2007 Oregon Code - Chapter 701 :: Chapter 701 - Construction Contractors and Contracts
Chapter 701
Construction Contractors and Contracts
2007 EDITION
CONSTRUCTION CONTRACTORS AND CONTRACTS
OCCUPATIONS AND PROFESSIONS
GENERAL PROVISIONS
701.002 Short
title
701.005 Definitions
701.010 Exemptions
from licensure; rules
701.013 Intent
relating to certain business license requirements
701.015 Business
license requirements in cities and metropolitan service districts; fees;
distribution of fees
701.020 Certain
cities exempt from application of ORS 701.015
LICENSING
701.021 License
requirement; endorsements
701.026 License
requirement; subcontractor licensing; landscaping
701.031 Evidence
of doing business as contractor
701.035 Applicant
required to be independent contractor to be eligible for license; classes of
licenses
701.038 Residential
limited contractors
701.042 Licensed
developers; residential or commercial developers
701.046 License
application
701.050 Commercial
contractor key employees
701.056 Licensing
application fee; rules
701.060 Licensing
in another category; fee
701.063 Term
of license; fee; renewal; inactive status; license identification card
701.068 Bonding
requirements; action against surety; rules
701.073 Insurance
required of licensed contractors
701.081 Residential
contractors; bond; insurance; responsible managing individual
701.084 Commercial
contractors; bond; insurance; responsible managing individual; key employees
701.088 Contractor
rehabilitating illegal drug manufacturing site; substitution for bond; fee;
rules
701.091 Responsible
managing individual
701.094 Definition
for ORS 701.098 and 701.102; rules
701.098 Grounds
for discipline; rules; suspension or refusal of license without prior hearing;
hearing; civil penalty; injunctions; cease and desist orders; restoration or
reissuance of license
701.102 Sanction
for past unresolved activity; probation
701.106 Sanction
for violation or failure to comply with certain laws
701.109 Reporting
of final judgments
701.112 Continuation
of board authority when change occurs in license status
701.114 Change
in responsible managing individual or persons exercising control of contractor
701.117 Contractor
to notify board of address change; effect of mail to last-known address
701.120 Specialized
education programs; standards; specialized education notation in credentials;
removal of notation; rules for use of credentials
701.122 Training
requirements for individuals and businesses; testing of business license
applicant; exception; rules
701.124 Key
employee continuing education
701.126 Continuing
education; rules; fees
701.128 Suit
for damages for misrepresentation
COMPLAINTS
701.131 License
required to perfect lien or obtain judicial or administrative remedy; exception
701.133 Notice
of intent to file complaint; fees; rules
701.139 Board
authority over disputes; resolution processes
701.140 Types
of allowable complaints; restriction on processing complaint for recoupment of
lien
701.143 Requirement
for timely filing of complaints; timelines
701.145 Resolution
of complaints involving work on residential structures or certain small
commercial structures
701.146 Resolution
of complaints involving work on large commercial structures or certain small
commercial structures
701.148 Use
of binding arbitration and contested case hearings; rules
701.149 Conducting
arbitration and contested case hearings; court filings; rules
701.150 Satisfaction
of unpaid order from bond
701.153 Recording
of order as lien; satisfaction of order against residential contractor
701.157 Satisfaction
of order against commercial contractor
701.160 Nonlawyer
may represent certain forms of businesses before board; rules for additional
business forms
701.180 Waiver
of mediation or arbitration
CONSTRUCTION CONTRACTORS BOARD
701.205 Construction
Contractors Board; members; terms; confirmation; vacancies; qualifications
701.215 Officers;
quorum; compensation and expenses; advisory committees
701.225 Investigatory
powers of board; use of city or county inspectors; notice of noncompliance;
conduct of hearings; authority of board to order work stopped
701.227 Disqualification
from eligibility for certain public contracts; list of disqualified contractors
701.230 Board
to provide names of unlicensed contractors to other state agencies
701.235 Rulemaking
701.238 Determination
of licensing application fee; rules
701.240 Provision
of licensed contractors list to other state agencies; rules
701.250 Board
to provide licensees status on request; fee
701.255 Funds
retained for collection of civil penalties
701.260 Appeal
committee; membership; duties
701.295 Board
duty to investigate and seek prosecution of illegal activity
CONSTRUCTION CONTRACTS AND NOTICES
701.305 Requirement
for written contract; standard contractual terms; rules
701.310 Cancellation
of contract
701.315 Contents
of contract for work on residential structure
701.320 Offer
of warranty; withdrawal of contract offer
701.325 Condition
for obtaining building permit; information notice; business licenses; local
regulation
701.330 Consumer
notice form; notice of procedure form; rules
701.335 Recommended
maintenance schedule; rules
701.340 Commercial
structure warranty
701.345 Subcontractor
list
701.348 Sewer
contractor requirements
HOME INSPECTORS
701.350 Home
inspectors; certification; rules; fees; exemption
701.355 Home
inspector undertaking of repair work on inspected structure
RETAINAGE
701.410 Definitions
701.420 Partial
payment; retainage; effect; interest; notice of completion; payment by
contractor and owner
701.430 Performance
bond; terms; effect of not obtaining bond
701.435 Deposits
in lieu of cash retainage
701.440 Applicability
to federal projects
LEAD POISONING AND HAZARD REDUCTION
701.500 Legislative
findings
701.505 Definitions
for ORS 431.920 and 701.500 to 701.515
701.510 License
required to engage in lead-based paint activity
701.515 Licensing
and business registration system; fees; rules
ACCESSIBILITY FEATURES
701.525 Provision
of accessible features list to purchaser; effect
701.530 Model
list of accessibility features; rules
MERCURY THERMOSTATS
701.550 Notice
of Department of Consumer and Business Services rules regarding thermostats
containing mercury
PROHIBITED MATERIAL INSTALLATION
701.555 Barrier-type
exterior insulation and finish systems
NOTICES OF DEFECT IN RESIDENCE
701.560 Definitions
for ORS 701.560 to 701.595 and 701.605
701.565 Notice
of defect requirement; contents; mailing
701.570 Secondary
notice of defect; inspection of residence; response to notice or secondary
notice
701.575 Availability
of residence; scope of inspection; report of inspection results
701.580 Offer
by contractor, subcontractor or supplier; effect of accepting offer;
nonperformance; compelling arbitration or commencing court action;
admissibility of response or reply
701.585 Effect
of notice of defect on time for commencing court action
701.595 Failure
to follow notice of defect procedure
701.600 Nonapplicability
of ORS 701.560 to 701.595 and 701.605
WARRANTIES
701.605 Recording
of written warranty agreement
CONSTRUCTION CONTRACT PAYMENTS
701.620 Definitions
for ORS 701.620 to 701.640
701.625 Progress
payments; alternative billing cycle; certification of billing or estimate;
payment in full; prohibited agreements
701.630 Payments
to subcontractors and material suppliers; failure to pay; omission of payment;
board discipline
701.635 Suspension
of performance
701.640 Prohibition
against contrary provisions, covenants or clauses
701.645 Contracts
and housing not subject to ORS 701.620 to 701.640
PENALTIES
701.990 Criminal
penalties
701.992 Civil
penalties and other sanctions; enforcement
GENERAL PROVISIONS
701.002
Short title. Chapter 928,
Oregon Laws 1989, shall be known as the Construction Contractors Licensing Act.
[Formerly 701.900]
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 173.160. The sections for
which substitution otherwise would be made may be determined by referring to
the 1989 Comparative Section Table located in Volume 20 of ORS.
701.005
Definitions. As used in this
chapter:
(1) Board means the Construction
Contractors Board.
(2) Commercial contractor means a
licensed contractor that holds an endorsement as a:
(a) Commercial general contractor level 1;
(b) Commercial specialty contractor level
1;
(c) Commercial general contractor level 2;
(d) Commercial specialty contractor level
2; or
(e) Commercial developer.
(3) Commercial developer means a
developer of property that is zoned for or intended for use compatible with a
small commercial or large commercial structure.
(4) Construction debt means an amount
owed under:
(a) An order or arbitration award issued
by the board that has become final by operation of law;
(b) A judgment or civil penalty that has
become final by operation of law arising from construction activities within
the
(c) A judgment or civil penalty that has
become final by operation of law arising from a failure to comply with ORS
656.017.
(5) Contractor means any of the
following:
(a) A person who, for compensation or with
the intent to sell, arranges or undertakes or offers to undertake or submits a
bid to construct, alter, repair, add to, subtract from, improve, inspect, move,
wreck or demolish, for another, any building, highway, road, railroad,
excavation or other structure, project, development or improvement attached to
real estate, or to clean or service chimneys, or to do any part thereof.
(b) A person that purchases or owns
property and constructs or for compensation arranges for the construction of
one or more residential structures or small commercial structures with the
intent of selling the structures.
(c) A school district, as defined in ORS
332.002, that permits students to construct a residential structure or small
commercial structure as an educational experience to learn building techniques
and sells the completed structure.
(d) A community college district, as
defined in ORS 341.005, that permits students to construct a residential
structure or small commercial structure as an educational experience to learn
building techniques and sells the completed structure.
(e) Any person except a landscape
contracting business, nurseryman, gardener or person engaged in the commercial
harvest of forest products, that is engaged as an independent contractor to
remove trees, prune trees, remove tree limbs or stumps or to engage in tree or
limb guying.
(f) A business that supplies the services
of a home inspector certified under ORS 701.350, a lead-based paint inspector
licensed under ORS 701.515 or a cross connection inspector and backflow
assembly tester certified under ORS 448.279.
(6) Developer means a contractor that
owns property or an interest in property and engages in the business of
arranging for construction work or performing other activities associated with
the improvement of real property, with the intent to sell the property.
(7) General contractor:
(a) Means a contractor whose business
operations require the use of more than two unrelated building trades or crafts
that the contractor supervises or performs in whole or part, whenever the sum
of all contracts on any single property, including materials and labor, exceeds
an amount established by rule by the board.
(b) Does not mean a specialty contractor
or a residential limited contractor.
(8) Home inspector means a person who,
for a fee, inspects and provides written reports on the overall physical
condition of a residential structure and the appurtenances thereto. Home
inspector does not include persons certified under ORS chapter 455 to inspect
new, repaired or altered structures for compliance with the state building
code.
(9) Key employee means an employee or
owner of a contractor who is a corporate officer, manager, superintendent,
foreperson or lead person or any other employee identified by the board by
rule.
(10) Large commercial structure means a structure
that is not a residential structure or small commercial structure.
(11) Officer means any of the following
persons:
(a) A president, vice president,
secretary, treasurer or director of a corporation.
(b) A general partner in a limited partnership.
(c) A manager in a manager-managed limited
liability company.
(d) A member of a member-managed limited
liability company.
(e) A trustee.
(f) A person defined as an officer under
board rules. The definition of officer adopted by board rule may include
persons not listed in this subsection who may exercise substantial control over
a business.
(12) Residential contractor means a
licensed contractor that holds an endorsement as a:
(a) Residential general contractor;
(b) Residential specialty contractor;
(c) Residential limited contractor; or
(d) Residential developer.
(13) Residential developer means a
developer of property that is zoned for or intended for use compatible with a
residential or small commercial structure.
(14) Residential structure:
(a) Means:
(A) A residence that is a site-built home;
(B) A structure that contains one or more
dwelling units and is four stories or less above grade;
(C) A condominium, rental residential unit
or other residential dwelling unit that is part of a larger structure, if the
property interest in the unit is separate from the property interest in the
larger structure;
(D) A modular home constructed off-site;
(E) A manufactured dwelling; or
(F) A floating home as defined in ORS
830.700.
(b) Does not mean:
(A) Subject to paragraph (a)(C) of this
subsection, a structure that contains both residential and nonresidential
units;
(B) Transient lodging;
(C) A residential school or residence
hall;
(D) A state or local correctional facility
other than a local facility for persons enrolled in work release programs
maintained under ORS 144.460;
(E) A youth correction facility as defined
in ORS 420.005;
(F) A youth care center operated by a
county juvenile department under administrative control of a juvenile court
pursuant to ORS 420.855 to 420.885;
(G) A detention facility as defined in ORS
419A.004;
(H) A nursing home;
(I) A hospital; or
(J) A place constructed primarily for
recreational activities.
(15) Responsible managing individual
means an individual who:
(a) Is an owner described in ORS 701.094
or an employee of the business;
(b) Exercises management or supervisory
authority, as defined by the board by rule, over the construction activities of
the business; and
(c)(A) Has successfully completed the
training and testing required for licensing under ORS 701.122 within a period
identified by the board by rule;
(B) Has demonstrated experience required
by the board by rule; or
(C) Has complied with the licensing
requirements of ORS 446.395.
(16) Small commercial structure means:
(a) A nonresidential structure that has a
ground area of 10,000 square feet or less, including exterior walls, and a
height of not more than 20 feet from the top surface of the lowest flooring to
the highest interior overhead finish of the structure;
(b) A nonresidential leasehold, rental
unit or other unit that is part of a larger structure, if the unit has a ground
area of 12,000 square feet or less, excluding exterior walls, and a height of
not more than 20 feet from the top surface of the lowest flooring to the
highest interior overhead finish of the unit; or
(c) A nonresidential structure of any size
for which the contract price of all construction contractor work to be
performed on the structure as part of a construction project does not total
more than $250,000.
(17) Specialty contractor means a
contractor who performs work on a structure, project, development or
improvement and whose operations as such do not fall within the definition of general
contractor. Specialty contractor includes a person who performs work
regulated under ORS 446.395.
(18) Zero-lot-line dwelling means a
single-family dwelling unit constructed in a group of attached units in which:
(a) Each attached unit extends from foundation
to roof with open space on two sides; and
(b) Each dwelling unit is separated by a
property line. [1971 c.740 §1; 1975 c.721 §1; 1977 c.537 §2; 1981 c.618 §8;
1983 c.616 §4; 1989 c.762 §7; 1989 c.928 §1; 1991 c.181 §1; 1993 c.18 §151;
1997 c.814 §1; 1999 c.325 §1; 2001 c.196 §2; 2001 c.197 §9; 2003 c.14 §440;
2003 c.675 §69; 2005 c.432 §6; 2005 c.609 §21; 2007 c.511 §1; 2007 c.541 §41;
2007 c.648 §§23,23a; 2007 c.836 §56]
Note: The amendments to 701.005 by section 56,
chapter 836, Oregon Laws 2007, become operative July 1, 2008. See section 70,
chapter 836, Oregon Laws 2007. The text that is operative until July 1, 2008,
including amendments by section 1, chapter 511, Oregon Laws 2007, section 41,
chapter 541, Oregon Laws 2007, and sections 23 and 23a, chapter 648, Oregon
Laws 2007, is set forth for the users convenience.
701.005. As used in this chapter:
(1) Board means the Construction
Contractors Board.
(2) Construction debt means an amount
owed under:
(a) An order or arbitration award issued
by the board that has become final by operation of law;
(b) A judgment or civil penalty that has
become final by operation of law arising from construction activities within
the
(c) A judgment or civil penalty that has
become final by operation of law arising from a failure to comply with ORS
656.017.
(3) Contractor means a person operating
as a general contractor, residential-only contractor or specialty contractor
business or other person who, for compensation or with the intent to sell,
arranges or undertakes or offers to undertake or submits a bid to construct,
alter, repair, add to, subtract from, improve, inspect, move, wreck or
demolish, for another, any building, highway, road, railroad, excavation or
other structure, project, development or improvement attached to real estate,
or to clean or service chimneys, or to do any part thereof.
(4) General contractor means a
contractor whose business operations require the use of more than two unrelated
building trades or crafts that the contractor supervises or performs in whole
or part, whenever the sum of all contracts on any single property, including
materials and labor, exceeds an amount established by rule by the board. General
contractor does not include specialty contractors or limited contractors, as
described in ORS 701.068.
(5) Home inspector means a person who,
for a fee, inspects and provides written reports on the overall physical
condition of a residential structure and the appurtenances thereto. Home inspector
does not include persons certified under ORS chapter 455 to inspect new,
repaired or altered structures for compliance with the state building code.
(6) Inspector means a contractor
registered with the board who inspects or otherwise provides services to a
property owner or other contractor but does not substantively add to or
subtract from a structure. Inspector includes but is not limited to a home
inspector certified under ORS 701.350, a lead-based paint inspector licensed
under ORS 701.515 and a cross connection inspector and backflow assembly tester
certified under ORS 448.279. Inspector does not include city or county
inspectors acting under ORS 701.225 or an inspector as defined in ORS 455.715.
(7) Large commercial structure means a
structure that is not a residential structure or small commercial structure.
(8) Licensed developer means a
contractor who owns property or an interest in property and arranges for
construction work, if the contractor:
(a) Engages in the business of arranging
for construction work and performing other activities associated with the
improvement of real property, with the intent to sell the property;
(b) Acts in association with one or more
licensed general contractors and the general contractor or combination of
general contractors have sole responsibility for overseeing all phases of
construction activity on the property; and
(c) Does not perform any construction work
on the property.
(9) Officer means any of the following
persons:
(a) A president, vice president,
secretary, treasurer or director of a corporation.
(b) A general partner in a limited
partnership.
(c) A manager in a manager-managed limited
liability company.
(d) A member of a member-managed limited
liability company.
(e) A trustee.
(f) A person defined as an officer under
board rules. The definition of officer adopted by board rule may include
persons not listed in this subsection who may exercise substantial control over
a business.
(10) Residential-only contractor means a
general contractor or specialty contractor who performs work exclusively in
connection with residential structures and small commercial structures, and the
appurtenances thereto. Residential-only contractor includes, but is not
limited to:
(a) A person who purchases or owns
property and constructs or for compensation arranges for the construction of
one or more residential structures or small commercial structures with the
intent of selling the structures;
(b) A school district, as defined in ORS
332.002, that permits students to construct a residential structure or small
commercial structure as an educational experience to learn building techniques
and sells the completed structure;
(c) A community college district, as
defined in ORS 341.005, that permits students to construct a residential
structure or small commercial structure as an educational experience to learn
building techniques and sells the completed structure; or
(d) Any person except a landscape
contracting business, nurseryman, gardener or person engaged in the commercial
harvest of forest products who is engaged as an independent contractor to
remove trees, prune trees, remove tree limbs or stumps or to engage in tree or
limb guying.
(11) Residential structure means a
residence, including a site-built home, modular home constructed off-site,
floating home as defined in ORS 830.700, condominium unit, manufactured
dwelling or duplex, or a multiunit residential building consisting of four
units or less that is not part of a multistructure complex of buildings.
(12) Responsible managing individual
means an individual who:
(a) Is an owner described in ORS 701.094
or an employee of the business;
(b) Exercises management or supervisory
authority, as defined by the board by rule, over the construction activities of
the business; and
(c)(A) Has successfully completed the
training and testing required for licensing under ORS 701.122 within a period
identified by the board by rule;
(B) Has demonstrated experience required
by the board by rule; or
(C) Has complied with the licensing
requirements of ORS 446.395.
(13) Small commercial structure means a
nonresidential structure that has a ground area of 4,000 square feet or less,
including exterior walls, and a height of not more than 20 feet from the top
surface of the lowest flooring to the highest interior overhead finish of the
structure.
(14) Specialty contractor means a
contractor who performs work on a structure, project, development or
improvement and whose operations as such do not fall within the definition of general
contractor. Specialty contractor includes a person who performs work
regulated under ORS chapter 446.
(15) Zero-lot-line dwelling means a
single-family dwelling unit constructed in a group of attached units in which:
(a) Each attached unit extends from
foundation to roof with open space on two sides; and
(b) Each dwelling unit is separated by a
property line.
701.007 [1989 c.928 §3; repealed by 1991 c.79 §3]
701.010
Exemptions from licensure; rules. 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:
(1) A person who is constructing,
altering, improving or repairing personal property.
(2) A person who is constructing,
altering, improving or repairing a structure located within the boundaries of
any site or reservation under the jurisdiction of the federal government.
(3) A person who furnishes materials,
supplies, equipment or finished product and does not fabricate them into, or
consume them, in the performance of the work of a contractor.
(4) A person working on one structure or
project, under one or more contracts, when the aggregate price of all of that
persons contracts for labor, materials and all other items is less than $500
and such work is of a casual, minor or inconsequential nature. This subsection
does not apply to a person who advertises or puts out any sign or card or other
device that might indicate to the public that the person is a contractor.
(5) An owner who contracts for work to be
performed by a licensed contractor. This subsection does not apply to a person
who, in the pursuit of an independent business, constructs, remodels, repairs
or for compensation and with the intent to sell the structure, arranges to have
constructed, remodeled or repaired a structure with the intent of offering the
structure for sale before, upon or after completion. It is prima facie evidence
that there was an intent of offering the structure for sale if the person who
constructed, remodeled or repaired the structure or arranged to have the
structure constructed, remodeled or repaired does not occupy the structure
after its completion.
(6) An owner who contracts for one or more
licensed contractors to perform work wholly or partially within the same
calendar year on not more than three existing residential structures of the
owner. This subsection does not apply to an owner contracting for work that
requires a building permit unless the work that requires a permit is performed
by, or under the direction of, a residential general contractor.
