Exam Cheat Sheet · Quick Reference

Oregon Construction Contractor Exam (CCB)

Oregon  ·  PSI Services Contractor

Verified, not estimated. Every figure below is drawn from the official exam structure we maintain — question counts, passing standard and topic weighting. Practice questions are grounded in the source law with statute citations. We omit any figure we can't verify rather than guess at it.
Total questions
80
Passing score
70%
Exam time
180 min
Administered by
PSI Services Contractor
Format
Reference materials allowed

Oregon State Portion 80 questions

Oregon Construction Contractor Laws and Regulations 18 Q · 22%
CCB licensing requirements and exemptionsLicense endorsement types and scope of workSurety bond and insurance requirements by endorsementResponsible Managing Individual (RMI) designation and responsibilitiesWritten contract requirements and consumer noticesDispute resolution and complaint filing proceduresViolations, penalties, and enforcement processHomebuyer Protection Act compliance and lien protection methods
Choosing Your Business Structure 4 Q · 5%
Sole proprietorship characteristics, advantages, and disadvantagesGeneral and limited partnership structures and liability distinctionsCorporation formation, shareholder liability, and management structureC corporation versus S corporation tax treatmentLimited liability company (LLC) structure, taxation, and hybrid characteristicsComparative summary of business structures by ownership, liability, formation documents, and managementAssumed business name (ABN) registration requirementsBusiness trusts and trademark considerations
Hiring and Managing Employees 7 Q · 9%
Legal and illegal interview questionsNew hire reporting requirements and purposeHiring minors in construction (prohibited tasks, work hours, employment certificates)Employee personnel file documentation (I-9, W-4, employment application)Fair Labor Standards Act (FLSA) overtime, recordkeeping, and exemptionsOregon wage and hour regulations (minimum wage, rest/meal periods, paydays, deductions, final paychecks)Oregon Prevailing Wage Rate law (covered projects, exemptions, contractor responsibilities)Americans with Disabilities Act (ADA) and other key employment laws (Title VII, ADEA, FMLA/OFLA, USERRA)
Working with Subcontractors 2 Q · 2%
Evaluating and selecting qualified subcontractors (criteria and reference checks)Insurance, licensing, and bonding requirements for subcontractorsCreating a winning partnership: orientation, communication, and site rulesOregon recordkeeping requirements for subcontractor lists (name, address, license number, 72-hour rule)CCB e-Watch license monitoring toolPenalties for knowingly using unlicensed subcontractorsIndependent contractor vs. employee classification (Oregon multi-part checklist)Consequences of misclassifying employees as independent contractors (taxes, workers' compensation, fines)
Contracts 9 Q · 11%
Required elements of a binding contract (offer, acceptance, consideration, competent parties, legal purpose)Contract provisions and payment terms (progress payments, retainage, final payment)Provisions to limit risk (force majeure, indemnification, differing site conditions, warranties, delay clauses)Types of construction contracts (lump-sum, unit-price, cost-plus)Contracting methods (single prime, design/build, construction management, turnkey, fast-track, multiple prime)Breach of contract and damages (material vs. immaterial breach, liquidated, special, and consequential damages)Alternative dispute resolution (negotiation, mediation, collaborative law, arbitration, CCB dispute resolution)Change orders and contract modifications (requirements, addenda vs. modifications, oral vs. written agreements)
Oregon Lien Law 5 Q · 6%
Definition of key lien law terms (owner, contractor, subcontractor, original contractor, mortgagee, commencement of improvement)Who is entitled to file a construction lien (licensed contractors, subcontractors, material suppliers, equipment rental companies, design professionals)Information Notice to Owner about Construction Liens — when required, timing, and consequences of non-deliveryNotice of Right to a Lien — who must provide it, timing relative to start of work, delivery method, and coverage periodRecording a Claim of Lien — required contents, 75-day filing deadline, and county recording processPost-claim notices — Notice of Filing a Claim of Lien (20-day deadline) and Notice of Intent to Foreclose (10-day notice before suit)Lien foreclosure lawsuit — 120-day filing deadline, court jurisdiction, and priority relative to mortgagesHomebuyer Protection Act — properties covered, seller compliance methods, Notice of Compliance requirements, and penalties for non-compliance
Bidding and Estimating 6 Q · 8%
