Oregon Revised Statutes
Chapter 928, Oregon Laws 1989, shall be known as the Construction Contractors Licensing Act. Note: Legislative Counsel has substituted “chapter 928, Oregon Laws 1989,” for the words “this Act” in section 31, chapter 928, Oregon Laws 1989, compiled as 701.900 and renumbered 701.002 in 2001. Specific ORS references have not been substituted, pursuant to 173.1…
As used in this chapter: “Board” means the Construction Contractors Board. “Commercial contractor” means a licensed contractor that holds an endorsement as a: Commercial general contractor level 1; Commercial specialty contractor level 1; Commercial general contractor level 2; Commercial specialty contractor level 2; or Commercial developer. “Commerc…
The Construction Contractors Board may adopt rules to make licensure optional for persons who offer, bid or undertake to perform work peripheral to construction, as defined by administrative rule of the board. The following persons are exempt from licensure under this chapter: A person who is constructing, altering, improving or repairing personal property.…
It is the intent of the Legislative Assembly to reduce the number of city business licenses that construction contractors are required to obtain in order to conduct business in the Portland metropolitan area. It is the purpose of this section and ORS 701.015 to enable construction contractors to secure from the metropolitan service district one business lice…
A contractor shall pay directly to any city within the boundaries of a metropolitan service district any business license tax imposed by the city when: The principal place of business of the contractor is within the city; or The principal place of business of the contractor is not within the city but the contractor derives gross receipts of $250,000 or mor…
A city that imposes a business license tax based on or measured by adjusted net income earned by conducting business within the city shall be exempt from ORS 701.015. As used in this section, “business license tax” has the meaning given that term in ORS 701.015. Note: 701.020 was enacted into law by the Legislative Assembly but was not added to or made a p…
Except as provided in ORS 701.010, a person or joint venture that undertakes, offers to undertake or submits a bid to do work as a contractor must have a current license issued by the Construction Contractors Board and possess an appropriate endorsement as provided in this section. For purposes of offering to undertake or submitting a bid to do work, a partn…
A contractor may not hire a contractor to perform work unless the contractor is licensed under this chapter and properly endorsed for the work to be performed or is exempt from licensure under ORS 701.010. Except as provided in ORS 671.540, a contractor that is not licensed under ORS 671.560 shall hire a person licensed under ORS 671.560 to perform landscap…
It is prima facie evidence that a person is doing business as a contractor if: The person for that person’s own use performs, employs others to perform, or for compensation and with the intent to sell the structure arranges to have performed, work described in ORS 701.005 (5); and Within any 36-month period the person offers for sale two or more newly buil…
An applicant must qualify as an independent contractor under ORS 670.600 to be eligible for a license with the Construction Contractors Board. The board shall establish two classes of independent contractor: The nonexempt class is composed of the following entities: Sole proprietorships, partnerships, corporations and limited liability companies: With on…
A residential limited contractor may not: Perform work as a contractor exceeding $40,000 in gross annual volume; or Enter into contracts to perform work as a contractor in excess of $5,000.
A residential or commercial developer: Shall act only in association with licensed general contractors, one or a combination of whom must have sole responsibility for overseeing all phases of construction activity on a property; and May not perform any construction work on a property.
Except as provided in subsection (2) of this section, an applicant for a construction contractor license must submit the application on a form prescribed by the Construction Contractors Board. The application must include, but is not limited to, the following information: The endorsement being sought. A list of construction debts involving the applicant, o…
A commercial general contractor or commercial specialty contractor shall certify upon license application or renewal that the contractor has one or more key employees with the combined total amount of experience required under ORS 701.084. Except as provided in subsection (3) of this section, the experience certified under subsection (1) of this section mus…
Each applicant shall pay to the Construction Contractors Board: For an application for the issuance or renewal of a contractor license, an application fee as determined by the board under ORS 701.238. For an application for changes to a contractor license, other than changes due to clerical errors by the board, an application fee established by board rule.
Any contractor licensed under this chapter may at any time apply for an additional or different endorsement. The Construction Contractors Board may charge a fee not to exceed $20 for each application.