(7) A person performing work on a property
that person owns or performing work as the owners employee, whether the
property is occupied by the owner or not, or a person performing work on that
persons residence, whether or not that person owns the residence. This
subsection does not apply to a person performing work on a structure owned by
that person or the owners employee, if the work is performed in the pursuit of
an independent business with the intent of offering the structure for sale
before, upon or after completion.
(8) A person licensed in one of the
following trades or professions when operating within the scope of that
license:
(a) An architect licensed by the State
Board of Architect Examiners.
(b) A registered professional engineer
licensed by the State Board of Examiners for Engineering and Land Surveying.
(c) A water well contractor licensed by
the Water Resources Department.
(d) A sewage disposal system installer
licensed by the Department of Environmental Quality.
(e) A landscape contracting business
licensed under ORS 671.510 to 671.760 that constructs fences, decks, arbors,
patios, landscape edging, driveways, walkways or retaining walls and that meets
the applicable bonding requirements under ORS 671.690.
(f) A pesticide operator licensed under
ORS 634.116 who does not conduct inspections for wood destroying organisms for
the transfer of real estate.
(g) An appraiser certified or licensed
under ORS chapter 674 or an appraiser assistant registered under ORS chapter
674 by the Appraiser Certification and Licensure Board.
(9) A person who performs work subject to
this chapter as an employee of a contractor.
(10) A manufacturer of a manufactured home
constructed under standards established by the federal government.
(11) A person involved in the movement of:
(a) Modular buildings or structures other
than manufactured structures not in excess of 14 feet in width.
(b) Structures not in excess of 16 feet in
width when the structures are being moved by their owner if the owner is not a
contractor required to be licensed under this chapter.
(12) A commercial lending institution or
surety company that arranges for the completion, repair or remodeling of a
structure. As used in this subsection, commercial lending institution means
any bank, mortgage banking company, trust company, savings bank, savings and
loan association, credit union, national banking association, federal savings
and loan association, insurance company or federal credit union maintaining an
office in this state.
(13) A real estate licensee as defined in
ORS 696.010 or the employee of that licensee when performing work on a
structure that the real estate licensee manages under a contract.
(14) Units of government other than those
specified in ORS 701.005 (5)(c) and (d).
(15) A qualified intermediary in a
property exchange that qualifies under section 1031 of the Internal Revenue
Code as amended and in effect on January 1, 2004, if the qualified intermediary
is not performing construction activities.
(16) A business that supplies personnel to
a licensed contractor for the performance of work under the direction and
supervision of the contractor.
(17) City or county inspectors acting
under ORS 701.225 or inspectors described in ORS 455.715. [1971 c.740 §20; 1979
c.312 §1; 1981 c.618 §9; 1983 c.616 §5a; 1989 c.928 §2; 1991 c.181 §2; 1991
c.463 §1; 1993 c.18 §152; 1995 c.644 §1; 1997 c.814 §8; 1999 c.32 §4; 1999
c.325 §5; 1999 c.402 §12; 2001 c.196 §3; 2001 c.197 §10; 2003 c.285 §1; 2003
c.329 §1; 2003 c.675 §70; 2005 c.254 §12; 2005 c.432 §7; 2005 c.609 §22; 2007
c.541 §42; 2007 c.639 §1; 2007 c.836 §57]
Note: The amendments to 701.010 by section 57,
chapter 836, Oregon Laws 2007, become operative July 1, 2008. See section 70,
chapter 836, Oregon Laws 2007. The text that is operative until July 1, 2008,
including amendments by section 42, chapter 541, Oregon Laws 2007, and section
1, chapter 639, Oregon Laws 2007, is set forth for the users convenience.
701.010. 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:
(1) A person who is constructing,
altering, improving or repairing personal property.
(2) A person who is constructing,
altering, improving or repairing a structure located within the boundaries of
any site or reservation under the jurisdiction of the federal government.
(3) A person who furnishes materials,
supplies, equipment or finished product and does not fabricate them into, or
consume them, in the performance of the work of a contractor.
(4) A person working on one structure or
project, under one or more contracts, when the aggregate price of all of that
persons contracts for labor, materials and all other items is less than $500
and such work is of a casual, minor or inconsequential nature. This subsection
does not apply to a person who advertises or puts out any sign or card or other
device that might indicate to the public that the person is a contractor.
(5) An owner who contracts for work to be
performed by a licensed contractor. This subsection does not apply to a person
who, in the pursuit of an independent business, constructs, remodels, repairs
or for compensation and with the intent to sell the structure, arranges to have
constructed, remodeled or repaired a structure with the intent of offering the
structure for sale before, upon or after completion. It is prima facie evidence
that there was an intent of offering the structure for sale if the person who
constructed, remodeled or repaired the structure or arranged to have the
structure constructed, remodeled or repaired does not occupy the structure
after its completion.
(6) An owner who contracts for one or more
licensed contractors to perform work wholly or partially within the same
calendar year on not more than three existing residential structures of the
owner. This subsection does not apply to an owner contracting for work that
requires a building permit unless the work that requires a permit is performed
by, or under the direction of, a general contractor.
(7) A person performing work on a property
that person owns or performing work as the owners employee, whether the
property is occupied by the owner or not, or a person performing work on that
persons residence, whether or not that person owns the residence. This
subsection does not apply to a person performing work on a structure owned by
that person or the owners employee, if the work is performed in the pursuit of
an independent business with the intent of offering the structure for sale
before, upon or after completion.
(8) A person licensed in one of the
following trades or professions when operating within the scope of that
license:
(a) An architect licensed by the State
Board of Architect Examiners.
(b) A registered professional engineer
licensed by the State Board of Examiners for Engineering and Land Surveying.
(c) A water well contractor licensed by
the Water Resources Department.
(d) A sewage disposal system installer
licensed by the Department of Environmental Quality.
(e) A landscape contracting business
licensed under ORS 671.510 to 671.760 that constructs fences, decks, arbors,
patios, landscape edging, driveways, walkways or retaining walls and that meets
the applicable bonding requirements under ORS 671.690.
(f) A pesticide operator licensed under
ORS 634.116 who does not conduct inspections for wood destroying organisms for
the transfer of real estate.
(g) An appraiser certified or licensed
under ORS chapter 674 or an appraiser assistant registered under ORS chapter
674 by the Appraiser Certification and Licensure Board.
(9) A person who performs work subject to
this chapter as an employee of a contractor.
(10) A manufacturer of a manufactured home
constructed under standards established by the federal government.
(11) A person involved in the movement of:
(a) Modular buildings or structures other
than manufactured structures not in excess of 14 feet in width.
(b) Structures not in excess of 16 feet in
width when the structures are being moved by their owner if the owner is not a
contractor required to be licensed under this chapter.
(12) A commercial lending institution or
surety company that arranges for the completion, repair or remodeling of a
structure. As used in this subsection, commercial lending institution means
any bank, mortgage banking company, trust company, savings bank, savings and
loan association, credit union, national banking association, federal savings
and loan association, insurance company or federal credit union maintaining an
office in this state.
(13) A real estate licensee as defined in
ORS 696.010 or the employee of that licensee when performing work on a
structure that the real estate licensee manages under a contract.
(14) Units of government other than those
specified in ORS 701.005 (10)(b) and (c).
(15) A qualified intermediary in a
property exchange that qualifies under section 1031 of the Internal Revenue
Code as amended and in effect on January 1, 2004, if the qualified intermediary
is not performing construction activities.
(16) A business that supplies personnel to
a licensed contractor for the performance of work under the direction and
supervision of the contractor.
701.013
Intent relating to certain business license requirements. 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
Note: 701.013 was enacted into law by the
Legislative Assembly but was not added to or made a part of ORS chapter 701 or
any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
701.015
Business license requirements in cities and metropolitan service districts; fees;
distribution of fees. (1) 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:
(a) The principal place of business of the
contractor is within the city; or
(b) The principal place of business of the
contractor is not within the city but the contractor derives gross receipts of
$250,000 or more from business conducted within the boundaries of the city
during the calendar year for which the business license tax is owed.
(2) A contractor who conducts business
during any year in any city within the boundaries of the metropolitan service
district other than a city to which the contractor has paid a business license
tax for that year may apply for a business license from the metropolitan
service district.
(3) When a contractor obtains a business
license from the metropolitan service district under subsection (2) of this
section, if a city within the boundaries of the metropolitan service district
other than a city to which the contractor is required to directly pay a
business license tax under subsection (1) of this section demands payment of a
business license tax by the contractor, the city shall waive such payment upon
presentation of proof by the contractor that the contractor has a business
license issued by the metropolitan service district. Possession by the
contractor of a current business license issued by the metropolitan service
district under subsection (2) of this section shall be proof sufficient to
obtain the waiver described in this subsection.
(4) The metropolitan service district
shall issue a business license to a contractor when:
(a) The contractor presents proof to the
district that the contractor has paid the business license tax imposed by each
city within the boundaries of the district to which the contractor must
directly pay a business license tax under subsection (1) of this section; and
(b) The contractor pays a license fee to
the district. The license fee charged under this paragraph shall be twice the
average business license tax charged contractors by cities located within the
metropolitan service district plus an amount that is sufficient to reimburse
the district for the administrative expenses of the district incurred in
carrying out its duties under this section.
(5) The metropolitan service district
shall distribute the business license fees collected by the district under this
section, less administrative expenses, to the cities that are located wholly or
partly within the district and that collect a business license tax. In any
year, each such city shall receive such share of the license fees as the number
of residential building permits that it issued during that year bears to the
total number of residential building permits that were issued during that year
by all of the cities located wholly or partly within the district. Distribution
of moneys under this subsection shall be made at least once in each year. The
metropolitan service district shall determine the number of residential building
permits issued by cities within the district from statistics and other data
published by the State Housing Council.
(6) As used in this section:
(a) Business license tax means any fee
paid by a person to a city or county for any form of license that is required
by the city or county in order to conduct business in that city or county. The
term does not include any franchise fee or privilege tax imposed by a city upon
a public utility under ORS 221.420 or 221.450 or any provision of a city
charter.
(b) Conducting business means to engage
in any activity in pursuit of gain including activities carried on by a person
through officers, agents and employees as well as activities carried on by a
person on that persons own behalf.
(c) Principal place of business means
the location in this state of the central administrative office of a person
conducting business in this state. [1987 c.581 §2; 1989 c.1064 §§1,2; 1991 c.79
§2; 1999 c.176 §1; 2007 c.541 §44]
701.020
Certain cities exempt from application of ORS 701.015. (1) 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.
(2) As used in this section, business
license tax has the meaning given that term in ORS 701.015. [1987 c.581 §7]
Note: 701.020 was enacted into law by the
Legislative Assembly but was not added to or made a part of ORS chapter 701 or
any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
LICENSING
701.021
License requirement; endorsements. (1) 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.
(2) A person or joint venture that
undertakes, offers to undertake or submits a bid to do work as a contractor in
preparation for or in connection with a residential structure must have one of
the following endorsements:
(a) Residential
general contractor.
(b) Residential
specialty contractor.
(c) Residential
limited contractor.
(d) Residential
developer.
(3) A person or joint venture that undertakes,
offers to undertake or submits a bid to do work as a contractor in preparation
for or in connection with a small commercial structure must have one of the
following endorsements:
(a) Residential
general contractor.
(b) Residential
specialty contractor.
(c) Residential
limited contractor.
(d) Residential
developer.
(e) Commercial
general contractor level 1.
(f) Commercial
specialty contractor level 1.
(g) Commercial
general contractor level 2.
(h) Commercial
specialty contractor level 2.
(i) Commercial
developer.
(4) A person or joint venture that
undertakes, offers to undertake or submits a bid to do work as a contractor in
preparation for or in connection with a large commercial structure must have
one of the following endorsements:
(a) Commercial
general contractor level 1.
(b) Commercial
specialty contractor level 1.
(c) Commercial
general contractor level 2.
(d) Commercial
specialty contractor level 2.
(e) Commercial
developer. [2007 c.836 §2]
Note: 701.021 becomes operative July 1, 2010. See
section 70, chapter 836, Oregon Laws 2007.
701.025 [1989 c.762 §1; 1989 c.870 §§3,3a;
renumbered 670.600 in 1991]
701.026
License requirement; subcontractor licensing; landscaping. (1) A person or joint venture may not
undertake, offer to undertake or submit a bid to do work as a contractor unless
that person or joint venture has a current, valid license issued under this
chapter by the Construction Contractors Board. A partnership or joint venture
is licensed for the purpose of offering to undertake work as a contractor on a
structure if any of the partners or joint venturers whose name appears in the
business name of the partnership or joint venture is licensed under this
chapter.
(2) A contractor may not hire any
subcontractor or other contractor to perform work unless the subcontractor or
contractor is licensed under this chapter or exempt from licensure under ORS
701.010.
(3) 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 landscaping work. [Formerly 701.055]
Note: The amendments to 701.026 (formerly 701.055)
by section 16, chapter 836, Oregon Laws 2007, become operative July 1, 2010.
See section 70, chapter 836, Oregon Laws 2007. The text that is operative on
and after July 1, 2010, is set forth for the users convenience.
701.026. (1) 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.
(2) 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 landscaping work.
701.030 [1989 c.762 §1a; renumbered 670.605 in 1991]
701.031
Evidence of doing business as contractor. (1) It is prima facie evidence that a person is doing business as a
contractor if:
(a) The person for that persons 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
(b) Within any 36-month period the person
offers for sale two or more newly built structures on which work described in
paragraph (a) of this subsection was performed.
(2) Licensure under this chapter is prima
facie evidence that the licensee conducts a separate, independent business. [2007
c.114 §3]
Note: The amendments to 701.005 by section 56,
chapter 836, Oregon Laws 2007, renumber subsections contained in 701.005 and
become operative July 1, 2008. See section 70, chapter 836, Oregon Laws 2007.
701.031 contains a reference to a subsection renumbered by the amendments to
701.005 by section 56, chapter 836, Oregon Laws 2007. The text of 701.031 that
is operative until July 1, 2008, is set forth for the users convenience.
701.031. (1) It is prima facie evidence that a person
is doing business as a contractor if:
(a) The person for that persons 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
(3); and
(b) Within any 36-month period the person
offers for sale two or more newly built structures on which work described in
paragraph (a) of this subsection was performed.
(2) Licensure under this chapter is prima
facie evidence that the licensee conducts a separate, independent business.
701.035
Applicant required to be independent contractor to be eligible for license;
classes of licenses. (1) An
applicant must qualify as an independent contractor under ORS 670.600 to be
eligible for a license with the Construction Contractors Board.
(2) The board shall establish two classes
of independent contractor licenses:
(a) The nonexempt class is composed of the
following entities:
(A) Sole proprietorships, partnerships,
corporations, limited liability companies with one or more employees; and
(B) Partnerships, corporations and limited
liability companies with more than two partners, corporate officers or members,
if any of the partners, corporate officers or members are not part of the same
family and related as parents, spouses, sisters, brothers, daughters or sons,
daughters-in-law or sons-in-law or grandchildren.
(b) The exempt class is composed of all
sole proprietorships, partnerships, corporations and limited liability
companies that do not qualify as nonexempt. All partnerships, corporations and
limited liability companies must have an identification number issued for
federal tax purposes.
(3) If a person who qualifies for a
license under subsection (2)(b) of this section hires one or more employees or
falls into any of the categories set out in subsection (2)(a)(B) of this
section, the person is subject to penalties under ORS 701.992 for improper
licensing. The person must reapply to the board in the correct class.
(4) The decision of the board that a
person is an independent contractor applies only when the person is performing
work of the nature described in ORS 701.026 and 701.060. [1989 c.870 §4; 1995
c.216 §1; 1999 c.402 §13]
Note: The amendments to 701.035 by section 15,
chapter 836, Oregon Laws 2007, become operative July 1, 2010. See section 70,
chapter 836, Oregon Laws 2007. The text that is operative on and after July 1,
2010, is set forth for the users convenience.
701.035. (1) An applicant must qualify as an
independent contractor under ORS 670.600 to be eligible for a license with the
Construction Contractors Board.
(2) The board shall establish two classes
of independent contractor:
(a) The nonexempt class is composed of the
following entities:
(A) Sole proprietorships, partnerships,
corporations, limited liability companies with one or more employees; and
(B) Partnerships, corporations and limited
liability companies with more than two partners, corporate officers or members,
if any of the partners, corporate officers or members are not part of the same
family and related as parents, spouses, sisters, brothers, daughters or sons,
daughters-in-law or sons-in-law or grandchildren.
(b) The exempt class is composed of all
sole proprietorships, partnerships, corporations and limited liability
companies that do not qualify as nonexempt.
(3) If a person who qualifies for a
license under subsection (2)(b) of this section hires one or more employees or
falls into any of the categories set out in subsection (2)(a)(B) of this
section, the person is subject to penalties under ORS 701.992 for improper
licensing. The person must reapply to the board in the correct class.
(4) The decision of the board that a
person is an independent contractor applies only when the person is performing
work of the nature described in ORS 701.021.
(5) A person that is within the exempt
class described in subsection (2)(b) of this section and is licensed as a
commercial contractor shall procure and maintain workers compensation
insurance as authorized by ORS 656.128.
701.038
Residential limited contractors. A residential limited contractor may not:
(1) Perform work as a contractor exceeding
$40,000 in gross annual volume; or
(2) Enter into contracts to perform work
as a contractor in excess of $5,000. [2007 c.836 §5]
Note: 701.038 becomes operative July 1, 2008. See
section 70, chapter 836, Oregon Laws 2007.
701.042
Licensed developers; residential or commercial developers. A licensed developer or a residential or
commercial developer:
(1) 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
(2) May not perform any construction work
on a property. [2007 c.836 §6]
Note: 701.042 becomes operative July 1, 2008. See
section 70, chapter 836, Oregon Laws 2007.
Note: The amendments to 701.042 by section 7, chapter
836,
701.042. A residential or commercial developer:
(1) 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
(2) May not perform any construction work
on a property.
701.046
License application. (1) An
applicant for a construction contractor license must submit the application on
a form prescribed by the Construction Contractors Board. The application shall
include, but not be limited to, the following information:
(a) The endorsement being sought.
(b) A list of construction debts involving
the applicant, or an owner or officer of the applicant, if the order, award,
penalty or judgment that establishes the debt was issued within the preceding
five years.
(c) For each person described in
paragraphs (h) and (i) of this subsection, a Social Security number.
(d) Workers compensation insurance
account number, if the applicant is required to have workers compensation
insurance.
(e) Unemployment insurance account number,
if the applicant is required to have unemployment insurance.
(f) State withholding tax account number,
if the applicant is required to withhold state income tax.
(g) Federal employer identification
number, if the applicant is required to have a federal employer identification
number.
(h) The name and address of:
(A) Each partner, if the applicant is a
partnership, limited liability partnership or foreign limited liability
partnership.
(B) The general partner, if the applicant
is a limited partnership.
(C) Each joint venturer, if the applicant
is a joint venture.
(D) The owner, if the applicant is a sole
proprietorship.
(E) The officers, if the applicant is a
corporation.
(F) The manager and each member, if the
applicant is a manager-managed limited liability company.
(G) Each member, if the applicant is a
member-managed limited liability company.
(H) The responsible managing individual
designated by the applicant.
(I) Each trustee, if the applicant is a
trust.
(i) The name and address of the following
if the applicant is a partnership, limited liability partnership, foreign
limited liability partnership, joint venture, manager-managed limited liability
company or member-managed limited liability company:
(A) Each partner in a partnership, limited
liability partnership or foreign limited liability partnership that is a
partner, joint venturer or member of the applicant.
(B) Each general partner in a limited
partnership that is a partner, joint venturer or member of the applicant.
(C) Each joint venturer in a joint venture
that is a partner, joint venturer or member of the applicant.
(D) The manager and each member of a
manager-managed limited liability company that is a partner, joint venturer or
member of the applicant.
(E) Each member of a member-managed
limited liability company that is a partner, joint venturer or member of the
applicant.
(F) Each officer of a corporation that is
a partner, joint venturer or member of the applicant.
(G) The general partner in a limited
partnership that is a partner, joint venturer or member of the applicant.
(H) Each individual who has a controlling
ownership interest in, or management authority over, the applicant and who
meets criteria adopted by the board by rule.
(j) For each person described in paragraphs
(h) and (i) of this subsection, information as required by board rule regarding
the following if related to construction activities:
(A) A final judgment against the person by
a court in any state entered within five years preceding the application date
that requires the person to pay money to another person or to a public body if
the judgment remains unsatisfied on the application date.
(B) A final order against the person by an
administrative agency in any state issued within five years preceding the
application date that requires the person to pay money to another person or to
a public body if the order remains unsatisfied on the application date.
(C) A court action against the person in
any state pending on the application date that alleges the person owes money to
another person or to a public body.
(D) An action by an administrative agency
in any state pending on the application date that seeks an order that the
person pay money to another person or to a public body.
(E) A conviction for a crime listed in ORS
701.098 (1)(i) entered within five years preceding the application date.
(F) An indictment for a crime listed in
ORS 701.098 (1)(i) filed within five years preceding the application date.
(k) The basis on which the applicant meets
the standards for independent contractor status under ORS 670.600.
