Oregon Construction Contractors (CCB) Practice Test

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Prepare for the Oregon CCB Test with our study materials. Use flashcards and multiple-choice questions with explanations and hints. Ensure you're ready for exam success!

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How many functions do progress payments have?

One
Two
Three
Four

The correct answer is: Two

Progress payments serve two primary functions in construction contracts. Firstly, they provide a mechanism for the contractor to receive partial payments as work progresses, which helps maintain cash flow and allows the contractor to pay for materials, labor, and other associated costs as the project develops. This is essential for ensuring that the project can proceed without financial strain. Secondly, progress payments create a system of accountability and quality assurance for both the contractor and the client. By linking payment to milestones and completed work, it incentivizes the contractor to maintain quality and adhere to the project timeline. Clients benefit from this arrangement as it allows them to monitor the project’s progress and ensure that payments are tied to satisfactory performance. Understanding these functions is crucial for managing construction projects effectively, as they contribute to both financial stability and quality assurance throughout the project lifecycle.