A license is valid for two years from the date of issuance unless the license is revoked or suspended as set forth in ORS 701.098. A person may renew a license by submitting an application for renewal on the prescribed form, providing any additional information required, including evidence of completion of any required education and an affirmation of the pe…
An applicant for issuance or renewal of a contractor license shall file with the Construction Contractors Board a surety bond with one or more corporate sureties authorized to do business in this state in the amount set forth in ORS 701.081 or 701.084. If an applicant for issuance, renewal or an additional endorsement of a license will hold endorsements as …
A contractor who possesses a license as required under this chapter shall have in effect public liability, personal injury and property damage insurance covering the work of the contractor that is subject to this chapter, including the covering of liability for products and completed operations according to the terms of the policy and subject to applicable p…
A residential general contractor shall: Obtain a surety bond under ORS 701.068 in the amount of $25,000; Obtain general liability insurance under ORS 701.073 in an amount of not less than $500,000; and Have a responsible managing individual who meets the requirements of ORS 701.091. A residential specialty contractor shall: Obtain a surety bond under OR…
Except as provided in subsections (2) and (6) of this section and ORS 701.083, to qualify for the renewal of a residential contractor license the licensee must complete eight hours of continuing education during the two-year licensing period preceding the renewal. Three of the hours required under paragraph (a) of this subsection must be education regarding…
The Construction Contractors Board may allow a residential contractor to participate in a specialized education program under ORS 701.120 in lieu of completing continuing education described in ORS 701.082 (1)(c). The board may establish a minimum number of specialized education program hours or courses that the residential contractor must complete during a …
A commercial general contractor level 1 shall: Obtain a surety bond under ORS 701.068 in the amount of $80,000; Obtain general liability insurance under ORS 701.073 in an amount of not less than $2 million; Have a responsible managing individual who meets the requirements of ORS 701.091; and Have one or more key employees with a combined total of at leas…
A commercial general contractor level 1 or commercial specialty contractor level 1 shall have a key employee, or combination of key employees, who completes at least 40 hours of continuing education per year. A commercial general contractor level 2 or commercial specialty contractor level 2 shall have a key employee, or combination of key employees, who com…
As used in this section: “Illegal drug manufacturing site” has the meaning given that term in ORS 453.858. “Nonprofit organization” means an organization or group of organizations described in section 501(c)(3) of the Internal Revenue Code that is exempt from income tax under section 501(a) of the Internal Revenue Code. The Construction Contractors Board …
A business licensed under this chapter must at all times have at least one responsible managing individual. Subsection (1) of this section does not apply to a business licensed with endorsement solely as a residential or commercial developer.
If a person ceases to be the responsible managing individual for a contractor or business that is required under this chapter to have a responsible managing individual, the contractor or business shall include the following information in the notification to the Construction Contractors Board under ORS 701.114: The name of the former responsible managing in…
As used in ORS 701.098 and 701.102, “owner” means: A sole proprietor of, partner in or holder of a controlling interest in a business; or A person defined as an owner by Construction Contractors Board rule. The board shall adopt rules defining an owner for purposes of subsection (1) of this section. The rules may not define an owner in a manner that inclu…
The Construction Contractors Board may revoke, suspend, condition or refuse to issue or reissue a license and may assess a civil penalty as provided in ORS 701.992 if the board determines after notice and opportunity for hearing that a licensee or applicant: Violated a provision of this chapter. Violated a rule or order of the board. Entered into a settle…
As used in this section, “construction contractor license” means a license issued within the United States to engage in the business of construction contracting. The Construction Contractors Board may revoke, suspend or refuse to issue a license required under this chapter to a business if: The business owes a construction debt or has had a construction co…
A contractor that violates or fails to comply with any of the following provisions or any rules adopted under those provisions is subject to the suspension of, revocation of, refusal to issue or refusal to renew a license, imposition of a civil penalty under ORS 701.992, or a combination of those sanctions: ORS 87.007 (2). ORS chapter 316 or 317. ORS 446.…
In addition to any other authority granted to the Construction Contractors Board, the board may revoke, suspend or refuse to issue a license to a person if the board finds that the person has engaged in dishonesty by supplying any governmental entity or person with false information regarding the activities of a construction contracting business, knowing, or…
If a project financed under the energy efficiency and sustainable technology loan program is to be constructed for a commercial structure, the State Department of Energy shall require that the certified contractor pay the employees used for the project at the prevailing wage rate determined by the Commissioner of the Bureau of Labor and Industries for each t…
