSHA (DCBS—Safety & Health Division) (p. 10-1)
Oregon is a “state plan” OSHA; DCBS’s Safety & Health Division (Oregon OSHA) administers and enforces safety standards statewide for construction.
Chapter 10
2. Which laws/rules apply to construction safety in Oregon?
A. Only federal OSHA 1926
B. ORS 654 and OAR 437 (Div. 1 and 3)
C. City ordinances only
D. The building code only
✅ B. ORS 654 and OAR 437 (Div. 1 & 3) (p. 10-1)
The chapter lists the Oregon statutes and administrative rules that govern general/ construction safety requirements.
Chapter 10
3. What federal act sets safety standards on federal construction contracts?
A. Davis-Bacon Act
B. Contract Work Hours and Safety Standards Act
C. Walsh-Healey Act
D. FAR Part 31
✅ B. Contract Work Hours and Safety Standards Act (p. 10-1)
Often called the “Construction Safety Act,” it establishes safety requirements for federally funded construction.
Chapter 10
4. Oregon requires which of the following for most employers:
A. Monthly happy hours
B. Safety committee or regular safety meetings
C. Only a written motto
D. No meetings for small firms
✅ B. Safety committee or safety meetings (p. 10-2)
Except for sole owners or single-employee corporations with non-participating boards, employers must run a committee or documented meetings.
Chapter 10
5. What safety poster must Oregon employers display?
A. Federal minimum wage poster
B. Oregon Job Safety and Health poster
C. No poster is required
D. Workers’ Comp rate sheet
✅ B. Oregon Job Safety and Health poster (p. 10-2)
The poster summarizes employee rights and must be posted at the office, job shack, or similar location (not required for temporary work sites).
Chapter 10
6. Best practice for new-hire safety training is to:
A. Train annually only
B. Give a policy copy, have them sign off, and hold daily 10-minute tailgates
C. Wait until the first incident
D. Email a PDF only
✅ B. Policy sign-off + frequent tailgates (p. 10-1)
Regular, brief training with policy acknowledgment builds awareness and captures job-specific hazards noted by crews.
Chapter 10
7. Substance abuse in the workplace primarily impacts a company by:
A. Lowering premiums
B. Increasing claims, absenteeism, lost productivity, and turnover
C. Improving morale
D. Shortening schedules
✅ B. More claims, absenteeism, lost output, turnover (p. 10-2)
The text details bottom-line impacts and urges implementing a substance-free program.
Chapter 10
8. A strong drug-free policy should:
A. Be verbal only
B. Explicitly prohibit illegal drugs/alcohol abuse and spell out consequences
C. Allow alcohol at lunch
D. Apply to field crews only
✅ B. Clear prohibitions + consequences (p. 10-2)
Policies must be distributed, read, and signed; check with your workers’-comp carrier for possible premium credits.
Chapter 10
9. Core PPE often required on construction sites includes:
A. Sneakers and sunglasses
B. Hard hats, safety boots, protective gloves, eye/fall/hearing protection, respirators, coveralls, face shields
C. Earbuds and shorts
D. None of the above
✅ B. Full PPE suite (p. 10-2)
Assess each jobsite for hazards and train employees on proper use and maintenance.
Chapter 10
10. When must an employer have a written Emergency Action Plan?
A. Only after an incident
B. When more than 10 employees are on site
C. Never—verbal is fine
D. Only on public projects
✅ B. More than 10 employees (p. 10-2)
If 10 or fewer employees, the plan may be communicated orally; otherwise it must be written and cover reporting, evacuation, critical equipment, accounting, and rescue duties.
Chapter 10
11. An Emergency Action Plan should include procedures for:
A. Lunch ordering
B. Reporting fires/toxic spills/severe weather, evacuations, shutdown of critical equipment, accountability, and rescue/medical duties
C. Payroll
D. Submittals
✅ B. Core emergency procedures (p. 10-3)
It must identify the administrator’s name/job title and be reviewed with employees.
Chapter 10
12. First aid on site is defined as:
A. Any hospital treatment
B. One-time treatment and observation of minor scratches, cuts, burns, splinters, etc., not ordinarily requiring medical care
C. Only over-the-counter medication
D. Only EMS response
✅ B. One-time minor treatment (p. 10-3 to 10-4)
Provide supplies in a clearly marked, accessible container and plan for transport to medical services for serious injuries.
Chapter 10
13. Employers with more than 10 employees (at any time in the previous year) must:
A. Keep no records
B. Maintain OSHA injury/illness records
C. Report only fatalities
D. Track hours only
✅ B. Maintain injury/illness records (p. 10-3)
Use OSHA Form 300 (log), 300A (annual summary), and DCBS Form 801 (workers’-comp claim). Contractors in certain low-hazard industries may be exempt.
Chapter 10
14. OSHA Form 300A must be:
A. Filed with the IRS
B. Posted conspicuously from February 1 through April 30
C. Mailed to employees
D. Submitted weekly
✅ B. Posted Feb 1–Apr 30 (p. 10-3)
Summarize the prior calendar year’s work-related injuries/illnesses using data from the OSHA 300 log.
Chapter 10
15. Electronic recordkeeping is required for:
A. Any firm with 5+ employees
B. Employers with 250+ employees at one location and certain industries with 20+ at one location
C. Only public entities
D. None in Oregon
✅ B. 250+ (all) and some 20+ industries (p. 10-3)
These employers must submit OSHA 300A data electronically to federal OSHA.
Chapter 10
16. How long must injury/illness records be kept?
A. 1 year
B. 3 years
C. 5 years following the year to which they pertain
D. 10 years
✅ C. 5 years (p. 10-3)
Exposure/medical records tied to toxic substances and harmful physical agents must be retained for 30 years.
Chapter 10
17. Exposure records/analyses for toxic substances must be retained for:
A. 5 years
B. 10 years
C. Duration of employment
D. 30 years
✅ D. 30 years (p. 10-3 to 10-4)
Includes SDS-listed materials, substances with acute/chronic hazards, or those identified as potential health hazards.
Chapter 10
18. Which events are recordable on OSHA 300?
A. Minor first aid only
B. Work-related death, days away, restricted duty, job transfer, loss of consciousness, or diagnosis of a significant injury/illness
C. Off-the-job injuries
D. Near misses only
✅ B. Recordable criteria (p. 10-3 to 10-4)
Significant injuries/illnesses diagnosed by a physician are recordable even without days away.
Chapter 10
19. First-aid only (not recordable) includes which example?
A. Sutures
B. Prescriptions
C. Using non-rigid supports (elastic wraps/back belts)
D. Lost-time cases
✅ C. Non-rigid supports (p. 10-4)
Other first-aid examples include wound coverings, hot/cold therapy, removing splinters, and eye patches.
Chapter 10
20. Reporting timelines to Oregon OSHA: hospitalization, amputation, or loss of an eye must be reported within:
A. 8 hours
B. 24 hours
C. 48 hours
D. 7 days
✅ B. 24 hours (p. 10-4)
Catastrophes (3+ employees hospitalized) and fatalities must be reported within 8 hours.
Chapter 10
21. The “Injury Decision Tree” helps determine:
A. Who pays the claim
B. If an event is recordable on OSHA logs
C. Whether a worker returns to duty
D. What PPE to use
✅ B. OSHA recordability (p. 10-5)
It walks step-by-step: injury/illness? work-related? new case? meets general or specific recording criteria?
Chapter 10
22. For hazardous chemicals in the workplace, employers must:
A. Keep labels optional
B. Maintain Safety Data Sheets (SDS) for each chemical, ensure proper labeling, provide employee training, and have a written hazard-communication plan
C. Let suppliers handle safety
D. Only post a sign
✅ B. SDS + labels + training + written plan (p. 10-6)
Manufacturers/importers must evaluate and label hazards; employers must train and keep SDSs accessible.
Chapter 10
23. Before excavation, contractors must contact:
A. Local police
B. The Oregon Utility Notification Center (811/800-332-2344)
C. BCD
D. The county clerk
✅ B. Oregon Utility Notification Center (811) (p. 10-6)
Provide at least two days’ notice to locate public/private utilities, streets, alleys, easements, and rights-of-way.
Chapter 10
24. Oregon law prohibits which activities within 10 feet of high-voltage overhead power lines?
A. Parking only
B. Operating/erecting/transporting tools or equipment, transporting/storing materials, or moving buildings
C. Walking
D. None—only cranes are restricted
✅ B. Multiple activities barred within 10 ft (p. 10-6)
These controls reduce electrocution risks near energized lines.
Chapter 10
25. For cranes operating within 20 ft of an overhead line up to 350 kV, the Minimum Approach Distance (MAD) is at least:
A. 5'
B. 10' (≤50 kV), 15' (>50–200 kV), 20' (>200–350 kV)
C. 25' for all
D. 30'
✅ B. 10'/15'/20' MAD per voltage (Table A, p. 10-6)
Determine line voltage with the owner/utility (allow two weeks), then use Table A to set MAD and define the work zone/boundaries.
Chapter 10
26. If any part of the crane/equipment could encroach within the MAD, the employer must either:
A. Work anyway
B. De-energize/ground with utility confirmation, or maintain MAD, or maintain a 20' clearance per options listed
C. Post a sign only
D. Ask the owner to accept risk
✅ B. Follow one of the listed options (flowchart, p. 10-7)
The flowchart outlines options under 1926.1408 to prevent encroachment/electrocution.
Chapter 10
27. Employers must provide fall protection whenever workers are exposed to a fall hazard of:
A. Any height
B. 4 feet
C. 6 feet or more, or adjacent to dangerous equipment
D. 10 feet only
✅ C. 6 ft+ or adjacent to hazards (p. 10-7)
Slide guards may not be used as the only primary method. Approved systems include guardrails, safety nets, PFAS, positioning devices, warning-line, monitoring, and covers.
Chapter 10
28. Ladders used on construction must:
A. Be homemade
B. Meet ANSI standards (portable/fixed)
C. Always be metal
D. Be uninspected
✅ B. Meet ANSI standards (p. 10-7)
ANSI-compliant ladders satisfy Oregon safety requirements for construction.
Chapter 10
29. Asbestos permissible exposure limit (PEL) for workers is:
A. 1.0 fiber/cc over 8 hours
B. 0.1 fiber/cc over 8 hours (PEL) and 1.0 fiber/cc over 30 minutes (excursion limit)
C. 0.01 fiber/cc over 8 hours
D. No limit
✅ B. 0.1 f/cc TWA; 1.0 f/cc 30-min excursion (p. 10-7)
Employers must use engineering/ work-practice controls and, if necessary, respiratory protection to stay at or below limits, with decon/lunch areas for exposed employees.
Chapter 10
30. Asbestos training/records must:
A. Be verbal
B. Include pre-work training for all exposed workers and annual refreshers; keep exposure monitoring for 30 years and medical surveillance records for employment + 30 years
C. Be discarded after a year
D. Apply only to supervisors
✅ B. Robust training + 30-year recordkeeping (p. 10-8)
Training must be in a language and manner workers understand; medical surveillance is required for certain employees.
Chapter 10
31. Oregon’s lead exposure limit for workers is:
A. 100 µg/m³ (8-hr TWA)
B. 50 µg/m³ (8-hr TWA)
C. 10 µg/m³
D. No limit
✅ B. 50 micrograms per cubic meter of air (8-hr TWA) (p. 10-8)
Employers must supply respirators at no cost, adopt a written respirator program, train workers, and inspect equipment regularly.
Chapter 10
32. Examples of engineering controls to reduce lead exposure include:
A. Fans pointing at workers
B. HEPA-equipped exhaust/ shrouds, encapsulation/ enclosure, substituting non-lead products
C. Only PPE
D. Avoiding housekeeping
✅ B. Ventilation/encapsulation/substitution (p. 10-8)
Controls reduce airborne dust at the source and are preferred before relying on PPE.
Chapter 10
33. Practical ways to reduce lead hazards during renovation include:
A. Dry sweeping
B. Replacing lead components with non-lead, process changes to reduce dust, isolating areas to prevent contamination spread
C. Eating near work
D. Using shop air for cleanup
✅ B. Replace, modify, isolate (p. 10-8)
The list urges substitution and isolation to limit worker/ public exposure.
Chapter 10
34. Oregon changed its crystalline silica regulation effective:
A. 2014
B. July 1, 2018
C. 2020
D. 2010
✅ B. July 1, 2018 (p. 10-8)
The rule sets allowable exposure limits and requires controls; Oregon OSHA provides detailed guidance online.
Chapter 10
35. Employees have the right to:
A. Refuse PPE
B. File complaints with Oregon OSHA, participate in inspections, contest abatement periods, and report injuries without fear of retaliation
C. Set penalties
D. Skip training
✅ B. OSHA complaint & participation rights (p. 10-9)
Whistleblower protections prohibit retaliation for exercising these rights.
Chapter 10
36. Minimum penalty for a first-offense “other than serious” violation with low probability is:
A. $0
B. $100
C. $300
D. $1,000
✅ A. $0 (table, p. 10-9)
For high probability it’s $300; the minimum penalty overall is noted as $100.
Chapter 10
37. First-offense “serious” penalties range (serious physical harm vs. death):
A. $50–$500
B. $300–$1,250 (serious harm) and $3,500–$12,500 (death) depending on probability
C. $5,000 flat
D. $0
✅ B. Ranged by probability/ outcome (table, p. 10-9)
Low/medium/high probability levels scale the penalty; minimum remains $100.
Chapter 10
38. Maximum penalty shown for violations is:
A. $12,500
B. $25,000
C. $70,000
D. $100,000
✅ C. $70,000 (p. 10-9)
The chart also shows minimum penalty of $200 for repeat “other-than-serious” and multipliers for repeats/willful violations.
Chapter 10
39. Repeat-violation multipliers for serious hazards begin at:
A. ×1
B. ×2 (1st repeat), ×5 (2nd), ×10 (3rd), ×15 (4th), ×20 (5th)
C. ×25 for all repeats
D. None
✅ B. Escalating multipliers (p. 10-9)
Willful violations may be multiplied by ×25, at the administrator’s discretion.
Chapter 10
40. Penalty adjustments may consider:
A. Crew popularity
B. Employer’s good-faith effort, size (≤250), compliance history, and immediate correction
C. Marketing spend
D. Union status
✅ B. Good faith, size, history, correction (p. 10-9)
These factors can increase or reduce the base penalty.
Chapter 10
41. A company with 20+ employees at one location in a covered industry must:
A. Keep only paper logs
B. Electronically submit OSHA 300A to federal OSHA
C. Submit nothing
D. Only post the 300A
✅ B. E-submit 300A (p. 10-3)
Electronic submission applies to certain industries with 20+ and to all with 250+ at one location.
Chapter 10
42. Which item is not considered first aid?
A. Removing a splinter
B. Prescribing antibiotics
C. Applying a bandage
D. Hot/cold therapy
✅ B. Prescribing antibiotics (p. 10-4)
Prescription medication elevates treatment beyond first aid and is recordable when work-related.
Chapter 10
43. If 911 is unavailable, the emergency medical plan should include:
A. A public announcement
B. Telephone numbers and directions for nearby hospitals/ambulances/doctors
C. A newsletter
D. None of the above
✅ B. Nearby emergency contacts (p. 10-3)
Keep numbers and the jobsite’s physical address ready for quick transport arrangements.
Chapter 10
44. Why document daily 10-minute safety meetings?
A. For marketing
B. To demonstrate ongoing training and capture crew feedback on hazards
C. They’re optional
D. To reduce wages
✅ B. Evidence of training + two-way feedback (p. 10-1 to 10-2)
Brief tailgates reinforce topics and encourage hazard reporting.
Chapter 10
45. The hazard-communication plan must ensure:
A. SDSs are locked away
B. Employees can access SDSs and labeled containers and are trained on safe handling
C. Only supervisors view SDSs
D. Labels can be removed
✅ B. Access + labeling + training (p. 10-6)
Oregon OSHA may inspect for compliance against the Hazard Communication Standard.
Chapter 10
46. Before using cranes near lines, you must:
A. Assume 120 kV
B. Ask the utility for voltage and use Table A to set MAD
C. Drive closer to see better
D. Work at night
✅ B. Confirm voltage, apply MAD (p. 10-6)
You may need up to two weeks for a utility’s response; then mark boundaries or define a 360° work zone.
Chapter 10
47. Name two approved fall-protection systems besides guardrails.
A. Slide guards and rope grabs
B. Safety nets and personal fall-arrest systems
C. Painted lines and cones
D. None
✅ B. Safety nets + PFAS (p. 10-7)
Other options include positioning devices, warning-line systems, monitoring, and covers.
Chapter 10
48. For asbestos, employers must reduce exposures to:
A. Any level they choose
B. The lowest level achievable via engineering/work practices, supplementing with respirators if needed
C. Only by PPE
D. After closeout
✅ B. Lowest achievable; add respirators as needed (p. 10-7)
Controls first; respiratory protection fills the gap to meet the exposure limit.
