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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What is the purpose of the Claim of Lien?

To formally demand payment
To notify of construction completion
To escalate a project dispute
To register a construction company

The correct answer is: To formally demand payment

The purpose of a Claim of Lien is to formally demand payment for services or materials provided in a construction project. When a contractor, subcontractor, or supplier files a Claim of Lien, they are asserting their right to receive compensation for their work. This legal document serves as a notice to the property owner and can be an effective way to secure payment, as it encumbers the property and can impact the owner's ability to sell or refinance. This mechanism is vital within the construction industry, as it facilitates the resolution of payment disputes and encourages timely payment for labor and materials. It acts as a protective measure for contractors and subcontractors against non-payment, thus ensuring that they have a recourse to claim money owed to them directly tied to the property on which they worked.