(2) The application described in
subsection (1) of this section must be accompanied by proof satisfactory to the
board that the applicant:
(a) Is in compliance with ORS 701.091.
(b) Has the legal capacity to enter into
contracts.
(3) Subsection (2)(a) of this section does
not apply to an applicant for licensing with endorsement solely as a
residential or commercial developer.
(4) An applicant shall conform to the
information provided by the applicant on the application and to the terms of
the application. [Formerly 701.075]
Note: The amendments to 701.046 (formerly 701.075)
by section 58a, chapter 836, Oregon Laws 2007, become operative July 1, 2008,
and apply to licenses issued or renewed on or after July 1, 2008. See section
70, chapter 836, Oregon Laws 2007. The text that is operative until July 1,
2008, including amendments by section 2, chapter 478, Oregon Laws 2007, and
section 24, chapter 648, Oregon Laws 2007, is set forth for the users
convenience.
701.046. (1) An applicant for a construction
contractor license must submit the application on a form prescribed by the
Construction Contractors Board. The application shall include, but not be
limited to, the following information:
(a) Classification of the license being
sought.
(b) A list of construction debts involving
the applicant, or an owner or officer of the applicant, if the order, award,
penalty or judgment that establishes the debt was issued within the preceding
five years.
(c) For each person described in
paragraphs (h) and (i) of this subsection, a Social Security number.
(d) Workers compensation insurance
account number, if the applicant is required to have workers compensation
insurance.
(e) Unemployment insurance account number,
if the applicant is required to have unemployment insurance.
(f) State withholding tax account number,
if the applicant is required to withhold state income tax.
(g) Federal employer identification
number, if the applicant is required to have a federal employer identification
number.
(h) The name and address of:
(A) Each partner, if the applicant is a
partnership, limited liability partnership or foreign limited liability
partnership.
(B) The general partner, if the applicant
is a limited partnership.
(C) Each joint venturer, if the applicant
is a joint venture.
(D) The owner, if the applicant is a sole
proprietorship.
(E) The officers, if the applicant is a
corporation.
(F) The manager and each member, if the
applicant is a manager-managed limited liability company.
(G) Each member, if the applicant is a
member-managed limited liability company.
(H) The responsible managing individual
designated by the applicant.
(I) Each trustee, if the applicant is a
trust.
(i) The name and address of the following
if the applicant is a partnership, limited liability partnership, foreign
limited liability partnership, joint venture, manager-managed limited liability
company or member-managed limited liability company:
(A) Each partner in a partnership, limited
liability partnership or foreign limited liability partnership that is a
partner, joint venturer or member of the applicant.
(B) Each general partner in a limited
partnership that is a partner, joint venturer or member of the applicant.
(C) Each joint venturer in a joint venture
that is a partner, joint venturer or member of the applicant.
(D) The manager and each member of a
manager-managed limited liability company that is a partner, joint venturer or
member of the applicant.
(E) Each member of a member-managed
limited liability company that is a partner, joint venturer or member of the
applicant.
(F) Each officer of a corporation that is
a partner, joint venturer or member of the applicant.
(G) The general partner in a limited
partnership that is a partner, joint venturer or member of the applicant.
(H) Each individual who has a controlling
ownership interest in, or management authority over, the applicant and who
meets criteria adopted by the board by rule.
(j) For each person described in
paragraphs (h) and (i) of this subsection, information as required by board
rule regarding the following if related to construction activities:
(A) A final judgment against the person by
a court in any state entered within five years preceding the application date
that requires the person to pay money to another person or to a public body if
the judgment remains unsatisfied on the application date.
(B) A final order against the person by an
administrative agency in any state issued within five years preceding the
application date that requires the person to pay money to another person or to
a public body if the order remains unsatisfied on the application date.
(C) A court action against the person in
any state pending on the application date that alleges the person owes money to
another person or to a public body.
(D) An action by an administrative agency
in any state pending on the application date that seeks an order that the
person pay money to another person or to a public body.
(E) A conviction for a crime listed in ORS
701.098 (1)(h) entered within five years preceding the application date.
(F) An indictment for a crime listed in
ORS 701.098 (1)(h) filed within five years preceding the application date.
(k) The basis on which the applicant meets
the standards for independent contractor status under ORS 670.600.
(2) The application described in
subsection (1) of this section must be accompanied by proof satisfactory to the
board that the applicant:
(a) Is in compliance with ORS 701.091.
(b) Has the legal capacity to enter into
contracts.
(3) Subsection (2)(a) of this section does
not apply to a licensed developer.
(4) An applicant shall conform to the
information provided by the applicant on the application and to the terms of
the application.
701.050
Commercial contractor key employees. (1) 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.
(2) Except as provided in subsection (3)
of this section, the experience certified under subsection (1) of this section
must be as a licensed contractor, journeyman, foreperson or supervisor or as
any other employee engaged in construction work for a licensed contractor.
(3) The following experience or education
may substitute for construction experience described in subsection (2) of this
section:
(a) Completion of an apprenticeship
program may substitute for up to three years of experience;
(b) A bachelors degree in a
construction-related field may substitute for up to three years of experience;
(c) A bachelors degree or masters degree
in business, finance or economics may substitute for up to two years of experience;
and
(d) An associates degree in construction
or building management may substitute for up to one year of experience. [2007
c.836 §8]
Note: 701.050 becomes operative July 1, 2008, and
applies to licenses issued or renewed on or after July 1, 2008. See section 70,
chapter 836, Oregon Laws 2007.
701.055 [1971 c.740 §7; 1975 c.721 §2; 1981 c.618 §10;
1983 c.616 §6; 1989 c.430 §6; 1989 c.624 §1; 1989 c.928 §4; 1995 c.771 §1; 1997
c.785 §3; 1999 c.35 §1; 1999 c.325 §2; 1999 c.402 §14; 2001 c.196 §4; 2001
c.197 §11; 2005 c.249 §1; 2005 c.432 §8; 2007 c.114 §8; 2007 c.639 §2; 2007
c.648 §17; renumbered 701.026 in 2007]
701.056
Licensing application fee; rules. Each applicant shall pay to the Construction Contractors Board:
(1) For an application for the issuance or
renewal of a contractor license, an application fee as determined by the board
under ORS 701.238.
(2) 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. [Formerly 701.125]
701.058 [2003 c.675 §68; repealed by 2007 c.836 §51]
Note: 701.058 is repealed July 1, 2008. See
sections 51 and 70, chapter 836, Oregon Laws 2007. 701.058 (2005 Edition) is
set forth for the users convenience.
701.058
Licensed developers. The
Construction Contractors Board shall develop a separate class of contractor
license for contractors who are licensed developers.
701.060
Licensing in another category; fee. 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. [1977 c.426 §2; 1981 c.618
§11; 1983 c.616 §7; 1989 c.430 §2; 1989 c.928 §5; 1999 c.402 §15; 2007 c.114 §9;
2007 c.836 §17]
Note: The amendments to 701.060 by section 17,
chapter 836, Oregon Laws 2007, become operative July 1, 2008, and apply to
licenses issued or renewed on or after July 1, 2008. See section 70, chapter
836, Oregon Laws 2007. The text that is operative until July 1, 2008, including
amendments by section 9, chapter 114, Oregon Laws 2007, is set forth for the
users convenience.
701.060. (1) Any contractor licensed under this
chapter may at any time apply for a license in another category. The
Construction Contractors Board may charge a transfer fee not to exceed $20 for
each additional license.
(2) If a contractor applies for a license
pursuant to subsection (1) of this section, all construction, alteration,
improvement, moving over public highways, roads or streets, demolition or
repair performed by that contractor on buildings of all types shall be subject
to the provisions of this chapter and to regulation by the board. Licensure
under subsection (1) of this section shall be exclusive as provided in ORS
701.325 (6).
701.063
Term of license; fee; renewal; inactive status; license identification card. (1) 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.
(2) A license may be renewed by submitting
an application for renewal on the prescribed form, providing any additional
information required, including evidence of completion of any required
education, and submitting the appropriate application fee, as provided by
Construction Contractors Board rule.
(3) The board may vary the dates of
license renewal by giving to the licensee written notice of the renewal date
assigned and by making appropriate adjustments in the fee for the license
renewal application.
(4) If a contractor applies for renewal
not more than one year after the contractors license lapses, upon the
contractors compliance with the requirements of subsection (2) of this
section, the board may renew the lapsed license. The board may designate the
effective date of renewal as the last date on which the contractor was
licensed.
(5) A contractor may convert a license to
inactive status if the contractor is not engaged in work as a contractor. A
contractor having an inactive license is subject to board licensing
requirements and application fees, but is not subject to the bonding
requirement of ORS 701.068 or the insurance requirement of ORS 701.073. An
inactive license is not considered a valid license for purposes of offering to
undertake construction work, submitting a bid for construction work, obtaining
a building permit or performing construction work. A license may not be placed
or maintained in inactive status more than once during any two-year licensing
term.
(6) The board shall issue a pocket-card
certificate of licensure to a contractor licensed under this chapter indicating
the type of license issued. [Formerly 701.115]
Note: The amendments to 701.063 (formerly 701.115)
by section 25, chapter 836, Oregon Laws 2007, become operative July 1, 2010.
See section 70, chapter 836, Oregon Laws 2007. The text that is operative on
and after July 1, 2010, is set forth for the users convenience.
701.063. (1) 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.
(2) A license may be renewed by submitting
an application for renewal on the prescribed form, providing any additional
information required, including evidence of completion of any required
education, and submitting the appropriate application fee, as provided by
Construction Contractors Board rule.
(3) The board may vary the dates of
license renewal by giving to the licensee written notice of the renewal date
assigned and by making appropriate adjustments in the fee for the license
renewal application.
(4) If a contractor applies for renewal
not more than one year after the contractors license lapses, upon the
contractors compliance with the requirements of subsection (2) of this
section, the board may renew the lapsed license. The board may designate the
effective date of renewal as the last date on which the contractor was
licensed.
(5) A contractor may convert a license to
inactive status if the contractor is not engaged in work as a contractor. A
contractor having an inactive license is subject to board licensing
requirements and application fees, but is not subject to the bonding
requirement of ORS 701.068 or the insurance requirement of ORS 701.073. A
commercial general or commercial specialty contractor having an inactive
license is not subject to the key employee continuing education requirements of
ORS 701.124. An inactive license is not considered a valid license for purposes
of offering to undertake construction work, submitting a bid for construction
work, obtaining a building permit or performing construction work. A license
may not be placed or maintained in inactive status more than once during any
two-year licensing term.
(6) The board shall issue a pocket-card
certificate of licensure to a contractor licensed under this chapter indicating
the type of license issued.
701.065 [1971 c.740 §8; 1973 c.832 §55; 1975 c.654 §1;
1979 c.874 §1; 1983 c.616 §8; 1989 c.870 §§10,10a; 1989 c.928 §6; 1997 c.818 §3;
1999 c.402 §16; 2003 c.675 §71; 2007 c.793 §6; renumbered 701.131 in 2007]
701.067 [1989 c.870 §9; 1995 c.618 §124; 1999 c.402 §17;
renumbered 701.128 in 2007]
701.068
Bonding requirements; action against surety; rules. (1) 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.
(2) If an applicant for issuance, renewal
or an additional endorsement of a license will hold endorsements as both a
residential contractor and a commercial contractor, the applicant shall file
with the board a surety bond for each endorsement in the amount set forth in
ORS 701.081 or 701.084.
(3) The surety bond must provide that the
applicant, with regard to work subject to this chapter, will pay amounts
ordered paid by the board under ORS 701.145 or 701.146. Bonds filed under this
section shall remain in effect for at least one year or until depleted by
payments under ORS 701.150, 701.153 and 701.157, unless the surety sooner
cancels the bond. At the discretion of the surety the bond may be continued for
an additional period by continuation certificate. Except as provided in
subsection (4) of this section, the aggregate liability of the surety under the
bond for complaints against the contractor may not exceed the penal sum of the
bond no matter how many years the bond is in force. Except as provided in
subsection (4) of this section, an extension by continuation certificate, reinstatement,
reissue or renewal of the bond may not increase the liability of the surety.
(4) The board, by rule, may require a
licensee to obtain a new surety bond if, pursuant to a board order for payment
of a complaint described in ORS 701.140, the surety pays an amount out of the
bond of the licensee. The new surety bond must be in the applicable amount set
forth in ORS 701.081 or 701.084 unless a higher amount is required by a board
condition or rule described in subsection (5) or (6) of this section. The board
may allow a licensee to obtain, instead of a new bond, a certification that the
surety remains liable for the full penal sum of the bond, notwithstanding
payment by the surety on the complaint.
(5) If the amount the licensee must pay
against the bond under subsection (3) of this section exceeds the amount of the
bond, the board shall suspend the contractors license until the amount owed is
paid. The board, as a condition of ending the suspension, may require a
contractor requesting reinstatement of a license to file a bond of an amount up
to five times as much as the amount required ordinarily of a licensee under ORS
701.081 or 701.084.
(6) The board by rule may establish
conditions for applicants or persons licensed under this chapter under which
the applicant or licensee must file a bond of an amount up to five times as
much as the amount required ordinarily of an applicant or licensee under ORS
701.081 or 701.084. The board may reduce the amount of bond it would otherwise
require if the contractor demonstrates satisfactory completion of approved
elective classes on dispute resolution and prevention, basic accounting and
record keeping or such other classes as the board may prescribe.
(7) The bond required under this section
is for the exclusive purpose of payment of final orders and arbitration awards
of the board in accordance with this chapter.
(8) Upon determination under ORS 701.145
or 701.146 of a complaint against a contractor who holds a bond required under
this section, the board shall notify the surety on the bond of the final order
in a manner determined by the board by rule. The notification shall include a
list of all complaints upon which a final order has been issued.
(9) A court action may not be commenced
against a surety on a bond required under this section until 30 days after the
date that the surety is notified by the board under ORS 701.150 that payment is
due on the final order.
(10) In any action against a surety on a
bond under this section that is based on the failure of the surety to pay a
final order, the court may award:
(a) Costs;
(b) Reasonable attorney fees to the
prevailing party as part of the costs; and
(c) Twice the amount of any damages that
the board ordered the surety to pay on the complaint, if the surety arbitrarily
and capriciously refused to pay upon order of the board. [Formerly 701.085]
Note: The amendments to 701.068 (formerly 701.085)
by section 22, chapter 648, Oregon Laws 2007, apply to applications for initial
licenses received on or after January 1, 2008, and before July 1, 2008. See
section 30, chapter 648, Oregon Laws 2007, and sections 61 and 70, chapter 836,
Oregon Laws 2007. For surety bond amounts applicable to license renewals until
July 1, 2008, see 701.085 (2005 Edition).
Note: The amendments to 701.068 (formerly 701.085)
by section 61, chapter 836, Oregon Laws 2007, become operative July 1, 2008,
and apply to licenses issued or renewed on or after July 1, 2008. See section
70, chapter 836, Oregon Laws 2007. The text that is operative until July 1,
2008, including amendments by section 22, chapter 648, Oregon Laws 2007, and
section 7, chapter 793, Oregon Laws 2007, is set forth for the users
convenience.
701.068. (1) 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 subsections (2) to (5) of this section.
The surety bond must provide that the applicant, with regard to work subject to
this chapter, will pay amounts ordered paid by the board under ORS 701.145 or
701.146. Bonds filed under this subsection shall remain in effect for at least
one year or until depleted by payments under ORS 701.150, unless the surety
sooner cancels the bond. At the discretion of the surety the bond may be
continued for an additional period by continuation certificate. Except as
provided in subsection (6) of this section, the aggregate liability of the
surety under the bond for complaints against the contractor may not exceed the
penal sum of the bond no matter how many years the bond is in force. Except as
provided in subsection (6) of this section, an extension by continuation
certificate, reinstatement, reissue or renewal of the bond may not increase the
liability of the surety.
(2) A general contractor or licensed
developer shall obtain a surety bond in the amount of $20,000.
(3) A specialty contractor shall obtain a
surety bond in the amount of $15,000.
(4) An inspector shall obtain a surety
bond in the amount of $15,000.
(5) The board may reduce the amount of the
surety bond required by this section to $10,000 for a contractor upon a showing
that the contractor does not perform work as a contractor exceeding $40,000 in
gross annual volume and does not enter into contracts that exceed $5,000. The
board shall designate the contractor as a limited contractor.
(6) The board, by rule, may require a
licensee to obtain a new surety bond if, pursuant to a board order for payment
of a complaint described in ORS 701.140, the surety pays an amount out of the
bond of the licensee. The new surety bond must be in the amount set forth in
subsections (2) to (5) of this section unless a higher amount is required by a
board condition or rule described in subsection (7) or (8) of this section. The
board may allow a licensee to obtain, instead of a new bond, a certification
that the surety remains liable for the full penal sum of the bond,
notwithstanding payment by the surety on the complaint.
(7) If the amount the licensee must pay
against the bond under this section exceeds the amount of the bond, the board
shall suspend the contractors license until the amount owed is paid. The
board, as a condition of ending the suspension, may require a contractor
requesting reinstatement of a license to file a bond of an amount up to five
times as much as the amount required ordinarily of a licensee under this
section.
(8) The board by rule may establish
conditions for applicants or persons licensed under this chapter under which
the applicant or licensee must file a bond of an amount up to five times as
much as the amount required ordinarily of an applicant or licensee under this
section. The board may reduce the amount of bond it would otherwise require if
the contractor demonstrates satisfactory completion of approved elective
classes on dispute resolution and prevention, basic accounting and record
keeping or such other classes as the board may prescribe.
(9) The bond required under this section
is for the exclusive purpose of payment of final orders and arbitration awards
of the board in accordance with this chapter.
(10) Upon determination under ORS 701.145
or 701.146 of a complaint against a contractor who holds a bond required under
this section, the board shall notify the surety on the bond of the final order
in a manner determined by the board by rule. The notification shall include a
list of all complaints upon which a final order has been issued.
(11) A court action may not be commenced
against a surety on a bond required under this section until 30 days after the
date that the surety is notified by the board under ORS 701.150 that payment is
due on the final order.
(12) In any action against a surety on a
bond under this section that is based on the failure of the surety to pay a
final order, the court may award:
(a) Costs;
(b) Reasonable attorney fees to the
prevailing party as part of the costs; and
(c) Twice the amount of any damages that
the board ordered the surety to pay on the complaint, if the surety arbitrarily
and capriciously refused to pay upon order of the board.
701.070 [1975 c.383 §§2,3; repealed by 1983 c.616 §17]
701.072 [2005 c.432 §2; 2007 c.836 §19; renumbered
701.122 in 2007]
701.073
Insurance required of licensed contractors. (1) 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
policy exclusions, for an amount not less than the applicable amount set forth
in ORS 701.081 or 701.084.
(2) The contractor shall provide
satisfactory evidence to the Construction Contractors Board at the time of
licensure and renewal that the insurance required by subsection (1) of this
section has been procured and is in effect. [Formerly 701.105]
Note: The amendments to 701.073 (formerly 701.105)
by section 24, chapter 836, Oregon Laws 2007, become operative July 1, 2008,
and apply to licenses issued or renewed on or after July 1, 2008. See section
70, chapter 836, Oregon Laws 2007. The text that is operative until July 1,
2008, including amendments by section 20, chapter 648, Oregon Laws 2007, is set
forth for the users convenience.
701.073. (1) 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 policy exclusions, for an amount not less than:
(a) $500,000 for a general contractor or
licensed developer.
(b) $300,000 for a residential-only
specialty contractor.
(c) $500,000 for all other specialty
contractors.
(d) $100,000 for a limited contractor.
(e) $300,000 for an inspector.
(2) The contractor shall provide
satisfactory evidence to the Construction Contractors Board at the time of
licensure and renewal that the insurance required by subsection (1) of this
section has been procured and is in effect.
Note: Section 21, chapter 648, Oregon Laws 2007,
provides:
Sec.
21. The amendments to ORS
701.105 [renumbered 701.073] by sections 19 and 20 of this 2007 Act apply to
coverage provided under insurance policies issued or renewed on or after the
effective date of this 2007 Act [January 1, 2008]. [2007 c.648 §21]
701.075 [1971 c.740 §9; 1973 c.832 §56; 1979 c.312 §2;
1981 c.618 §12; 1989 c.624 §2; 1989 c.870 §2; 1989 c.928 §7; 1995 c.216 §6;
1999 c.344 §1; 1999 c.402 §18a; 2001 c.160 §2; 2001 c.196 §5; 2003 c.675 §73;
2005 c.432 §9; 2007 c.478 §2; 2007 c.648 §24; 2007 c.836 §58a; renumbered
701.046 in 2007]
701.077 [2005 c.432 §4; 2007 c.648 §25; renumbered
701.094 in 2007]
701.078 [2005 c.432 §3; 2007 c.113 §1; 2007 c.648 §26;
2007 c.836 §21; renumbered 701.091 in 2007]
701.080 [1979 c.312 §5; 1983 c.616 §9; 1989 c.928 §8;
1997 c.301 §1; 1999 c.402 §20; renumbered 701.117 in 2007]
701.081
Residential contractors; bond; insurance; responsible managing individual. (1) A residential general contractor shall:
(a) Obtain a surety bond under ORS 701.068
in the amount of $20,000;
(b) Obtain general liability insurance
under ORS 701.073 in an amount of not less than $500,000; and
(c) Have a responsible managing individual
who meets the requirements of ORS 701.091.