Bid documents and bid package componentsEthics in bidding: bid shopping, bid peddling, and bid riggingEstimating framework: project phases, tasks, and materialsQuantity take-off method for determining estimated costsLabor cost calculation and labor burdenDirect costs: materials, equipment, subcontractor fees, allowances, and contingenciesOverhead calculation and markup for profit marginJob cost recording system and estimating pitfalls
Scheduling and Project Management 5 Q · 6%
Scheduling process components (sequence of tasks, activity duration, contingency time, float time)Scheduling methods: calendar, bar chart, and critical path method (CPM)Critical path method: task relationships, simultaneous events, and critical activitiesScheduling and cash flow management (working capital, progress payments, preliminary cash flow budget)Project supervisory team roles (project manager, superintendent, foreman, materials expediter)Project life cycle phases (pre-construction, construction, closeout)Tracking project progress (daily reports, status reports, schedule monitoring)Budget and cost controls (cost overruns, just-in-time delivery, purchase orders, receiving)
Oregon Building Codes 4 Q · 5%
Oregon Building Codes Division structure and roleSpecialty codes overview and applicabilityPermit requirements and application processPlan review and required project documentationInspection types, sequencing, and proceduresStop work orders: issuance, compliance, and consequencesSpecialty trade licensing requirements under Building Codes DivisionActivities requiring special licenses, permits, or notices (DEQ, OHA, OWRD)
Jobsite Safety 4 Q · 5%
Oregon OSHA regulatory framework and employer responsibilitiesSafety training requirements and safety committee obligationsSubstance abuse policies and substance-free workplace programsPersonal protective equipment selection and useEmergency action plan and emergency medical plan requirementsInjury and illness recordkeeping (OSHA 300, 300A, DCBS 801) and reporting timelinesHazard communication standards, Safety Data Sheets, and written hazard communication planFall protection systems and ladder safety
Environmental Factors 4 Q · 5%
EPA and Oregon DEQ roles and jurisdiction over construction environmental complianceAir quality regulations: open burning permits, dust control, refrigerant handling, and indoor air qualityAsbestos identification, survey requirements, abatement licensing, and DEQ notificationLead-based paint renovation licensing, certified renovator requirements, and target housing definitionsClean water protections: stormwater discharge, NPDES permit requirements, and construction washing rulesSedimentation and erosion control measures and NPDES 1200-C permit obligationsHazardous and non-hazardous solid waste identification, generator classifications, and disposal requirementsEnvironmentally suspect materials handling: PCBs, mercury-containing devices, used oil, refrigerants, and underground storage tanks
Building Exterior Shell 4 Q · 5%
Purpose and components of the building exterior shell (building envelope)Water intrusion sources and mechanisms (rain, snow/ice, condensation, groundwater, saturated materials)Oregon rainscreen system requirements for exterior wallsFlashing installation locations, materials, and galvanic corrosion considerationsWindow and door assembly weatherproofing and integration with water-resistive barriersDeck assembly waterproofing, drainage, and flashing requirementsRoof assembly water management, drainage, and common failure causesFoundation damp-proofing, waterproofing, crawlspace ventilation, and capillary breaks
Financial Management 4 Q · 5%
Financial statements: balance sheet, income statement, and cash flow statementAccounting cycle steps: recording, posting, adjusting entries, and closingCash method vs. accrual method of accountingCash flow management: billing, accounts receivable collection, and progress paymentsFinancial ratio analysis: liquidity ratio, debt ratio, and return on total assetsDepreciation methods: straight-line and accelerated (MACRS)Payroll accounting: gross pay, tax deductions, and net pay calculationAccounting for materials: purchase orders, payment terms, and shipping terms
Tax Basics 4 Q · 5%
Federal Employer Identification Number (EIN) requirements and applicationOregon Business Identification Number (BIN) requirements and usesFederal tax forms by business entity typeEstimated tax thresholds and payment requirements for individuals and corporationsSelf-employment tax (SE tax) filing requirements and thresholdsFederal employment taxes: FICA, federal income tax withholding, and FUTAPayroll tax deposit schedules and penalty rates for late or incorrect depositsOregon corporate excise tax rates, minimum tax, and filing requirements

Key Distinctions

Bid shoppingvsBid peddling

Bid shopping is the general contractor approaching subcontractors other than those who submitted bids to seek a lower offer, while bid peddling is the subcontractor approaching the general contractor after the project was awarded to undercut its own bid-day price.