As used in this section, “judgment” means: A judgment issued in a court action; or A court order that confirms an arbitration award. A contractor shall send the Construction Contractors Board a copy of a final judgment entered by a circuit court of this state, or by an equivalent court in another state, if the judgment orders the contractor to pay damages…
Upon receipt of the notification provided by the Commissioner of the Bureau of Labor and Industries under ORS 652.333 stating that a contractor or a business has failed to pay the amounts due as ordered in a final determination order within 60 days of the issuance of the order, the Construction Contractors Board shall, after notice and opportunity for a hear…
A lapse, surrender, suspension or other change in license status does not affect any authority otherwise granted the Construction Contractors Board to proceed with an investigation, conduct a disciplinary hearing or take disciplinary action against a person for a violation of this chapter or rules of the board, or to determine a timely complaint described in…
Except as provided in this subsection, a contractor licensed under this chapter shall immediately notify the Construction Contractors Board of any change in the identity, name or address of a person who holds a position with the contractor that is described in ORS 701.046 (1)(h), (i) or (j) or of a responsible managing individual for the contractor as define…
A contractor shall notify the Construction Contractors Board of: Any change of address while licensed and for one year following the date the contractor’s license expires or otherwise becomes inactive; and A change in the contractor’s status as exempt under ORS 701.035 (2)(b) to nonexempt under ORS 701.035 (2)(a), or from nonexempt to exempt. The contract…
A licensed contractor that possesses an appropriate endorsement may apply to the Construction Contractors Board for certification to participate as a primary contractor, as defined in ORS 470.050, in the construction of small scale local energy projects financed through the energy efficiency and sustainable technology loan program. The board may issue the ce…
As used in this section, a “specialized education program” means one or more of the following: A structured program that is approved or certified by an appropriate state or federal agency, or by an organization recognized by the Construction Contractors Board as representing construction contractors, and is designed to educate contractors to deal with one o…
The Construction Contractors Board, by rule, shall impose training requirements for individuals and businesses seeking to be licensed under this chapter. The training required by the board must relate to business practices and laws affecting construction contractors. The board shall adopt standards for programs that provide training that meets the requiremen…
If any person suffered costs or damages as a result of an individual providing a false or invalid Construction Contractors Board number or otherwise misleading a person with respect to licensure with the board, that person may bring suit in a court of competent jurisdiction to recover damages. The court may award reasonable attorney fees to the prevailing pa…
COMPLAINTS
Except as provided in subsection (2) of this section, a contractor may not perfect a construction lien, file a complaint with the Construction Contractors Board or commence an arbitration or a claim in a court of this state for compensation for the performance of any work or for the breach of any contract for work that is subject to this chapter, unless the …
Unless otherwise provided by the Construction Contractors Board by rule, before filing a complaint under ORS 701.139, a person must send notice to the contractor that the person intends to file the complaint. The person must send the notice at least 30 days before filing the complaint. The notice must be mailed by certified mail to the last known address of …
The Construction Contractors Board may determine the validity of a complaint described in ORS 701.140 filed against a licensed contractor. A person must file the complaint within the applicable time limitation described in ORS 701.143. The complaint must be filed and resolved as follows: A complaint against a residential contractor that is not also endorsed…
A complaint under ORS 701.139 must arise from the performance, or a contract for the performance, of work that requires a contractor license issued by the Construction Contractors Board. The complaint must be of one or more of the following types: A complaint against a contractor by the owner of a structure or other real property for the following: Neglige…
The Construction Contractors Board may not process a complaint against a licensed contractor, including a complaint based upon a court judgment or an arbitration award, unless the complaint is filed with the board in a timely manner as follows: Except as otherwise provided in this section, if the owner of a new structure files the complaint, the board must …
For a complaint described in ORS 701.139 (1) or (3)(a) or a complaint under ORS 701.139 (3)(b) that a complainant elects to have resolved under this section: The complainant must file the complaint with the Construction Contractors Board in a form prescribed by the board. The board may suspend processing of the complaint if: The same facts and issues invo…
For a complaint described in ORS 701.139 (2) or (3)(c) or a complaint under ORS 701.139 (3)(b) that a complainant elects to have resolved under this section: The person seeking to file the complaint with the Construction Contractors Board must: Bring an action on the dispute against the licensed contractor in a court of competent jurisdiction; or Initiate…
If the Construction Contractors Board suspends the processing of a complaint because of the complaint having been submitted to a court or arbitrator or because of a court having stayed action on the complaint, the board may require that the complainant provide status reports on the pending court action or arbitration. The board may dismiss or close a complai…