(2) A residential specialty contractor
shall:
(a) Obtain a surety bond under ORS 701.068
in the amount of $15,000;
(b) Obtain general liability insurance
under ORS 701.073 in an amount not less than $300,000; and
(c) Have a responsible managing individual
who meets the requirements of ORS 701.091.
(3) A residential limited contractor
shall:
(a) Obtain a surety bond under ORS 701.068
in the amount of $10,000;
(b) Obtain general liability insurance
under ORS 701.073 in an amount not less than $100,000; and
(c) Have a responsible managing individual
who meets the requirements of ORS 701.091.
(4) A residential developer shall:
(a) Obtain a surety bond under ORS 701.068
in the amount of $20,000; and
(b) Obtain general liability insurance
under ORS 701.073 in an amount not less than $500,000. [2007 c.836 §3]
Note: 701.081 becomes operative July 1, 2008, and
applies to licenses issued or renewed on or after July 1, 2008. See section 70,
chapter 836, Oregon Laws 2007.
701.084
Commercial contractors; bond; insurance; responsible managing individual; key
employees. (1) A commercial
general contractor level 1 shall:
(a) Obtain a surety bond under ORS 701.068
in the amount of $75,000;
(b) Obtain general liability insurance
under ORS 701.073 in an amount of not less than $2 million;
(c) Have a responsible managing individual
who meets the requirements of ORS 701.091; and
(d) Have one or more key employees with a
combined total of at least eight years of experience described in ORS 701.050.
(2) A commercial specialty contractor
level 1 shall:
(a) Obtain a surety bond under ORS 701.068
in the amount of $50,000;
(b) Obtain general liability insurance
under ORS 701.073 in an amount not less than $1 million;
(c) Have a responsible managing individual
who meets the requirements of ORS 701.091; and
(d) Have one or more key employees with a
combined total of at least four years of experience described in ORS 701.050.
(3) A commercial general contractor level
2 shall:
(a) Obtain a surety bond under ORS 701.068
in the amount of $20,000;
(b) Obtain general liability insurance
under ORS 701.073 in an amount of not less than $1 million;
(c) Have a responsible managing individual
who meets the requirements of ORS 701.091; and
(d) Have one or more key employees with a
combined total of at least eight years of experience described in ORS 701.050.
(4) A commercial specialty contractor
level 2 shall:
(a) Obtain a surety bond under ORS 701.068
in the amount of $20,000;
(b) Obtain general liability insurance
under ORS 701.073 in an amount not less than $500,000;
(c) Have a responsible managing individual
who meets the requirements of ORS 701.091; and
(d) Have one or more key employees with a
combined total of at least four years of experience described in ORS 701.050.
(5) A commercial developer shall:
(a) Obtain a surety bond under ORS 701.068
in the amount of $20,000; and
(b) Obtain general liability insurance
under ORS 701.073 in an amount not less than $500,000. [2007 c.836 §4]
Note: 701.084 becomes operative July 1, 2008, and
applies to licenses issued or renewed on or after July 1, 2008. See section 70,
chapter 836, Oregon Laws 2007.
701.085 [1971 c.740 §10; 1975 c.383 §4; 1975 c.721 §3;
1979 c.874 §2; 1981 c.618 §1; 1983 c.616 §10; 1989 c.430 §3; 1989 c.624 §3;
1989 c.928 §10; 1991 c.181 §4; 1995 c.771 §2; 1997 c.301 §2; 1999 c.325 §3;
1999 c.344 §2; 1999 c.402 §21a; 2001 c.157 §1; 2001 c.196 §6; 2001 c.197 §12;
2003 c.675 §74; 2007 c.648 §22; 2007 c.793 §7; 2007 c.836 §61; renumbered
701.068 in 2007]
701.088
Contractor rehabilitating illegal drug manufacturing site; substitution for
bond; fee; rules. (1) As
used in this section:
(a) Illegal drug manufacturing site has
the meaning given that term in ORS 453.858.
(b) 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.
(2) The Construction Contractors Board
shall adopt rules prescribing terms and conditions under which a general or
specialty contractor that is a nonprofit organization engaged in rehabilitating
an illegal drug manufacturing site may substitute a letter of credit from a
bank authorized to do business in this state, or substitute a cash deposit, for
a bond required under ORS 701.068. A letter of credit or cash deposit described
in this section substitutes for a bond only for purposes of work the contractor
performs on an illegal drug manufacturing site. The letter of credit or cash
deposit must be equivalent in amount to the bond that would otherwise be
required of the contractor under ORS 701.068.
(3) The board may charge a contractor a
fee to cover any expense incurred by the board in allowing the contractor to
substitute a letter of credit or cash deposit under this section.
(4) A contractor that supplies a letter of
credit or cash deposit under this section is considered to be bonded under ORS
701.068 for purposes of performing rehabilitation work on illegal drug
manufacturing sites. A letter of credit or cash deposit that a contractor
supplies under this section is considered to be a surety bond issued under ORS
701.068 for purposes of claims involving the contractors rehabilitation work
on illegal drug manufacturing sites. The issuer of a letter of credit described
in this section is considered to be a surety for a bond only for purposes of
receiving notice under ORS 701.068 or 701.146. [2007 c.203 §2]
701.091
Responsible managing individual. (1) A business licensed under this chapter must at all times have at
least one responsible managing individual.
(2) Subsection (1) of this section does
not apply to a business licensed with endorsement solely as a residential or
commercial developer. [Formerly 701.078]
Note: The amendments to 701.091 (formerly 701.078)
by section 21, chapter 836, Oregon Laws 2007, become operative July 1, 2008.
See section 70, chapter 836, Oregon Laws 2007. The text that is operative until
July 1, 2008, including amendments by section 26, chapter 648, Oregon Laws 2007,
is set forth for the users convenience.
701.091. (1) A business licensed under this chapter
must at all times have at least one responsible managing individual.
(2) Subsection (1) of this section does
not apply to a licensed developer.
701.094
Definition for ORS 701.098 and 701.102; rules. (1) As used in ORS 701.098 and 701.102, owner
means:
(a) A sole proprietor of, partner in or
holder of a controlling interest in a business; or
(b) A person defined as an owner by
Construction Contractors Board rule.
(2) 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 includes an investor who has no right to
manage a business, including but not limited to:
(a) A person who is solely a minority
shareholder in a corporation;
(b) A member of a manager-managed limited
liability company; or
(c) A limited partner in a limited
partnership who does not participate in the control of the business of the
limited partnership. [Formerly 701.077]
701.095 [1971 c.740 §11; 1975 c.721 §4; 1981 c.618 §5;
repealed by 1987 c.414 §172]
701.098
Grounds for discipline; rules; suspension or refusal of license without prior
hearing; hearing; civil penalty; injunctions; cease and desist orders;
restoration or reissuance of license. (1) The Construction Contractors Board may revoke, suspend or refuse
to issue or reissue a license and the board may assess a civil penalty as
provided in ORS 701.992 if the board determines after notice and opportunity
for hearing:
(a) That the licensee or applicant has
violated a provision of ORS 701.026, 701.091, 701.114, 701.305, 701.320,
701.325 (1), 701.335 or 701.345 or a rule adopted under ORS 701.330 (4).
(b) That the licensee has violated a rule or
order of the board.
(c) That the licensee has knowingly
assisted an unlicensed person to act in violation of this chapter.
(d) That a lien was filed on a structure
under ORS 87.010 to 87.060 and 87.075 to 87.093 because the licensee or
applicant wrongfully failed to perform a contractual duty to pay money to the
person claiming the lien.
(e) That the licensee has knowingly
provided false information to the board.
(f) That the licensee has worked without a
construction permit where a permit is required and the work resulted in a
complaint being filed with the board under ORS 701.139. For purposes of this
paragraph, construction permit includes a building permit, electrical permit,
mechanical permit or plumbing permit.
(g) That the number of licensed
contractors working together on the same task on the same job site, where one
of the contractors is licensed as exempt under ORS 701.035 (2)(b), exceeded the
following:
(A) Two sole proprietors;
(B) One partnership;
(C) One corporation; or
(D) One limited liability company.
(h) Consistent with the provisions of ORS
670.280, that the licensee or applicant, or an owner or officer of the licensee
or applicant has been convicted of one of the following crimes in this state or
an equivalent crime in another state:
(A) Murder;
(B) Assault in the first degree;
(C) Kidnapping;
(D) Rape, sodomy or unlawful sexual
penetration;
(E) Sexual abuse;
(F) Arson in the first degree;
(G) Robbery in the first degree;
(H) Theft in the first degree; or
(I) Theft by extortion.
(i) That the licensee or applicant has
not, within 90 days after the date when payment was received from the public
contracting agency, or contractor in the case of a subcontractor, made payment
to any person for supplying labor or materials contracted for with a public
contract for a public improvement plus the amount of interest due.
(j) That the licensee or applicant has
repeatedly reported bad faith or false complaints of nonpayment against
contractors or subcontractors.
(k) That the licensee or applicant has
engaged in conduct as a contractor that is dishonest or fraudulent and that the
board finds injurious to the welfare of the public.
(2) The board may revoke, suspend or
refuse to issue or reissue a license if the board determines after notice and
opportunity for hearing that an applicant or licensee is unfit for licensure
based upon information submitted under ORS 701.046 or discovered by a board
investigation under ORS 701.225.
(3) The board may assess a civil penalty
as provided in ORS 701.992 if the board determines after notice and opportunity
for hearing that any person has violated ORS 701.026 (1).
(4)(a) The administrator of the board, in
accordance with administrative rules adopted by the board and after setting
forth specific reasons for the findings, may suspend or refuse to renew a
license without hearing in any case where the administrator finds a serious
danger to the public welfare, including but not limited to:
(A) Lack of a surety bond required by ORS
701.068;
(B) Lack of liability insurance required
by ORS 701.073;
(C) Hiring employees while licensed as
exempt under ORS 701.035;
(D) Conduct as a construction contractor
that is dishonest or fraudulent; or
(E) Failure to pay a construction debt.
(b) If the licensee or applicant demands a
hearing within 90 days after the date of notice to the licensee or applicant of
the suspension or refusal to renew, then a hearing must be granted to the
licensee or applicant as soon as practicable after the demand, and the administrator
shall issue, pursuant to the hearing as required by ORS chapter 183, an order
confirming, altering or revoking the administrators earlier order.
Notwithstanding ORS 670.325, a hearing need not be held where the order of
suspension or refusal to renew is accompanied by or is pursuant to a citation
for violation that is subject to judicial determination in any court of this
state, and the order by its terms will terminate in case of final judgment in
favor of the licensee or applicant.
(5)(a) In addition to all other remedies,
if the board has reason to believe that a person is engaging in an act,
practice or transaction that violates this chapter or a board rule, the board
may issue an order directing the person to cease the act or to take corrective
action.
(b) The board shall mail a copy of an
order issued under this subsection to the person by first class mail with
certificate of mailing. The board shall include with the order a notice
informing the person of the right to request a hearing concerning the order.
The notice shall inform the person that any hearing request must be received by
the board no later than 21 days after the date the order was mailed by the
board.
(c) If the board receives a timely request
for a hearing concerning an order issued under this subsection, the board shall
schedule the hearing no later than 30 days after receiving the request. The
board shall mail written notice of the hearing to the person by first class
mail with certificate of mailing no later than seven days before the scheduled
hearing date.
(d) An order described in this subsection
becomes final if the person does not file a timely request for a hearing
concerning the order or fails to appear at the requested hearing as scheduled.
(e) The issuance of a board order under
this subsection is subject to ORS 183.413 to 183.497.
(6) In addition to all other remedies, if
it appears to the board that a person has engaged in, or is engaging in, any
act, practice or transaction that violates the provisions of this chapter, the
board may direct the Attorney General or the district attorney of the county in
which the act, practice or transaction occurs, to apply to the court for an
injunction restraining the person from violating the provisions of this
chapter. An injunction may not issue for failure to maintain the list provided
for in ORS 701.345, unless the court determines that the failure is
intentional.
(7) A certified copy of the record of
conviction shall be conclusive evidence of a conviction under subsection (1)(h)
of this section.
(8) If the board suspends or revokes the
license of an individual contractor or contractor business for a violation of
subsection (1)(g) of this section, the board may not restore or reissue the
license unless the individual contractor or a responsible managing individual
for the contractor business has successfully completed the training and testing
described in ORS 701.122. [Formerly 701.135]
Note: The amendments to 701.098 (formerly 701.135)
by section 63, chapter 836, Oregon Laws 2007, become operative July 1, 2010.
See section 70, chapter 836, Oregon Laws 2007. The text that is operative on
and after July 1, 2010, is set forth for the users convenience.
701.098. (1) The Construction Contractors Board may
revoke, suspend or refuse to issue or reissue a license and the board may
assess a civil penalty as provided in ORS 701.992 if the board determines after
notice and opportunity for hearing:
(a) That the licensee or applicant has
violated a provision of this chapter.
(b) That the licensee has violated a rule
or order of the board.
(c) That the licensee has knowingly
assisted an unlicensed person to act in violation of this chapter.
(d) That the licensee has knowingly
assisted a licensed contractor to perform work for which the contractor is not
properly endorsed.
(e) That a lien was filed on a structure
under ORS 87.010 to 87.060 and 87.075 to 87.093 because the licensee or
applicant wrongfully failed to perform a contractual duty to pay money to the
person claiming the lien.
(f) That the licensee has knowingly
provided false information to the board.
(g) That the licensee has worked without a
construction permit where a permit is required and the work resulted in a
complaint being filed with the board under ORS 701.139. For purposes of this
paragraph, construction permit includes a building permit, electrical permit,
mechanical permit or plumbing permit.
(h) That the number of licensed
contractors working together on the same task on the same job site, where one
of the contractors is classed as exempt under ORS 701.035 (2)(b), exceeded the
following:
(A) Two sole proprietors;
(B) One partnership;
(C) One corporation; or
(D) One limited liability company.
(i) Consistent with the provisions of ORS
670.280, that the licensee or applicant, or an owner or officer of the licensee
or applicant has been convicted of one of the following crimes in this state or
an equivalent crime in another state:
(A) Murder;
(B) Assault in the first degree;
(C) Kidnapping;
(D) Rape, sodomy or unlawful sexual
penetration;
(E) Sexual abuse;
(F) Arson in the first degree;
(G) Robbery in the first degree;
(H) Theft in the first degree; or
(I) Theft by extortion.
(j) That the licensee or applicant has
not, within 90 days after the date when payment was received from the public
contracting agency, or contractor in the case of a subcontractor, made payment
to any person for supplying labor or materials contracted for with a public
contract for a public improvement plus the amount of interest due.
(k) That the licensee or applicant has
repeatedly reported bad faith or false complaints of nonpayment against
contractors or subcontractors.
(L) That the licensee or applicant has
engaged in conduct as a contractor that is dishonest or fraudulent and that the
board finds injurious to the welfare of the public.
(2) The board may revoke, suspend or
refuse to issue or reissue a license if the board determines after notice and
opportunity for hearing that an applicant or licensee is unfit for licensure
based upon information submitted under ORS 701.046 or discovered by a board
investigation under ORS 701.225.
(3) The board may assess a civil penalty
as provided in ORS 701.992 if the board determines after notice and opportunity
for hearing that any person has violated ORS 701.021.
(4)(a) The administrator of the board, in
accordance with administrative rules adopted by the board and after setting
forth specific reasons for the findings, may suspend or refuse to renew a
license without hearing in any case where the administrator finds a serious
danger to the public welfare, including but not limited to:
(A) Lack of a surety bond required by ORS
701.068;
(B) Lack of liability insurance required
by ORS 701.073;
(C) Hiring employees while classed as exempt
under ORS 701.035;
(D) Conduct as a construction contractor
that is dishonest or fraudulent; or
(E) Failure to pay a construction debt.
(b) If the licensee or applicant demands a
hearing within 90 days after the date of notice to the licensee or applicant of
the suspension or refusal to renew, then a hearing must be granted to the
licensee or applicant as soon as practicable after the demand, and the
administrator shall issue, pursuant to the hearing as required by ORS chapter
183, an order confirming, altering or revoking the administrators earlier
order. Notwithstanding ORS 670.325, a hearing need not be held where the order
of suspension or refusal to renew is accompanied by or is pursuant to a
citation for violation that is subject to judicial determination in any court
of this state, and the order by its terms will terminate in case of final
judgment in favor of the licensee or applicant.
(5)(a) In addition to all other remedies,
if the board has reason to believe that a person is engaging in an act,
practice or transaction that violates this chapter or a board rule, the board
may issue an order directing the person to cease the act or to take corrective
action.
(b) The board shall mail a copy of an
order issued under this subsection to the person by first class mail with
certificate of mailing. The board shall include with the order a notice
informing the person of the right to request a hearing concerning the order.
The notice shall inform the person that any hearing request must be received by
the board no later than 21 days after the date the order was mailed by the
board.
(c) If the board receives a timely request
for a hearing concerning an order issued under this subsection, the board shall
schedule the hearing no later than 30 days after receiving the request. The
board shall mail written notice of the hearing to the person by first class
mail with certificate of mailing no later than seven days before the scheduled
hearing date.
(d) An order described in this subsection
becomes final if the person does not file a timely request for a hearing
concerning the order or fails to appear at the requested hearing as scheduled.
(e) The issuance of a board order under
this subsection is subject to ORS 183.413 to 183.497.
(6) In addition to all other remedies, if
it appears to the board that a person has engaged in, or is engaging in, any
act, practice or transaction that violates the provisions of this chapter, the
board may direct the Attorney General or the district attorney of the county in
which the act, practice or transaction occurs, to apply to the court for an
injunction restraining the person from violating the provisions of this
chapter. An injunction may not issue for failure to maintain the list provided
for in ORS 701.345, unless the court determines that the failure is
intentional.
(7) A certified copy of the record of
conviction shall be conclusive evidence of a conviction under subsection (1)(i)
of this section.
(8) If the board suspends or revokes the
license of an individual contractor or contractor business for a violation of
subsection (1)(h) of this section, the board may not restore or reissue the
license unless the individual contractor or a responsible managing individual
for the contractor business has successfully completed the training and testing
described in ORS 701.122.
Note: Section 19 (4), chapter 432, Oregon Laws
2005, provides:
Sec.
19. (4) ORS 701.135 (5)
[renumbered 701.098 (8)] applies to the restoration or reissuance of a license
on or after the effective date of this 2005 Act [January 1, 2006] regardless of
the suspension or revocation date. [2005 c.432 §19(4)]
701.100 [1989 c.870 §5; 1991 c.67 §185; 1991 c.181 §5;
1995 c.771 §8; 1999 c.344 §3; 1999 c.402 §22; 2001 c.850 §5; 2001 c.924 §24;
2003 c.778 §3; repealed by 2007 c.114 §16]
701.102
Sanction for past unresolved activity; probation. (1) As used in this section, construction
contractor license means a license issued within the
(2) The Construction Contractors Board may
revoke, suspend or refuse to issue a license required under this chapter to a
business if:
(a) The business owes a construction debt
or has had a construction contractor license revoked or suspended;
(b) An owner, officer or responsible
managing individual of the business owes a construction debt or has had a
construction contractor license revoked or suspended;
(c) An owner, officer or responsible
managing individual of the business was an owner, officer or responsible
managing individual of another business at the time the other business incurred
a construction debt that is owing or at the time of an event that resulted in
the revocation or suspension of the other businesss construction contractor
license; or
(d) The board determines that an owner,
officer or responsible managing individual of the business is not fit for
licensure, based upon information submitted under ORS 701.046 or discovered by
a board investigation under ORS 701.225.
(3) The board may place a contractor on
probation if a total of three or more complaints are filed with the board under
ORS 701.139 within a 12-month period against the contractor or a former
licensed construction contracting business in which the contractor held at
least a 10 percent ownership interest, measured as determined by board rule. A
contractor may not be placed on probation unless the board determines after
investigation that it is likely that the contractor has caused harm to the
complainants. The board may require a contractor that is placed on probation to
develop a corrective action plan, to attend specific classes and to resolve
outstanding complaints. The board may require a contractor that is placed on
probation to take training and pass a test, both as described in ORS 701.122.
The board shall take action to terminate the contractors license if the
contractor is unwilling or unable to comply with the conditions of probation. [Formerly
701.137; 1999 c.344 §8; 1999 c.402 §23a; 2001 c.924 §27; 2005 c.432 §10; 2007
c.648 §27; 2007 c.793 §8]
701.103 [2001 c.850 §2; 2007 c.793 §9; renumbered
701.112 in 2007]
701.105 [1971 c.740 §12; 1975 c.383 §5; 1979 c.312 §3;
1983 c.616 §11; 1989 c.624 §4; 1989 c.928 §12; 1991 c.181 §6; 1999 c.325 §4;
1999 c.402 §24a; 2001 c.196 §7; 2003 c.675 §75; 2003 c.766 §§1,2; 2007 c.648 §§19,20;
2007 c.836 §§23,24; renumbered 701.073 in 2007]
701.106
Sanction for violation or failure to comply with certain laws. (1) 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:
(a) ORS 87.007 (2).