NASCLA Contractors Guide, Bidding and Estimating chapter — Bid Peddling section
Bid riggingvsBid shopping / bid peddling

Bid rigging is collusion among contractors who coordinate their bids to fix the award outcome, whereas shopping and peddling involve seeking or offering lower subcontractor prices after bids are in or after award.

NASCLA Contractors Guide, Bidding and Estimating chapter — Bid Rigging section
Project overheadvsCompany overhead

Project overhead covers job-specific items such as bonds, temporary storage, temporary office, security guard, utilities, dumpsters and portable toilets, while company overhead covers business costs such as office rent, accounting fees and legal fees.

NASCLA Contractors Guide, Bidding and Estimating chapter — Add Project Overhead section
Unit price estimating methodvsQuantity take-off method

The unit price method bundles all cost factors (labor, materials, equipment, subcontractors) into one price for the entire task, while the quantity take-off method estimates each component individually.

NASCLA Contractors Guide, Bidding and Estimating chapter — Other Methods of Estimating section
MediatorvsArbitrator

A mediator takes part in the negotiation discussion toward a settlement while the parties set the terms; the arbitrator, unlike a mediator, is not involved in the settlement negotiation (arbitrators may be attorneys or retired judges, may be chosen by the parties, and may serve alone or as a panel).

NASCLA Contractors Guide to Business, Law and Project Management - Oregon Construction Contractors, 2nd Edition, Page 5-10 (Alternative Dispute Resolution — Mediation/Arbitration)
Material breachvsImmaterial (partial) breach

A material breach, such as refusing to complete the job or refusing to pay, may void the contract and typically ends in litigation, while an immaterial breach usually does not terminate the contract and the injured party may sue only for the value of the damages.

Oregon Contractors Reference Manual, Chapter 5 (Contracts) — Breach of Contract section
Consequential damagesvsSpecial damages

Consequential damages are indirect costs to the non-breaching party (e.g., the value of property the owner lost because the home was not built on time), while special damages arise from the special circumstances of the party, such as personal injury to a homeowner when a defective ramp collapses.

Oregon Contractors Reference Manual, Chapter 5 (Contracts) — Damages / Consequential Damages section
Owner's damages for breachvsContractor's damages for breach

The owner's 'benefit of the bargain' damages are the difference between the original contract price and the amount actually paid to complete the work, while lost profit is the measure used for a contractor's damages.

Oregon Contractors Reference Manual, Chapter 5 (Contracts) — Enforcement through Damages / Measurement of Damages sections
Unit-price contractvsLump-sum and cost-plus contracts

A unit-price contract sets a price per unit and pays the contractor according to actual quantities used (for jobs where quantities cannot be determined in advance), a lump-sum contract requires a predetermined total price, and cost-plus reimburses actual costs plus a markup.

Oregon Contractors Reference Manual, Chapter 5 (Contracts) — Unit-Price Contract section
Design/buildvsTurnkey

In design/build the owner contracts with one company that assembles designers, architects, engineers and contractors to carry the project from design through completed construction within a predetermined budget; turnkey is similar except the construction firm also obtains the financing and the land.

Oregon Contractors Reference Manual, Chapter 5 (Contracts) — Design/Build section
Single prime contractingvsMultiple prime contracting

Single prime is the traditional method where the owner separately hires the designer and awards one construction contract covering all materials and labor, while in multiple prime the owner contracts with two or more prime contractors and takes an active coordinating role, often integrating construction management and fast-track elements.

Oregon Contractors Reference Manual, Chapter 5 (Contracts) — Single Prime section
General partnervsLimited partner

In a limited partnership, general partners have personal and unlimited liability for all actions and debts undertaken in the name of the business, while limited partners have no personal liability beyond their previously agreed-upon contribution or investment.

NASCLA Contractors Guide, Choosing Your Business Structure chapter — Partnerships section
Single-member LLC taxationvsMulti-member LLC taxation

An LLC with one owner is taxed as a sole proprietorship, while an LLC with more than one owner may elect to be taxed as a partnership or as a corporate entity; LLCs are not taxed at the entity level unless they choose to be.

NASCLA Contractors Guide, Choosing Your Business Structure chapter — Limited Liability Company (LLC) section
Damp-proofing foundation wallsvsWaterproofing foundation walls

Foundation walls should generally be damp-proofed, but where there is a high water table or other severe soil-water conditions they must be waterproofed (hot-mopped felts, roll roofing, plastic sheeting or waterproof coatings), with drains installed in addition to, not in place of, waterproofing.