If a licensed contractor fails to pay a complainant amounts due under a court judgment or under a final order of the Bureau of Labor and Industries, the Construction Contractors Board shall issue a determination stating the amount that a surety must pay the complainant. The surety shall pay the amount required under the determination as follows: If the comp…
If an order of the Construction Contractors Board determines a complaint against a residential contractor that was filed with the board prior to July 1, 2011, and the order becomes final by operation of law or on appeal and remains unpaid 10 days after the date the order becomes final, the complainant may file the order with the county clerk in any county of…
Payments from the surety bond of a commercial contractor pursuant to Construction Contractors Board order and notice are satisfied in the following priority in any 90-day period: Board orders as a result of complaints against a commercial contractor by a person furnishing labor to a contractor or owed employee benefits by a contractor have payment priority …
Notwithstanding ORS 9.320: A party may appear or be represented by an individual who is not a licensee of the Oregon State Bar in a proceeding before the Construction Contractors Board if: The party is a corporation and the individual is an officer of the corporation; The party is a partnership, or a limited liability partnership or foreign limited liabil…
Notwithstanding the provisions of ORS 36.600 to 36.740, any other provision of law or any contractual provision, failure of a contractor to initiate mediation or arbitration proceedings within 30 days after notification by the Construction Contractors Board of a complaint under ORS 701.145 is a waiver by the contractor of any contractual right to a mediation…
The Construction Contractors Board is established, consisting of nine members appointed by the Governor subject to confirmation by the Senate in the manner provided by law. Three of the members shall be residential contractors who primarily work on residential or small commercial structures, including one contractor engaged in the business of remodeling, two…
The Construction Contractors Board shall select from among its members a chairperson, a vice chairperson and such other officers for such terms and with such duties and powers necessary for the performance of their duties as the board determines. A majority of the members of the board constitutes a quorum for the transaction of business. A member of the bo…
The Construction Contractors Board may investigate the activities of any person engaged in the building and construction industry to determine compliance with this chapter. With the approval of the city or county, the board may conduct investigations with city or county inspectors, provided that the city or county is reimbursed by the board for the costs of…
The Construction Contractors Board shall begin an action to determine whether a contractor or a subcontractor shall be considered not qualified to hold or participate in a public contract for a public improvement upon receipt of information from a public contracting agency or from any person who supplied labor or materials in connection with a public contrac…
At least once each month, the Construction Contractors Board shall provide to investigative units of the Department of Revenue, Department of Consumer and Business Services and Employment Department the name and address of each person who acts as a contractor in violation of this chapter or who knowingly assists an unlicensed person or a licensed contractor …
The Construction Contractors Board shall adopt rules to carry out the provisions of this chapter including, but not limited to, rules that: Establish language for surety bonds; Establish processing requirements for different types of complaints described in this chapter; Limit whether a complaint may be processed by the board if there is no direct contrac…
To the extent that a requirement necessary to obtain or maintain a license, endorsement or other authorization to perform work from the Construction Contractors Board is unclear, duplicative or in conflict, or in instances where a requirement conflicts with the board’s efforts to modernize operations and ensure consistent regulatory enforcement, the board ma…
Before July 1 of each year, the Construction Contractors Board shall determine the amounts of the fees to be charged for applications under ORS 701.056 for the issuance or renewal of contractor licenses. The fee amounts are subject to prior approval of the Oregon Department of Administrative Services. The fee amounts shall be within the budget authorized by …
The Construction Contractors Board shall supply the Department of Revenue and the Employment Department with a partial or complete list of licensees as deemed necessary by the board. The lists required by subsection (1) of this section shall contain the name, address, Social Security or federal employer identification number of each licensee or such other i…
Social Security numbers, driver license numbers, dates of birth and other personal identifier information included in a license or certificate application filed under this chapter are confidential. Except as provided in this section, the Construction Contractors Board may not disclose personal identifier information contained in a license or certificate appl…
Any individual may request and the Construction Contractors Board shall provide notification of the status of one or more licensees. Status information provided by the board shall include any professional credentials earned by the contractor as described in ORS 701.120. The board may charge a standard fee for the notification described in subsection (1) of …
The Construction Contractors Board may retain 20 percent annually from the funds collected under ORS 701.992. The amount retained under this section shall be continuously appropriated for the board’s costs of collection of civil penalties imposed by order of the board.
