Oregon Construction Contractors (CCB) Practice Test

When transitioning business entities, what is required from a contractor?

1. Paying new fees and completing a new CCB application

2. Providing a new bond and maintaining previous license

3. Doing all of the following: paying new fees, completing a new CCB application, and providing new bond and insurance

4. Just filling out a new application

The correct answer is: Doing all of the following: paying new fees, completing a new CCB application, and providing new bond and insurance

When transitioning business entities, it is essential for a contractor to address multiple requirements to comply with regulatory standards. This includes the necessity to pay new fees, complete a new CCB application, and provide a new bond and insurance. Paying new fees is critical because the contractor is essentially establishing a new business entity, and each type of business structure (e.g., LLC, corporation, etc.) is subject to its own fees and regulatory costs. Completing a new CCB application is also vital, as it ensures that the licensing records are current and reflect the new business entity. This application process verifies that the contractor meets all necessary qualifications and adheres to state regulations. In addition, providing a new bond and insurance is necessary to protect clients and uphold the integrity of the contracting industry. Bonds act as a guarantee that the contractor will adhere to all contractual obligations, while insurance serves as a safety net in case of accidents or damages. Together, these components ensure that the transition to a new business entity is seamless and compliant with Oregon's construction regulatory requirements. This comprehensive approach underscores the importance of thoroughness in the management of business transitions in the contracting field.