NASCLA Contractors Guide to Business, Law and Project Management - Oregon Construction Contractors, 2nd Edition, Page 12-3
Oregon OSHA 8-hour reportvsOregon OSHA 24-hour report

Catastrophes (three or more employees admitted to a hospital) and fatalities must be reported within 8 hours of the incident, while a single hospitalization, an amputation or loss of an eye is reported within 24 hours.

NASCLA Contractors Guide to Business, Law and Project Management - Oregon Construction Contractors, 2nd Edition, Page 10-4
Retainage commonly withheld (NASCLA progress payments)vsOregon statutory retainage limit

NASCLA states a retainage amount commonly 10 percent is usually withheld from progress payments and released after final approvals, while Oregon law limits retainage to no more than 5 percent and requires the amount to be clearly stated in the contract.

NASCLA Contractors Guide, Scheduling and Project Management chapter — Progress Payments section

Key Terms

Addendum NASCLA Contractors Guide, Bidding and Estimating chapter — Bid Documents section
A document issued when changes are made to a bid package before the bid is due; it becomes part of the bid documents and ultimately part of the contract when awarded.
Unresponsive bidder NASCLA Contractors Guide, Bidding and Estimating chapter — Bid Documents section
A bidder may be found 'unresponsive' if information in the bid package is incorrectly submitted or omitted altogether.
Allowance NASCLA Contractors Guide, Bidding and Estimating chapter — Add Allowances section
An amount specified in the estimate representing the owner's budget for items not specified in the plans (such as carpeting, fixtures, lighting), with the contract addressing who pays any difference if the owner's choices exceed or fall short of it.
Contingency NASCLA Contractors Guide, Bidding and Estimating chapter — Add Contingencies section
A percentage sometimes added to an estimate to protect the contractor if an unanticipated problem or condition arises, generally based on the project's risk level (e.g., about 2 percent for a low-risk project, higher for riskier work).
Conceptual estimate NASCLA Contractors Guide, Bidding and Estimating chapter — Other Methods of Estimating section
An estimate generally prepared by the architect using cost models from previous projects; the contractor may arrive at a much different cost because of the project's unique characteristics.
Cost code (job cost recording system) NASCLA Contractors Guide, Bidding and Estimating chapter — Job Cost Recording System section
A three-part code made up of a project number, an activity classification code, and a distribution code identifying material (M), labor (L), equipment (E) or project overhead (P), used to compare estimated to actual costs.
Retainage (Oregon) Oregon Contractors Reference Manual, Chapter 5 (Contracts) — Retainage section
A percentage withheld from each progress payment to ensure completion and protect against liens, claims and defaults, limited by Oregon law to no more than 5 percent and required to be clearly stated in the contract.
Minor label NASCLA Contractors Guide to Business, Law and Project Management - Oregon Construction Contractors, 2nd Edition, Page 9-3
An inexpensive alternative to a full permit for minor electrical and plumbing installations, purchasable only by a licensed plumbing or electrical contractor in lots of 10, with online documentation of each label's use and random jurisdiction inspections.
e-Watch NASCLA Contractors Guide to Business, Law and Project Management - Oregon Construction Contractors, 2nd Edition, Page 4-3
A free CCB license-monitoring tool set up within the 'My License' online feature that emails the contractor immediately when the status of a watched license, including a subcontractor's, changes.
Small commercial structure (unit within a larger building) Oregon Contractor's Reference Manual, Chapter 1 — License Endorsements / Small Commercial Structure definition
A nonresidential unit inside a larger structure that is 12,000 square feet or less and not more than 20 feet tall (the 10,000-square-foot figure applies to a free-standing nonresidential structure not more than 20 feet tall).
Residential structure (CCB) Oregon Contractor's Reference Manual, Chapter 1 — License Endorsements / Bond Requirements sections
A structure containing one or more dwelling units and four stories or less, which requires a residential endorsement; a contractor endorsed for both residential and commercial work must maintain separate surety bonds for each endorsement.
CCB surety bond Oregon Contractor's Reference Manual, Chapter 1 — Bond Requirements / Insurance Requirements sections
A promise by the bonding company to make limited payment when a contractor fails to pay a CCB determination, usually based on a court judgment (third-party property damage is covered by general liability insurance and employee injury by workers' compensation).
Minor repair and maintenance (lead-based paint) NASCLA Contractors Guide to Business, Law and Project Management - Oregon Construction Contractors, 2nd Edition, Page 11-3
Work excluded from 'renovation' because it disturbs six square feet or less of painted interior surface or 20 square feet or less of painted exterior surface; exceeding either limit in target housing (built before 1978, has bedrooms, and not elderly/disabled housing) makes the job a regulated renovation requiring a CCB LBPR license and a certified renovator.
Small quantity generator (hazardous waste, Oregon) NASCLA Contractors Guide to Business, Law and Project Management - Oregon Construction Contractors, 2nd Edition, Page 11-6
A generator producing between 221 and 2,199 pounds of hazardous waste per month, which must notify DEQ, obtain a site identification number and report annually (conditionally exempt = 220 pounds or less; large quantity = 2,200 pounds or more).
Workweek (FLSA) Oregon CCB Contractor's Reference Manual, Chapter 3 (Hiring and Managing Employees) — Workweek Defined Under FLSA section
A period of 168 hours during seven consecutive 24-hour periods; it need not begin on Sunday, and Oregon allows the employer to set the beginning and change it if the change is permanent and not designed to evade overtime.
Collaborative law Oregon Contractors Reference Manual, Chapter 5 (Contracts) — Alternative Dispute Resolution section
A facilitative ADR process in which all parties agree at the onset to reach a mutually beneficial settlement through their own advocates, usually lawyers, with no neutral mediator or arbitrator and no further ADR or litigation expected.
Homebuyer Protection Act Notice of Compliance NASCLA Contractors Guide to Business, Law and Project Management - Oregon Construction Contractors, 2nd Edition, Page 6-7
The notice a seller of newly constructed residential property must deliver; failure to provide it is a Class 'A' violation punishable by a fine of up to $2,000 for individuals or $4,000 for corporations, and one compliance option is completing the sale at least 75 days after completion of all construction.
Binding contract elements Oregon Contractors Reference Manual, Chapter 5 (Contracts) — Make it Binding / Offer Checklist sections
Offer and acceptance, consideration, competent parties (legal capacity) and legal purpose; an expiration date is only a recommended offer-checklist item, and an offer with no deadline expires in a 'reasonable time.'