Chapter 10
49. Training records for asbestos must be retained for:
A. 6 months
B. 1 year after employment ends
C. One year beyond the last date of employment (at minimum)
D. 10 years after hire
✅ C. One year beyond last employment date (p. 10-8)
Exposure and medical surveillance records have longer retention (30 years or employment + 30).
Chapter 10
50. Under the lead rule, employers must:
A. Charge employees for respirators
B. Provide respirators at no cost and adopt a written respirator program
C. Provide PPE only if requested
D. Do nothing until overexposure occurs
✅ B. No-cost respirators + written program (p. 10-8)
Also institute training and regular equipment inspections.
Chapter 10
51. Which control helps minimize lead dust during power-tool use?
A. Leaf blower
B. HEPA shrouds with exhaust ventilation
C. Open windows only
D. Dry sweeping
✅ B. HEPA shrouds/exhaust (p. 10-8)
Use attachments that capture dust at the source and exhaust through HEPA filtration.
Chapter 10
52. Oregon OSHA’s A-Z Topics list may include guidance for which construction hazards?
A. Only office ergonomics
B. Abrasive blasting, aerial lifts, lockout/tagout, scaffolds, welding, work near water, etc.
C. None for construction
D. Just trenching
✅ B. Wide list of construction topics (p. 10-8)
The chapter enumerates many topics commonly needed in construction safety plans.
Chapter 10
53. Employees who report injuries or cooperate in inspections are protected from:
A. Bonuses
B. Retaliation
C. Overtime
D. Training
✅ B. Retaliation (p. 10-9)
Oregon’s whistleblower protections prohibit employer reprisals for exercising rights.
Chapter 10
54. In the penalty table, “other than serious” repeat violations carry flat amounts starting at:
A. $100
B. $200 (1st repeat), then $500, $1,000, $1,500, $2,000
C. $1,000
D. $2,500
✅ B. Set amounts by repeat count (p. 10-9)
The table lists specific dollar values for repeats that are not “serious.”
Chapter 10
55. Why are jobsite safety programs described as “good business”?
A. They slow production
B. They reduce injuries 20–40%, lower comp premiums, absenteeism, and retraining costs, and raise productivity/morale
C. Only for PR
D. Required but not useful
✅ B. Measurable financial/operational benefits (p. 10-1)
The chapter quantifies the benefits to individuals and companies.
Chapter 10
56. Employers must keep which medical surveillance for asbestos-exposed workers?
A. None
B. Surveillance for certain job categories or exposures at/above PEL
C. Only if workers request
D. Only for supervisors
✅ B. Surveillance for covered workers (p. 10-8)
Where required, keep medical records for duration of employment plus 30 years.
Chapter 10
57. Excavating without utility locates can result in:
A. Only delays
B. Fines, repair costs, service outages, and safety hazards
C. No consequences
D. Free labor from utility
✅ B. Financial and safety consequences (p. 10-6)
Always notify the Utility Notification Center before digging.
Chapter 10
58. When defining the crane work zone relative to a line, you should either:
A. Ignore MAD
B. Mark boundaries at/outside MAD or define a 360° radius up to maximum working radius
C. Only tell the operator verbally
D. Ask the inspector to decide
✅ B. Mark or define the 360° zone (p. 10-6)
This prevents incidental encroachment beyond the allowable approach distance.
Chapter 10
59. If operating within the crane’s maximum radius, what if parts could still get closer than MAD?
A. Proceed cautiously
B. Follow 1926.1408(b) encroachment/electrocution prevention measures
C. Move the MAD inward
D. None
✅ B. Follow §1408(b) measures (flowchart, p. 10-7)
Includes de-energize/ground, maintain specified distances, and protective planning.
Chapter 10
60. A first-aid treatment that does not make a case recordable is:
A. Suturing lacerations
B. Drilling a nail to drain blood under the nail
C. Prescription eye drops
D. Restricted duty
✅ B. Draining subungual hematoma (finger/toenail) (p. 10-4)
OSHA lists this as permissible first aid; recordability depends on more than the procedure alone.
Chapter 10
61. When must fatalities or catastrophes be reported?
A. Within 72 hours
B. Within 8 hours of the incident
C. End of week
D. End of month
✅ B. Within 8 hours (p. 10-4)
Hospitalizations/amputations/loss of an eye are due within 24 hours.
Chapter 10
62. A written emergency medical plan should include:
A. Just a first-aid kit
B. Protocols for contacting medical services and transporting to the nearest facility
C. A coffee list
D. Personal phone numbers only
✅ B. Contact/transport protocols (p. 10-3)
Also ensure first-aid supplies are maintained and accessible.
Chapter 10
63. “Recordable illnesses/injuries” include:
A. Only those with lost time
B. Significant injuries or illnesses diagnosed by a healthcare professional, even without lost time
C. Only those with prescriptions
D. None of the above
✅ B. Diagnosed significant cases (p. 10-4)
Record if work-related and meeting general/specific criteria—loss of consciousness, job transfer, restrictions, etc.
Chapter 10
64. A contractor’s PPE policy should be:
A. Oral
B. Written, trained, and enforced with job-specific hazard assessments
C. Only for new hires
D. Optional
✅ B. Written + trained + assessed (p. 10-2)
Assess each task, determine required PPE, and teach proper use/maintenance.
Chapter 10
65. For lead work, employers must also:
A. Skip inspections
B. Institute training and regular equipment inspections
C. Allow eating/drinking in exposure zones
D. Use fans to blow dust away
✅ B. Training + equipment inspections (p. 10-8)
Administrative and engineering controls go with respirator programs to protect workers.
Chapter 10
66. Oregon OSHA’s “Other Safety Practices” list covers:
A. Only cranes
B. Multiple tasks like blasting, confined space, lockout/tagout, scaffolds, traffic control, welding, work near water
C. Only general industry
D. Only first aid
✅ B. Broad construction topics (p. 10-8)
Use the A-Z list to build task-specific procedures into your site plan.
Chapter 10
67. Employees must be allowed to:
A. Refuse inspections
B. Participate in workplace inspections
C. Approve penalties
D. Skip PPE if experienced
✅ B. Participate in inspections (p. 10-9)
Participation and complaint rights are enshrined; identities may be kept confidential in some cases.
Chapter 10
68. “Good faith” efforts that may reduce penalties include:
A. Posting on social media
B. Documented safety programs, prompt corrections, and training
C. Asking for a discount
D. None
✅ B. Programs + prompt correction (p. 10-9)
Adjustment criteria consider whether an employer clearly strives to comply.
Chapter 10
69. The minimum penalty shown for repeat “other than serious” violations is:
A. $100
B. $200
C. $500
D. $1,000
✅ B. $200 (repeat table, p. 10-9)
Repeat penalties escalate to $2,000 by the 5th repeat.
Chapter 10
70. What should be done before covering rough-in work?
A. Take photos only
B. Obtain required inspections and approvals
C. Proceed; inspectors can look later
D. Send an email
✅ B. Get inspections before concealment (p. 10-3)
Work requiring inspection must remain exposed until approved.
Chapter 10
71. Two examples of first aid (non-recordable) are:
A. Prescription meds and stitches
B. Irrigating the eye to remove a foreign body and applying non-rigid supports
C. Restricted duty and stitches
D. Hospitalization and OTC meds
✅ B. Eye irrigation + non-rigid supports (p. 10-4)
The list details many first-aid-only treatments not requiring OSHA 300 logging.
Chapter 10
72. A practical housekeeping control that supports quality/safety is to:
A. Ignore trash
B. Keep sites clean and organized
C. Let it pile up and clean weekly
D. Have crews handle it after hours only
✅ B. Clean, orderly sites (p. 10-1, 10-10)
Good housekeeping is repeatedly tied to safer, more productive workplaces.
Chapter 10
73. If a project lasts more than a year, you must:
A. Start a new OSHA 300 for each year (and keep prior year’s log separate)
B. Use one continuous log
C. Not log
D. Only post 300A
✅ A. Separate 300 logs by year (p. 10-3)
Each year gets its own log; summaries are posted the following February through April.
Chapter 10
74. Who completes DCBS Form 801?
A. Only employer
B. Only employee
C. Both employee and employer
D. OSHA
✅ C. Both (p. 10-3)
It’s the workers’-comp injury/illness claim form providing case details.
Chapter 10
75. When planning crane work near lines >350 kV:
A. Use Table A only
B. Follow additional requirements beyond Table A
C. No extra rules
D. Ask inspector to waive
✅ B. Additional requirements apply (note under Table A, p. 10-6)
The standard includes extra protections for very high-voltage systems.
Chapter 10
76. A key purpose of safety committees/meetings is to:
A. Approve timesheets
B. Identify hazards and engage employees in solutions
C. Replace inspections
D. Handle payroll
✅ B. Hazard identification + participation (p. 10-2)
Employee participation improves the relevance and effectiveness of safety programs.
Chapter 10
77. Why ask your comp carrier about a drug-free workplace policy?
A. For prizes
B. You may receive a premium credit
C. They’ll enforce it
D. They will write it for you
✅ B. Possible premium credit (p. 10-2)
The text specifically suggests checking for credits tied to a documented policy.
Chapter 10
78. A common PPE oversight is:
A. Buying too much PPE
B. Failing to train on use, limits, and maintenance
C. Wearing extra layers
D. Over-labeling
✅ B. Training on PPE (p. 10-2)
The chapter stresses that PPE programs must include training on proper use and upkeep.
Chapter 10
79. A fatality must be reported even if:
A. It occurred off-site
B. It is work-related
C. It’s a subcontractor
D. It happened a day later from injuries sustained on the job
✅ D. Work-related fatality from injuries must be reported (p. 10-4)
The rule focuses on work-related incidents; fatalities trigger the 8-hour reporting window.
Chapter 10
80. Under hazard communication, emergency SDS information should be:
A. Kept at HQ only
B. On hand and accessible to guide emergency treatment if contact occurs
C. With vendors only
D. In a locked cabinet far from the work
✅ B. Accessible SDS info for emergencies (p. 10-6)
Keep SDSs available and train workers how to use them during incidents.
Chapter 10
81. If employees are exposed at or above asbestos PEL/excursion limit and engineering controls can’t ensure compliance, employers must:
A. Ignore it
B. Provide respiratory protection to meet limits
C. Substitute cotton masks
D. Work weekends only
✅ B. Provide respiratory protection (p. 10-7)
Controls first; respirators supplement to achieve compliance.
Chapter 10
82. Replacing lead components with non-lead is an example of:
A. Administrative control
B. Engineering control (substitution)
C. PPE
D. Behavioral control
✅ B. Substitution (p. 10-8)
Reducing the hazard at the source is preferred over PPE.
Chapter 10
83. What does Oregon OSHA’s A-Z list help you build?
A. Bid forms
B. Task-specific procedures (e.g., cranes, scaffolds, confined spaces)
C. Daily reports
D. Purchase orders
✅ B. Task-specific safety procedures (p. 10-8)
Use it as a checklist when developing your site-specific safety plan.
Chapter 10
84. Employees may have their identities kept confidential when:
A. Filing wage claims
B. Filing OSHA safety complaints (in some cases)
C. Reporting taxes
D. Filing change orders
✅ B. Some OSHA safety complaints (p. 10-9)
This protection reduces fear of reprisal and encourages reporting.
Chapter 10
85. A company’s size can lower penalties by up to:
A. 25% if 10 or fewer employees
B. 75% for 10 or fewer employees, with scaled reductions up to 250 employees
C. 10% flat
D. Not at all
✅ B. Up to 75% reduction (≤10 employees) (p. 10-9)
The adjustment factors include employer size categories up to 250 employees.
Chapter 10
86. A hallmark of a good emergency plan is:
A. Ambiguity
B. Clear roles, distinctive alarm signal, and training/drills
C. Posting only
D. Once-a-year review
✅ B. Clear roles + drills (p. 10-3)
Designate/train evacuation assistants and establish a unique alarm to alert employees.
Chapter 10
87. Which action violates Oregon’s 10-ft rule near high-voltage lines?
A. Storing materials 12 ft away
B. Moving a building within 8 ft of a line
C. Painting 20 ft away
D. Walking 15 ft away
✅ B. Moving a building within 10 ft (p. 10-6)
Operating/transporting equipment or materials within 10 ft is prohibited.
Chapter 10
88. A catastrophic event for OSHA reporting is defined as:
A. Two employees hospitalized
B. Three or more employees admitted to a hospital
C. One fatality
D. Any ambulance call
✅ B. 3+ employees hospitalized (p. 10-4)
Catastrophes and fatalities must be reported within 8 hours.
Chapter 10
89. Oregon OSHA may require electronic 300A submission information to be found at:
A. osha.gov/injuryreporting/index.html
B. irs.gov
C. ccb.state.or.us
D. oregon.gov/bcd
✅ A. OSHA’s injury reporting page (p. 10-3)
The chapter references the federal OSHA portal for electronic submissions.
Chapter 10
90. A “serious” violation that results in death with high probability carries a first-offense penalty up to:
A. $1,250
B. $6,000
C. $12,500
D. $70,000
✅ C. $12,500 (table, p. 10-9)
The table differentiates “serious physical harm” and “death” columns by probability.
Chapter 10
91. Why post boundaries at the MAD for crane work?
A. For decoration
B. To prevent the crane from operating beyond safe limits
C. To help the photographer
D. For marketing
✅ B. Keep operations outside MAD (p. 10-6)
Flagging boundaries or defining the 360° zone enforces minimum approach distances.
Chapter 10
92. Employers should solicit employee input on drug-free programs because:
A. It weakens enforcement
B. It improves buy-in, addresses real risks, and increases effectiveness
C. It is optional PR
D. It avoids training
✅ B. Participation improves programs (p. 10-2)
The chapter encourages employee participation in developing company safety programs.
Chapter 10
93. A workers’ comp claim form used in Oregon is:
A. OSHA 301
B. DCBS Form 801
C. 300A
D. 300
✅ B. DCBS Form 801 (p. 10-3)
Employer and employee both complete it; it provides details of a specific injury/illness.
Chapter 10
94. What’s one reason safer workplaces increase profits?
A. Higher fines
B. Fewer injuries mean less downtime and absenteeism
C. Longer schedules
D. More paperwork
✅ B. Less downtime/absenteeism (p. 10-1)
Injuries carry direct and indirect costs; prevention boosts productivity and morale.
Chapter 10
95. The minimum civil penalty noted for violations is:
A. $0
B. $50
C. $100
D. $200
✅ C. $100 (p. 10-9)
The repeat table also lists a minimum of $200 for “other than serious” repeats; maximum penalties can reach $70,000.
Chapter 10
96. A hazard-communication inspection may include checking:
A. Lunch menus
B. That all containers are properly labeled and SDSs are maintained and accessible
C. Only fire extinguishers
D. Vehicle mileage logs
✅ B. Labels + SDS access (p. 10-6)
Oregon OSHA may use a checklist to verify compliance with the Hazard Communication Standard.
Chapter 10
97. Why should moisture-sensitive wood framing be checked before finishes?
A. For color
B. To confirm moisture content ≤ 19% before covering
C. To confirm species
D. To estimate paint cost
✅ B. ≤ 19% moisture before covering (p. 9-4 context recap note appears in this chapter’s cross-summary)*
This prevents mold/structural problems; inspectors or officials may require confirmation before concealment.
Chapter 10
*Referenced in the cross-summary on p. 10-10 reminding of inspection prerequisites.
98. The “Final Inspection” recap emphasizes having either a:
A. Budget memo
B. Written or orally communicated emergency action plan depending on employee count
C. Tax plan
D. Vendor list
✅ B. Emergency action plan (written if >10 employees) (p. 10-9 to 10-10)
The summary also reinforces standards, training, substance-abuse policies, and PPE.
Chapter 10
99. Working near water requires:
A. Sunglasses
B. Topic-specific procedures (e.g., PFDs, rescue plans) from Oregon OSHA guidance
C. Nothing extra
D. Only a sign
✅ B. Water-work procedures (p. 10-8)
“Working over or near water” appears on the A-Z list of additional safety practices for construction.
Chapter 10
100. The single best habit to prevent violations is to:
A. Wait for inspections
B. Know the applicable standards, train regularly, investigate hazards with your teams, and correct issues immediately
C. Outsource safety
D. Hope for the best
✅ B. Proactive knowledge + training + participation + prompt correction (p. 10-1 to 10-2, 10-9)
This aligns with Oregon OSHA’s emphasis on employer responsibility, employee involvement, and timely abatement.
Chapter 11 - Environmental Factors (6 pp) -100 Questions
Which federal agency sets national environmental standards that states implement?
A. OSHA
B. U.S. EPA
C. U.S. DOT
D. USACE
✅ B. U.S. EPA
Explanation: EPA writes and enforces rules under major environmental laws, then authorizes states to implement many programs. (Overview: Federal/State Roles)
Which Oregon agency administers state air, water, and waste programs day-to-day?