(b) ORS chapter 316 or 317.
(c) ORS 446.225 to 446.285.
(d) ORS 446.395 to 446.420.
(e) ORS 447.010 to 447.156.
(f) ORS chapter 455.
(g) ORS 460.005 to 460.175.
(h) ORS 479.510 to 479.945.
(i) ORS 480.510 to 480.670.
(j) ORS chapter 656.
(k) ORS chapter 657.
(L) ORS 670.600.
(m) ORS 671.510 to 671.760.
(n) ORS chapter 693.
(2) The imposition of a sanction under
this section is subject to ORS 183.413 to 183.497. [2007 c.114 §14]
701.109
Reporting of final judgments.
(1) As used in this section, judgment means:
(a) A judgment issued in a court action;
or
(b) A court order that confirms an
arbitration award.
(2) 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 that arise from a breach of
contract or from negligent or improper work and that relate to the construction
or proposed construction of a residential structure. The contractor shall cause
the copy of the final judgment to be delivered to the board no later than 45
days after the final judgment is recorded.
(3) Notwithstanding subsection (2) of this
section, a contractor is not required to send the board a copy of a final
judgment if:
(a) The contractor paid the damages and
other amounts payable by the contractor under the judgment no later than 30
days after recording of the judgment; or
(b) The contractor is appealing the
judgment and has filed any undertaking on appeal required by ORS 19.300.
(4) In determining whether to impose a
disciplinary sanction under this chapter, the board shall give due
consideration to any past or current attempts by the contractor to make
payments toward satisfaction of a judgment. [2007 c.540 §2]
Note: Section 3, chapter 540, Oregon Laws 2007,
provides:
Sec.
3. Section 2 of this 2007
Act [701.109] applies to final judgments recorded before, on or after the
effective date of this 2007 Act [January 1, 2008]. However, for a final
judgment recorded before the effective date of this 2007 Act, a contractor must
send the Construction Contractors Board a copy of the judgment only if, 30 days
after the effective date of this 2007 Act, the contractor has not paid the
damages and other amounts payable and the judgment is not on appeal as
described in section 2 of this 2007 Act. Notwithstanding section 2 of this 2007
Act, if a contractor must send the board notice of a final judgment recorded
before the effective date of this 2007 Act, the contractor shall cause the
notice to be delivered to the board no later than 45 days after the effective
date of this 2007 Act. [2007 c.540 §3]
701.112
Continuation of board authority when change occurs in license status. 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 ORS 701.140. [Formerly 701.103]
701.114
Change in responsible managing individual or persons exercising control of
contractor. 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) or (i) or of a responsible managing individual for the contractor as
defined in ORS 701.091. If a partner or joint venturer departs from a
contractor that is a partnership or joint venture, the contractor must obtain a
new license before continuing to conduct activities that require a license
under this chapter. [2007 c.114 §7; 2007 c.478 §1a]
701.115 [1971 c.740 §13; 1975 c.721 §5; 1983 c.616 §12;
1989 c.624 §6; 1989 c.928 §13; 1993 c.470 §2; 1997 c.818 §2; 1999 c.402 §25;
2001 c.196 §8; 2003 c.675 §76; 2005 c.432 §11; renumbered 701.063 in 2007]
701.117
Contractor to notify board of address change; effect of mail to last-known
address. A contractor shall
notify the Construction Contractors Board of any change of address while
licensed and for one year following the date the contractors license expires
or otherwise becomes inactive. The contractor shall so notify the board within
10 days of the date upon which the change of address occurs. Initial notice of
a contested case or arbitration directed by the board to the last-known address
of record shall be considered delivered when deposited in the
701.120
Specialized education programs; standards; specialized education notation in
credentials; removal of notation; rules for use of credentials. (1) As used in this section, a specialized
education program means one or more of the following:
(a) 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 or more
specific consumer health or safety issues.
(b) A board-approved program from an
accredited college or university that grants a two-year or four-year degree
upon successful completion of the program.
(c) An apprenticeship program that is
approved by the board.
(2) The board may identify general
contractor and specialty contractor activities that require or substantially
benefit from specialized education and establish standards for programs providing
specialized education in those activities. The board may recognize and adopt
the program standards established by another state agency regulating the same
or related activities.
(3) Upon receipt of a request from a
contractor who has successfully completed a specialized education program
meeting board standards, the board shall note the specialized education on the
contractors licensing record as part of the contractors professional
credentials. The board may remove a professional credential from the contractors
licensing record if the contractor fails to complete continuing education or
other requirements imposed by the entity issuing the credential for maintaining
competency in the activity, if the requirements were clearly stated in writing
and provided to the contractor by the entity.
(4) The board shall include professional
credentials described in this section in releases of contractor licensing
information by the board. The board shall adopt rules to permit the inclusion
of professional credentials described in this section in advertising or other
information holding forth to the public the qualifications of a contractor. [2001
c.428 §1]
Note: 701.120 was enacted into law by the
Legislative Assembly but was not added to or made a part of ORS chapter 701 or
any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
701.122
Training requirements for individuals and businesses; testing of business
license applicant; exception; rules. (1) 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 requirements of this
subsection.
(2) In establishing training requirements
under subsection (1) of this section, the board shall take into consideration
the availability of training programs within the state and shall encourage
training providers to use the most up-to-date technology. The board shall
recognize and grant credit for training provided by private organizations if
the training program meets the standards established by the board under
subsection (1) of this section. The board periodically shall review the
qualifications of private organizations and instructors to determine compliance
with the program standards. The board shall develop and make available to the public
a list of public and private programs that provide training that meets the
training requirements established by the board under subsection (1) of this
section.
(3) The board, by rule, shall approve a
test for applicants for licensing under ORS 701.046. The test shall measure the
applicants knowledge regarding business practices and laws that are the
subject of the training required under subsection (1) of this section.
(4) Subsections (1) and (3) of this
section do not apply to an applicant for licensing with endorsement solely as a
residential or commercial developer. [Formerly 701.072]
Note: The amendments to 701.122 (formerly 701.072)
by section 19, chapter 836, Oregon Laws 2007, become operative July 1, 2008.
See section 70, chapter 836, Oregon Laws 2007. The text that is operative until
July 1, 2008, is set forth for the users convenience.
701.122. (1) 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
requirements of this subsection.
(2) In establishing training requirements
under subsection (1) of this section, the board shall take into consideration
the availability of training programs within the state and shall encourage
training providers to use the most up-to-date technology. The board shall recognize
and grant credit for training provided by private organizations if the training
program meets the standards established by the board under subsection (1) of
this section. The board periodically shall review the qualifications of private
organizations and instructors to determine compliance with the program
standards. The board shall develop and make available to the public a list of
public and private programs that provide training that meets the training
requirements established by the board under subsection (1) of this section.
(3) The board, by rule, shall approve a
test for applicants for licensing under ORS 701.046. The test shall measure the
applicants knowledge regarding business practices and laws that are the
subject of the training required under subsection (1) of this section.
(4) Subsections (1) and (3) of this
section do not apply to an applicant for licensing as a licensed developer.
701.124
Key employee continuing education. (1) 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.
(2) A commercial general contractor level
2 or commercial specialty contractor level 2 shall have a key employee, or
combination of key employees, who completes the equivalent of at least 16 hours
of continuing education per year.
(3) Notwithstanding subsection (1) of this
section, if a commercial general contractor level 1 or commercial specialty
contractor level 1 has no more than four key employees, the contractor shall
have a key employee, or combination of key employees, that completes continuing
education each year equivalent to the number of key employees multiplied by
eight hours.
(4) Continuing education may be provided
by post-secondary institutions, trade schools, trade associations, professional
societies, private companies, public agencies, business associations and
contractor-provided in-house training programs. Continuing education topics may
include, but need not be limited to, construction means, methods and business
practices.
(5) A contractor applying for renewal
shall certify the number of continuing education hours completed during the
preceding licensing period.
(6) A contractor subject to this section
shall maintain records of the continuing education completed by key employees.
(7) This section does not apply to a
commercial contractor:
(a) That is subject to regulation under
ORS 479.510 to 479.945 or 480.510 to 480.670 or ORS chapter 693; or
(b) As provided by rule by the
Construction Contractors Board. [2007 c.836 §9]
Note: 701.124 becomes operative July 1, 2010. See
section 70, chapter 836, Oregon Laws 2007.
701.125 [1971 c.740 §14; 1973 c.832 §57; 1975 c.721 §6;
1983 c.180 §3; 1999 c.402 §26; 2005 c.432 §12; renumbered 701.056 in 2007]
701.126
Continuing education; rules; fees. (1) The Construction Contractors Board shall adopt rules establishing
a continuing education system for all persons licensed by the board. The rules
adopted by the board shall include, but need not be limited to, rules
establishing the required number of hours and course content for continuing
education. The board may establish reasonable fees for courses and instruction
provided by the board, or for approving the course content and instruction for
continuing education provided by other sources.
(2) The continuing education required for
a contractor may include training in construction means and methods, compliance
with the state building code and business practices.
(3) A person may not renew a license
issued by the board unless the person certifies to the board at the time of
license renewal that the licensee has completed the amount and type of
continuing education required by the board.
(4) Subsections (1) to (3) of this section
do not apply to a licensed developer. [2007 c.648 §2]
701.128
Suit for damages for misrepresentation. 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 party in an action under
this section. [Formerly 701.067]
Note: 701.128 was enacted into law by the
Legislative Assembly but was not added to or made a part of ORS chapter 701 or
any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
701.130 [1983 c.180 §2; 1989 c.624 §5; 1989 c.928 §14;
1991 c.703 §38; 1999 c.402 §27; 2005 c.432 §13; renumbered 701.238 in 2007]
COMPLAINTS
701.131
License required to perfect lien or obtain judicial or administrative remedy;
exception. (1) 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 court action 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 contractor had a valid license issued by the board:
(a) At the time the contractor bid or
entered into the contract for performance of the work; and
(b) Continuously while performing the work
for which compensation is sought.
(2) The board, arbitrator or court may not
apply the provisions of subsection (1) of this section to a contractor if the
board, arbitrator or court determines that:
(a) The contractor either did not have a
valid license at any time required under subsection (1) of this section, or had
an initial issuance of a valid license, and:
(A) The contractor was not aware of the
requirement that the contractor be licensed, and the contractor submitted a
completed application for a license within a number of days established by the
board, but not more than 90 days, of the date the contractor became aware of
the requirement;
(B) At the time the contractor perfected a
construction lien or commenced any proceeding subject to the provisions of
subsection (1) of this section, the contractor was licensed by the board; and
(C) Enforcement of the provisions of
subsection (1) of this section would result in substantial injustice to the
contractor;
(b) The contractor was licensed by the
board for some but not all of the times required under subsection (1) of this
section and had a lapse in the license and:
(A) The contractor was not aware of the
lapse in the license for more than a number of days established by the board,
but not to exceed 90 days, before submitting a completed application for
license renewal with the board;
(B) Except for perfection of a
construction lien and a court action to foreclose the lien, at the time the
contractor commenced any proceeding subject to the provisions of subsection (1)
of this section the contractors license was renewed under ORS 701.063 to
include the entire time period for which a license was required under
subsection (1) of this section; and
(C) For perfection of a construction lien
and a court action to foreclose the lien, the contractors license was renewed
under ORS 701.063 for the entire time period for which a license was required
under subsection (1) of this section, but not later than 90 days following perfection
of the lien;
(c)(A) The contractor is a licensed
developer and did not have a valid license during all or part of the period
described in subsection (1) of this section;
(B) The licensed developer was unaware of
the license requirement and obtained a license within a time established by the
board, not to exceed 90 days after the licensed developer learned of the
requirement;
(C) The licensed developer was licensed at
the time the licensed developer perfected the lien or commenced the proceeding;
and
(D) Enforcement of subsection (1) of this
section would result in substantial injustice to the licensed developer; or
(d) The proceeding:
(A) Is directed against a person or entity
that:
(i) Is subject to this chapter or ORS
chapter 671 or 672;
(ii) Provides construction or design labor
or services of any kind; or
(iii) Manufactures, distributes, rents or
otherwise provides materials, supplies, equipment, systems or products; and
(B) Arises out of defects, deficiencies or
inadequate performance in the construction, design, labor, services, materials,
supplies, equipment, systems or products provided.
(3) If a contractor falsely swears to
information provided under ORS 701.046 or knowingly violates the provisions of
ORS 656.029, 670.600 or 701.046, the contractor may not perfect a construction
lien, file a complaint with the board or commence an arbitration or a court
action for compensation for the performance of any work on a residential
structure or for the breach of any contract for work on a residential structure
that is subject to this chapter. [Formerly 701.065]
Note: The amendments to 701.131 (formerly 701.065)
by section 58, chapter 836, Oregon Laws 2007, become operative July 1, 2010.
See section 70, chapter 836, Oregon Laws 2007. The text that is operative on
and after July 1, 2010, is set forth for the users convenience.
701.131. (1) 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 court action 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
contractor had a valid license issued by the board and properly endorsed for
the work performed:
(a) At the time the contractor bid or
entered into the contract for performance of the work; and
(b) Continuously while performing the work
for which compensation is sought.
(2) The board, arbitrator or court may not
apply the provisions of subsection (1) of this section to a contractor if the
board, arbitrator or court determines that:
(a) The contractor either did not have a
valid license with a proper endorsement at any time required under subsection
(1) of this section, or had an initial issuance of a valid license, and:
(A) The contractor was not aware of the
requirement that the contractor be licensed or properly endorsed for the work
performed, and the contractor submitted a completed application for a license
within a number of days established by the board, but not more than 90 days, of
the date the contractor became aware of the requirement;
(B) At the time the contractor perfected a
construction lien or commenced any proceeding subject to the provisions of
subsection (1) of this section, the contractor was licensed by the board and
properly endorsed for the work performed; and
(C) Enforcement of the provisions of
subsection (1) of this section would result in substantial injustice to the
contractor;
(b) The contractor was licensed by the
board for some but not all of the times required under subsection (1) of this
section and had a lapse in the license and:
(A) The contractor was not aware of the
lapse in the license for more than a number of days established by the board,
but not to exceed 90 days, before submitting a completed application for
license renewal with the board;
(B) Except for perfection of a
construction lien and a court action to foreclose the lien, at the time the
contractor commenced any proceeding subject to the provisions of subsection (1)
of this section the contractors license was renewed under ORS 701.063 to
include the entire time period for which a license was required under
subsection (1) of this section; and
(C) For perfection of a construction lien
and a court action to foreclose the lien, the contractors license was renewed
under ORS 701.063 for the entire time period for which a license was required
under subsection (1) of this section, but not later than 90 days following
perfection of the lien; or
(c) The proceeding:
(A) Is directed against a person or entity
that:
(i) Is subject to this chapter or ORS
chapter 671 or 672;
(ii) Provides construction or design labor
or services of any kind; or
(iii) Manufactures, distributes, rents or
otherwise provides materials, supplies, equipment, systems or products; and
(B) Arises out of defects, deficiencies or
inadequate performance in the construction, design, labor, services, materials,
supplies, equipment, systems or products provided.
(3) If a contractor falsely swears to
information provided under ORS 701.046 or knowingly violates the provisions of
ORS 656.029, 670.600 or 701.046, the contractor may not perfect a construction
lien, file a complaint with the board or commence an arbitration or a court
action for compensation for the performance of any work on a residential
structure or for the breach of any contract for work on a residential structure
that is subject to this chapter.
701.133
Notice of intent to file complaint; fees; rules. (1) 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 contractor as shown in board records. The board by rule
may:
(a) Specify the manner in which the person
may show compliance with this subsection at the time of filing the complaint.
(b) Provide that all or part of the
requirements for sending a notice under this subsection may be waived if the
contractor, by other means, has actual notice of the dispute with the person
filing the complaint.
(2) If the notice described in subsection
(1) of this section is mailed to the contractor fewer than 45 days before
expiration of the time limitation under ORS 701.143 for the board to receive
the complaint, the time limitation for the board to receive the complaint does
not expire until 60 days after the notice is mailed.
(3) The board by rule may impose a
processing fee for complaints filed under ORS 701.139. The fee amount may not
exceed the amount of the filing fee provided by ORS 21.110 (1) for a plaintiff
filing a civil action in circuit court. The board may impose different
processing fees for complaints processed under ORS 701.145 than for complaints
processed under ORS 701.146.
(4) If the board adopts rules under
subsection (3) of this section, the rules:
(a) Except as provided in paragraphs (b)
and (c) of this subsection, must provide that a prevailing complainant recover
processing fees as damages in the final order of the board.
(b) Must provide that the board may waive
or defer all or part of the processing fee upon application by the person
filing the complaint that shows the person is unable to pay all or part of the
fee. The application must be made under oath and notarized. The application
must show the average monthly income and expenses of the complainant, assets
and liabilities of the complainant and any other information required by board
rule.
(c) May provide for the processing fee to
be waived for all complaints that are based on the furnishing of labor by a
complainant to a contractor. The board may provide for processing fee waiver
under this paragraph only if, in the opinion of the board, a majority of
complainants who file complaints based on the furnishing of labor to
contractors are eligible for fee waivers as described in paragraph (b) of this
subsection. [Formerly 701.147]
701.135 [1971 c.740 §15; 1975 c.721 §7; 1979 c.874 §3;
1981 c.618 §6; 1987 c.414 §40b; 1989 c.430 §7; 1989 c.744 §4; 1989 c.870 §§11,11a;
1989 c.928 §15; 1991 c.67 §186; 1991 c.181 §7; 1993 c.446 §1; 1995 c.216 §2;
1999 c.344 §4; 1999 c.402 §28c; 1999 c.689 §10; 2001 c.160 §3; 2001 c.196 §9;
2001 c.850 §6; 2005 c.432 §14; 2007 c.114 §10; 2007 c.648 §28b; 2007 c.793 §10;
renumbered 701.098 in 2007]
701.137 [Subsection (2) enacted as 1989 c.744 §2;
subsection (1) enacted as 1989 c.928 §9; 1991 c.181 §8; 1995 c.771 §3;
renumbered 701.102 in 1997]
701.138 [1991 c.598 §§1,2,5; 1999 c.402 §29; 1999
c.551 §15; 2007 c.114 §11; 2007 c.836 §27; renumbered 701.348 in 2007]
701.139
Board authority over disputes; resolution processes. 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:
(1) A complaint against a residential
contractor that is not also endorsed as a commercial contractor must be
resolved as provided in ORS 701.145.
(2) A complaint against a commercial
contractor that is not also endorsed as a residential contractor must be
resolved as provided in ORS 701.146.
(3) A complaint against a contractor that
is endorsed as both a residential contractor and a commercial contractor:
(a) That involves work on a residential
structure or an appurtenance to a residential structure must be resolved as
provided under ORS 701.145.
(b) That involves work on a small
commercial structure or an appurtenance to a small commercial structure may be
resolved as provided in ORS 701.145 or 701.146, at the complainants election.
(c) That involves work on a large
commercial structure or an appurtenance to a large commercial structure must be
resolved as provided in ORS 701.146.
(4) Notwithstanding subsections (1) to (3)
of this section and except as provided in ORS 701.148, with prior agreement of
the complainant and the licensed contractor, a complaint may be resolved by the
board through binding arbitration under ORS 701.148. [2001 c.197 §3; 2001 c.414
§5a; 2007 c.793 §11; 2007 c.836 §64]
Note: The amendments to 701.139 by section 64,
chapter 836, Oregon Laws 2007, become operative July 1, 2008, and apply to
complaints filed against persons whose contractor licenses are issued or
renewed on or after July 1, 2008. See section 70, chapter 836, Oregon Laws
2007. The text that is operative until July 1, 2008, including amendments by
section 11, chapter 793, Oregon Laws 2007, is set forth for the users
convenience.
701.139. Except as provided in ORS 701.148 (2), the
Construction Contractors Board may resolve a dispute against a licensed
contractor only if a complaint is made against the contractors surety bond
required by ORS 701.068. In order to have access to the bond, a person must
file a complaint of a type described in ORS 701.140 within the applicable time
limitation described in ORS 701.143. The complaint must be filed and resolved
as follows:
(1) A complaint that involves work on a
residential structure or an appurtenance to a residential structure must be
resolved as provided under ORS 701.145.
(2) A complaint that involves work on a
small commercial structure or an appurtenance to a small commercial structure
may be resolved as provided in ORS 701.145 or 701.146.
(3) Except as provided in subsections (4)
and (5) of this section, a complaint that involves work on a large commercial
structure or an appurtenance to a large commercial structure must be resolved
as provided in ORS 701.146.
(4) A complaint by an owner that involves
work on a large commercial structure or an appurtenance to a large commercial
structure when the total contract involved in the complaint is $25,000 or less
may be resolved as provided in ORS 701.145 or 701.146.
(5) Notwithstanding subsections (1) to (4)
of this section, with prior agreement of the complainant and the licensed
contractor, a complaint may be resolved by the board through binding
arbitration under ORS 701.148.