Formulas to Know

Bid price after adding overheadTotal overhead % = project overhead % + company overhead %; direct costs are (100% − total overhead %) of the bid, so Bid Price = Direct Costs ÷ (1 − total overhead %). Worked example: 9% + 11% = 20%, so $100,000 ÷ 0.80 = $125,000.
Labor cost per task (quantity take-off)Required Labor Hours per Task × Labor Rate = Labor Cost per Task
Total material unit costPrice per Unit × Number of Units Needed = Total Material Unit Cost (obtain at least three supplier bids)
Project equipment costHourly unit cost = Total Yearly Operating/Maintenance Cost ÷ Estimated Annual Hours; Project cost = hourly unit cost × project hours. Worked example: $30,000 ÷ 1,000 hr = $30/hr; $30 × 40 hr = $1,200.
Activity durationActivity Duration = Total Labor Hours ÷ Hours per Day Available for the Task. Worked example: 16 hr ÷ 4 hr/day = 4 working days.
Employee net payNet Pay = Gross Pay − (all taxes and deductions). Worked example: $3,200 − ($384 + $198.40 + $46.40 + $160 + $96 = $884.80) = $2,315.20.
Profitability ratio (profit margin)Profit Margin = Net Income ÷ Revenues. Worked example: $46,300 ÷ $545,600 ≈ 8.5%.
Overtime hours owed (FLSA)Count all hours the employee is required to be on the employer's premises, on duty or at a prescribed workplace (including required safety meetings); overtime at 1½ times the regular rate is owed only for hours over 40 in the workweek. Worked example: 38 + 3 = 41 hours → 1 overtime hour.
Liquidated (stated) damagesLiquidated Damages = Days of Unexcused Late Completion × Contract Per-Day Rate; an owner who sues for liquidated damages cannot also recover actual damages. Worked example: 18 days × $500 = $9,000 only.
Oregon corporate excise tax (tax years beginning on or after January 1, 2013)6.6% of Oregon taxable income of $1 million or less; for income over $1 million, $66,000 + 7.6% of the amount over $1 million. Worked example: $1,500,000 → $66,000 + (7.6% × $500,000 = $38,000) = $104,000.
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