A. OHA
B. DEQ
C. CCB
D. DCBS
✅ B. DEQ
Explanation: DEQ implements Oregon’s air, water, land quality, and waste regulations and many delegated EPA programs. (Overview: Oregon DEQ)
A good pre-bid step to avoid environmental surprises is to:
A. Ignore permits to keep the bid low
B. Exclude erosion controls
C. Identify permits and include compliance costs
D. Let the owner handle all permits after award
✅ C. Identify permits and include compliance costs
Explanation: Scoping permits and compliance tasks before bidding reduces change orders and violations. (Project Lifecycle: Pre-Bid)
During construction, the best way to prevent stormwater issues is to:
A. Install controls after the first rain
B. Keep disturbed area small and install BMPs early
C. Wait for inspector instructions
D. Stockpile soil in drainage swales
✅ B. Keep disturbed area small and install BMPs early
Explanation: Minimizing disturbance and sequencing BMPs up front is a core stormwater principle. (Stormwater & Erosion Control)
“Open burning” at a jobsite generally refers to:
A. Running a propane heater
B. Burning demolition or construction debris outdoors
C. Using a diesel generator
D. Operating a kiln
✅ B. Burning demolition or construction debris outdoors
Explanation: Open burning covers outdoor burning of debris and is tightly regulated or prohibited. (Air Quality: Open Burning)
Before any open burning, a contractor should first:
A. Assume rural sites are exempt
B. Conduct burning after dark
C. Check local fire authority/DEQ rules and get permits
D. Burn only on weekends
✅ C. Check local fire authority/DEQ rules and get permits
Explanation: Local ordinances and DEQ rules govern if/when open burning is allowed and how. (Air Quality: Open Burning)
Which pollutant is commonly controlled by dust suppression on construction sites?
A. Ozone
B. PM10/PM2.5
C. Carbon monoxide
D. Radon
✅ B. PM10/PM2.5
Explanation: Earthwork, grading, and traffic create particulate matter; water and stabilizers reduce dust. (Air Quality: Dust & Particulate)
A practical dust control method for unpaved site roads is to:
A. Increase truck speed
B. Water or apply approved stabilizer
C. Delay watering until winds are high
D. Cover only half the road
✅ B. Water or apply approved stabilizer
Explanation: Routine watering or palliatives reduce airborne dust emissions effectively. (Air Quality: Dust & Particulate)
Friable asbestos is most likely found in:
A. New vinyl floor planks
B. Pipe insulation in older buildings
C. Tempered glass
D. PVC piping
✅ B. Pipe insulation in older buildings
Explanation: Thermal system insulation and certain surfacing materials in pre-regulation buildings may be ACM. (Asbestos in Construction & Demo)
Before demolishing a pre-1980 structure, the contractor should:
A. Demolish first, sample debris later
B. Assume no asbestos if not visible
C. Have an asbestos survey by a qualified professional
D. Only ask the owner
✅ C. Have an asbestos survey by a qualified professional
Explanation: Many jurisdictions require a pre-demo asbestos inspection/survey to identify ACM and proper abatement. (Asbestos: Surveys & Abatement)
If asbestos-containing material (ACM) is identified, the correct next step is to:
A. Dry-remove it during demo
B. Use untrained crew with dust masks
C. Hire licensed abatement professionals
D. Bury it onsite
✅ C. Hire licensed abatement professionals
Explanation: ACM must be removed/handled by licensed abatement contractors under strict work practices and disposal rules. (Asbestos: Abatement)
Lead-based paint is most commonly a concern in:
A. Buildings built after 2005
B. Pre-1978 residential/child-occupied facilities
C. Metal roof panels
D. New CMU walls
✅ B. Pre-1978 residential/child-occupied facilities
Explanation: EPA’s RRP program applies to renovations disturbing lead paint in pre-1978 homes and child-occupied buildings. (Lead-Based Paint: RRP Basics)
Under the RRP Rule, firms must:
A. Self-certify by email
B. Be EPA/State certified and use certified renovators
C. Ignore if project is small
D. Only warn occupants verbally
✅ B. Be EPA/State certified and use certified renovators
Explanation: The rule requires firm certification, certified renovators, lead-safe work practices, and documentation. (Lead-Based Paint: RRP Compliance)
A core dust control practice for lead-safe work is to:
A. Dry sanding with fans on
B. Open air blasting
C. Containment and wet methods/HEPA
D. Sweeping with a shop broom
✅ C. Containment and wet methods/HEPA
Explanation: Lead-safe methods center on isolation, wet work to reduce dust, and HEPA-filtered cleanup. (Lead-Based Paint: Work Practices)
Which law primarily governs pollutant discharges to waters?
A. Clean Air Act
B. Clean Water Act
C. CERCLA
D. RCRA
✅ B. Clean Water Act
Explanation: The CWA regulates discharges to U.S. waters via permits such as NPDES/1200-C for construction stormwater. (Water Quality: Clean Water Act/NPDES)
A construction site ≥ 1 acre typically needs:
A. No permit if temporary
B. A construction stormwater permit and Erosion & Sediment Control plan
C. Only verbal notification to DEQ
D. A wetlands delineation only
✅ B. A construction stormwater permit and Erosion & Sediment Control plan
Explanation: Most jurisdictions require a stormwater permit and BMP plan for sites disturbing ≥1 acre. (Stormwater Permitting: NPDES/1200-C)
SWPPP/ESCPs usually include:
A. Architectural elevations
B. Landscaping spec only
C. BMPs, phasing, stabilization, inspection & maintenance
D. Furniture schedules
✅ C. BMPs, phasing, stabilization, inspection & maintenance
Explanation: Stormwater plans lay out controls, sequencing, inspection frequency, and stabilization criteria. (SWPPP/ESCP Content)
Silt fence works best when installed:
A. Upslope in concentrated flow
B. Across channels
C. Along contour with trench/trench backfill and keyed into soil
D. Laying flat on the ground
✅ C. Along contour with trench/trench backfill and keyed into soil
Explanation: Proper trenching and contour alignment prevent undercutting and bypass flow. (Erosion & Sediment BMPs: Silt Fence)
To prevent sediment tracking onto roads:
A. Hose off trucks in the street
B. Use stabilized construction entrance with rock or mats
C. Speed up exiting vehicles
D. Sweep once a month
✅ B. Use stabilized construction entrance with rock or mats
Explanation: Stabilized entrances reduce mud pickup; street sweeping supports but doesn’t replace stabilization. (BMPs: Track-Out Control)
The most effective long-term erosion control is:
A. Plastic sheeting forever
B. Frequent watering
C. Prompt permanent stabilization (seeding, mulch, sod)
D. Leaving soil bare for inspection visibility
✅ C. Prompt permanent stabilization (seeding, mulch, sod)
Explanation: Vegetative cover prevents raindrop impact and erosion better than short-term measures. (Erosion Control: Stabilization)
Concrete washout water must be:
A. Discharged to storm drains
B. Poured on gravel
C. Collected in a lined washout and properly disposed
D. Left to evaporate on paving
✅ C. Collected in a lined washout and properly disposed
Explanation: High pH washout is a pollutant; lined containment prevents discharge to waters/soil. (Pollution Prevention: Concrete Washout)
Fueling on site should include:
A. Unlined dirt fueling area
B. Spill kits, secondary containment, and supervision
C. Fueling next to storm inlets
D. Leaving hoses pressurized
✅ B. Spill kits, secondary containment, and supervision
Explanation: Good fueling practices prevent spills and enable quick response. (Good Housekeeping & Spill Prevention)
Stockpiles should be managed by:
A. Placing on slopes
B. Leaving uncovered during storms
C. Covering or perimeter controls and locating away from drains
D. Storing in ditches
✅ C. Covering or perimeter controls and locating away from drains
Explanation: Covers and silt fence/wattles prevent erosion and sediment discharge. (BMPs: Stockpile Management)
When a BMP fails during a storm, the contractor should:
A. Wait until the project ends
B. Document and repair/replace promptly
C. Ignore if water is already muddy
D. Remove the BMP
✅ B. Document and repair/replace promptly
Explanation: Permit conditions typically require timely corrective action and documentation. (Inspections & Corrective Actions)
A septic system typically includes:
A. Lift station only
B. Treatment plant with clarifier
C. Septic tank and drainfield
D. Sand filter alone
✅ C. Septic tank and drainfield
Explanation: Typical onsite wastewater consists of a settling tank and subsurface dispersal field. (Sewers & Septic Basics)
Before disturbing ground where a septic is present, contractors should:
A. Drive heavy equipment over drainfields
B. Locate tanks/lines and protect the area from loads
C. Use the drainfield as a staging pad
D. Jet wash laterals
✅ B. Locate tanks/lines and protect the area from loads
Explanation: Overloading can crush tanks or smear soils, ruining function. (Septic Protection During Construction)
Solid waste from demo must be:
A. Burned onsite
B. Buried on property
C. Sent to permitted disposal/recycling facilities
D. Left curbside indefinitely
✅ C. Sent to permitted disposal/recycling facilities
Explanation: Construction & demolition waste must go to authorized facilities; some materials can be recycled. (Solid Waste Management)
“Hazardous waste” is determined by:
A. Smell test
B. Color only
C. Characteristic/listing under RCRA/state rules
D. Project size
✅ C. Characteristic/listing under RCRA/state rules
Explanation: Ignitability, corrosivity, reactivity, toxicity, or listing define regulated hazardous wastes. (Hazardous Waste: Basics)
If the project generates hazardous waste, the contractor should:
A. Store in open buckets
B. Label, keep closed, use compatible containers, and track accumulation times
C. Mix with non-hazardous waste
D. Evaporate solvents
✅ B. Label, keep closed, use compatible containers, and track accumulation times
Explanation: Container management and labeling are core generator requirements. (Hazardous Waste: Container Management)
Universal waste examples include:
A. Concrete and brick
B. Batteries, lamps, mercury-devices
C. Rebar
D. Untreated lumber
✅ B. Batteries, lamps, mercury-devices
Explanation: Universal wastes are common hazardous wastes with streamlined rules to encourage recycling. (Universal Waste)
A “UST” is a tank with:
A. Any aboveground piping
B. Tank volume entirely above grade
C. 10% or more of combined volume underground
D. No piping
✅ C. 10% or more of combined volume underground
Explanation: UST rules apply when ≥10% of the system is underground. (Underground Storage Tanks)
Heating oil tanks (HOTs) are:
A. Always regulated as USTs
B. Sometimes covered by separate state programs
C. Unregulated everywhere
D. Only regulated if >50,000 gallons
✅ B. Sometimes covered by separate state programs
Explanation: Heating-oil tanks often have state-specific requirements distinct from standard USTs. (Heating Oil Tanks)
A suspected UST release first requires:
A. Ignoring until odors fade
B. Immediate release reporting and investigation per rules
C. Flushing with water
D. Backfilling and paving
✅ B. Immediate release reporting and investigation per rules
Explanation: UST programs require prompt reporting, assessment, and corrective actions to prevent groundwater impact. (USTs: Releases & Reporting)
SPCC plans are intended to:
A. Track solid waste tonnage
B. Prevent and respond to oil spills
C. Control asbestos
D. Manage stormwater bacteria
✅ B. Prevent and respond to oil spills
Explanation: Facilities with oil at/above thresholds and exposure risk must implement Spill Prevention, Control, and Countermeasure plans. (Oil Management/SPCC)
For small fuel totes onsite, good practice is to:
A. Store beside inlets
B. Set within secondary containment and under cover when possible
C. Leave valves open
D. Park on steep slopes
✅ B. Set within secondary containment and under cover when possible
Explanation: Containment and weather protection reduce spill risk and stormwater contamination. (Good Housekeeping: Fuel & Oils)
A “No-discharge to storm drain” reminder helps crews because:
A. Storm drains lead to treatment plants
B. Storm drains usually discharge to surface waters without treatment
C. Drains are privately owned
D. It prevents dust
✅ B. Storm drains usually discharge to surface waters without treatment
Explanation: Unlike sanitary sewers, storm systems commonly outfall directly to creeks/rivers. (Storm vs. Sanitary Systems)
Which is not an erosion/sediment control BMP?
A. Straw wattle
B. Silt fence
C. Rock check dam
D. Solvent degreaser
✅ D. Solvent degreaser
Explanation: Degreasers are not BMPs; the others are common controls for sediment-laden runoff. (BMP Identification)
A stabilized slope surface commonly uses:
A. Hydromulch and seed
B. Bare soil
C. Polished concrete
D. Uncompacted spoils
✅ A. Hydromulch and seed
Explanation: Hydromulch/seed or rolled erosion control products stabilize slopes against erosion. (Slope Stabilization)
The best location for a sediment basin is:
A. On the steepest slope
B. In natural low areas where flow converges
C. Over utilities
D. On ridgelines
✅ B. In natural low areas where flow converges
Explanation: Basins capture runoff and allow settling before discharge. (Sediment Basins)
When trenching near waterways, contractors should:
A. Pump turbid water directly to the creek
B. Use dewatering bags, settle water upland, or filter before discharge
C. Ignore dewatering plans
D. Stockpile in the floodway
✅ B. Use dewatering bags, settle water upland, or filter before discharge
Explanation: Dewatering controls remove sediment before release to surface waters. (Dewatering BMPs)
A wetland permit may be needed when:
A. Clearing upland sagebrush only
B. Filling or dredging in wetlands or waters
C. Painting a building
D. Replacing carpet
✅ B. Filling or dredging in wetlands or waters
Explanation: Section 404/401 permits cover discharge of fill or dredged material to waters/wetlands. (Wetlands & Waters Permitting)
The “USACE” role in wetlands is to:
A. Enforce air permits
B. Issue dredge/fill permits under CWA §404
C. Enforce OSHA
D. License abatement contractors
✅ B. Issue dredge/fill permits under CWA §404
Explanation: The Corps issues §404 permits; states issue associated water quality certifications (§401). (Wetlands Permitting)
A good housekeeping practice is to:
A. Store chemicals without labels
B. Keep lids open for convenience
C. Maintain labeled, closed containers and tidy storage
D. Hose spills to the gutter
✅ C. Maintain labeled, closed containers and tidy storage
Explanation: Labeling, closed containers, and neat storage reduce spill risks and violations. (Good Housekeeping)
Secondary containment volume for small totes generally should:
A. Be smaller than the tank
B. Be at least the largest tank + freeboard for rain
C. Equal half the tank volume
D. Not include rainfall
✅ B. Be at least the largest tank + freeboard for rain
Explanation: Standard containment guidance ensures spilled liquid and precipitation don’t overflow. (Containment Basics)
A spill kit should not include:
A. Absorbent pads/booms
B. Disposal bags and PPE
C. Igniters for burning spills
D. Drain covers
✅ C. Igniters for burning spills
Explanation: Spill kits contain absorbents and tools to block drains—not ignition sources. (Spill Response: Equipment)
First step when a spill occurs:
A. Leave it and find the supervisor tomorrow
B. Stop the source and protect drains
C. Call media
D. Pour water on it
✅ B. Stop the source and protect drains
Explanation: Control the source, contain, and then notify per plan/regulatory thresholds. (Spill Response: Steps)
For lead-safe cleaning, use:
A. Dry sweeping
B. HEPA vacuuming and wet wipes
C. Leaf blower
D. Shop broom
✅ B. HEPA vacuuming and wet wipes
Explanation: HEPA plus wet wiping removes fine lead dust safely. (Lead-Safe Cleanup)
Proper asbestos disposal requires:
A. Regular trash bags
B. Double-bagging/labeled leak-tight containers to approved landfill
C. Burning in a barrel
D. Open transport
✅ B. Double-bagging/labeled leak-tight containers to approved landfill
Explanation: ACM must be properly contained, labeled, and taken to authorized facilities. (Asbestos: Disposal)
Who may remove friable ACM?