From within its membership, the Construction Contractors Board shall appoint three members, including one of the public members or the elected official, as an appeal committee. The board may appoint one or more appeal committees. At least one residential contractor shall be appointed to any committee that hears appeals involving residential complaints. An a…
The Construction Contractors Board shall adopt rules establishing a continuing education system for residential contractors licensed by the board. The rules shall include, but need not be limited to, minimum standards to be met: By approved providers of continuing education; and By courses that the board approves as continuing education. In establishing t…
The Construction Contractors Board may enter into agreements with approved continuing education providers for the providers to offer education developed by the board under ORS 701.082 (1)(b). The agreements may provide for the board to collect payment from the providers for the use of the education materials developed by the board. In determining whether to…
The Construction Contractors Board may establish a voluntary certification program for a residential general master builder of vertical homeownership structures and other structures and may define a vertical homeownership structure by rule. At a minimum, the certification program must provide education, training, assessment and evaluation of individuals with…
The Construction Contractors Board may enter into interagency agreements with the Department of Consumer and Business Services for the department to perform duties on behalf of the board under this chapter regarding: Licenses, registrations and other authorizations; or Regulated activities of a contractor. Subject to the approval of the Director of the De…
The Construction Contractors Board shall investigate allegations of illegal activity in the construction industry and seek civil or criminal prosecution of illegal activity that warrants more than an administrative sanction.
CONSTRUCTION CONTRACTS AND NOTICES
A contractor may not perform work to construct, improve or repair a residential structure or zero-lot-line dwelling for a property owner without a written contract if the aggregate contract price exceeds $2,000. If the price of a contract was initially less than $2,000, but during the course of performance the contract exceeds that amount, the contractor sha…
A property owner who enters into an initial written contract for the construction, improvement or repair of a residential structure or zero-lot-line dwelling on real property owned by the property owner may cancel the contract by delivery of a written notice of cancellation anytime prior to 12 midnight at the end of the next business day. The notice of cance…
Notwithstanding the conditions specified for probation in ORS 701.102 (3), the Construction Contractors Board may place a contractor on probation as provided in ORS 701.102 (3) if the contractor offers to perform a home improvement, accepts a deposit of more than 50 percent of the total contract price and: Fails to perform diligently and in accordance with …
A contract that is for the performance of work on a residential structure and that is subject to this chapter may not contain a provision that limits the right of a person to file a complaint described in ORS 701.140 with the Construction Contractors Board. A contract described in this section may contain a provision requiring mediation or arbitration of a d…
A contractor that enters into a contract to construct a new residential structure or zero-lot-line dwelling, or to sell a new residential structure or zero-lot-line dwelling constructed by the contractor, shall make a written offer to the property owner or original purchaser of the structure or dwelling of a warranty against defects in materials and workmans…
If a person is required under this chapter to be licensed as a contractor, a city, county or state agency may not issue the person a building permit unless the person has a current, valid contractor license properly endorsed for the work to be performed. A city, county or state agency that requires the issuance of a permit for the construction, alteration, i…
The Construction Contractors Board shall adopt by rule a consumer notice form designed to inform a property owner or original purchaser of the actions the property owner or original purchaser should take to protect the property owner in a residential structure or zero-lot-line dwelling repair, remodel or construction project or to protect the original purcha…
A contractor that enters into a contract to construct a new residential structure or zero-lot-line dwelling shall provide a recommended maintenance schedule to the property owner or original purchaser of the proposed structure or dwelling at the time that the contractor makes a written offer of warranty under ORS 701.320. The Construction Contractors Board …
A commercial general contractor level 1 or level 2 that constructs a new large commercial structure shall provide the owner with a two-year warranty of the building envelope and penetration components against defects in materials and workmanship. The warranty shall provide for the contractor to annually inspect the building envelope and penetration component…
A contractor shall maintain a list that includes the names, addresses and license numbers for all subcontractors or other contractors performing work on a project for that contractor. The contractor must deliver the list referred to in subsection (1) of this section to the Construction Contractors Board within 72 hours after a board request made during reas…
Every person offering to undertake or undertaking construction of building sewer piping shall comply with the requirements of ORS chapter 701. Every person submitting a bid or a written estimate of the costs to construct building sewer piping shall provide to potential customers, prior to an agreement to perform, the following: The person’s Construction Co…
RETAINAGE
As used in ORS 279C.555, 279C.570, 701.410, 701.420, 701.430, 701.435 and 701.440: “Construction” means: Excavating, landscaping, demolishing and detaching existing structures, leveling, filling in and otherwise preparing land for the making and placement of a building, structure or superstructure; Creating or making a building, structure or superstructur…
Partial payment is allowed and may be made on contracts for construction and home improvement. An owner, contractor or subcontractor may withhold as retainage an amount equal to not more than five percent of the contract price of the work completed. Partial payment allowed under this subsection is not acceptance or approval of some of the work or a waiver of…