701.140
Types of allowable complaints; restriction on processing complaint for
recoupment of lien. 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:
(1) A complaint against a contractor by the
owner of a structure or other real property for the following:
(a) Negligent work.
(b) Improper work.
(c) Breach of contract.
(2) A complaint against a contractor by
the owner of a structure or other real property to discharge, or to recoup
funds expended in discharging, a lien established under ORS 87.010 to 87.060
and 87.075 to 87.093 under circumstances described under this subsection. If
the complaint is processed under ORS 701.145, the Construction Contractors
Board may reduce the amount of the complaint by any amount the complainant owes
the contractor. The board shall process complaints described in this subsection
under ORS 701.145 only if:
(a) The owner paid the contractor for that
contractors work subject to this chapter;
(b) A lien is filed against the property
of the owner under ORS 87.010 to 87.060 and 87.075 to 87.093 because the
contractor failed to pay the person claiming the lien for that persons
contribution toward completion of the improvement; and
(c) The complaint is described in ORS
701.139 (1) or (3)(a) or (b).
(3) A complaint against a licensed
subcontractor by a licensed contractor for the following:
(a) Negligent work;
(b) Improper work; or
(c) Breach of contract.
(4) A complaint by a person furnishing
labor to a contractor or owed employee benefits by a contractor.
(5) A complaint, as limited by rule of the
board, by a person furnishing material or renting or supplying equipment to a
contractor. The minimum limit set by the board may not exceed $150.
(6) A complaint by a subcontractor against
a contractor for unpaid labor or materials arising out of a contract. [1981
c.618 §4; 1983 c.616 §13; 1989 c.167 §1; 1989 c.928 §16; 1991 c.181 §9; 1991
c.717 §1; 1997 c.301 §3; 1999 c.402 §30; 2001 c.197 §13; 2007 c.793 §12; 2007
c.836 §65]
Note: The amendments to 701.140 by section 65,
chapter 836, Oregon Laws 2007, become operative July 1, 2008, and apply to
complaints filed against persons whose contractor licenses are issued or
renewed on or after July 1, 2008. See section 70, chapter 836, Oregon Laws
2007. The text that is operative until July 1, 2008, including amendments by
section 12, chapter 793, Oregon Laws 2007, is set forth for the users
convenience.
701.140. A complaint made against a licensed
contractors bond required by ORS 701.068 must arise from the performance, or a
contract for the performance, of work that is subject to this chapter. The
complaint must be of one or more of the following types:
(1) A complaint against a contractor by
the owner of a structure or other real property for the following:
(a) Negligent work.
(b) Improper work.
(c) Breach of contract.
(2) A complaint against a contractor by
the owner of a structure or other real property to discharge, or to recoup
funds expended in discharging, a lien established under ORS 87.010 to 87.060
and 87.075 to 87.093 under circumstances described under this subsection. If
the complaint is processed under ORS 701.145, the Construction Contractors
Board may reduce the amount of the complaint by any amount the complainant owes
the contractor. The board shall process complaints described in this subsection
under ORS 701.145 only if:
(a) The owner paid the contractor for that
contractors work subject to this chapter; and
(b) A lien is filed against the property
of the owner under ORS 87.010 to 87.060 and 87.075 to 87.093 because the
contractor failed to pay the person claiming the lien for that persons
contribution toward completion of the improvement.
(3) A complaint against a licensed
subcontractor by a licensed contractor for the following:
(a) Negligent work;
(b) Improper work; or
(c) Breach of contract.
(4) A complaint by a person furnishing
labor to a contractor.
(5) A complaint, as limited by rule of the
board, by a person furnishing material or renting or supplying equipment to a
contractor. The minimum limit set by the board may not exceed $150.
(6) A complaint by a subcontractor against
a contractor for unpaid labor or materials arising out of a contract.
701.143
Requirement for timely filing of complaints; timelines. 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:
(1) Except as otherwise provided in this
section, if the owner of a new structure files the complaint, the board must
receive the complaint no later than the earlier of:
(a) One year after the date the structure
was first occupied; or
(b) Two years after substantial completion
of the structure by the contractor filed against.
(2) Except as otherwise provided in this
section, if the owner of an existing structure files the complaint, the board
must receive the complaint no later than one year after the date the work was
substantially completed by the contractor filed against.
(3) Regardless of whether the complaint
involves a new or an existing structure, if the owner of the structure files
the complaint and the licensed contractor failed to begin the work, the board
must receive the complaint no later than one year after the date the parties
entered into the contract.
(4) Regardless of whether the complaint
involves a new or an existing structure, if the owner of the structure files the
complaint and the licensed contractor failed to substantially complete the
work, the board must receive the complaint no later than one year after the
date the contractor ceased to work on the structure.
(5) Except as otherwise provided in this
section, if a licensed contractor files the complaint against the licensed
contractor performing work as a subcontractor on a new structure, the board
must receive the complaint no later than the earlier of:
(a) Fourteen months after the date the
structure was first occupied; or
(b) Two years after substantial completion
of the structure.
(6) Except as otherwise provided in this
section, if a licensed contractor files the complaint against the licensed
contractor performing work as a subcontractor on an existing structure, the
board must receive the complaint no later than 14 months after the date the
work on the structure was substantially completed.
(7) If a licensed contractor files the
complaint against the licensed contractor performing work as a subcontractor on
a structure and the subcontractor failed to substantially complete the work,
the board must receive the complaint no later than 14 months after the date the
subcontractor ceased to work on the structure.
(8) If the licensed contractors employee,
subcontractor or material or equipment supplier files the complaint, the board
must receive the complaint no later than one year after the date the contractor
incurred the indebtedness. [2001 c.197 §2 and 2001 c.414 §2; 2007 c.793 §13]
701.145
Resolution of complaints involving work on residential structures or certain small
commercial structures. 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:
(1) The complainant must file the
complaint with the Construction Contractors Board in a form prescribed by the
board.
(2) The board may suspend processing of
the complaint if:
(a) The same facts and issues involved in
the complaint have been submitted to a court of competent jurisdiction for
determination or have been submitted to any other entity authorized by law or
the parties to effect a resolution or settlement; or
(b) The board determines that the nature
or complexity of the dispute described in the complaint is such that a court is
the appropriate forum for the adjudication of the dispute.
(3) The board may dismiss or close the
complaint as established by rule of the board if any of the following
conditions apply:
(a) The complainant does not respond to a
board request and the request is necessary to the boards investigation of the
complaint.
(b) The complainant does not allow the
board to conduct one or more on-site meetings to mediate or investigate the
complaint.
(c) The complainant does not permit the
contractor against whom the complaint is filed to be present at an on-site
investigation made by the board.
(d) The board determines that the
contractor against whom the complaint is filed is capable of complying with
recommendations made by the board relative to the complaint, but the
complainant does not permit the contractor to comply with the recommendations.
The board may refuse to accept or further process a complaint under this
paragraph only if the contractor was licensed at the time the work was first
performed and is licensed at the time the board makes its recommendations.
(e) The amount in controversy is less than
an amount adopted by the board and not more than $250.
(4) Upon acceptance of the complaint, the
board shall give notice to the contractor against whom the complaint is made
and shall initiate proceedings to determine the validity of the complaint. If,
after investigation, the board determines that a violation of this chapter or
of any rule adopted thereunder has occurred, or damage has been caused by the
contractor, the board may recommend to the contractor such action as the board
considers appropriate to compensate the complainant. If the contractor performs
accordingly, the board shall give that fact due consideration in any subsequent
disciplinary proceeding brought by the board. The board may conduct one or more
on-site meetings to mediate or investigate the complaint.
(5) Subject to ORS 701.148, if the board
is unable to resolve the complaint under subsection (4) of this section, the
board may issue a contested case notice under ORS 183.415 and:
(a) Issue a proposed default order under
ORS 183.417 to become effective only if a party does not request a contested
case hearing; or
(b) Refer the matter for hearing.
(6) The board shall send a copy of the
notice and any proposed order described in subsection (5) of this section to
the surety on the contractor bond required by ORS 701.068. [1971 c.740 §16;
1979 c.874 §4; 1983 c.616 §14; 1989 c.167 §2; 1989 c.928 §17; 1991 c.181 §10;
1991 c.717 §2; 1993 c.470 §3; 1993 c.471 §1; 1995 c.771 §4; 1997 c.301 §4; 1999
c.331 §1; 1999 c.344 §5; 1999 c.402 §31; 1999 c.849 §§172,173; 2001 c.197 §§14,15;
2001 c.414 §§9a,10a; 2007 c.288 §16; 2007 c.793 §14; 2007 c.836 §66]
Note: The amendments to 701.145 by section 66,
chapter 836, Oregon Laws 2007, become operative July 1, 2008, and apply to
complaints filed against persons whose contractor licenses are issued or
renewed on or after July 1, 2008. See section 70, chapter 836, Oregon Laws
2007. The text that is operative until July 1, 2008, including amendments by
section 16, chapter 288, Oregon Laws 2007, and section 14, chapter 793, Oregon
Laws 2007, is set forth for the users convenience.
701.145. For a complaint described in ORS 701.139 (1)
involving work on a residential structure or an appurtenance to a residential
structure, a complaint described in ORS 701.139 (2) involving work on a small
commercial structure or an appurtenance to a small commercial structure that is
not resolved under ORS 701.146 or an owners complaint described in ORS 701.139
(4) involving work on a large commercial structure or an appurtenance to a
large commercial structure that is not resolved under ORS 701.146:
(1) The complainant must file the complaint
with the Construction Contractors Board in a form prescribed by the board.
(2) The board may suspend processing of
the complaint if:
(a) The same facts and issues involved in
the complaint have been submitted to a court of competent jurisdiction for determination
or have been submitted to any other entity authorized by law or the parties to
effect a resolution or settlement; or
(b) The board determines that the nature
or complexity of the dispute described in the complaint is such that a court is
the appropriate forum for the adjudication of the dispute.
(3) The board may dismiss or close the
complaint as established by rule of the board if any of the following
conditions apply:
(a) The complainant does not respond to a
board request and the request is necessary to the boards investigation of the
complaint.
(b) The complainant does not allow the
board to conduct one or more on-site meetings to mediate or investigate the
complaint.
(c) The complainant does not permit the
contractor against whom the complaint is filed to be present at an on-site
investigation made by the board.
(d) The board determines that the
contractor against whom the complaint is filed is capable of complying with
recommendations made by the board relative to the complaint, but the
complainant does not permit the contractor to comply with the recommendations.
The board may refuse to accept or further process a complaint under this
paragraph only if the contractor was licensed at the time the work was first
performed and is licensed at the time the board makes its recommendations.
(e) The amount in controversy is less than
an amount adopted by the board and not more than $250.
(4) Upon acceptance of the complaint, the
board shall give notice to the contractor against whom the complaint is made
and shall initiate proceedings to determine the validity of the complaint. If,
after investigation, the board determines that a violation of this chapter or
of any rule adopted thereunder has occurred, or damage has been caused by the
contractor, the board may recommend to the contractor such action as the board
considers appropriate to compensate the complainant. If the contractor performs
accordingly, the board shall give that fact due consideration in any subsequent
disciplinary proceeding brought by the board. The board may conduct one or more
on-site meetings to mediate or investigate the complaint.
(5) Subject to ORS 701.148, if the board
is unable to resolve the complaint under subsection (4) of this section, the
board may issue a contested case notice under ORS 183.415 and:
(a) Issue a proposed default order under
ORS 183.417 to become effective only if a party does not request a contested
case hearing; or
(b) Refer the matter for hearing.
(6) The board shall send a copy of the
notice and any proposed order described in subsection (5) of this section to
the surety on the contractor bond required by ORS 701.068.
701.146
Resolution of complaints involving work on large commercial structures or
certain small commercial structures. 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:
(1) The person seeking to file the
complaint with the Construction Contractors Board must:
(a) Bring an action on the dispute against
the licensed contractor in a court of competent jurisdiction; or
(b) Initiate a proceeding to resolve the
dispute through binding arbitration substantially in conformance with ORS
36.600 to 36.740.
(2) The complainant must file the
complaint with the Construction Contractors Board by delivering to the board a
copy of the complainants court pleading or the demand for arbitration or other
document necessary to initiate arbitration. The pleading, demand or other
document must be accompanied by a completed board complaint form. The
complainant must also give notice to the surety on the bond by delivering to
the surety a copy of the complainants court pleading or the demand for
arbitration or other document necessary to initiate arbitration and a copy of
the completed board complaint form. Delivery to the board and the surety must
be accomplished by certified mail, return receipt requested, no later than the
earlier of:
(a) The 90th day after filing the court
action or after filing or making the arbitration demand or other initiation of
arbitration;
(b) The 14th day before the first day of
trial or arbitration; or
(c) The 30th day before:
(A) The court issues a judgment in the
action; or
(B) The arbitrator issues an award on the
arbitration.
(3) Filing the complaint with the board
under subsection (2) of this section constitutes filing the complaint for
purposes of establishing timeliness of the complaint under ORS 701.143 and
priority of the complaint for possible payment from the bond under ORS 701.157.
(4) Except as provided in this subsection
and subsection (7) of this section, if the complainant properly gives notice to
the surety under subsection (2) of this section, a judgment or award against
the contractor entered in the action or arbitration is binding on the surety.
If the complainant delivers the notice required under subsection (2) of this
section to the wrong surety, the surety receiving the notice may avoid being
bound by a judgment or award by delivering notice of the mistake to the
complainant or the complainants attorney of record, and to the board, on or
before the 30th day after the surety receives notice under subsection (2) of
this section. Delivery of the notice of mistake must be by certified mail, return
receipt requested, or by facsimile machine or other form of transmission with
an acknowledgment of receipt.
(5) A surety under subsection (2) of this
section has an absolute right to intervene in an action or arbitration brought
or initiated under subsection (1) of this section. A complainant may not join a
surety as a party to an action or arbitration unless the complainant disputes
the validity or timeliness of the suretys notice of mistake or the surety
disputes the validity or timeliness of the delivery to the surety of the notice
required by subsection (2) of this section. If the surety elects to intervene
or is joined as a party, the surety is bound by all issues of fact and law
determined by the court or arbitrator and may not seek board review of those
determinations.
(6) If a court issues a judgment on an
action, or reduces an arbitration award to judgment, against a contractor on a
complaint described in subsection (1) of this section, the complainant must
deliver a certified copy of the judgment to the board and to the surety no
later than the 30th day after entry of the judgment in order to maintain the
complaint and possibly receive payment from the bond. The entry of a final
judgment against the contractor concludes the contractors involvement in any
proceedings to determine whether the complaint is subject to payment from the
bond. The complainant and the surety are the only parties to the administrative
process set forth in subsection (7) of this section.
(7) Upon receipt of a timely delivered
certified copy of the judgment as described in subsection (6) of this section,
the board shall issue a proposed order in the amount of the judgment together
with any costs, interest and attorney fees awarded under the judgment, to the
extent that the judgment, costs, interest and fees are within the jurisdiction
of the board. The boards determination of the complaint is limited to whether
the complaint comes within the jurisdiction of the board and is subject to
payment by the surety. The board shall issue the proposed order in a form that
indicates the suretys maximum liability to the complainant. If a hearing is
not requested within the time set forth in the proposed order, the proposed
order becomes final without any further action by the board. If a hearing is
requested, unless review of an issue is precluded under subsection (5) of this
section, the board may determine:
(a) Whether the complaint was timely filed
with the board as provided in ORS 701.143.
(b) Whether the surety received timely
notice as provided in subsections (2) and (6) of this section.
(c) Whether the complaint is for work
subject to this chapter.
(d) The extent of the suretys liability
to the complainant. [2001 c.197 §4; 2003 c.294 §1; 2003 c.598 §50; 2005 c.263 §1;
2007 c.793 §15; 2007 c.836 §67]
Note: The amendments to 701.146 by section 67,
chapter 836, Oregon Laws 2007, become operative July 1, 2008, and apply to
complaints filed against persons whose contractor licenses are issued or
renewed on or after July 1, 2008. See section 70, chapter 836, Oregon Laws
2007. The text that is operative until July 1, 2008, including amendments by
section 15, chapter 793, Oregon Laws 2007, is set forth for the users
convenience.
701.146. For a complaint described in ORS 701.139 (3)
involving work on a large commercial structure or an appurtenance to a large
commercial structure, a complaint described in ORS 701.139 (2) involving work
on a small commercial structure or an appurtenance to a small commercial
structure that is not resolved under ORS 701.145 or an owners complaint
described in ORS 701.139 (4) involving work on a large commercial structure or
an appurtenance to a large commercial structure that is not resolved under ORS
701.145:
(1) The person seeking to file the complaint
with the Construction Contractors Board must:
(a) Bring an action on the dispute against
the licensed contractor in a court of competent jurisdiction; or
(b) Initiate a proceeding to resolve the
dispute through binding arbitration substantially in conformance with ORS
36.600 to 36.740.
(2) The complainant must file the
complaint with the Construction Contractors Board by delivering to the board a
copy of the complainants court pleading or the demand for arbitration or other
document necessary to initiate arbitration. The pleading, demand or other
document must be accompanied by a completed board complaint form. The
complainant must also give notice to the surety on the bond by delivering to
the surety a copy of the complainants court pleading or the demand for
arbitration or other document necessary to initiate arbitration and a copy of
the completed board complaint form. Delivery to the board and the surety must
be accomplished by certified mail, return receipt requested, no later than the
earlier of:
(a) The 90th day after filing the court
action or after filing or making the arbitration demand or other initiation of
arbitration;
(b) The 14th day before the first day of
trial or arbitration; or
(c) The 30th day before:
(A) The court issues a judgment in the
action; or
(B) The arbitrator issues an award on the
arbitration.
(3) Filing the complaint with the board
under subsection (2) of this section constitutes filing the complaint for
purposes of establishing timeliness of the complaint under ORS 701.143 and
priority of the complaint for possible payment from the bond under ORS 701.150.
(4) Except as provided in this subsection
and subsection (7) of this section, if the complainant properly gives notice to
the surety under subsection (2) of this section, a judgment or award against
the contractor entered in the action or arbitration is binding on the surety.
If the complainant delivers the notice required under subsection (2) of this
section to the wrong surety, the surety receiving the notice may avoid being
bound by a judgment or award by delivering notice of the mistake to the
complainant or the complainants attorney of record, and to the board, on or
before the 30th day after the surety receives notice under subsection (2) of
this section. Delivery of the notice of mistake must be by certified mail,
return receipt requested, or by facsimile machine or other form of transmission
with an acknowledgment of receipt.
(5) A surety under subsection (2) of this
section has an absolute right to intervene in an action or arbitration brought
or initiated under subsection (1) of this section. A complainant may not join a
surety as a party to an action or arbitration unless the complainant disputes
the validity or timeliness of the suretys notice of mistake or the surety
disputes the validity or timeliness of the delivery to the surety of the notice
required by subsection (2) of this section. If the surety elects to intervene
or is joined as a party, the surety is bound by all issues of fact and law determined
by the court or arbitrator and may not seek board review of those
determinations.
(6) If a court issues a judgment on an
action, or reduces an arbitration award to judgment, against a contractor on a
complaint described in subsection (1) of this section, the complainant must
deliver a certified copy of the judgment to the board and to the surety no
later than the 30th day after entry of the judgment in order to maintain the
complaint and possibly receive payment from the bond. The entry of a final
judgment against the contractor concludes the contractors involvement in any
proceedings to determine whether the complaint is subject to payment from the
bond. The complainant and the surety are the only parties to the administrative
process set forth in subsection (7) of this section.
(7) Upon receipt of a timely delivered
certified copy of the judgment as described in subsection (6) of this section,
the board shall issue a proposed order in the amount of the judgment together
with any costs, interest and attorney fees awarded under the judgment, to the
extent that the judgment, costs, interest and fees are within the jurisdiction
of the board. The boards determination of the complaint is limited to whether
the complaint comes within the jurisdiction of the board and is subject to
payment by the surety. The board shall issue the proposed order in a form that
indicates the suretys maximum liability to the complainant. If a hearing is
not requested within the time set forth in the proposed order, the proposed
order becomes final without any further action by the board. If a hearing is
requested, unless review of an issue is precluded under subsection (5) of this
section, the board may determine:
(a) Whether the complaint was timely filed
with the board as provided in ORS 701.143.
(b) Whether the surety received timely
notice as provided in subsections (2) and (6) of this section.
(c) Whether the complaint is for work
subject to this chapter.
(d) The extent of the suretys liability
to the complainant.
701.147 [2001 c.414 §5; 2001 c.414 §§5b,7b; 2003
c.75 §61; 2003 c.294 §§2,3; 2005 c.207 §3; 2007 c.793 §16; renumbered 701.133
in 2007]
701.148
Use of binding arbitration and contested case hearings; rules. (1) Subject to subsection (4) of this
section, if the resolution of a complaint under ORS 701.145 requires a hearing,
the Construction Contractors Board may require that the hearing be conducted as
a binding arbitration under rules adopted by the board under subsection (3) of
this section. This subsection does not authorize the board to require binding
arbitration of a complaint that is subject to ORS 701.146.
(2) The board may use mediation or
arbitration to resolve a construction dispute between any parties who agree to
follow the rules of the board, other than a dispute involving work on a large
commercial structure.