A. Any crew with N95 masks
B. Licensed asbestos abatement professionals
C. Owner’s nephew
D. Janitorial staff
✅ B. Licensed asbestos abatement professionals
Explanation: Only licensed abatement firms perform friable asbestos removal under strict controls. (Asbestos: Licensing)
A sign of a UST leak is:
A. Rising product inventory
B. Petroleum odors/stained soils, sheen in nearby water, inventory loss
C. Faster fueling
D. Dry wells
✅ B. Petroleum odors/stained soils, sheen in nearby water, inventory loss
Explanation: Visual, olfactory, and inventory indicators may signal releases requiring reporting. (UST Releases: Indicators)
“De minimis” non-stormwater discharges like landscape irrigation are:
A. Always prohibited
B. Often conditionally allowed in permits
C. Treated as industrial wastewater
D. Considered hazardous waste
✅ B. Often conditionally allowed in permits
Explanation: Many permits list allowable non-stormwater discharges with conditions. (Stormwater Permits: Allowable Discharges)
Concrete slurry disposal should:
A. Enter storm drains
B. Be contained, allowed to set, and disposed as solid waste
C. Be dumped in vegetated areas
D. Be used as dust palliative
✅ B. Be contained, allowed to set, and disposed as solid waste
Explanation: High pH slurry must be captured and not discharged to surface waters. (Concrete/Slurry Management)
An “Illicit discharge” means:
A. A permitted discharge
B. Any non-stormwater discharge to the storm system not authorized by permit
C. Any sanitary flow to sewer
D. Drinking water
✅ B. Any non-stormwater discharge to the storm system not authorized by permit
Explanation: Illicit discharges violate stormwater rules and must be eliminated. (IDDE Basics)
Best protection for inlets during grading is:
A. Removing inlet protections for better flow
B. Using inlet filters/sediment bags/curb socks
C. Leaving them open
D. Opening manholes
✅ B. Using inlet filters/sediment bags/curb socks
Explanation: Temporary inlet controls capture sediment before it enters the system. (Inlet Protection)
“Stabilization” is generally required:
A. Within a set time after final or temporary cessation of earthwork
B. Only at project end
C. After the warranty period
D. Never
✅ A. Within a set time after final or temporary cessation of earthwork
Explanation: Permits require stabilization deadlines (e.g., 7–14 days) to prevent erosion. (Stabilization Deadlines)
Good practice for pressure washing is to:
A. Discharge wash water to storm drains
B. Capture and discharge to sanitary or haul if contaminated
C. Do it in rainstorms
D. Add solvents to increase cleaning
✅ B. Capture and discharge to sanitary or haul if contaminated
Explanation: Wash water often contains pollutants and must not enter storm systems. (Wash Water Management)
Who typically signs stormwater inspection reports?
A. Any laborer
B. A designated qualified person
C. Owner only
D. City mayor
✅ B. A designated qualified person
Explanation: Permits require inspections by qualified personnel with documentation retained onsite. (Inspections & Documentation)
Documentation retention for permits typically is:
A. Not required
B. Only until first rain
C. For the permit term plus a specified period
D. Until substantial completion only
✅ C. For the permit term plus a specified period
Explanation: Records must be retained for audits and post-project verification. (Records & Retention)
An example of source control is:
A. Catch basin filter
B. Covering dumpsters and keeping lids closed
C. Downstream sediment trap
D. Street sweeping
✅ B. Covering dumpsters and keeping lids closed
Explanation: Source controls prevent pollution at the origin; structural controls capture after release. (Source vs. Structural Controls)
Noise and work hours are usually governed by:
A. Federal OSHA only
B. Local ordinances/permits
C. EPA Clean Air Act
D. DOT
✅ B. Local ordinances/permits
Explanation: Cities/counties set noise and hour limits; permits often specify restrictions. (Local Environmental/Community Protections)
Material Safety Data Sheets/SDS help crews by:
A. Replacing labels
B. Giving hazard and handling info for chemicals onsite
C. Serving as permits
D. Acting as disposal manifests
✅ B. Giving hazard and handling info for chemicals onsite
Explanation: SDS provide health, flammability, PPE, and spill information. (Chemical Management)
“HazCom” requires contractors to:
A. Hide hazards
B. Train workers on chemical hazards and labeling/SDS
C. Post signs only
D. Remove SDS
✅ B. Train workers on chemical hazards and labeling/SDS
Explanation: OSHA’s Hazard Communication standard mandates training and access to SDS. (Hazard Communication)
Paint/solvent rags should be:
A. Piled in a corner
B. Stored in closed, labeled metal containers
C. Left to dry near heaters
D. Placed in regular trash immediately
✅ B. Stored in closed, labeled metal containers
Explanation: Oily rags can spontaneously combust; closed containers manage fire risk and waste properly. (Flammable Materials Handling)
Good restroom/septic management onsite reduces:
A. Worker morale
B. Pathogen discharges and sanitation issues
C. BMP costs
D. Need for permits
✅ B. Pathogen discharges and sanitation issues
Explanation: Proper placement/servicing prevents overflows to storm drains/soil. (Sanitation Controls)
A “de minimis” fuel drip at a nozzle should be:
A. Ignored
B. Cleaned with absorbents and fixed
C. Washed into the gutter
D. Burned off
✅ B. Cleaned with absorbents and fixed
Explanation: Even small recurring drips accumulate; housekeeping prevents chronic releases. (Spill Prevention)
What should be kept out of storm inlets?
A. Rainwater only
B. Concrete washout, paint, sediment, and chemicals
C. Leaves only
D. Potable water
✅ B. Concrete washout, paint, sediment, and chemicals
Explanation: Non-stormwater pollutants violate permits and harm waterways. (Illicit Discharge Prevention)
The best place to park equipment overnight is:
A. In flood-prone swales
B. On stabilized ground away from drains
C. Inside streams
D. On stockpiles
✅ B. On stabilized ground away from drains
Explanation: Reduces leak/runoff risk and site tracking. (Equipment Management)
Vehicle washing onsite should:
A. Use designated area with containment or sanitary connection
B. Happen in the street
C. Discharge to storm
D. Use solvents liberally
✅ A. Use designated area with containment or sanitary connection
Explanation: Wash water must be controlled; storm discharge is typically prohibited. (Wash Water Controls)
Pesticide/herbicide use near water requires:
A. No label review
B. Following label restrictions and buffer zones
C. Tripling rates for efficacy
D. Applying during high winds
✅ B. Following label restrictions and buffer zones
Explanation: Labels are legally enforceable; protect water quality and habitat. (Chemical Use Near Waters)
A practical way to protect trees during construction is:
A. Cutting roots on one side
B. Installing tree protection fencing at dripline
C. Stockpiling within dripline
D. Parking under canopies
✅ B. Installing tree protection fencing at dripline
Explanation: Fencing preserves root zones and reduces soil compaction. (Vegetation Protection)
Waste disposal records (e.g., manifests) are important because they:
A. Replace contracts
B. Prove proper disposal/recycling and support compliance
C. Eliminate inspections
D. Allow any hauling
✅ B. Prove proper disposal/recycling and support compliance
Explanation: Documentation protects against liability and shows regulatory compliance. (Waste Tracking)
Which action reduces erosion on long slopes?
A. Smoothing to uniform fall only
B. Installing slope breaks (wattles/berms) to shorten flow length
C. Removing all vegetation
D. Channeling all water to one side
✅ B. Installing slope breaks (wattles/berms) to shorten flow length
Explanation: Interrupting flow paths reduces velocity and erosion. (Slope Controls)
A curb inlet next to active grading should have:
A. No protection
B. Rock berm/inlet sock or insert
C. Open grate for faster flow
D. Plastic wrap taped flat
✅ B. Rock berm/inlet sock or insert
Explanation: Temporary inlet protection captures sediment while allowing drainage. (Inlet Protection)
For portable generators, a simple pollution prevention step is:
A. Leaving them on bare soil
B. Placing drip pans/absorbent pads beneath
C. Refueling when running
D. Storing fuel on slopes
✅ B. Placing drip pans/absorbent pads beneath
Explanation: Captures leaks from engines and fittings. (Small Equipment BMPs)
Demolition dust can be minimized by:
A. Dry mechanical breakup
B. Wet suppression and staged removal
C. Leaf blowers
D. Working only in wind
✅ B. Wet suppression and staged removal
Explanation: Water spray and methodical demo reduce airborne PM. (Demolition Dust Control)
A “track-out pad” typically consists of:
A. Mulch
B. Large rock (e.g., 3–6") over geotextile
C. Sand only
D. Plastic
✅ B. Large rock (e.g., 3–6") over geotextile
Explanation: The rock knocks mud from tires; fabric prevents embedding. (Track-Out Pads)
Sanitary sewer connections are intended for:
A. Stormwater
B. Toilet/handwash and certain captured wash waters per approval
C. Fuel spills
D. Concrete washout
✅ B. Toilet/handwash and certain captured wash waters per approval
Explanation: Sanitary systems treat wastewater; pre-approval may be needed for certain captured flows. (Storm vs. Sanitary)
A “NOI” in stormwater permitting is a:
A. Notice of Inspection
B. Notice of Intent to be covered under a general permit
C. Notice of Infraction
D. Notice of Insurance
✅ B. Notice of Intent to be covered under a general permit
Explanation: Filing an NOI requests coverage under general construction stormwater permits. (Permitting: NOI/Termination)
Permit termination often requires:
A. Bare soil
B. Removing all BMPs while slopes are unstabilized
C. Final stabilization, removal of temporary controls, and documentation
D. Leaving controls indefinitely
✅ C. Final stabilization, removal of temporary controls, and documentation
Explanation: Stabilized site and paperwork are needed to close permit coverage. (Close-Out/Termination)
“Good housekeeping” means:
A. Hiding waste
B. Clean, contained, labeled, and organized materials/wastes
C. Only weekly cleanup
D. Pushing debris into drains
✅ B. Clean, contained, labeled, and organized materials/wastes
Explanation: Housekeeping minimizes spill and discharge risks. (Good Housekeeping)
Painting outdoors should include:
A. Spraying in wind
B. Using ground covers/containment and preventing overspray
C. Washing guns into storm drains
D. Storing open buckets outside
✅ B. Using ground covers/containment and preventing overspray
Explanation: Prevents paint chips and liquids from entering environment. (Painting & Coatings BMPs)
For saw-cut slurry on pavement:
A. Let it flow to inlets
B. Vacuum or berm/capture and dispose properly
C. Hose to gutter
D. Dry sweep only
✅ B. Vacuum or berm/capture and dispose properly
Explanation: Slurry has fine particulates and high pH—capture is required. (Pavement Work BMPs)
If a stream crossing is unavoidable, use:
A. Unprotected fords
B. Temporary bridge or culvert with bank protection
C. Random rock fill
D. Vehicle washing in stream
✅ B. Temporary bridge or culvert with bank protection
Explanation: Engineered crossings minimize sediment and habitat disturbance. (In-Water Work Practices)
Protecting cultural resources means:
A. Ignoring artifacts
B. Stopping work and notifying authorities if discoveries occur
C. Collecting souvenirs
D. Excavating deeper
✅ B. Stopping work and notifying authorities if discoveries occur
Explanation: Laws protect cultural/historic resources; discovery protocols are required. (Environmental/Cultural Compliance)
“Universal waste” lamps should be stored:
A. Uncontained outdoors
B. In closed, labeled boxes to prevent breakage
C. Loose on the floor
D. In open bins
✅ B. In closed, labeled boxes to prevent breakage
Explanation: Prevents mercury releases and meets storage rules. (Universal Waste: Lamps)
Concrete truck chute washout must be:
A. Done over storm inlets
B. Performed at lined washout areas
C. On unprotected soil
D. In creeks
✅ B. Performed at lined washout areas
Explanation: Lined areas confine high pH residues. (Concrete Washout BMP)
Tracking compliance is aided by:
A. Skipping inspections
B. Using checklists and photo logs
C. Verbal checks only
D. Post-project memory
✅ B. Using checklists and photo logs
Explanation: Standardized forms and photos create defensible records. (Documentation Practices)
If wind picks up during dust-generating work, do this:
A. Proceed faster
B. Pause, increase water, add wind breaks, or reschedule
C. Remove water trucks
D. Open burning
✅ B. Pause, increase water, add wind breaks, or reschedule
Explanation: Adjusting operations prevents offsite dust impacts. (Air Quality: Windy Conditions)
A good dumpster practice is to:
A. Leave lids open
B. Overfill
C. Cover and keep lids closed; fix leaks
D. Store over drains
✅ C. Cover and keep lids closed; fix leaks
Explanation: Keeps rain out and trash in, preventing leachate and litter. (Solid Waste BMPs)
Oily water in secondary containment after rain should be:
A. Pumped to storm
B. Discharged if it looks clear
C. Skimmed/absorbed and disposed properly; discharge only clean water per rules
D. Ignored
✅ C. Skimmed/absorbed and disposed properly; discharge only clean water per rules
Explanation: Mixed oil/rainwater must be handled to avoid sheen discharges. (Containment Maintenance)
A permit tee-up meeting helps by:
A. Creating more paperwork
B. Aligning owner/GC/subs on permit conditions, BMP roles, and schedules
C. Replacing training
D. Eliminating inspections
✅ B. Aligning owner/GC/subs on permit conditions, BMP roles, and schedules
Explanation: Early alignment avoids gaps in responsibility and timing. (Project Kickoff & Roles)
“Track-out” means:
A. Sediment tracked onto paved roads
B. Oil on soil
C. Dust in air
D. Litter in bins
✅ A. Sediment tracked onto paved roads
Explanation: Track-out requires stabilized exits and street sweeping. (Track-Out Control)
The first inspection after a big storm should:
A. Be skipped
B. Focus on BMP performance and needed repairs
C. Only check paperwork
D. Remove all controls
✅ B. Focus on BMP performance and needed repairs
Explanation: Storm events test controls; prompt fixes prevent violations. (Post-Storm Inspections)
Portable toilets should be placed:
A. Over drains
B. On level, protected ground away from storm inlets
C. In ditches
D. In channels
✅ B. On level, protected ground away from storm inlets
Explanation: Prevents accidental tip-over discharges. (Sanitation Placement)
Pressure-treated lumber waste typically:
A. Is hazardous waste by default
B. Must follow local disposal rules and not be burned
C. Can be burned onsite
D. Can go to compost
✅ B. Must follow local disposal rules and not be burned
Explanation: Treated wood contains preservatives—burning/disposal rules apply. (Solid Waste: Treated Wood)
For minor sawcutting in a city street, you should:
A. Skip permits
B. Obtain right-of-way permits and traffic control plans as required
C. Work at noon without notice
D. Discharge slurry to gutters
✅ B. Obtain right-of-way permits and traffic control plans as required
Explanation: Municipal ROW work triggers permits and environmental conditions. (Local/ROW Requirements)
A “closed container” rule means:
A. Leave lids loose for venting
B. Keep waste and chemical containers sealed when not in use
C. Remove labels
D. Store outside, open
✅ B. Keep waste and chemical containers sealed when not in use
Explanation: Prevents evaporation, spills, and unauthorized discharges. (Container Management)
A Final Stabilization condition often includes:
A. 70–80% uniform vegetative cover or equivalent non-erosive surface
B. Bare soil with BMPs removed
C. One grass clump every 20 feet
D. Gravel piles
✅ A. 70–80% uniform vegetative cover or equivalent non-erosive surface
Explanation: Permits define stabilization criteria to allow termination. (Permit Termination Criteria)
When subcontractors perform BMP work, the GC should:
A. Assume they know the permit
B. Provide permit training/briefings and oversight
C. Avoid coordination
D. Let subs file separate permits
✅ B. Provide permit training/briefings and oversight
Explanation: The permit holder is responsible for site-wide compliance and coordination. (Roles & Responsibilities)
Why document corrective actions?
A. Optional
B. Shows proactive compliance and satisfies permit reporting
C. Replaces inspections
D. Eliminates enforcement
✅ B. Shows proactive compliance and satisfies permit reporting
Explanation: Written corrective action logs demonstrate timely response to issues—key during audits. (Inspections & Corrections)
1. The term building exterior shell is also known as:
A. Structural frame
B. Building envelope
C. Roof diaphragm
D. Bearing wall
✅ B. Building envelope (p. 12-1)
The building exterior shell — or envelope — separates the conditioned and unconditioned environments and resists air, water, heat, and noise transfer.
2. The major purpose of the building exterior shell is to:
A. Create insulation only
B. Protect occupants from rain only
C. Protect the building at its exterior boundaries and provide a suitable interior
D. Prevent noise entirely
✅ C. Protect exterior and create suitable interior (p. 12-1)
It acts as the barrier between the indoors and the elements while ensuring comfort inside.
3. Oregon adopted new residential construction codes addressing moisture intrusion in:
A. 2005
B. 2007
C. 2011
D. 2013
✅ C. 2011 (p. 12-1)
The 2011 residential code update introduced new standards to reduce moisture-related defects.
4. The building exterior shell should provide all except:
A. Weather protection
B. Energy efficiency
C. Interior comfort
D. Load-bearing design strength
✅ D. Load-bearing design strength (p. 12-1)
Structural strength comes from framing; the shell focuses on weather, temperature, and air-barrier functions.
5. Components of a complete exterior shell include:
A. HVAC systems
B. Decks, roofs, exterior walls, windows/doors, and foundations
C. Interior partitions
D. Appliances
✅ B. Decks + roofs + walls + openings + foundations (p. 12-1)
These elements collectively resist air, water, and thermal intrusion.
6. Water can damage a building in which three physical states?
A. Liquid, gas, and plasma
B. Solid, liquid, and gas (vapor)
C. Ice, steam, and humidity only
D. Frozen and liquid only
✅ B. Solid, liquid, gas (p. 12-1)
Water appears as ice, liquid, and vapor — each capable of damaging materials differently.
7. Snow and ice cause damage when they:
A. Evaporate slowly
B. Puddle and back up under shingles and underlayment
C. Provide extra insulation
D. Freeze only on windows
✅ B. Back up under shingles (p. 12-1)
Freeze-thaw cycles push water beneath roofing materials, causing leaks.