A contractor or subcontractor may execute and deliver to the owner, contractor or subcontractor before the commencement of construction for which the contractor or subcontractor will be responsible for performing a good and sufficient bond in a sum equal to the contract price for the faithful performance of the contract. The term of the bond obtained under t…
A contractor that performs work on a large commercial structure or under a public improvement contract may submit to the project owner and any lender, and the owner and lender shall accept, a surety bond in lieu of all or any portion of the retainage required for the large commercial structure or under the public improvement contract. When an owner and any …
ORS 279C.555, 701.410, 701.420 and 701.430 do not apply when the owner is the United States or any agency thereof or when the construction is paid for, in whole or in part, with federal moneys. Note: See note under 701.410. SPECIAL TRADES (Home Inspectors)
An individual may not undertake, offer to undertake or submit a bid to do work as a home inspector unless the individual is certified as a home inspector under this section by the Construction Contractors Board and is an owner of, or employed by, a business that is licensed by the board. A business may not undertake, offer to undertake or submit a bid to do…
A business licensed as a contractor under this chapter and providing home inspector services by a home inspector certified under ORS 701.445 may not undertake, offer to undertake or offer to submit a bid to undertake work to repair a structure inspected by an owner or employee of the business within the 12 months following the inspection.
A home inspector services contractor license authorizes the holder to operate a business providing the services of home inspectors as defined in ORS 701.005, but does not authorize the holder to engage in other contractor activities. Notwithstanding ORS 701.126, the Construction Contractors Board may not impose a continuing education requirement for a home …
As used in this section: “Fenestration product or system” means a window, glass, glazing or glazing system or skylight, whether installed in a horizontal or vertical plane, that is designed to provide a weatherproof barrier. “Fenestration product or system” does not include a premanufactured window or skylight. “National certification” means a certificati…
As used in this section: “Construction flagger” means an individual who, for compensation or with the expectation of compensation, directs or controls the flow of motor vehicle traffic on a public roadway to prevent or reduce conflict between the flow of traffic and construction activity on or near the roadway. “Construction flagger” does not mean an indiv…
As used in ORS 701.475 to 701.490: “Key” means a mechanical, electromechanical, electronic, electromagnetic or other device for operating a lock. “Lock” means a mechanical, electromechanical, electronic, electromagnetic or other device that is designed to control access from one area to another or control the use of a device in a structure or vehicle. “Lo…
An individual may not undertake, offer to undertake or submit a bid to do work as a locksmith for compensation, or with the expectation to be compensated, unless the individual is certified as a locksmith under ORS 701.485 by the Construction Contractors Board and is an owner of, or employed by, a business that is licensed by the board. A business may not u…
The Construction Contractors Board shall adopt rules establishing minimum standards of practice and professional conduct for locksmiths and businesses that provide locksmith services. The board shall require that an applicant for certification as a locksmith pass a test demonstrating the competency of the applicant to act as a locksmith. The board may adop…
ORS 701.480 and 701.485 do not apply to: A person offering key duplication services at a fixed location or ancillary to other business activities, if the person does not undertake, offer to undertake or submit a bid to undertake other locksmith services; An individual performing work within the scope of a license described in ORS 479.905 to 479.945; A tow…
A residential locksmith services contractor license authorizes the holder to operate a business providing the services of locksmiths as defined in ORS 701.475 for residential or small commercial structures, but does not authorize the holder to engage in other contractor activities. Notwithstanding ORS 701.126, the Construction Contractors Board may not impo…
(Home Services Contractors)
As used in this section, “home” and “home service agreement” have the meanings given those terms in ORS 731.164. A home services contractor license authorizes the holder to operate a business providing service, repair or replacement for homes through a licensed contractor under a home service agreement. Notwithstanding ORS 701.126, the Construction Contrac…
For the purposes of ORS 701.505 to 701.515: “Abatement” has the meaning given that term in P.L. 102-550, section 1004, 40 C.F.R. 745.223 and as further defined pursuant to the authorities described in ORS 431A.350. “Accredited training program” means a training program that has been accredited by the Oregon Health Authority to provide training for individu…
A contractor may not perform lead-based paint activities in this state unless the contractor is a lead-based paint activities contractor. A contractor may not perform lead-based paint renovation in this state unless the contractor is a certified lead-based paint renovation contractor. A lead-based paint activities contractor or certified lead-based paint r…
In accordance with applicable provisions of ORS chapter 183, the Construction Contractors Board by rule shall establish a system to license contractors as lead-based paint activities contractors and certified lead-based paint renovation contractors. The licensing system must include the requirements described in 40 C.F.R. 745.226. The licensing system must i…
The Construction Contractors Board Lead-Based Paint Activities Fund is established in the State Treasury, separate and distinct from the General Fund. Interest earned by the Construction Contractors Board Lead-Based Paint Activities Fund shall be credited to the fund. The fund consists of moneys received by the Construction Contractors Board under ORS 701.99…
(Home Energy Assessment and Performance Scoring)
As used in ORS 701.527 to 701.536: “Home energy assessor” means a person who assigns residential buildings a home energy performance score. “Home energy performance score” means a score assigned to a residential building using the home energy performance score system adopted by the State Department of Energy under ORS 469.703.