(3) Except as provided in this subsection,
rules adopted by the board to regulate arbitration under subsections (1) and
(2) of this section must substantially conform with the provisions of ORS
36.600, 36.610 to 36.630, 36.635 (2), 36.640, 36.645 (2), 36.650 to 36.680,
36.685 (1) and 36.690 to 36.740. The rules may:
(a) Require that a hearing under ORS
183.413 to 183.470 be conducted for issues for which a petition could be filed
under ORS 36.615, 36.620, 36.625 and 36.640;
(b) Limit orders and awards made by the
arbitrator as necessary to comply with this chapter;
(c) Require that a request that an
arbitrator modify or correct an award under ORS 36.690 be submitted in a form
specified by the rule;
(d) Require that a petition under ORS
36.705 (2) or 36.710 (1) be filed in a shorter period of time than provided by
ORS 36.705 and 36.710; and
(e) Include any other provision necessary
to conform the arbitration to this chapter.
(4) A party to a complaint that is subject
to a board order of binding arbitration under subsection (1) of this section
may avoid the arbitration if the party requests to have the complaint resolved
through a contested case hearing or files a court action. A party making a
hearing request or filing a court action under this subsection is subject to
the following provisions:
(a) If the party requests to have a
complaint resolved through a contested case hearing, the party must, within the
time specified in paragraph (c) of this subsection, deliver the request in
writing to the board and to all parties entitled by board rule to receive a
copy of the request.
(b) If the party files a court action, the
party must, within the time specified in paragraph (c) of this subsection,
deliver a copy of the partys court pleading to the board and to all persons
entitled by board rule to receive a copy of the pleading. If the party filing
the court action is the complainant to the board, the complainant must plead
all facts and issues of the board complaint in the court action. If the court
action is filed by the contractor against whom a board complaint is alleged,
the court action must be an action for damages, an action for declaratory
judgment or another action that allows the board complainant to file a response
pleading all facts and issues of the board complaint. The board complainant has
the burden of proving the elements of the board complaint in a court action
described in this paragraph.
(c) A party that is subject to paragraph
(a) or (b) of this subsection must deliver the contested case hearing request
or the copy of the partys court pleading to the board as described in
paragraphs (a) and (b) of this subsection no later than the 30th day after the
board sends notice that an arbitration hearing has been scheduled. Failure to
timely deliver a request or court pleading under this paragraph constitutes
consent to the binding arbitration.
(d) If a party makes a timely request
under paragraph (a) of this subsection for a contested case hearing and another
party timely files a court action and complies with paragraph (b) of this
subsection, the filing of the court action supersedes the request for a
contested case hearing.
(e) A party may not withdraw a request
made in compliance with paragraph (a) of this subsection unless all parties
agree to the withdrawal.
(f) The board may adopt a rule that a
contested case hearing for a complaint seeking less than $1,000 is not
available under this subsection.
(g) The provisions of paragraph (b) of
this subsection are in addition to any other requirements imposed by law
regarding the filing of a court action.
(5) The board may refuse to accept a
dispute for mediation or arbitration under subsection (1) or (2) of this
section if the board determines that the nature or complexity of the dispute is
such that a court or other forum is more appropriate for resolution of the
dispute. [2001 c.414 §4; 2001 c.414 §4a; 2003 c.598 §51; 2007 c.793 §17; 2007
c.836 §68]
Note: The amendments to 701.148 by section 68,
chapter 836, Oregon Laws 2007, become operative July 1, 2008. See section 70,
chapter 836, Oregon Laws 2007. The text that is operative until July 1, 2008,
including amendments by section 17, chapter 793, Oregon Laws 2007, is set forth
for the users convenience.
701.148. (1) Subject to subsection (4) of this
section, if the resolution of a complaint under ORS 701.145 requires a hearing,
the Construction Contractors Board may require that the hearing be conducted as
a binding arbitration under rules adopted by the board under subsection (3) of
this section. This subsection does not authorize the board to require binding
arbitration of a complaint that is subject to ORS 701.146.
(2) The board may use mediation or
arbitration to resolve a construction dispute between any parties who agree to
follow the rules of the board, including but not limited to parties to a
complaint that is subject to ORS 701.146.
(3) Except as provided in this subsection,
rules adopted by the board to regulate arbitration under subsections (1) and
(2) of this section must substantially conform with the provisions of ORS
36.600, 36.610 to 36.630, 36.635 (2), 36.640, 36.645 (2), 36.650 to 36.680,
36.685 (1) and 36.690 to 36.740. The rules may:
(a) Require that a hearing under ORS
183.413 to 183.470 be conducted for issues for which a petition could be filed
under ORS 36.615, 36.620, 36.625 and 36.640;
(b) Limit orders and awards made by the
arbitrator as necessary to comply with this chapter;
(c) Require that a request that an
arbitrator modify or correct an award under ORS 36.690 be submitted in a form
specified by the rule;
(d) Require that a petition under ORS
36.705 (2) or 36.710 (1) be filed in a shorter period of time than provided by
ORS 36.705 and 36.710; and
(e) Include any other provision necessary
to conform the arbitration to this chapter.
(4) A party to a complaint that is subject
to a board order of binding arbitration under subsection (1) of this section
may avoid the arbitration if the party requests to have the complaint resolved
through a contested case hearing or files a court action. A party making a
hearing request or filing a court action under this subsection is subject to
the following provisions:
(a) If the party requests to have a complaint
resolved through a contested case hearing, the party must, within the time
specified in paragraph (c) of this subsection, deliver the request in writing
to the board and to all parties entitled by board rule to receive a copy of the
request.
(b) If the party files a court action, the
party must, within the time specified in paragraph (c) of this subsection,
deliver a copy of the partys court pleading to the board and to all persons
entitled by board rule to receive a copy of the pleading. If the party filing
the court action is the complainant to the board, the complainant must plead
all facts and issues of the board complaint in the court action. If the court
action is filed by the contractor against whom a board complaint is alleged,
the court action must be an action for damages, an action for declaratory
judgment or another action that allows the board complainant to file a response
pleading all facts and issues of the board complaint. The board complainant has
the burden of proving the elements of the board complaint in a court action
described in this paragraph.
(c) A party that is subject to paragraph
(a) or (b) of this subsection must deliver the contested case hearing request
or the copy of the partys court pleading to the board as described in
paragraphs (a) and (b) of this subsection no later than the 30th day after the
board sends notice that an arbitration hearing has been scheduled. Failure to
timely deliver a request or court pleading under this paragraph constitutes
consent to the binding arbitration.
(d) If a party makes a timely request
under paragraph (a) of this subsection for a contested case hearing and another
party timely files a court action and complies with paragraph (b) of this
subsection, the filing of the court action supersedes the request for a
contested case hearing.
(e) A party may not withdraw a request
made in compliance with paragraph (a) of this subsection unless all parties
agree to the withdrawal.
(f) The board may adopt a rule that a
contested case hearing for a complaint seeking less than $1,000 is not
available under this subsection.
(g) The provisions of paragraph (b) of
this subsection are in addition to any other requirements imposed by law
regarding the filing of a court action.
(5) The board may refuse to accept a
dispute for mediation or arbitration under subsection (1) or (2) of this
section if the board determines that the nature or complexity of the dispute is
such that a court or other forum is more appropriate for resolution of the
dispute.
701.149
Conducting arbitration and contested case hearings; court filings; rules. (1) An arbitration conducted under ORS
701.148 must be held before an administrative law judge assigned under ORS
183.600 to 183.690 to act as arbitrator on behalf of the Construction
Contractors Board. The assignment of an administrative law judge to act as
arbitrator is subject to a request for a different arbitrator under ORS 183.645
or a rule adopted pursuant to ORS 183.645.
(2) If a party to a complaint under ORS
701.145 requests a contested case hearing, the board shall schedule the
hearing.
(3) The board may adopt rules governing
the avoidance of a contested case hearing. The rules may include, but need not
be limited to, a limit on the time period during which a party to a complaint
may avoid a contested case hearing by filing a court action.
(4) Contested case hearings before the
board must be conducted by an administrative law judge assigned under ORS
183.600 to 183.690. Notwithstanding ORS 670.325, the board may delegate
authority to the administrative law judge to issue a final order in any matter.
(5) In assigning administrative law judges
for arbitration and contested case hearings conducted under this section, the
chief administrative law judge of the Office of Administrative Hearings
established under ORS 183.605 shall defer to board requests.
(6) If a complainant to the board files a
court action, the board may require that the complainant provide status reports
on the pending court action. The board may dismiss or close a complaint filed
under ORS 701.139 if the complainant fails to submit status reports on a
pending court action.
(7) ORS 183.600 to 183.690 do not limit in
any way the ability of the board to make full use of alternative dispute
resolution, including mediation or arbitration, to resolve complaints against
contractors filed under ORS 701.139. [2005 c.207 §2; 2007 c.793 §18]
701.150
Satisfaction of unpaid order from bond. (1) A Construction Contractors Board final order that is not paid by
the contractor and that:
(a) Arises out of a complaint filed under
ORS 701.145 must be satisfied from a bond required for a residential
contractor.
(b) Arises out of a complaint filed under
ORS 701.146 must be satisfied from a bond required for a commercial contractor.
(2) If a board final order is not paid by
the contractor, the board shall notify the surety on the bond. The surety may
not pay on a complaint until the surety receives notice from the board that the
complaint is ready for payment.
(3) Notwithstanding ORS 701.153 and
701.157, a bond is not subject to payment for a complaint that is filed more
than 14 months after the earlier of:
(a) The expiration or cancellation date of
the license that was in force when the work that is the subject of the complaint
was completed or abandoned; or
(b) The date that the surety canceled the
bond. [1971 c.740 §17; 1973 c.832 §60; 1981 c.618 §7; 1983 c.616 §15; 1987
c.414 §40c; 1989 c.928 §18; 1991 c.181 §11; 1997 c.387 §7; 1999 c.59 §208; 1999
c.402 §32; 2001 c.197 §16; 2001 c.427 §1a; 2007 c.793 §19; 2007 c.836 §69]
Note: The amendments to 701.150 by section 69,
chapter 836, Oregon Laws 2007, become operative July 1, 2008, and apply to
complaints filed against persons whose contractor licenses are issued or renewed
on or after July 1, 2008. See section 70, chapter 836, Oregon Laws 2007. The
text that is operative until July 1, 2008, including amendments by section 19,
chapter 793, Oregon Laws 2007, is set forth for the users convenience.
701.150. (1) If a Construction Contractors Board
final order is not paid by the contractor, the board shall notify the surety on
the bond. The surety may not pay on a complaint until the surety receives
notice from the board that the complaint is ready for payment.
(2) If an order of the board that
determines a complaint under ORS 701.145 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 this state.
(3) Upon receipt, the clerk shall record
the order in the County Clerk Lien Record. In addition to any other remedy
provided by law, recording an order in the County Clerk Lien Record pursuant to
the provisions of this section has the effect provided for in ORS 205.125 and
205.126, and the order may be enforced as provided in ORS 205.125 and 205.126.
(4) Payments from the surety bond of a
contractor pursuant to board order and notice are satisfied in the following
priority in any 90-day period. A 90-day period begins on the date the first
complaint is filed with the board. Subsequent 90-day periods begin on the date
the first complaint is filed with the board after the close of the preceding
90-day period. Within a 90-day period:
(a) Board orders as a result of complaints
against a contractor by the owner of a residential or small commercial
structure have payment priority to the full extent of the bond over all other
types of complaints.
(b) If the complaints described in
paragraph (a) of this subsection do not exhaust the bond, then amounts due as a
result of all other types of residential or small commercial structure
complaints filed within that 90-day period may be satisfied from the bond,
except that the total amount paid from any one bond to nonowner complainants
may not exceed $3,000.
(c) If payments involving residential and
small commercial structures do not exhaust the bond, board orders and notice
involving large commercial structure complaints are satisfied in the following
priority, except that the total amount paid from any one bond to nonowner
complainants may not exceed $3,000:
(A) Labor, including employee benefits.
(B) All other complaints involving large
commercial structures except costs, interest and attorney fees.
(C) Any costs, interest and attorney fees
the plaintiff may be entitled to recover.
(d) If the total complaints filed with the
board against a contractor within 90 days after the board receives notice of
the first complaint against the contractor exceed the amount of the bond
available for those complaints, the bond shall be apportioned as the board
determines, subject to the priorities established under this section.
(e) If the total amounts due as a result
of complaints filed with the board within 90 days after the first complaint is
filed do not exceed the amount of the bond available for those complaints, all
amounts due as a result of complaints filed within the 90-day period shall have
priority over all complaints subsequently filed until the amount of the bond available
for the payment of complaints is exhausted.
(5) Notwithstanding subsection (4) of this
section, a bond is not subject to payment for a complaint that is filed more
than 14 months after the earlier of:
(a) The expiration or cancellation date of
the license that was in force when the work that is the subject of the
complaint was completed or abandoned; or
(b) The date that the surety canceled the
bond.
(6) The total amount paid from any one
bond for costs, interest and attorney fees may not exceed $3,000.
701.153
Recording of order as lien; satisfaction of order against residential
contractor. (1) If an order
of the Construction Contractors Board that determines a complaint under ORS
701.145 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 this state.
(2) Upon receipt, the clerk shall record
the order in the County Clerk Lien Record. In addition to any other remedy
provided by law, recording an order in the County Clerk Lien Record pursuant to
the provisions of this section has the effect provided for in ORS 205.125 and
205.126, and the order may be enforced as provided in ORS 205.125 and 205.126.
(3)(a) Payments from the surety bond of a
residential contractor pursuant to board order and notice are satisfied in the
following priority in any 90-day period:
(A) Board orders as a result of complaints
against a residential contractor by the owner of a residential or small
commercial structure have payment priority to the full extent of the bond over
all other types of complaints.
(B) If the complaints described in
subparagraph (A) of this paragraph do not exhaust the bond, then amounts due as
a result of all other types of residential or small commercial structure
complaints filed within that 90-day period may be satisfied from the bond,
except that the total amount paid from any one bond to nonowner complainants
may not exceed $3,000.
(b) A 90-day period begins on the date the
first complaint is filed with the board. Subsequent 90-day periods begin on the
date the first complaint is filed with the board after the close of the
preceding 90-day period.
(4) If the total complaints filed with the
board against a residential contractor within 90 days after the board receives
notice of the first complaint against the contractor exceed the amount of the
bond available for those complaints, the bond shall be apportioned as the board
determines, subject to the priorities established under this section.
(5) If the total amounts due as a result
of complaints filed with the board within 90 days after the first complaint is
filed do not exceed the amount of the bond available for those complaints, all
amounts due as a result of complaints filed within the 90-day period shall have
priority over all complaints subsequently filed until the amount of the bond
available for the payment of complaints is exhausted.
(6) The total amount paid from a
residential contractor bond for costs, interest and attorney fees may not
exceed $3,000. [2007 c.836 §10; 2007 c.836 §52]
Note: 701.153 becomes operative July 1, 2008, and
applies to complaints filed against persons whose contractor licenses are
issued or renewed on or after July 1, 2008. See section 70, chapter 836, Oregon
Laws 2007.
701.155 [1973 c.832 §59; repealed by 1981 c.618 §18]
701.157
Satisfaction of order against commercial contractor. (1)(a) 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:
(A) 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 to the full extent
of the bond over all other types of complaints.
(B) If the complaints described in
subparagraph (A) of this paragraph do not exhaust the bond, then amounts due as
a result of all other types of small commercial or large commercial structure
complaints may be satisfied from the bond, except complaints for costs,
interest and attorney fees.
(C) If complaints described in
subparagraphs (A) and (B) of this paragraph do not exhaust the bond, then
complaints for costs, interest and attorney fees resulting from small
commercial or large commercial structure complaints may be satisfied from the
bond.
(b) A 90-day period begins on the date the
first complaint is filed with the board. Subsequent 90-day periods begin on the
date the first complaint is filed with the board after the close of the
preceding 90-day period.
(2) If the total complaints filed with the
board against a commercial contractor within 90 days after the board receives
notice of the first complaint against the contractor exceed the amount of the
bond available for those complaints, the bond shall be apportioned as the board
determines, subject to the priorities established under this section.
(3) If the total amounts due as a result
of complaints filed with the board within 90 days after the first complaint is
filed do not exceed the amount of the bond available for those complaints, all
amounts due as a result of complaints filed within the 90-day period shall have
priority over all complaints subsequently filed until the amount of the bond
available for the payment of complaints is exhausted. [2007 c.836 §11; 2007
c.836 §53]
Note: 701.157 becomes operative July 1, 2008, and
applies to complaints filed against persons whose contractor licenses are issued
or renewed on or after July 1, 2008. See section 70, chapter 836, Oregon Laws
2007.
701.160
Nonlawyer may represent certain forms of businesses before board; rules for additional
business forms.
Notwithstanding ORS 9.320:
(1) A party may appear or be represented
by an individual who is not a member of the Oregon State Bar in a proceeding
before the Construction Contractors Board if:
(a) The party is a corporation and the
individual is an officer of the corporation;
(b) The party is a partnership, or a
limited liability partnership or foreign limited liability partnership as those
terms are defined in ORS 67.005, and the individual is a partner in the
partnership, limited liability partnership or foreign limited liability
partnership;
(c) The party is a limited partnership as
defined in ORS 70.005 and the individual is a general partner in the
partnership;
(d) The party is a manager-managed limited
liability company as defined in ORS 63.001 and the individual is a manager of
the company; or
(e) The party is a member-managed limited
liability company as defined in ORS 63.001 and the individual is a member of
the company.
(2) In addition to parties described in
subsection (1) of this section, the board, by rule, may recognize particular
business forms as parties that may appear or be represented by an individual
who is not a member of the Oregon State Bar in a proceeding before the board. A
board rule adopted under this subsection must identify the business form of the
party and specify the required relationship between the party and the
individual. The board may allow appearance or representation of a party only by
an individual who is a director, officer, partner, trustee, manager or
authorized regular employee of the party. [1985 c.599 §3; 1989 c.928 §19; 1995
c.480 §1; 2001 c.163 §1; 2003 c.75 §109]
701.170 [1989 c.430 §4 and 1989 c.928 §20; repealed
by 1993 c.18 §153 and 1993 c.470 §5]
701.175 [2001 c.850 §3; 2007 c.793 §20; renumbered
701.315 in 2007]
701.180
Waiver of mediation or arbitration. 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 mediation or arbitration. [Subsection
(1) enacted as 1989 c.430 §5; subsection (2) enacted as 1989 c.928 §21; 1991
c.67 §187; 1991 c.181 §12; 2001 c.197 §17; 2001 c.414 §11; 2003 c.598 §52; 2007
c.793 §21]
CONSTRUCTION
CONTRACTORS BOARD
701.205
Construction Contractors Board; members; terms; confirmation; vacancies;
qualifications. (1) 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 shall be public members
and one shall be an elected representative of a governing body of local
government. Two of the members shall be commercial general contractors who
primarily work on large commercial structures, and one shall be a commercial
specialty contractor who primarily works on large commercial structures or a
residential limited contractor. One member who is a contractor may be certified
as a home inspector.
(2) The term of office of each member is
four years, but a member serves at the pleasure of the Governor. Before the
expiration of the term of a member, the Governor shall appoint a successor
whose term begins on July 1 next following. A member is eligible for
reappointment. If there is a vacancy for any cause, the Governor shall make an
appointment immediately effective for the unexpired term.
(3) In order to be eligible for board
membership, the six contractor members of the board shall be licensed under
this chapter and shall maintain their licenses in good order during their term
of office. [Subsections (1) and (2) enacted as 1971 c.740 §3; subsection (3)
enacted as 1971 c.740 §5; 1975 c.721 §8; 1977 c.537 §1; 1981 c.618 §13; 1987
c.414 §40; 1989 c.928 §22; 1991 c.181 §14; 1993 c.470 §4; 1997 c.814 §4; 1999
c.402 §33; 2001 c.197 §18; 2007 c.836 §34]
Note: The amendments to 701.205 by section 34,
chapter 836, Oregon Laws 2007, become operative July 1, 2008. See section 70,
chapter 836, Oregon Laws 2007. The text that is operative until July 1, 2008,
is set forth for the users convenience.
701.205. (1) 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 contractors who primarily work on residential or small commercial
structures, including one contractor engaged in the business of remodeling, two
shall be public members and one shall be an elected representative of a
governing body of local government. Two of the members shall be general
contractors who primarily work on large commercial structures, and one shall be
a specialty contractor who primarily works on large commercial structures or a
limited contractor. One member who is a contractor may be certified as a home
inspector.
(2) The term of office of each member is
four years, but a member serves at the pleasure of the Governor. Before the
expiration of the term of a member, the Governor shall appoint a successor
whose term begins on July 1 next following. A member is eligible for
reappointment. If there is a vacancy for any cause, the Governor shall make an
appointment immediately effective for the unexpired term.
(3) In order to be eligible for board
membership, the six contractor members of the board shall be licensed under
this chapter and shall maintain their licenses in good order during their term
of office.
Note: Section 70 (5), chapter 836, Oregon Laws
2007, provides:
Sec.