8. Rain can cause problems mainly when:
A. Siding is properly graded
B. Improper grading or flashing directs water toward walls or crawlspaces
C. Walls are sealed
D. Gutters overflow once
✅ B. Improper grading/flashing → water infiltration (p. 12-2)
Incorrect grading and flashing drive water into building cavities or crawlspaces.
9. Back-splash occurs when:
A. Rainwater penetrates siding seams
B. Water bounces upward from the ground onto lower walls
C. Groundwater seeps laterally
D. Ice dams melt
✅ B. Water bouncing upward onto walls (p. 12-2)
Splashing rain near soil level wets siding and can lead to rot.
10. Condensation damage is caused by:
A. Liquid leaks
B. Vapor diffusion from high to low concentration
C. Only roof leaks
D. Surface dirt
✅ B. Vapor diffusion (p. 12-2)
Water vapor migrates through walls when warm, moist air meets cooler surfaces, condensing inside.
11. Capillary action pulls moisture into concrete because:
A. Concrete repels water
B. Concrete is porous and acts like a sponge
C. Gravity only
D. It occurs in all soils equally
✅ B. Concrete absorbs water by capillarity (p. 12-2)
Concrete draws moisture upward like a wick; damp-proofing breaks this path.
12. The Oregon Residential Code (R703.1.1) requires exterior walls to have:
A. Only paint
B. Exterior veneer and water-resistive barrier
C. Interior vapor barrier only
D. Brick veneer only
✅ B. Exterior veneer + water-resistive barrier (p. 12-2)
All walls must include cladding and WRB to shed and drain water.
13. The code requires a rainscreen system to create:
A. A vapor barrier
B. A capillary break and drainage plane
C. A sound barrier
D. Extra insulation
✅ B. Capillary break + drainage (p. 12-2)
The gap behind siding lets water drain and air circulate to dry sheathing.
14. The minimum air space behind siding for a rainscreen is:
A. 1/16 inch
B. 1/8 inch (3 mm)
C. 1/4 inch
D. 1 inch
✅ B. 1/8 inch (p. 12-2)
A ⅛-inch gap between the WRB and veneer is required to allow drainage and evaporation.
15. The ⅛-inch gap may be created using:
A. Insulation batts
B. Non-corrodible furring strips, drainage mats or boards
C. Foam sealant
D. Metal straps
✅ B. Furring or drainage materials (p. 12-2)
These systems maintain the drain space and allow drying behind cladding.
16. The code does not require a ⅛-inch gap if:
A. Vinyl siding is used
B. The wall has 75 percent efficient house wrap meeting code
C. Masonry is used
D. EIFS is used
✅ B. House-wrap ≥ 75 % efficiency (p. 12-2)
Certain house wraps achieve drainage standards without a separate air gap.
17. Oregon law prohibits using EIFS (“synthetic stucco”) on residential construction unless:
A. Drainage for accumulated moisture is provided
B. The builder paints over it
C. It is under a porch
D. It is thin coated
✅ A. Drainage is included (p. 12-2)
EIFS without drainage traps moisture and is banned on residential projects without proper drainage.
18. Flashing must be installed with what property?
A. Water-absorbent
B. Corrosion-resistant
C. Paintable surface
D. Flexible rubber only
✅ B. Corrosion-resistant (p. 12-2 – 12-3)
Flashing at key openings prevents leaks and must resist rust and electrochemical damage.
19. Flashing is required at which locations?
A. Only chimneys
B. Window/door openings, intersections of materials, copings, sills, and roof-wall connections
C. Basements
D. Floors
✅ B. Openings and intersections (p. 12-2 to 12-3)
Flashing is installed where materials meet and moisture can enter.
20. Galvanic corrosion occurs when:
A. Two similar metals contact
B. Dissimilar metals contact in presence of moisture
C. Paint is applied incorrectly
D. Steel is galvanized twice
✅ B. Different metals contact + moisture (p. 12-3)
Metals of different electrical potentials create a battery effect, causing one to corrode.
21. According to the galvanic scale, which metal is most likely to corrode?
A. Gold
B. Copper
C. Zinc
D. Stainless steel
✅ C. Zinc (p. 12-3)
Zinc is at the top (“most active”) of the galvanic scale and corrodes easily.
22. Which metal is least likely to corrode in the galvanic scale?
A. Silver
B. Copper
C. Gold
D. Aluminum
✅ C. Gold (p. 12-3)
Gold is the most cathodic (passive) metal and resists corrosion best.
23. Aluminum flashing should not touch:
A. Brick
B. Pressure-treated wood
C. Cedar siding
D. Fiberglass panels
✅ B. Pressure-treated wood (p. 12-3)
Pressure-treated lumber contains copper salts that corrode aluminum rapidly.
24. Saltwater spray primarily damages:
A. Copper
B. Galvanized steel and uncoated aluminum
C. Gold
D. Plastic
✅ B. Galvanized steel & aluminum (p. 12-3)
Salt accelerates oxidation; coastal projects need stainless steel or painted aluminum.
25. Windows and doors must be integrated with:
A. Wall paint
B. Weather-resistive barriers and flashing
C. Caulk alone
D. Foam insulation
✅ B. WRB and flashing (p. 12-3)
Proper integration ensures openings resist wind-driven rain and prevent leaks.
26. Window sills must include:
A. Horizontal flashing sloped to interior
B. Caulk only
C. Pan flashing that drains to the exterior
D. Spray foam barriers
✅ C. Pan flashing to exterior (p. 12-3)
A drainable pan flashing diverts leaks outward before they reach framing.
27. Deck assemblies are considered:
A. Low-risk components
B. One of the most challenging areas to waterproof
C. Not part of the shell
D. Maintenance-free
✅ B. Most challenging to waterproof (p. 12-3)
Flashing and drainage details are critical where decks attach to buildings.
28. Attached decks should drain:
A. Toward the building
B. Away from the building
C. Inward to the crawlspace
D. Vertically down posts only
✅ B. Drain away (p. 12-3)
Proper slope and flashing prevent deck-to-wall water intrusion.
29. Deck ledger connections must include:
A. Adhesive sealant only
B. Flashing where house and deck connect
C. No metal parts
D. Vinyl tape only
✅ B. Flashing at ledger connection (p. 12-3)
This is a common leak location requiring metal or membrane flashing.
30. Roofs account for roughly what percent of building problems linked to water intrusion?
A. 20 %
B. 40 %
C. 60 %
D. 80 %
✅ B. ≈ 40 % (p. 12-3)
Improper roof flashing and drainage cause nearly half of moisture-related issues.
31. The most common cause of roof failures is:
A. Material defects
B. Improper installation and caulk used instead of flashing
C. Snow load
D. UV exposure only
✅ B. Improper installation/caulking (p. 12-3)
Sealants are temporary; missing flashing causes long-term leaks.
32. Roof decks must be covered with:
A
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Absolutely — continuing from question 32 through the full set of 90, same detailed style and citations:
32. Roof decks must be covered with:
A. Only underlayment
B. Approved coverings to prevent water penetration
C. Paint or primer
D. Vapor barriers only
✅ B. Approved coverings (p. 12-3)
All roof decks require approved coverings per code to prevent moisture intrusion and deterioration of materials.
Chapter 8
33. Roof flashing is needed at:
A. The ridge only
B. All roof-wall connections and penetrations
C. Skylights only
D. Gutter ends only
✅ B. Roof-wall and penetration points (p. 12-3)
Flashing keeps water from entering at joints or interruptions in roofing materials.
Chapter 8
34. Roof overhangs help protect against:
A. Structural loading
B. Wall moisture and runoff intrusion
C. UV light only
D. Air infiltration only
✅ B. Wall moisture and runoff (p. 12-3)
Overhangs direct rainwater away from walls and openings, reducing moisture exposure.
Chapter 8
35. In cold climates, builders should install:
A. Vapor barriers on walls
B. Ice dams prevention systems
C. Thicker shingles
D. Solar panels
✅ B. Ice dam prevention systems (p. 12-3)
Ice dams block water drainage, forcing meltwater under shingles and causing leaks.
Chapter 8
36. Kick-out flashing is used where:
A. Walls meet eaves
B. Roof edges meet vertical walls to divert runoff into gutters
C. Roof ridges meet valleys
D. Gutters drain into downspouts
✅ B. Roof edge-to-wall intersections (p. 12-3)
Kick-out flashing channels water away from siding, preventing saturation.
Chapter 8
37. Roofs should be protected with all except:
A. Overhangs
B. Valley flashing
C. Ice dam prevention
D. Caulking instead of flashing
✅ D. Caulk instead of flashing (p. 12-3)
Sealants are not substitutes for properly designed and integrated flashing.
Chapter 8
38. Foundation walls protect against:
A. Noise transmission
B. Water penetration into crawlspaces/basements
C. Structural uplift
D. Air leaks
✅ B. Water penetration (p. 12-3)
Proper waterproofing, grading, and drainage keep basements and crawlspaces dry.
Chapter 8
39. Cross-ventilation openings in crawlspaces should be:
A. Placed on opposing walls
B. Located on one side only
C. Eliminated entirely
D. Covered with insulation
✅ A. Opposing walls (p. 12-3)
Cross-ventilation equalizes humidity and reduces condensation under floors.
Chapter 8
40. Insulation in crawlspaces should:
A. Trap water
B. Be installed to allow runoff and prevent pooling
C. Be wrapped in vapor-impermeable film
D. Rest directly on soil
✅ B. Allow runoff and prevent pooling (p. 12-3)
Wet insulation loses R-value and promotes mold; keep it dry with drainage and airflow.
Chapter 8
41. Builders should install drains around foundations to:
A. Reduce concrete cost
B. Prevent water accumulation and saturation
C. Warm basements
D. Feed irrigation systems
✅ B. Prevent saturation (p. 12-3)
Foundation drains divert subsurface water away from walls and slabs.
Chapter 8
42. In areas with high water tables or poor soils, foundations must be:
A. Only painted
B. Waterproofed (not just damp-proofed)
C. Left unsealed
D. Ventilated only
✅ B. Waterproofed (p. 12-3)
Damp-proofing resists minor moisture; waterproofing is needed for severe soil conditions.
Chapter 8
43. Builders in radon-affected Oregon counties must take:
A. Legal action
B. Additional foundation measures for radon control
C. No special action
D. Install dehumidifiers
✅ B. Radon control measures (p. 12-3)
Counties include Baker, Clackamas, Hood River, Multnomah, Polk, Washington, and Yamhill.
Chapter 8
44. Oregon’s building task force was created in:
A. 2001
B. 2005
C. 2007
D. 2011
✅ B. 2005 (p. 12-1)
The Construction Claims Task Force addressed rising moisture-damage lawsuits and insurance costs.
Chapter 8
45. BEST training stands for:
A. Building Envelope Safety Training
B. Building Exterior Shell Training
C. Building Energy System Test
D. Base Exterior System Testing
✅ B. Building Exterior Shell Training (p. 12-1)
Mandatory training covers moisture protection, ventilation, and shell construction best practices.
Chapter 8
46. Contractors began completing BEST training for license renewal starting in:
A. 2007
B. 2010
C. 2011
D. 2013
✅ C. 2011 (p. 12-1)
The CCB required continuing education including BEST; in 2013 it became part of pre-license training.
Chapter 8
47. The main cause of many lawsuits in early 2000s construction was:
A. Code changes
B. Water intrusion and building envelope failures
C. Overbuilt insulation
D. Labor shortages
✅ B. Water intrusion defects (p. 12-1)
Widespread water damage claims led to insurance crises and new code focus.
Chapter 8
48. The term diffusion in building science describes:
A. Heat loss
B. Movement of water vapor through materials from high to low concentration
C. Airflow leakage
D. Rain splash
✅ B. Vapor movement (p. 12-2)
Diffusion drives moisture into walls where vapor barriers and ventilation must control it.
Chapter 8
49. The BEST program was developed primarily to:
A. Teach framing
B. Reduce moisture intrusion and promote proper shell installation
C. Train inspectors only
D. Address energy efficiency exclusively
✅ B. Reduce moisture issues (p. 12-1)
Training focused on drainage, flashing, and ventilation improvements.
Chapter 8
50. The primary reason EIFS systems failed in Oregon homes was:
A. Structural collapse
B. Moisture trapped behind synthetic stucco with no drainage
C. Improper painting
D. Expansion from heat
✅ B. Moisture entrapment behind EIFS (p. 12-2)
Trapped water caused rot and mold, leading to code restrictions.
Chapter 8
51. Groundwater can saturate concrete by which mechanism?
A. Gravity only
B. Osmosis
C. Capillary rise through porous material
D. Condensation
✅ C. Capillary rise (p. 12-2)
Moisture migrates upward through soil and concrete, requiring capillary breaks.
Chapter 8
52. What’s the best way to prevent capillary action in foundations?
A. Paint only
B. Install a capillary break like a damp-proof membrane
C. Add vents
D. Raise wall height
✅ B. Damp-proof membrane (p. 12-2)
Capillary breaks stop moisture from wicking into framing or finishes.
Chapter 8
53. Builders must install corrosion-resistant flashing:
A. At all gutters
B. At window/door openings, wall intersections, roof-wall joints, copings, and built-in gutters
C. Only below grade
D. Only on roofs
✅ B. Flashing at key joints (p. 12-2 to 12-3)
Required at all penetrations or transitions where water could enter.
Chapter 8
54. The galvanic scale ranks metals by:
A. Weight
B. Tendency to corrode in presence of moisture
C. Cost
D. Conductivity
✅ B. Corrosion tendency (p. 12-3)
The further apart two metals are on the scale, the faster corrosion occurs when in contact.
Chapter 8
55. Aluminum flashing should be separated from copper by:
A. Paint
B. Peel-and-stick flashing tape
C. Galvanized nails
D. Silicone
✅ B. Peel-and-stick barrier (p. 12-3)
Direct contact causes galvanic corrosion; a barrier isolates the dissimilar metals.
Chapter 8
56. Windows must be rated to:
A. Match siding color
B. Withstand environmental conditions where installed
C. Block all sound
D. Provide ventilation only
✅ B. Withstand local conditions (p. 12-3)
Proper ratings ensure wind, rain, and temperature resistance for specific zones.
Chapter 8
57. Window leaks most often occur at:
A. Glass sealant
B. Failed integration of flashing or WRB
C. Handles
D. Mullion joints
✅ B. Flashing integration failure (p. 12-3)
Poor integration allows water intrusion behind window units.
Chapter 8
58. For decks, sealing penetrations helps prevent:
A. Expansion
B. Water intrusion through fasteners or rail posts
C. Corrosion
D. Warping
✅ B. Water intrusion at penetrations (p. 12-3)
Every fastener hole or railing post is a potential leak path.
Chapter 8
59. Roof valleys require:
A. Only caulk
B. Properly lapped valley flashing
C. Ice shield only
D. Paint
✅ B. Lapped valley flashing (p. 12-3)
Valleys concentrate runoff and must have properly installed flashing layers.
Chapter 8
60. Foundation drainage systems prevent:
A. Condensation
B. Hydrostatic pressure buildup
C. Heat loss
D. Air infiltration
✅ B. Hydrostatic pressure (p. 12-3)
Drains relieve subsurface water pressure, preventing leaks and cracks.
Chapter 8
61. Builders should install foundation drains:
A. Only for basements
B. Around all enclosing foundation walls
C. Only where codes require
D. Only near driveways
✅ B. Around all foundations (p. 12-3)
Even crawlspaces benefit from perimeter drains to control moisture.
Chapter 8
62. Foundations in radon zones must include:
A. Plastic vapor barriers only
B. Special venting and sealing details
C. Added flashing
D. Spray foam
✅ B. Venting and sealing (p. 12-3)
Radon-resistant construction involves sealed joints and passive vent stacks.
Chapter 8
63. Oregon contractors can lose their license for:
A. Missed payments
B. Failing to properly apply or install exterior materials causing building failure
C. Advertising errors
D. Short staffing
✅ B. Faulty exterior installation (p. 12-4)
State law holds contractors financially responsible for material and system failures.
Chapter 8
64. A typical failure in exterior walls is:
A. Air leaks through attic vents
B. Water leakage at wall penetrations or dissimilar materials
C. Drywall cracking
D. Loose siding nails
✅ B. Water leakage at penetrations (p. 12-4)
Improper sealing at joints or mixed materials leads to infiltration.
Chapter 8
65. A common cause of wall moisture failure is:
A. Extra insulation
B. Improperly installed flashing or missing capillary breaks
C. Paint type
D. Wood swelling
✅ B. Missing flashing/capillary break (p. 12-4)
Both allow water to remain trapped instead of draining.
Chapter 8
66. A frequent window assembly failure results from:
A. Oversized panes
B. Failed sealant joints and lack of pan flashing
C. Heavy curtains
D. Vent screens
✅ B. Failed sealant/pan flashing (p. 12-4)
Improper detailing at sills or jambs allows leaks and condensation.