An individual may not undertake, offer to undertake or submit a bid to do work as a home energy assessor unless the individual is certified as a home energy assessor under ORS 701.532. A business may not undertake, offer to undertake or submit a bid to assign home energy performance scores unless the business: Is licensed by the Construction Contractors Bo…
The Construction Contractors Board shall certify an individual as a home energy assessor if the individual meets the requirements of this section and of any rule adopted by the board under this section. A home energy assessor certificate must be renewed annually. The board shall require that an applicant for a home energy assessor certificate present proof …
A home energy performance score contractor endorsement authorizes the holder to operate a business assigning home energy performance scores.
Notwithstanding ORS 701.126, the Construction Contractors Board may not impose a continuing education requirement for a home energy assessor or a home energy performance score contractor. Notwithstanding ORS 701.122, the board may not require a home energy assessor or a home energy performance score contractor to take a test measuring the knowledge of the h…
As used in this section: “Board-up services” means covering over the openings of a damaged structure to secure against weather or unauthorized or unsafe entry. “Man-made or natural disaster” means a fire, flood, earthquake, crime or other sudden event that causes a structure or the contents of a structure to suffer damage as described in rules adopted by t…
As used in this section and ORS 701.547: “Developer” means a person who contracts to construct, or arrange for the construction of, new residential housing on behalf of, or for the purpose of selling the residential housing to, a specific individual the person knows is the purchaser of the residential housing. “Residential housing”: Means a structure desi…
The Construction Contractors Board shall adopt by rule a model list of features recommended for inclusion in a list of features that a developer supplies to a purchaser of residential housing under ORS 701.545. In developing the model list of features, the board shall solicit the comments of advocacy groups and other organizations serving persons with disabi…
The Construction Contractors Board shall provide an annual notice to each contractor licensed under this chapter that informs contractors of the rules developed by the Director of the Department of Consumer and Business Services pursuant to ORS 455.355 prohibiting the installation of thermostats that contain mercury and requiring proper disposal of thermosta…
As used in this section, “barrier-type exterior insulation and finish system” means a foam insulation board inner layer, a polymer and cement base coat middle layer reinforced with glass fiber mesh and a textured finish coat exterior layer, in which: The layers are bonded to the outside face of an exterior wall; The middle or exterior layer, but not the in…
As used in ORS 701.560 to 701.595 and 701.605: “Contractor” means a person that performed services for the construction, alteration or repair of a residence. “Defect” means a deficiency, an inadequacy or an insufficiency arising out of or relating to the construction, alteration or repair of a residence. “Defect” includes a deficiency, an inadequacy or an …
Except as provided in ORS 701.600, an owner may not compel arbitration or commence a court action against a contractor, subcontractor or supplier to assert a claim arising out of or related to any defect in the construction, alteration or repair of a residence or in any system, component or material incorporated into a residence located in this state unless …
A contractor, subcontractor or supplier that receives a notice of defect sent under ORS 701.565 shall, not later than 14 days after receiving the notice of defect, send a secondary notice to any other known contractor, subcontractor or supplier that may be responsible for some or all of the defects described in the notice of defect. The contractor, subcontra…
If a homeowners association or association of unit owners sends a notice of defect under ORS 701.565: The periods during which a contractor, subcontractor or supplier may send a written request to conduct a visual examination or request to inspect the residence under ORS 701.570 (2) or (3) are each extended from 14 days to 30 days. The contractor, subcontr…
An owner sending a notice of defect under ORS 701.565 shall make the residence available for visual examination pursuant to any written request sent under ORS 701.570 or 701.572. The owner shall make the residence available for visual examination, during normal business hours or as otherwise agreed, not later than 20 days after receiving the written request …
