Level 1 CGC1 Practice Exam Questions

Oregon Commercial General Contractor Level 1 (CGC1) Practice Exam Questions And Correct Answers (Verified Answers) Plus Rationales 2026 Q&A | Instant Download Pdf

• Which of the following is the primary purpose of the Oregon

Construction Contractors Board (CCB)?

• Regulate union labor rates
• Provide construction loans
• License and regulate contractors in Oregon
• Approve architectural plans

Rationale: The CCB is responsible for licensing and regulating

contractors to ensure legal compliance and consumer protection.

• What is the minimum experience requirement to apply for a CGC1

license in Oregon? 1 / 4

• 1 year of residential construction
• 2 years of commercial construction
• 4 years of verifiable construction experience
• 10 years in any trade

Rationale: Oregon requires applicants to have at least four years of

verifiable construction experience, which may include apprenticeship, journeyman work, or supervisory roles.

• Which type of insurance is required for all Oregon commercial

contractors?

• Life insurance
• Workers’ compensation insurance
• Vehicle insurance
• Health insurance

Rationale: Contractors must maintain workers’ compensation

insurance to protect employees from on-the-job injuries.

• What is a primary responsibility of a commercial general contractor?
• Only perform electrical work
• Only manage finances
• Oversee all aspects of construction projects, including

subcontractors

• Only submit building permits

Rationale: A commercial general contractor manages the entire

construction project, coordinating trades, schedules, and compliance. 2 / 4

• Which of the following documents is required before starting

construction in Oregon?

• Sales contract
• Building permit
• Mortgage statement
• Contractor insurance certificate

Rationale: A building permit ensures that construction complies with

local codes and safety regulations.

• When a contractor hires subcontractors, which is the most important

document to have in place?

• Verbal agreement
• Written subcontractor agreement
• Letter of intent
• Purchase order

Rationale: A written agreement outlines scope, schedule, and

payment terms, reducing legal risk.

• What is the maximum fine for unlicensed contracting in Oregon?

A. $500

B. $1,000

• $5,000 per violation
• $10,000 per violation

Rationale: Oregon law imposes fines up to $5,000 for unlicensed

contracting to enforce licensing compliance. 3 / 4

• Which of the following best describes the role of a bid bond?
• Guarantees project completion
• Guarantees subcontractor payment
• Ensures the contractor will enter the contract if awarded the bid
• Protects against material defects

Rationale: A bid bond assures the project owner that the contractor

will honor the bid if selected.

• What is the main purpose of OSHA regulations for construction sites?
• Increase project speed
• Reduce material costs
• Ensure worker safety and health
• Regulate contractor profits

Rationale: OSHA standards are designed to prevent injuries, illnesses,

and fatalities on construction sites.

• Which of the following is required for a change order in a

commercial project?

• Verbal approval
• Contractor memo
• Written documentation signed by owner and contractor
• Email notification only

Rationale: Change orders must be documented in writing and agreed

upon by both parties to avoid disputes.

• / 4