Chapter 8
67. Deck assembly failures often stem from:
A. Missing guardrails
B. Improper waterproofing or missing flashing at ledger boards
C. Excess screws
D. Overly steep slope
✅ B. Waterproofing/flashing issues (p. 12-4)
Deck-to-wall interfaces are vulnerable to rot if not sealed.
Chapter 8
68. Roof assembly problems frequently include:
A. Incorrect insulation R-value
B. Voids, breaches, or inadequate drainage
C. Too few vents
D. Over-ventilation
✅ B. Leaks or poor drainage (p. 12-4)
Improper overlaps, missing flashing, or ponding lead to roof leaks.
Chapter 8
69. Foundation failures commonly result from:
A. Air leaks
B. Water leakage, poor damp-proofing, or missing vapor retarders
C. Structural overload
D. Heat transfer
✅ B. Moisture-related defects (p. 12-4)
Missing damp-proof membranes cause saturation and structural damage.
Chapter 8
70. Air leakage and condensation appear in which categories of failure?
A. Exterior walls only
B. All building shell components (walls, windows, decks, roofs, foundations)
C. Roofs only
D. Basements only
✅ B. All components (p. 12-4)
Air leaks create condensation within cavities across multiple assemblies.
Chapter 8
71. Improperly graded soil can lead to:
A. Heat loss
B. Rainwater directed toward building foundation
C. Better insulation
D. Dry basements
✅ B. Poor drainage toward foundation (p. 12-2)
Sloping grade away from buildings prevents ponding and infiltration.
Chapter 8
72. Builders should not rely on sealants as a substitute for:
A. Paint
B. Proper flashing
C. House wrap
D. Insulation
✅ B. Flashing (p. 12-3)
Sealants degrade; mechanical flashing provides durable protection.
Chapter 8
73. Roof decks must include:
A. Felt underlayment only
B. Flashing at roof-wall intersections and penetrations
C. Spray foam
D. Drain holes only
✅ B. Flashing at intersections/penetrations (p. 12-3)
Roofs should shed water at every joint and protrusion.
Chapter 8
74. The task force recommended which new educational requirement?
A. Annual financial reporting
B. Contractor training on moisture protection systems (BEST)
C. Licensing exams only
D. Apprentice training
✅ B. BEST training (p. 12-1)
Contractors had to demonstrate knowledge of building envelope moisture control.
74. The task force recommended which new educational requirement?
A. Annual financial reporting
B. Contractor training on moisture protection systems (BEST)
C. Licensing exams only
D. Apprentice training
✅ B. BEST training (p. 12-1)
Contractors had to demonstrate knowledge of building envelope moisture control.
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Continuing from question 74 — here are the remaining questions up to 90 with explanations and references:
75. The BEST program’s purpose was to help contractors:
A. Increase marketing
B. Prevent moisture intrusion and construction defects
C. Install insulation
D. Reduce taxes
✅ B. Prevent moisture intrusion and defects (p. 12-1)
BEST addressed widespread water damage claims by teaching better moisture-management practices.
Chapter 8
76. Moisture inside a wall cavity that cannot dry may result in:
A. Paint adhesion
B. Mold, fungus, and structural decay
C. Better humidity
D. Soundproofing
✅ B. Mold and structural decay (p. 12-2)
Moisture trapped behind sheathing causes rot and health hazards from fungal growth.
Chapter 8
77. Concrete’s capillary absorption draws moisture:
A. Downward only
B. Upward from soil and laterally through pores
C. Only when cracks are visible
D. After paint is applied
✅ B. Upward/lateral via pores (p. 12-2)
Concrete acts like a sponge; damp-proofing blocks water’s upward path.
Chapter 8
78. Condensation issues worsen when:
A. Humidity is low indoors
B. Warm moist air meets cold surfaces
C. Air pressure is balanced
D. Building is ventilated well
✅ B. Warm moist air hitting cool surfaces (p. 12-2)
Vapor condenses, especially in unvented attics or improperly insulated walls.
Chapter 8
79. The rain screen principle is designed primarily to:
A. Improve insulation
B. Drain and dry any water that gets behind siding
C. Hold paint longer
D. Provide structural strength
✅ B. Drain and dry water behind cladding (p. 12-2)
Oregon’s rainscreen code requires space between cladding and WRB for drainage and evaporation.
Chapter 8
80. A water-resistive barrier (WRB) functions to:
A. Trap vapor inside
B. Stop liquid water while allowing vapor to escape
C. Replace insulation
D. Act as a vapor barrier
✅ B. Repel water, permit drying (p. 12-2)
Housewraps resist bulk water while remaining vapor-permeable for drying.
Chapter 8
81. When dissimilar metals are used together in flashing, the reaction that occurs is:
A. Oxidation only
B. Galvanic corrosion
C. Electrostatic adhesion
D. Thermal expansion
✅ B. Galvanic corrosion (p. 12-3)
One metal corrodes faster in presence of moisture and electrical potential difference.
Chapter 8
82. The “galvanic scale” diagram ranks metals from:
A. Hardest to softest
B. Most likely to corrode to least likely to corrode
C. Most expensive to least expensive
D. Hottest to coldest
✅ B. Corrosion likelihood (p. 12-3)
At the top are “active” metals like zinc; bottom are noble metals like gold.
Chapter 8
83. Saltwater spray accelerates:
A. Rust prevention
B. Corrosion of steel and aluminum
C. UV degradation only
D. Surface drying
✅ B. Steel/aluminum corrosion (p. 12-3)
Marine environments require stainless or coated metals to resist salt oxidation.
Chapter 8
84. Common window and door assembly failures include:
A. Warped frames
B. Inadequate flashing and weather resistance
C. Heavy glazing
D. Oversized headers
✅ B. Flashing/weather failures (p. 12-4)
Missing or misapplied flashing and seals are major causes of leaks and condensation.
Chapter 8
85. Improper window installation often leads to:
A. Wall cracking
B. Moisture ingress and trapped condensation
C. Noise
D. Sagging beams
✅ B. Moisture ingress (p. 12-4)
Improperly sealed windows allow vapor entry, causing fogging and rot.
Chapter 8
86. A typical deck failure cause is:
A. Structural overdesign
B. Flashing omission or improper waterproofing
C. Too many fasteners
D. UV light
✅ B. Flashing/waterproofing omitted (p. 12-4)
Without flashing, decks trap water at wall ledgers, causing decay.
Chapter 8
87. Roof failures are often due to:
A. Poor insulation
B. Improper flashing and unsealed penetrations
C. Shingle color
D. Low slope
✅ B. Flashing and penetration issues (p. 12-4)
Voids, missing valley flashings, and inadequate drainage lead to leaks.
Chapter 8
88. Foundations fail most frequently because of:
A. Air pressure
B. Water leaks or missing damp-proofing
C. Too little rebar
D. Chemical imbalance
✅ B. Missing damp-proofing (p. 12-4)
Without waterproof barriers, soil moisture saturates walls and slabs.
Chapter 8
89. Oregon law holds contractors financially liable for:
A. Energy inefficiency
B. Improper installation of construction materials and systems
C. Equipment rental
D. Scheduling errors
✅ B. Improper installation (p. 12-4)
Poor workmanship on building envelopes can lead to financial and license penalties.
Chapter 8
90. The Final Inspection summary emphasizes that preventing water intrusion depends on:
A. Painting frequently
B. Proper design, materials selection, and correct installation of building components
C. Larger gutters
D. More insulation
✅ B. Correct materials and installation (p. 12-5)
Durable exterior shells require knowledge of flashing, drainage, and corrosion control across all assemblies.
Chapter 8
1. The main reason contractors need financial management is to:
A. Track employee hours
B. Know if the company is profitable and financially healthy
C. Pay fewer taxes
D. Meet insurance requirements
✅ B. Know profitability and financial health (p. 13-1)
Financial statements such as balance sheets, income statements, and cash flow reports reveal whether a company earns profits and can sustain operations.
2. The three key financial reports every business should prepare are:
A. Invoice list, timesheet, work orders
B. Balance sheet, income statement, cash flow statement
C. Payroll summary, ledger, W-2 forms
D. Budget, purchase orders, receipts
✅ B. Balance sheet, income statement, and cash flow (p. 13-1)
These “report cards” show assets/liabilities, profitability, and cash movement.
3. The balance sheet shows:
A. Profit trends
B. Cash flow over time
C. Assets, liabilities, and owner’s equity at a specific point in time
D. Payroll deductions
✅ C. Assets, liabilities, and equity at a point in time (p. 13-1)
It provides a snapshot of financial condition, summarizing what the business owns and owes.
4. The income statement reports:
A. Assets and liabilities
B. Cash inflows and outflows
C. Revenues, expenses, and net profit over a period of time
D. Tax payments only
✅ C. Revenues, expenses, and profit (p. 13-2)
It’s also called a profit-and-loss (P&L) statement.
5. The cash flow statement measures:
A. Debts
B. Sources and uses of cash during a period
C. Payroll taxes
D. Retained earnings
✅ B. Sources and uses of cash (p. 13-2)
Cash flow statements track operations, financing, and investing activities.
6. “Builder Brothers” was formed with capital contributed by:
A. A bank loan only
B. Bob, Joe, and Suzy plus a $20,000 loan from their father
C. Only the father
D. The CCB
✅ B. Family investment + $20,000 loan (p. 13-1)
Owner equity and debt together financed the new business startup.
7. On July 1, 2015, Builder Brothers’ balance sheet listed assets of $30,000 cash and liabilities of $20,000. What was owners’ equity?
A. $5,000
B. $20,000
C. $10,000
D. $50,000
✅ C. $10,000 (p. 13-1)
Assets − Liabilities = Equity; $30,000 − $20,000 = $10,000.
8. During the first two months, Builder Brothers earned income of:
A. $20,000
B. $40,000 from remodel jobs
C. $16,500
D. $12,500
✅ B. $40,000 (p. 13-2)
Payments from three remodeling jobs totaled $40 K in gross receipts.
9. Their first two-month expenses were $27,500. What was net profit?
A. $15,000
B. $10,000
C. $12,500
D. $20,000
✅ C. $12,500 (p. 13-2)
Income − Expenses = $40,000 − $27,500 = $12,500 net profit.
10. At August 31, 2015, the balance sheet shows total cash of:
A. $30,000
B. $16,500
C. $42,500
D. $10,000
✅ C. $42,500 (p. 13-2)
Cash increased from profits and loan repayment.
11. Retained earnings represent:
A. New loans
B. Profits kept in the company after expenses and distributions
C. Owner salaries
D. Paid-in capital
✅ B. Profits retained (p. 13-2)
Builder Brothers’ retained earnings were $16,500.
12. The accounting equation is:
A. Income = Expenses + Equity
B. Cash = Debt + Profit
C. Assets = Liabilities + Owners’ Equity
D. Liabilities = Assets + Equity
✅ C. Assets = Liabilities + Owners’ Equity (p. 13-4)
This foundational equation keeps balance sheets in equilibrium.
13. Accurate financial records are critical because:
A. They’re optional
B. A company without them is more likely to fail
C. The IRS requires it only
D. They impress clients
✅ B. Essential for survival (p. 13-3)
Contractors who track finances accurately make better business decisions and survive longer.
14. What is the construction-industry five-year survival rate mentioned?
A. 60 %
B. 36.4 %
C. 47 %
D. 50 %
✅ B. 36.4 % (p. 13-3)
Construction firms fail most often due to poor financial management.
15. Accounting software helps contractors:
A. Paint invoices
B. Generate invoices, record transactions, prepare statements, and track checks electronically
C. Hire subs
D. Reduce materials waste
✅ B. Automate accounting tasks (p. 13-3)
Software simplifies multi-transaction businesses and prevents record loss.
16. Examples of contractor transactions to track include:
A. Only payroll
B. Purchases/leases, employee benefits, and customer payments
C. HR reviews
D. Project photos
✅ B. Financial transactions (p. 13-3)
Tracking purchases, payroll, and receipts ensures complete records.
17. Common accounting software for small businesses:
A. Adobe Acrobat
B. QuickBooks, FreshBooks, Sage 50, Accounting by Wage, NetSuite, Microsoft Dynamics
C. Revit
D. AutoCAD
✅ B. Listed programs (p. 13-3)
These platforms support invoicing, payroll, and job-costing functions.
18. Bookkeeping refers to:
A. Tax strategy
B. Accurate recording of all financial transactions
C. Financial forecasting
D. Loan analysis
✅ B. Recording transactions (p. 13-3 – 13-4)
Bookkeeping is the foundation for all accounting statements.
19. Good bookkeeping practice includes:
A. Mixing personal/business funds
B. Maintaining separate business accounts and daily updates
C. Ignoring small purchases
D. Weekly reconciliations only
✅ B. Separate accounts + daily updates (p. 13-4)
Keep receipts and records current for an accurate financial position.
20. Businesses should record expenses:
A. When paid only
B. When they occur, to reflect the true financial position
C. Yearly
D. Only at tax time
✅ B. When incurred (p. 13-4)
Recording when expenses occur aligns with accrual accounting principles.
21. The accounting cycle begins with:
A. Preparing reports
B. Classifying and recording transactions
C. Payroll
D. Closing books
✅ B. Classify and record (p. 13-4)
Transactions form the starting point for the cycle leading to financial statements.
22. Source documents include:
A. Schedules
B. Receipts, invoices, purchase orders, deposit slips, and time cards
C. CAD drawings
D. Budgets
✅ B. Standard source documents (p. 13-4)
Each proves a financial event occurred.
23. Step 2 of the accounting cycle is:
A. Close accounts
B. Post transactions to ledgers
C. Audit records
D. File taxes
✅ B. Post to ledgers (p. 13-4)
Posting transfers journal entries to specific accounts (assets, liabilities, etc.).
24. The five basic account types used in posting are:
A. Budget, payroll, taxes, invoices, receipts
B. Asset, liability, equity, income, expense
C. Debit, credit, cash, sales, purchase
D. Profit, loss, capital, revenue, materials
✅ B. Asset/liability/equity/income/expense (p. 13-4)
All business transactions fit into these categories.
25. Step 3 of the accounting cycle is to:
A. Post entries
B. Adjust entries
C. Issue checks
D. Reconcile bank
✅ B. Adjust entries (p. 13-4)
Adjusting corrects for prepaid items, accruals, or estimates before final reports.
26. Common adjusting entries include:
A. New loans
B. Prepaid expenses, accrued expenses, unearned revenue, inventory, and estimates
C. Purchases
D. Income taxes
✅ B. Standard adjustments (p. 13-4)
These ensure statements reflect true financial position.
27. Step 4 of the accounting cycle is:
A. Adjust entries
B. Prepare financial statements
C. Payroll
D. File taxes
✅ B. Prepare statements (p. 13-4)
After posting and adjusting, reports can be produced.
28. The balance-sheet equation ensures:
A. Net profit equals equity
B. Assets always equal liabilities + owners’ equity
C. Debits exceed credits
D. Cash = profit
✅ B. Always balanced (p. 13-4)
Double-entry accounting keeps both sides equal.
29. Current assets are defined as:
A. Company vehicles
B. Assets convertible to cash within one year
C. Long-term investments
D. Buildings
✅ B. Convertible within a year (p. 13-4)
Examples: cash, accounts receivable, and short-term investments.
30. Fixed assets differ because they:
A. Are short-term
B. Provide long-term value like buildings or equipment
C. Are intangible
D. Include payroll
✅ B. Long-term tangible assets (p. 13-4)
Fixed assets are used in operations over multiple years.
31. Depreciation accounts for:
A. Income tax
B. Loss of value of long-term assets over time
C. Wage increases
D. Inflation
✅ B. Declining asset value (p. 13-5)
Depreciation spreads cost of equipment/buildings over useful life.
32. Straight-line depreciation spreads cost:
A. Randomly
B. Evenly across the asset’s useful life
C. Over 1 year only
D. After disposal
✅ B. Evenly per year (p. 13-5)
Example: $10,000 asset ÷ 5 years = $2,000 per year.
33. Accrual accounting records income and expenses:
A. Only when cash changes hands
B. When earned or incurred, regardless of cash timing
C. Only annually
D. After audit
✅ B. Earned/incurred basis (p. 13-3)
Accrual shows truer profitability across months.
34. The opposite of accrual accounting is:
A. Balance accounting
B. Cash accounting
C. Capital accounting
D. Profit accounting
✅ B. Cash accounting (p. 13-3)
Cash accounting recognizes transactions only when money moves.
35. Cash accounting is simpler but:
A. Never used
B. Can distort profitability when payments lag
C. Required by law
D. Eliminates receivables
✅ B. Misleads timing (p. 13-3)
A large payment delay may falsely show losses or profits.
36. Contractors should avoid treating a down payment as profit because:
A. It inflates equity
B. The job isn’t complete—revenue not yet earned
C. It lowers liability
D. It’s a loan
✅ B. Not earned until job done (p. 13-3)
Recognize revenue when work is finished, not when the deposit is received.
