Oregon Construction Contractors (CCB) Practice Test

What is the agreement called between a contractor and owner?

1. Service contract

2. Construction warranty

3. Residential construction contract

4. Property management agreement

The correct answer is: Residential construction contract

The agreement between a contractor and the owner is referred to as a residential construction contract. This contract outlines the specific terms and conditions under which the contractor agrees to perform construction work on the owner's property. These terms typically include the scope of work, payment schedule, timeline for completion, and any other obligations or responsibilities of both parties. A residential construction contract provides legal protection for both the contractor and the owner, ensuring clarity and mutual understanding of the project requirements. It may also cover details regarding permits, inspections, and adherence to building codes, which are critical to successful project completion and compliance with local regulations. While other agreements may exist in the realm of real estate and construction, such as service contracts, construction warranties, and property management agreements, they do not specifically address the direct relationship and obligations between a contractor and a homeowner during a construction project, making the residential construction contract the appropriate term in this context.