An owner may accept an offer contained in a written response under ORS 701.570 by delivering a written acceptance to the offering contractor, subcontractor or supplier within 30 days after receiving the offer. If an owner fails to accept an offer within 30 days after receipt, the offer is deemed rejected. If the owner accepts a contractor, subcontractor or …
If an owner sends a contractor, subcontractor or supplier a notice of defect within the time allowed for the owner to commence a court action against that contractor, subcontractor or supplier for a claim described in ORS 701.565, the time for the owner to commence the action shall be extended, notwithstanding any statute of limitation or statute of ultimate…
If an owner compels arbitration or commences a court action against any contractor, subcontractor or supplier to assert a claim arising out of or related to the construction, alteration or repair of a residence located in this state and the owner has not followed the procedure set forth in ORS 701.565 and 701.575, the arbitrator or court must dismiss the arb…
ORS 701.560 to 701.595 and 701.605 do not apply: To personal injury or death claims. To claims or complaints filed pursuant to ORS 671.695 or 701.139. To claims against a person registered under ORS 671.010 to 671.220. To complaints filed in a small claims department established in a justice court or circuit court as described in ORS 52.750. To counterc…
To facilitate the handling of warranty work or remediation of defects to a new commercial or residential structure or a zero-lot-line dwelling, a contractor who builds the structure may present for recording in the deed records of the county in which the new structure is built a written warranty agreement that: Is signed by the contractor and the original o…
CONSTRUCTION CONTRACT PAYMENTS
As used in ORS 701.620 to 701.640: “Construction contract” means a written or oral construction agreement, including all drawings, specifications and addenda relating to: Excavating, landscaping, demolishing and detaching existing structures, leveling, filling in and other preparation of land for the making and placement of a building, structure or superst…
If a construction contract is for construction work that is expected to take 60 or more days to complete, an owner shall make progress payments to the original contractor. By mutual agreement with an original contractor, an owner may make progress payments to the original contractor under a construction contract for which the construction work is expected to…
An original contractor, subcontractor or material supplier that performs in accordance with a construction contract is entitled to payment from the party with whom the original contractor, subcontractor or material supplier contracts. If a subcontractor has performed in accordance with a construction contract, and the original contractor receives payment fr…
An original contractor may suspend performance under a construction contract, or if performance is suspended for longer than one month may terminate a construction contract, if the owner fails to make timely payment of the amount certified under ORS 701.625. An original contractor shall provide written notice to an owner at least seven days before the origin…
A construction contract may not include any provision, covenant or clause that: Makes the construction contract subject to the laws of another state or that requires any litigation, arbitration or other dispute resolution proceeding arising from the construction contract to be conducted in another state; or States that a party to the construction contract …
ORS 701.620 to 701.640 do not apply to: A contract for the construction, alteration, repair, maintenance, moving or demolition of a building that is subject to the Low-Rise Residential Dwelling Code; A public contract under ORS 279.835 to 279.855 or ORS chapter 279A, 279B or 279C; or Housing in which all or part of the dwelling units are reserved for rent…
PENALTIES
Violation of ORS 701.021 is a Class A misdemeanor. The intentional use of a contractor’s license number without the authorization of the licensed contractor is a Class A misdemeanor. Use of a contractor’s license number, with or without the authorization of the licensed contractor, with the intent to deceive the public is a Class A misdemeanor.
Except as provided in subsections (4) and (5) of this section, any person who violates any provision of this chapter or any rule adopted by the Construction Contractors Board shall forfeit and pay into the General Fund of the State Treasury a civil penalty in an amount determined by the board of not more than $5,000 for each offense. Civil penalties under t…
A person who violates any provision of, or any rule adopted under, ORS 701.505 to 701.515 shall pay to the Construction Contractors Board Lead-Based Paint Activities Fund established under ORS 701.520 a civil penalty of not more than $5,000 for each violation. Civil penalties under this section shall be imposed as provided in ORS 183.745. A civil penalty i…