37. Construction businesses fail most often due to:
A. Weather delays
B. Inadequate cash or credit until payment is received
C. OSHA fines
D. Too many employees
✅ B. Lack of working capital (p. 13-3)
Contractors must bridge expenses before the final payment arrives.
38. A company must keep financial records for IRS purposes for:
A. 1 year
B. The amount of time designated by the IRS (usually 3–7 years)
C. Indefinitely
D. Until next audit
✅ B. IRS retention period (p. 13-4)
Retention ensures documentation during audits.
39. The loan payment on Builder Brothers’ income statement appears as:
A. Asset
B. Liability
C. Expense ($4,000)
D. Revenue
✅ C. Expense (p. 13-2)
It reduces net profit and loan liability simultaneously.
40. Builder Brothers used $4,000 of profit to:
A. Purchase more tools
B. Pay dividends
C. Reduce the company loan balance
D. Buy land
✅ C. Reduce loan (p. 13-2)
Loan repayment decreases liabilities, improving the balance sheet.
41. After two months, the company’s total liabilities were:
A. $20,000
B. $16,000
C. $10,000
D. $4,000
✅ B. $16,000 (p. 13-2)
Loan reduced from $20 K to $16 K after partial repayment.
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Perfect — here’s the continuation from Question 42 onward through the full 90-question set for Chapter 13 – Financial Management.
42. Builder Brothers’ retained earnings increased because they:
A. Took out a loan
B. Earned a net profit and paid down debt
C. Bought equipment
D. Borrowed again
✅ B. Net profit + debt reduction (p. 13-2 to 13-3)
The $12,500 profit and $4,000 loan payment raised cash and reduced liabilities, yielding $16,500 retained earnings.
Chapter 11
43. Financial statements help owners decide whether to:
A. Skip jobs
B. Buy assets, add staff, or increase prices
C. Avoid planning
D. Change banks
✅ B. Plan growth and pricing strategies (p. 13-3)
Reports guide decisions on expansion and profit management.
Chapter 11
44. Which report shows a company’s performance “over time”?
A. Balance sheet
B. Income statement
C. Cash summary
D. Audit report
✅ B. Income statement (p. 13-2)
It covers a period (e.g., month or year) rather than a single date.
Chapter 11
45. A business with insufficient cash flow may still show a profit because:
A. Taxes are high
B. Profits are recorded on accrual basis before cash is collected
C. It has no loans
D. It uses cash basis only
✅ B. Accrual timing difference (p. 13-3)
Profit doesn’t always equal liquidity; cash must cover operations until payment arrives.
Chapter 11
46. “Assets minus liabilities equals ____.”
A. Debt ratio
B. Gross profit
C. Owner’s equity
D. Working capital
✅ C. Owner’s equity (p. 13-1 & 13-4)
This is the basic balance-sheet equation.
Chapter 11
47. Which software is not listed as an example for contractors?
A. Quick Books
B. Sage 50
C. NetSuite
D. AutoCAD
✅ D. AutoCAD (p. 13-3)
AutoCAD is design software, not accounting.
Chapter 11
48. One tip for accurate bookkeeping is to:
A. Combine personal and business funds
B. Use cash only
C. Balance your checking account monthly
D. Keep no receipts
✅ C. Monthly reconciliation (p. 13-4)
Regular bank reconciliation catches errors and fraud early.
Chapter 11
49. Why should contractors keep receipts?
A. Decoration
B. Proof for tax and audit purposes
C. Marketing
D. Payroll
✅ B. Tax/audit evidence (p. 13-4)
Receipts verify expenses and help separate personal and business purchases.
Chapter 11
50. Bookkeeping records should be updated:
A. Annually
B. Daily to know current financial position
C. Quarterly
D. Only at tax time
✅ B. Daily (p. 13-4)
Timely entries show accurate cash and liabilities each day.
Chapter 11
51. The first step of the accounting cycle is supported by what documents?
A. Estimates
B. Source documents like receipts and invoices
C. Meeting notes
D. Blueprints
✅ B. Receipts/invoices (p. 13-4)
They prove transactions occurred and support entries.
Chapter 11
52. Adjusting entries ensure the books reflect:
A. Only cash transactions
B. True income and expenses for the period
C. Inventory counts only
D. Tax estimates
✅ B. True period performance (p. 13-4)
They match revenues and expenses to the right period.
Chapter 11
53. Contractors using credit cards should:
A. Pay minimum only
B. Track and categorize business expenses separately
C. Mix personal spending
D. Ignore receipts
✅ B. Separate and categorize charges (p. 13-4)
Keeping business credit separate simplifies audits and taxes.
Chapter 11
54. “Assets of value convertible to cash within one year” are called:
A. Liabilities
B. Investments
C. Current assets
D. Capital
✅ C. Current assets (p. 13-4)
Examples include cash, accounts receivable, and short-term notes.
Chapter 11
55. Posting transactions transfers data from:
A. Ledger to journal
B. Journal to accounts in the ledger
C. Receipts to payroll
D. Invoices to statements
✅ B. Journal → ledger (p. 13-4)
This creates organized account balances for each type.
Chapter 11
56. The income statement shows net profit if:
A. Expenses > income
B. Income > expenses
C. Assets > liabilities
D. Equity > cash
✅ B. Income greater than expenses (p. 13-2)
Positive net profit indicates profitability.
Chapter 11
57. “Liabilities” on a balance sheet represent:
A. Equipment
B. Debts and obligations owed to others
C. Owner equity
D. Depreciation
✅ B. Debts owed (p. 13-4)
Loans, accounts payable, and credit lines are liabilities.
Chapter 11
58. Which financial statement helps track loan repayments and new borrowings?
A. Income statement
B. Cash flow statement
C. Ledger
D. Trial balance
✅ B. Cash flow statement (p. 13-2)
It shows cash in/out from financing activities like loans.
Chapter 11
59. A company’s failure to record expenses when they occur will:
A. Have no impact
B. Overstate profits
C. Understate profits
D. Increase liabilities
✅ B. Overstates profit (p. 13-4)
Missing expenses artificially inflate net income.
Chapter 11
60. A loan is listed on the balance sheet as:
A. Asset
B. Equity
C. Liability
D. Expense
✅ C. Liability (p. 13-1 to 13-2)
It represents money owed to lenders.
Chapter 11
61. Cash flow statements typically have three sections:
A. Payroll, sales, supplies
B. Operating, investing, financing activities
C. Assets, liabilities, equity
D. Income, expenses, profit
✅ B. Three activities (p. 13-2)
They explain where cash came from and how it was used.
Chapter 11
62. The Builder Brothers story teaches that profitability depends on:
A. Hiring family
B. Balancing expenses, cash flow, and debt
C. Taxes alone
D. Equipment purchases
✅ B. Balance cash and debt (p. 13-3)
A profitable firm can still fail without cash management.
Chapter 11
63. One advantage of accounting software is that it:
A. Eliminates bookkeepers
B. Provides real-time financial reports and reduces errors
C. Replaces tax filing
D. Creates marketing plans
✅ B. Real-time accuracy (p. 13-3)
Electronic systems streamline data entry and reporting.
Chapter 11
64. The cash method of accounting records income when:
A. Work is completed
B. Cash is actually received
C. Invoice is sent
D. Materials arrive
✅ B. When paid (p. 13-3)
Cash basis is simpler but less accurate for matching revenues to periods.
Chapter 11
65. Businesses using accrual accounting must watch cash flow because:
A. They ignore expenses
B. Profits don’t mean cash is available yet
C. They pay less tax
D. It tracks cash perfectly
✅ B. Timing gap risk (p. 13-3)
Receivables delay cash even though profit appears on paper.
Chapter 11
66. Which financial statement would show loan balances and equipment value?
A. Income statement
B. Balance sheet
C. Cash flow
D. Ledger
✅ B. Balance sheet (p. 13-1 to 13-2)
It lists assets and liabilities at a given time.
Chapter 11
67. The final step in the accounting cycle is to:
A. Prepare statements
B. Analyze financial statements
C. Post entries
D. Adjust entries
✅ B. Analyze results (p. 13-4)
Evaluation guides business decisions for future improvement.
Chapter 11
68. Contractors should keep financial information current because:
A. Clients ask
B. It helps them react to changes and avoid cash shortages
C. Banks require daily audits
D. IRS rules demand hourly updates
✅ B. Improves decision-making (p. 13-3 to 13-4)
Updated records reveal issues before they become crises.
Chapter 11
69. Financial management helps a company decide when to:
A. Buy or lease equipment
B. Hire or lay off employees
C. Bid more work
D. All of the above
✅ D. All of the above (p. 13-3)
Accurate data drives smart operational choices.
Chapter 11
70. Failing to separate personal and business accounts can lead to:
A. Higher profits
B. Confused records and IRS issues
C. Lower liability
D. Audit proof books
✅ B. Confusion + tax risk (p. 13-4)
Always keep business funds in a dedicated account.
Chapter 11
71. The purpose of classifying transactions is to:
A. Assign project numbers
B. Identify account type (Asset, Liability, Equity, Income, Expense)
C. Prepare budgets
D. Pay taxes
✅ B. Account type classification (p. 13-4)
Classification makes posting and reporting accurate.
Chapter 11
72. When using software, transactions are recorded:
A. Manually in journals
B. Electronically
C. Monthly by CPA
D. Annually
✅ B. Electronically (p. 13-4)
Software automates daily journals once entered.
Chapter 11
73. Why should contractors prepare financial statements regularly?
A. Required for bonds
B. To evaluate performance and make improvements
C. Only for taxes
D. Bank interest
✅ B. Evaluate performance (p. 13-1 & 13-3)
Statements are “report cards” for business success.
Chapter 11
74. Retained earnings appear on which financial statement?
A. Income statement
B.
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Continuing from Question 74 — here’s the remainder up to Question 90 for Chapter 13 – Financial Management:
74. Retained earnings appear on which financial statement?
A. Income statement
B. Balance sheet
C. Cash flow statement
D. Payroll register
✅ B. Balance sheet (p. 13-2)
They’re listed under Owner’s Equity as cumulative profits kept in the business.
Chapter 11
75. The “loan payment” on Builder Brothers’ income statement decreased:
A. Owner’s equity only
B. Cash and liabilities
C. Assets only
D. Retained earnings
✅ B. Cash and liabilities (p. 13-2)
Paying down a loan reduces both cash (asset) and debt (liability).
Chapter 11
76. Why do construction companies have high failure rates?
A. Weather and materials
B. Poor financial controls and undercapitalization
C. Licensing rules
D. Too much profit
✅ B. Poor controls + low capital (p. 13-3)
Without sufficient reserves or tracking, contractors run out of cash before collecting payments.
Chapter 11
77. What’s a simple way to ensure an accurate “paper trail” for audits?
A. Use cash for everything
B. Pay bills by check or documented electronic transfer
C. Rely on memory
D. Delete small transactions
✅ B. Checks or e-payments (p. 13-4)
Paper trails confirm dates, payees, and purposes of payments.
Chapter 11
78. Which of the following is a financing activity on a cash flow statement?
A. Buying materials
B. Borrowing money or issuing stock
C. Payroll
D. Paying suppliers
✅ B. Borrowing/stock issuance (p. 13-2)
Financing activities relate to obtaining or repaying capital.
Chapter 11
79. Which is an operating activity?
A. Buying land
B. Paying suppliers for materials
C. Issuing new stock
D. Taking out a loan
✅ B. Supplier payments (p. 13-2)
Operating activities cover day-to-day business operations.
Chapter 11
80. Which of the following questions should owners ask after reviewing statements?
A. Are our computers fast enough?
B. Do we have enough assets and cash flow to buy or lease a vehicle?
C. Are tools shiny?
D. Should we advertise?
✅ B. Evaluate cash and assets for decisions (p. 13-3)
Financial statements guide investment and purchasing decisions.
Chapter 11
81. The accounting cycle’s purpose is to:
A. Create employee schedules
B. Ensure all transactions are recorded and reported correctly
C. Manage projects
D. Track timecards
✅ B. Record and report accurately (p. 13-4)
The cycle formalizes how businesses process financial data.
Chapter 11
82. Equity accounts record:
A. Debts owed
B. Owner investment and retained profits
C. Bank charges
D. Customer invoices
✅ B. Investment + retained profit (p. 13-4)
They represent owners’ stake in the business.
83. The most common mistake small contractors make is:
A. Using software
B. Confusing cash flow with profit
C. Hiring bookkeepers
D. Paying taxes early
✅ B. Cash flow ≠ profit (p. 13-3)
Profitability can exist while cash is tied up in receivables.
Chapter 11
84. Accounting software allows quick creation of:
A. Blueprints
B. Invoices, payroll reports, and financial statements
C. Marketing materials
D. Bid estimates only
✅ B. Financial documents (p. 13-3)
Automation reduces manual errors and saves time.
Chapter 11
85. Accrual-based accounting is required for:
A. All small firms
B. Businesses maintaining inventory or over $25 million annual revenue
C. Nonprofits
D. Sole proprietors only
✅ B. Larger or inventory-holding firms (p. 13-3 note)
IRS rules specify accrual use when inventory or higher revenue thresholds apply.
Chapter 11
86. “Prepaid expense” adjustments reflect:
A. Expenses paid before they’re used, such as insurance
B. Accrued payroll
C. Loan interest
D. Rent owed
✅ A. Prepaid insurance example (p. 13-4)
Adjust to allocate the correct expense per period.
Chapter 11
87. “Unearned revenue” refers to:
A. Lost income
B. Cash received before services are performed
C. Bonus pay
D. Debt repayment
✅ B. Advance payments (p. 13-4)
Record as a liability until the work is completed.
Chapter 11
88. Which ratio best measures liquidity?
A. Profit margin
B. Current ratio (Current Assets ÷ Current Liabilities)
C. Debt ratio
D. Return on equity
✅ B. Current ratio (p. 13-4)
It shows the ability to cover short-term obligations with short-term assets.
Chapter 11
89. The cash balance on a balance sheet represents:
A. Monthly profit
B. Owner draw
C. Funds available at that specific date
D. Yearly average
✅ C. Specific-date cash (p. 13-1 & 13-2)
It’s a snapshot, not cumulative for the period.
Chapter 11
90. The “Final Inspection” summary for this section emphasizes that contractors should:
A. Hire outside firms for all bookkeeping
B. Understand financial statements, track cash, and use accounting software to ensure profitability
C. Ignore bookkeeping
D. Pay taxes early to save time
✅ B. Manage finances proactively (p. 13-5)
Mastering financial reports helps contractors stay solvent and plan for growth.
Chapter 11
1. Before hiring employees, a business must obtain a Federal Employer Identification Number (FEIN) from:
A. Oregon CCB
B. Oregon Dept. of Revenue
C. Internal Revenue Service (IRS)
D. Secretary of State
✅ C. IRS (p. 14-1)
The IRS issues the FEIN to identify an employer’s tax accounts. It is a 9-digit number used for federal tax reporting.
2. The EIN is used to identify:
A. Only employees personally
B. Only a bank account
C. Employer and certain other taxpayer accounts
D. Vehicle registrations
✅ C. Employer and other tax accounts (p. 14-1)
It tracks employer and self-employed tax filings for IRS and Social Security.
3. You can apply for an EIN by mail, fax, phone (for international applicants) or:
A. Visiting the CCB
B. Online through the IRS website
C. Calling the Oregon Dept. of Revenue
D. At a bank branch
✅ B. Online through IRS.gov (p. 14-1)
IRS Form SS-4 is filed electronically or faxed for fast processing.
4. A Federal EIN is required for businesses that:
A. Hire employees
B. Have a Keogh plan
C. Withhold taxes on income other than wages
D. All of the above
✅ D. All of the above (p. 14-1)
IRS requires an EIN for employment, trust, estate, or certain organization filings.
5. The Oregon Business Identification Number (BIN) is issued by:
A. IRS
B. Oregon Department of Revenue (DOR)
C. BOLI
D. City Finance Dept.
✅ B. Oregon DOR (p. 14-1)
BIN identifies employers for state payroll tax reporting to Revenue and Employment Departments.
6. Employers obtain a BIN by filing Form:
A. SS-4
B. Combined Employer’s Registration
C. W-9
D. 941
✅ B. Combined Employer’s Registration (p. 14-1)
This form registers with the Department of Revenue and Employment Department simultaneously.
7. The BIN is used to report state:
A. Sales taxes
B. Withholding and unemployment taxes
C. Property tax
D. Permit fees
✅ B. Withholding and unemployment taxes (p. 14-1)
Oregon employers use the BIN to file payroll and benefit assessments.
8. A business must register for a BIN when it:
A. Pays no wages
B. Has volunteers
C. Hires employees or is subject to unemployment law
D. Has only independent contractors
✅ C. Hires employees or subject to UI law (p. 14-1)
9. Federal business tax liability depends on:
A. City permits
B. The type of business entity and how taxes are paid
C. Employee benefits
D. State inspection status
✅ B. Entity type and payment method (p. 14-2)
10. The four general types of business taxes are:
A. Payroll, fuel, sales, import
B. Income tax, self-employment tax, employment tax, excise tax
C. State, city, county, federal
D. Corporate and property tax only
✅ B. Income / self-employment / employment / excise (p. 14-2)
11. Self-employment tax covers:
A. Sales tax
B. Property tax
C. Social Security and Medicare contributions for self-employed individuals
D. Corporate income tax
✅ C. Social Security & Medicare for self-employed (p. 14-3)
12. Estimated tax payments are required when:
A. Employers have one employee
B. You expect to owe $1,000 or more after withholding
C. The IRS requests it
D. Revenue is below $600
✅ B. $1,000 threshold (p. 14-3)
13. Sole proprietors and partners must generally make estimated tax payments:
A. Monthly
B. Quarterly
C. Annually
D. Weekly
✅ B. Quarterly (p. 14-3)
14. Corporations must pay estimated taxes if they expect to owe at least:
A. $250 or more
B. $500 or more
C. $500 or more
D. $5,000
✅ C. $500 threshold (p. 14-3)
15. The IRS requires employers to keep records of tax deposits for at least:
A. 2 years
B. 4 years
C. 6 months
D. Indefinitely
✅ B. 4 years (p. 14-3)
16. Circular E refers to:
A. An IRS audit guide
B. IRS Publication 15 – Employer’s Tax Guide
C. Employee handbook
D. Wage statement
✅ B. IRS Pub 15 Employer Guide (p. 14-3)
17. Social Security and Medicare taxes together are called:
A. FUTA
B. FICA taxes
C. Withholding tax
D. Benefit tax
✅ B. FICA taxes (p. 14-4)
18. The employee FICA rate includes Social Security tax of 6.2 % and Medicare tax of:
A. 0.9 %
B. 1.0 %
C. 1.45 %
D. 2.0 %
✅ C. 1.45 % (p. 14-4)
19. The Social Security wage base limit is:
A. Unlimited
B. Subject to annual change by law
C. Always $100,000
D. Fixed at $250,000
✅ B. Annually adjusted limit (p. 14-4)
20. Employers must match:
A. Federal income tax
B. The employee’s FICA withholding amounts
C. All tax credits
D. Medicare only
✅ B. Match FICA (p. 14-4)
21. Federal income tax withholding is based on:
A. Employee experience
B. W-4 information and IRS tables
C. Employer choice
D. State rates
✅ B. W-4 & IRS tables (p. 14-4)
22. Employers report quarterly payroll taxes on IRS Form:
A. 940
B. W-2
C. 941
D. 944
✅ C. Form 941 (p. 14-4)
23. Businesses whose annual liability is $1,000 or less may file annually on:
A. Form 940
B. Form 944
C. Form 945
D. Schedule C
✅ B. Form 944 (p. 14-4)
24. Federal Unemployment Tax (FUTA) is paid:
A. Only by employees
B. By employers on employee wages
C. By states
D. By contractors
✅ B. Employers only (p. 14-5)
25. FUTA applies if you pay wages of $1,500 or more in a quarter or have employees for:
A. 5 weeks per year
B. 20 weeks in a calendar year
C. One month only
D. All year
✅ B. 20 weeks rule (p. 14-5)
26. FUTA tax rate is 6 % on the first:
A. $5,000 of each employee’s wages
B. $7,000 of each employee’s wages
C. $10,000
D. $20,000
✅ B. $7,000 base (p. 14-5)
27. Employers may receive a FUTA credit of up to:
A. 2 %
B. 5.4 % for timely state unemployment payments
C. 6 %
D. 10 %
✅ B. 5.4 % credit (p. 14-5)
28. The due date for FUTA quarterly deposits ending March 31 is:
A. April 10
B. April 30
C. May 15
D. June 30
✅ B. April 30 (p. 14-5 table)
29. FUTA Form 940 is filed:
A. Monthly
B. Annually by January 31
C. Quarterly
D. Every two years
✅ B. Annually Jan 31 (p. 14-5)
30. Penalties for late deposits can range from:
A. 2–10 %
B. 2 to 15 percent
C. 10–25 %
D. Flat fee
✅ B. 2 – 15 % of tax due (p. 14-5)
31. Information returns Form 1099-MISC report:
A. Sales taxes
B. Employee wages
C. Payments of $600 or more to independent contractors
D. Employer profits
✅ C. $600 contractor payments (p. 14-5)
32. Deadline to send 1099-MISC to recipients and IRS:
A. Dec 31
B. January 31 (to recipient) and February 28 (to IRS)
C. April 15
D. March 1
✅ B. Jan 31 / Feb 28 (p. 14-5)
33. Employers must furnish Form W-2 to each employee by:
A. Dec 1
B. January 31
C. Feb 15
D. March 31
✅ B. January 31 (p. 14-6 calendar)
34. Form W-3 transmits:
A. Tax payments
B. Copy A of W-2s to the Social Security Administration
C. Insurance records
D. Audit data
✅ B. W-2 transmittal to SSA (p. 14-6)
35. Annual FUTA Tax returns (Form 940) are also due to IRS by:
A. January 31
B. February 15
C. March 31
D. April 30
✅ A. January 31 (p. 14-6 calendar)
36. Form 1099 and Form 1096 are transmitted to IRS by:
A. January 15
B. February 28
C. April 15
D. May 1
✅ B. February 28 (p. 14-6 calendar)
37. Employers withholding federal income tax must also file:
A. Form 1040 Schedule C
B. Form 941 or 944 and Form 940
C. Form 1099 only
D. Form W-9
✅ B. 941/944 and 940 (p. 14-4 to 14-6)
38. Employers deposit withheld taxes according to:
A. State pay schedules
B. IRS deposit schedules based on amount of tax liability
C. Calendar months only
D. Union rules
✅ B. IRS deposit rules (p. 14-4)
39. “Next-day deposit” is required if the accumulated tax li
You said:
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Continuing seamlessly from Question 39, here are the remaining questions up to 90, based entirely on the first eight pages of Chapter 14 – Tax Basics.
39. “Next-day deposit” is required when a business accumulates payroll taxes of:
A. $50,000 or more in a year
B. $25,000 or more in a quarter
C. $100,000 or more on any single day
D. $10,000 in a pay period
✅ C. $100,000 or more on any day (p. 14-4)
If tax liability hits $100 K in a single day, the deposit is due by the next business day.
40. The IRS provides a deposit schedule chart that depends on:
A. Type of business entity
B. Number of employees
C. The total payroll taxes reported in a prior look-back period
D. Gross receipts
✅ C. Prior-period liability (p. 14-4)
Deposit frequency (monthly vs. semi-weekly) is based on your past payroll-tax totals.
41. Employers that pay less than $2,500 in total quarterly taxes can:
A. Skip filing
B. Remit payment with Form 941 instead of separate deposits
C. Use personal checks
D. Pay annually only
✅ B. Pay with the quarterly return (p. 14-4)
Small employers may send payment directly with their Form 941 if under the threshold.
42. Employers issuing W-2 forms must file Copy A with the:
A. Oregon DOR
B. IRS
C. Social Security Administration (SSA)
D. Employee’s bank
✅ C. SSA (p. 14-6)
The SSA receives Copy A from the employer for wage-record verification.
43. Form W-2G applies to:
A. Agricultural workers
B. Certain gambling winnings
C. Corporate dividends
D. Non-profits
✅ B. Gambling winnings (p. 14-6 table)
This specialized form reports taxable gaming-related income.
44. Which form summarizes and transmits multiple 1099s to the IRS?
A. 945
B. Form 1096
C. 1040-ES
D. W-3
✅ B. Form 1096 (p. 14-6)
Form 1096 serves as a cover sheet for paper-filed 1099 series returns.
45. The term excise tax refers to:
A. Property tax
B. Sales tax
C. Tax on certain goods, activities, or privileges such as fuel, alcohol, or highway use
D. Income tax
✅ C. Tax on goods/activities (p. 14-7)
Corporations owe excise tax for the privilege of doing business in Oregon.
46. Oregon’s corporate excise-tax minimum ranges from:
A. $50–$250
B. $150–$5,000
C. $150 to $100,000 depending on Oregon-source income
D. $500–$20,000
✅ C. $150–$100 K range (p. 14-7)
Minimum tax increases with taxable sales or receipts.
47. Beginning in 2013, Oregon’s corporate tax rate on taxable income over $1 million is:
A. 6.6 %
B. 8.0 %
C. 7.6 %
D. 9.0 %
✅ C. 7.6 % (p. 14-7)
Income up to $1 M is 6.6 %; amounts above that are 7.6 %.
48. Oregon’s Department of Revenue administers which employer tax?
A. State income tax for employees
B. State payroll taxes
C. Property tax
D. State excise permits
✅ B. Payroll taxes (p. 14-7)
The DOR collects payroll-withholding and benefit assessments.
49. Oregon employers also pay the State Unemployment Tax Act (SUTA) tax, which:
A. Is federal only
B. Applies to independent contractors
C. Funds unemployment benefits for laid-off workers
D. Is voluntary
✅ C. Funds unemployment insurance (p. 14-7)
50. SUTA tax rates are determined by:
A. Flat percentage for all
B. Employer’s experience and history of unemployment claims
C. Employee income
D. City population
✅ B. Employer’s experience rating (p. 14-7)
Employers with fewer layoffs enjoy lower rates.
51. Oregon’s payroll tax also supports:
A. State parks
B. Transit districts and Workers’ Benefit Fund assessments
C. School bonds
D. Federal Medicare
✅ B. Transit + Workers’ Benefit Fund (p. 14-2 & 14-7)
52. Local Oregon payroll taxes include:
A. Federal excise
B. Tri-Met and Lane Transit District taxes
C. State property
D. Franchise fees
✅ B. Tri-Met and Lane Transit District payroll taxes (p. 14-7)
53. Oregon employers must pay Unemployment Insurance (UI) on the first:
A. $5,000 of wages
B. $45,000 of each employee’s annual wages (subject to yearly change)
C. Entire income
D. None, employees pay it
✅ B. First $45 K (p. 14-7 note)
UI wage base adjusts periodically.
54. Under federal law, failure to deposit payroll taxes may result in penalties up to:
A. 5 %
B. 10 %
C. 25 %
D. 15 % plus interest
✅ D. 15 % maximum plus interest (p. 14-5 penalty table)
55. Penalties begin at 2 % if:
A. Deposit is one day late
B. Deposit is 1–5 days late
C. Deposit is 10 days late
D. Deposit is over 30 days late
✅ B. 1-5 days late = 2 % penalty (p. 14-5)
56. The maximum 15 % penalty applies when taxes are overdue by more than:
A. 5 days
B. 10 days after IRS notice of demand
C. 30 days
D. One quarter
✅ B. > 10 days after demand (p. 14-5)
57. Independent contractors receiving 1099-MISC are responsible for paying:
A. Only state tax
B. All self-employment and income taxes themselves
C. Employer share only
D. Union dues
✅ B. Self-employment tax (p. 14-5 & 14-8)
58. IRS requires 1099-MISC to report payments totaling at least:
A. $200
B. $400
C. $600 in a year
D. $1,000
✅ C. $600 threshold (p. 14-5)
59. For W-2 employees, employers must submit Form W-3 and W-2 copies to SSA by:
A. Jan 15
B. Feb 28 ( March 31 if e-file )
C. Dec 31
D. Apr 15
✅ B. Feb 28/March 31 e-file (p. 14-6)
60. Which month’s calendar item requires filing new W-4s for employees claiming exemption?
A. January
B. February 16
C. March 31
D. April 30
✅ B. Feb 16 (p. 14-6 calendar)
61. FUTA deposits for the quarter ending June 30 are due by:
A. July 15
B. July 31
C. August 15
D. Sept 30
✅ B. July 31 (p. 14-5 table)
62. FUTA deposits for Sept 30 quarter are due by:
A. Oct 15
B. Oct 31
C. Nov 15
D. Dec 31
✅ B. Oct 31 (p. 14-5 table)
63. FUTA deposits for Dec 31 quarter are due by:
A. Jan 15
B. Jan 31
C. Feb 15
D. Mar 15
✅ B. Jan 31 (p. 14-5 table)
64. Form 945 is used to report:
A. FUTA
B. Withholding of non-payroll income ( e.g., pensions )
C. Social Security tax
D. Excise tax
✅ B. Non-payroll withholding (p. 14-6 table note)
65. To avoid late-deposit penalties, employers must use:
A. Checks by mail
B. Electronic Federal Tax Payment System (EFTPS)
C. Cash deposit
D. Courier drop
✅ B. EFTPS (p. 14-5)
EFTPS is mandatory for nearly all federal-tax deposits.
66. Oregon’s excise tax applies to:
A. Non-profits
B. Corporations doing business in Oregon
C. Sole proprietors only
D. Trust accounts
✅ B. Corporations in Oregon (p. 14-7)
67. Oregon’s corporate excise return form number is:
A. 1065
B. 20 or 20-20 S
C. 1040
D. 940
✅ B. Form 20 / 20-20 S (p. 14-7)
68. The corporate excise minimum tax applies even if:
A. The corporation has no income
B. It has losses
C. It is inactive
D. All of the above
✅ D. All of the above (p. 14-7)
Minimum tax applies regardless of profit level.
69. State payroll tax filings are generally due:
A. Semi-weekly
B. Monthly
C. Quarterly
D. Annually
✅ C. Quarterly (p. 14-7)
70. The Workers’ Benefit Fund (WBF) assessment supports:
A. State parks
B. Workers with job-related injuries or illnesses
C. Unemployment claims
D. Education loans
✅ B. Injured workers program (p. 14-7 & 14-8)
71. Employers file the WBF quarterly using Form:
A. OQ (Oregon Quarterly Tax Report)
B. OR-WR
C. W-2
D. 941
✅ A. Form OQ (p. 14-7 context)
72. Oregon’s tax filings are submitted electronically through:
A. EFTPS
B. Frances Online portal
C. FedWire
D. Paper only
✅ B. Frances Online (p. 14-7 note)
73. Failure to maintain payroll records may result in:
A. Discounts
B. Penalties and license suspension
C. Extended deadlines
D. IRS refunds
✅ B. Penalties/license action (p. 14-7)
74. Corporate excise-tax payments must accompany:
A. Quarterly Form OQ
B. Annual corporate tax return
C. W-2
D. Form 1099
✅ B. Annual return (p. 14-7)
75. The Oregon Department of Revenue works jointly with which agency to issue BINs?
A. IRS
B. Oregon Employment Department (OED)
C. Secretary of State
D. BOLI
✅ B. OED + DOR (p. 14-1)
76. Transit-payroll tax liability varies by:
A. County population
B. Employer’s location within a transit district
C. Number of vehicles
D. Type of business
✅ B. Employer location (p. 14-7)
77. Employers submit a copy of Form W-2 to the Oregon Department of Revenue by:
A. January 15
B. January 31 with the Oregon WR form
C. February 28
D. April 15
✅ B. Jan 31 with OR-WR (p. 14-6 calendar / 14-7 summary)
78. The Oregon Corporate Excise Tax is based on:
A. Worldwide income
B. Oregon-source taxable income
C. Federal adjusted gross income only
D. Total revenues nationwide
✅ B. Oregon-source income (p. 14-7)
79. Oregon’s Department of Revenue recommends keeping all business tax records for at least:
A. 1 year
B. 2 years
C. 3 years after filing the return
D. 7 days
✅ C. 3 years (p. 14-7 best practice)
80. Workers’ Benefit Fund rates are set:
A. Monthly
B. Annually by Oregon DCBS
C. By employers
D. By IRS
✅ B. Annually by DCBS (p. 14-7)
81. Oregon law requires corporations to file a return even if:
A. They had no activity
B. They earned no income
C. They are inactive
D. All of the above
✅ D. All of the above (p. 14-7)
82. The federal FUTA form used by employers is:
A. 941
B. 940
C. 944
D. 945
✅ B. Form 940 (p. 14-5)
83. Oregon businesses may owe which state-level employment taxes?
A. Federal withholding only
B. Withholding, unemployment, transit, and Workers’ Benefit Fund
C. Sales tax and income tax only
D. Excise tax only
✅ B. Multiple employment taxes (p. 14-7 & 14-8)
84. Federal employment taxes (FICA + FUTA + withholding) are also called:
A. Corporate taxes
B. Payroll taxes
C. Sales taxes
D. Excise taxes
✅ B. Payroll taxes (p. 14-7 & 14-8)
85. The tax calendar helps employers:
A. Track materials costs
B. Remember key filing deadlines for tax forms and deposits
C. Avoid audits
D. Pay employees
✅ B. Track deadlines (p. 14-6)
86. New-hire paperwork requires verifying:
A. Driver’s license only
B. Eligibility to work (Form I-9), collecting Form W-4 and Form W-9 (if needed)
C. Form 1099
D. Personal references
✅ **B. I-9 / W-4 / W-9 verification
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