70. (5) The amendments to
ORS 701.205 by section 34 of this 2007 Act do not affect the term of office
served by any member of the Construction Contractors Board appointed to a term
beginning before July 1, 2009. For appointments to terms beginning on or after
July 1, 2009, the Governor shall appoint members to achieve the board
composition described in ORS 701.205 as amended by section 34 of this 2007 Act
no later than July 1, 2013. [2007 c.836 §70(5)]
701.215
Officers; quorum; compensation and expenses; advisory committees. (1) 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.
(2) A majority of the members of the board
constitutes a quorum for the transaction of business.
(3) A member of the board is entitled to
compensation and expenses as provided in ORS 292.495.
(4) The board may create advisory
committees as the board considers necessary. The chairperson of the board, or a
board member designated by the chairperson, shall be a member of any advisory
committee created by the board. [1971 c.740 §6; 1989 c.928 §23; 2001 c.160 §6]
701.225
Investigatory powers of board; use of city or county inspectors; notice of
noncompliance; conduct of hearings; authority of board to order work stopped. (1) The Construction Contractors Board may
investigate the activities of any person engaged in the building and
construction industry to determine compliance with this chapter.
(2) 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
such investigations.
(3) Any inspector authorized by the board
to determine compliance with the provisions of this chapter is authorized to
require any person who is engaged in any activity regulated by this chapter to
demonstrate proof of compliance with the licensing requirements of this
chapter. If a person who is contracting directly with the owner of a structure
does not demonstrate proof of compliance with the licensing requirements of
this chapter, the inspector shall give notice of noncompliance to the person.
The notice of noncompliance shall be in writing, shall specifically state that
the person is not in compliance with the licensing requirements of this chapter
and shall provide that unless the person demonstrates proof of compliance
within 10 days of the date of the notice, the inspector may by order stop all
work then being done by the person. The notice of noncompliance shall be served
upon the person and shall be served upon or delivered to the owner of each
structure upon which the person is then performing work under contract, or
mailed to all persons who are mortgagees or trust deed beneficiaries of record
with respect to the real property upon which each such structure is situated.
If more than one person is the owner of any such structure, a copy of the
notice need be given to only one of such persons. If after receipt of the
notice of noncompliance the person fails within the 10-day period specified in
the notice to demonstrate proof of compliance with the licensing requirements
of this chapter, the inspector is authorized to order the work stopped by
notice in writing served on any persons engaged in the activity. Any person so
notified shall stop such work until proof of compliance is demonstrated.
However, the inspector may not order the work stopped until at least 10 days
after the copies of the notice of noncompliance have been served upon or
delivered to the owners or mailed to the mortgagees and trust deed
beneficiaries specified in this subsection.
(4) The board has the power to administer
oaths, issue notices and subpoenas in the name of the board, compel the
attendance of witnesses and the production of evidence, hold hearings and
perform such other acts as are reasonably necessary to carry out its duties
under this chapter.
(5) If any person fails to comply with a
subpoena issued under subsection (4) of this section or refuses to testify on
matters on which the person may be lawfully interrogated, the board shall
compel obedience in the manner provided in ORS 183.440.
(6) Notwithstanding the provisions of
subsection (3) of this section:
(a) The board may order the work stopped
immediately if the contractor is working on a structure and the contractor was
not licensed by the board when the work began; or
(b) The board may order the work stopped
after 10 days notice to the persons listed in subsection (3) of this section
if the contractor is working on a structure and was licensed by the board when
the job began but has let the license lapse. [1971 c.740 §18; 1975 c.721 §9;
1987 c.414 §40d; 1989 c.744 §3; 1989 c.928 §26; 1991 c.561 §1; 1999 c.402 §34]
701.227
Disqualification from eligibility for certain public contracts; list of
disqualified contractors.
(1) 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 contract for a public
improvement indicating that the contractor or subcontractor has not made
payment to persons who supplied labor or materials within 60 days after the
date when the payment was received by the contractor or subcontractor and that
the payment was not a subject of a good faith dispute as defined in ORS
279C.580.
(2) If the board determines after notice
and opportunity for hearing that a contractor or a subcontractor did not make
payment to persons who supplied labor or materials in connection with a public
contract for a public improvement within 60 days after the date when payment
was received by the contractor or subcontractor, the board shall place the
contractor or the subcontractor on the list of persons who have been determined
to be not qualified to hold or participate in a public contract for a public
improvement. The board may not place a contractor or subcontractor on the list
if the only reason that the contractor or subcontractor did not make payment to
a person when payment was due is that the contractor or subcontractor did not receive
payment from the public contracting agency, contractor or subcontractor when
payment was due. The contractor or subcontractor shall remain on the list for a
period of not less than six months.
(3) If the board determines that the
information supplied to the board against a contractor or subcontractor was
supplied in bad faith or was false, the person who supplied the information in
bad faith or supplied false information shall be placed on the list of persons
who have been determined to be not qualified to hold or participate in a public
contract for a public improvement.
(4) The board shall create and maintain a
list of contractors and subcontractors who have been determined to be not
qualified to hold or participate in a public contract for a public improvement.
The list may include any corporation, partnership or other business entity of
which the contractor or subcontractor is an owner, shareholder or officer of
the business or was an owner or officer of the business. The board shall
provide access to the list to all public contracting agencies, contractors and
subcontractors. [1999 c.689 §9; 2003 c.794 §318; 2005 c.409 §§1,2; 2007 c.793 §22]
701.230
Board to provide names of unlicensed contractors to other state agencies. 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 to act in violation of
this chapter. [1983 c.616 §2; 1989 c.928 §27; 1999 c.402 §35]
Note: The amendments to 701.230 by section 35,
chapter 836, Oregon Laws 2007, become operative July 1, 2010. See section 70,
chapter 836, Oregon Laws 2007. The text that is operative on and after July 1,
2010, is set forth for the users convenience.
701.230. 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 that is not properly endorsed to act in violation of this chapter.
701.235
Rulemaking. (1) The
Construction Contractors Board shall adopt rules to carry out the provisions of
this chapter including, but not limited to, rules that:
(a) Establish language for surety bonds;
(b) Establish processing requirements for
different types of complaints described in this chapter;
(c) Limit whether a complaint may be
processed by the board if there is no direct contractual relationship between
the complainant and the contractor;
(d) Subject to ORS 701.153 and 701.157,
exclude or limit recovery from the contractors bond required by ORS 701.068 of
amounts awarded by a court or arbitrator for interest, service charges, costs
and attorney fees arising from commencing the arbitration or court action and
proving damages; and
(e) Designate a form to be used by an
owner of residential property under ORS 87.007 for the purpose of indicating
the method the owner has selected to comply with the requirements of ORS 87.007
(2) or to indicate that ORS 87.007 (2) does not apply.
(2) The board may adopt rules prescribing
terms and conditions under which a contractor may substitute a letter of credit
from a bank authorized to do business in this state instead of the bond
requirements prescribed in ORS 701.068. [1971 c.740 §19; 1989 c.928 §28; 1991
c.181 §13; 2001 c.197 §19; 2003 c.778 §6; 2007 c.793 §23; 2007 c.836 §36]
Note: The amendments to 701.235 by section 36,
chapter 836, Oregon Laws 2007, become operative July 1, 2008, and apply to
complaints filed against persons whose contractor licenses are issued or
renewed on or after July 1, 2008. See section 70, chapter 836, Oregon Laws
2007. The text that is operative until July 1, 2008, including amendments by
section 23, chapter 793, Oregon Laws 2007, is set forth for the users
convenience.
701.235. (1) The Construction Contractors Board shall
adopt rules to carry out the provisions of this chapter including, but not
limited to, rules that:
(a) Establish language for surety bonds;
(b) Establish processing requirements for
different types of complaints described in this chapter;
(c) Limit whether a complaint may be
processed by the board if there is no direct contractual relationship between
the complainant and the contractor;
(d) Notwithstanding ORS 701.146 (7) and
701.150 (4) and subject to ORS 701.150 (6), exclude or limit recovery from the
contractors bond required by ORS 701.068 of amounts awarded by a court or
arbitrator for interest, service charges, costs and attorney fees arising from
commencing the arbitration or court action and proving damages; and
(e) Designate a form to be used by an
owner of residential property under ORS 87.007 for the purpose of indicating
the method the owner has selected to comply with the requirements of ORS 87.007
(2) or to indicate that ORS 87.007 (2) does not apply.
(2) The board may adopt rules prescribing
terms and conditions under which a contractor may substitute a letter of credit
from a bank authorized to do business in this state instead of the bond
requirements prescribed in ORS 701.068.
701.238
Determination of licensing application fee; rules. (1) 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 and a report to the Emergency
Board prior to adoption. The fee amounts shall be within the budget authorized
by the Legislative Assembly as that budget may be modified by the Emergency
Board. The fee amounts established under this section may not exceed the cost
of administering the regulatory program of the board under this chapter, as authorized
by the Legislative Assembly within the boards budget, as the budget may be
modified by the Emergency Board.
(2) The amounts of the fees determined by
the board under subsection (1) of this section shall be effective as set by
rule. [Formerly 701.130]
701.240
Provision of licensed contractors list to other state agencies; rules. (1) 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.
(2) 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 information as
the departments may by rule require. [1989 c.870 §6; 1999 c.402 §36; 2005 c.22 §479]
701.245 [1971 c.740 §23; 1975 c.721 §10; repealed by
1979 c.31 §1]
701.250
Board to provide licensees status on request; fee. (1) 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.
(2) The board may charge a standard fee
for the notification described in subsection (1) of this section not to exceed
the cost of preparation and provision of such notices. [1989 c.870 §7; 1999
c.402 §37; 2001 c.311 §4; 2001 c.428 §2; 2002 s.s.1 c.6 §§2,7; 2003 c.778 §11]
701.252 [1999 c.174 §2; 2001 c.104 §281; 2007 c.793 §24;
repealed by 2007 c.836 §51]
Note: 701.252 is repealed July 1, 2008. See
sections 51 and 70, chapter 836, Oregon Laws 2007. 701.252, including
amendments by section 24, chapter 793, Oregon Laws 2007, is set forth for the
users convenience.
701.252
Board to maintain record of grievances against licensed contractors. The Construction Contractors Board shall
maintain and make available to the public a record of grievances made to the
board against contractors that are licensed under this chapter. The board shall
separately record:
(1) Inquiries for which no investigation
has taken place;
(2) Complaints that are being processed
but upon which action has not been completed;
(3) Complaints that have been voluntarily
settled by the contractor and the complainant;
(4) Complaints that have resulted in a
final order of the board to dismiss the complaint; and
(5) Complaints that have resulted in a
final order of the board to require payment to the complainant.
701.255
Funds retained for collection of civil penalties. 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
boards costs of collection of civil penalties imposed by order of the board. [1989
c.928 §29; 1995 c.771 §5]
701.260
Appeal committee; membership; duties. (1) 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.
(2) An appeal committee shall hear appeals
on proposed orders and on petitions for reconsideration and rehearing and
motions for stays that were originally appealed to the board as proposed
orders.
(3) The Construction Contractors Board
shall not consider an appeal of a decision of an appeal committee. However, the
full board may act as an appeal committee. The parties affected by a decision
of an appeal committee shall retain the right to appeal the decision to the
Court of Appeals. [1989 c.928 §24; 1993 c.470 §1; 1993 c.742 §53]
701.270 [1989 c.928 §25; repealed by 1993 c.470 §5
and 1993 c.742 §11]
701.280 [1991 c.732 §§2,3,4; 1995 c.216 §5; 1997
c.814 §5; 1999 c.173 §1; 1999 c.402 §38; 2001 c.160 §7; repealed by 2005 c.432 §18]
701.285 [Formerly 456.752; repealed by 2001 c.160 §8]
701.290 [1995 c.560 §1; repealed by 2001 c.850 §8]
701.295
Board duty to investigate and seek prosecution of illegal activity. 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. [2001 c.850 §4]
701.300 [1989 c.928 §11; repealed by 1991 c.181 §16]
CONSTRUCTION
CONTRACTS AND NOTICES
701.305
Requirement for written contract; standard contractual terms; rules. (1) A contractor may not perform work
subject to this section for an owner of a residential structure or
zero-lot-line dwelling 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 shall mail or otherwise deliver a written contract to the owner
not later than five days after the contractor knows or should reasonably know
that the contract price will exceed $2,000. Failure to have a written contract
will not void the contract.
(2) The Construction Contractors Board
shall adopt rules that require a contractor to use standard contractual terms
in a construction contract for which subsection (1) of this section requires a
written contract. The standard contractual terms shall be clear, use words of
common understanding and shall include but need not be limited to:
(a) A statement that the contractor is
licensed by the board;
(b) The name, license number, address and
telephone number of the contractor as shown on board records on the date the
contract is entered into;
(c) An acknowledgment of a written offer
of a warranty, if an offer is required by ORS 701.320, and indication of the
acceptance or rejection of the offered warranty;
(d) For a residential structure contract,
a summary of the notices required under ORS 87.093 or under rules adopted under
ORS 701.330 and 701.335 (2) on the contractors bid proposal;
(e) Acknowledgment of the receipt of the
maintenance information required by the board under ORS 701.335; and
(f) An explanation of the property owners
rights under the contract, including, but not limited to, the ability to file a
claim with the board and the existence of any mediation or arbitration
provision in the contract, set forth in a conspicuous manner as defined by the
board by rule. [2007 c.648 §7]
701.310
Cancellation of contract.
(1) 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 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 cancellation may be delivered in any written form or by any means
that can readily be converted to written form, including, but not limited to,
facsimile, electronic mail and regular mail. The notice must state the
intention of the property owner to cancel the contract.
(2) Subsection (1) of this section does
not allow a property owner to cancel a contract:
(a) If both parties agree that work is to
begin before the cancellation period has expired;
(b) After a contractor substantially
begins the residential construction, improvement or repair; or
(c) When an initial contract is being
modified after expiration of the initial cancellation period. [2007 c.648 §8]
701.315
Contents of contract for work on residential structure. 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 dispute arising from the contract. [Formerly 701.175]
701.320
Offer of warranty; withdrawal of contract offer. (1) A licensee that enters into a contract
to construct a new residential structure or zero-lot-line dwelling shall make a
written offer to the first purchaser or owner of the structure or dwelling of a
warranty against defects in materials and workmanship for the structure or
dwelling. The first purchaser or owner of the structure or dwelling may accept
or refuse the offer of a warranty by the contractor. If a contractor makes the
written offer of a warranty before the contractor and owner both sign a written
construction contract and the owner refuses the offered warranty, the contractor
may withdraw the offer to construct the structure or dwelling.
(2) Subsection (1) of this section does
not apply to a residential structure that is a manufactured dwelling as defined
in ORS 446.003. [2007 c.648 §11]
Note: 701.320 applies to new residential
structures and zero-lot-line dwellings for which the contractor enters into a
written construction contract on or after July 1, 2008. See section 30, chapter
648, Oregon Laws 2007.
701.325
Condition for obtaining building permit; information notice; business licenses;
local regulation. (1) 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. A city, county or state agency
that requires the issuance of a permit for the construction, alteration,
improvement, demolition, movement or repair of a building, structure or
appurtenances to a structure shall, as a condition for issuing the permit,
require the applicant for a permit to file a written statement signed by the
applicant. The statement must affirm that the applicant is licensed under this
chapter, give the license number and state that the license is in full force
and effect, or, if the applicant is exempt from licensing under this chapter,
list the basis for the exemption. The city, county or state agency shall list
the contractors license number on the permit issued to that contractor.
(2) If the applicant for a building permit
is exempt from licensure under ORS 701.010 (6), the city, county or state
agency shall supply the applicant with an Information Notice to Property Owners
About Construction Responsibilities. The city, county or state agency may not
issue a building permit for a residential structure to the applicant until the
applicant signs a statement in substantially the following form:
______________________________________________________________________________
(a) I have read and understand the
Information Notice to Property Owners About Construction Responsibilities; and
(b) I own, reside in or will reside in the
completed dwelling. My general contractor is _________, Construction
Contractors Board license no._________, license expiration date _________. I
will instruct my general contractor that all subcontractors who work on this
dwelling must be licensed with the Construction Contractors Board; or
(c) I am performing work on property I
own, a residence that I reside in or a residence that I will reside in.
(d) I will be my own general contractor
and, if I hire subcontractors, I will hire only subcontractors licensed with
the Construction Contractors Board.
(e) If I change my mind and do hire a
general contractor, I will contract with a general contractor who is licensed
with the Construction Contractors Board and I will immediately notify the
office issuing this building permit of the name of the general contractor _________.
______________________________________________________________________________
(3) The Construction Contractors Board
shall adopt by rule a form titled Information Notice to Property Owners About
Construction Responsibilities that clearly describes in everyday language the
responsibilities property owners are undertaking by acting as their own general
contractor and the problems that could develop. The responsibilities described
in the form shall include, but not be limited to:
(a) Compliance with state and federal laws
regarding Social Security tax, income tax and unemployment tax.
(b) Workers compensation insurance on
workers.
(c) Liability and property damage
insurance.
(4) The board shall develop and furnish to
city, county and state building permit offices, at no cost to the offices, the
Information Notice to Property Owners About Construction Responsibilities and
the statement to be signed by the permit applicant.
(5) A city or county that requires a
business license for engaging in a business subject to regulation under this
chapter shall require that the licensee or applicant for issuance or renewal of
the business license file, or have on file, with the city or county, a signed
statement that the licensee or applicant is licensed under this chapter.
(6) The provisions of this chapter are
exclusive and a city, county or other political subdivision may not require or
issue any registrations, licenses or surety bonds, nor charge any fee for the
regulatory or surety registration of any contractor licensed with the board.
This subsection does not affect the authority of a city, county or political
subdivision to:
(a) License and levy and collect a general
and nondiscriminatory license fee levied upon all businesses or upon business
conducted by any firm within the city, county or political subdivision;
(b) Require a contractor to pay a fee, post
a bond or require insurance when the city, county or political subdivision is
contracting for the services of the contractor; or
(c) Regulate a contractor that is not
required to be licensed under this chapter. [2007 c.114 §2]
Note: The amendments to 701.325 by section 16a,
chapter 836,
701.325. (1) 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, improvement, demolition, movement or repair of a building,
structure or appurtenances to a structure shall, as a condition for issuing the
permit, require the applicant for a permit to file a written statement signed
by the applicant. If the applicant is a contractor, the contractor shall
provide the contractors license number and state that the license is in full
force and effect. If the applicant is exempt from licensing under this chapter,
the applicant shall state the basis for the exemption. The city, county or
state agency shall list the contractors license number on the permit issued to
that contractor.
(2) If the applicant for a building permit
is exempt from licensure under ORS 701.010 (6), the city, county or state
agency shall supply the applicant with an Information Notice to Property Owners
About Construction Responsibilities. The city, county or state agency may not
issue a building permit for a residential structure to the applicant until the
applicant signs a statement in substantially the following form:
______________________________________________________________________________
(a) I have read and understand the
Information Notice to Property Owners About Construction Responsibilities; and
(b) I own, reside in or will reside in the
completed dwelling. My residential general contractor is _________,
Construction Contractors Board license no. _________, license expiration date _________.
I will instruct my contractor that all subcontractors who work on this dwelling
must be licensed with the Construction Contractors Board and properly endorsed
for the work to be performed; or
(c) I am performing work on property I
own, a residence that I reside in or a residence that I will reside in.
(d) I will be my own contractor and, if I
hire contractors, I will hire only contractors licensed with the Construction
Contractors Board and properly endorsed for the work to be performed.
(e) If I change my mind and do hire a
residential general contractor, I will contract with a contractor who is
licensed with the Construction Contractors Board and properly endorsed for the
work to be performed. I will immediately notify the office issuing this
building permit of the name and license number of the contractor _________.
______________________________________________________________________________
(3) The Construction Contractors Board
shall adopt by rule a form titled Information Notice to Property Owners About
Construction Responsibilities that clearly describes in everyday language the
responsibilities property owners are undertaking by acting as their own
contractor and the problems that could develop. The responsibilities described
in the form shall include, but not be limited to:
(a) Compliance with state and federal laws
regarding Social Security tax, income tax and unemployment tax.
(b) Workers compensation insurance on
workers.
(c) Liability and property damage
insurance.
(4) The board shall develop and furnish to
city, county and state building permit offices, at no cost to the offices, the
Information Notice to Property Owners About Construction Responsibilities and
the statement to be signed by the permit applicant.
(5) A city or county that requires a
business license for engaging in a business subject to regulation under this
chapter shall require that the licensee or applicant for issuance or renewal of
the business license file, or have on file, with the city or county, a signed
statement that the licensee or applicant is licensed under this chapter.
(6) The provisions of this chapter are
exclusive and a city, county or other political subdivision may not require or
issue any registrations, licenses or surety bonds, nor charge any fee for the
regulatory or surety registration of any contractor licensed with the board.
This subsection does not affect the authority of a city, county or political
subdivision to:
(a) License and levy and collect a general
and nondiscriminatory license fee levied upon all businesses or upon business
conducted by any firm within the city, county or political subdivision;
(b) Require a contractor to pay a fee,
post a bond or require insurance when the city, county or political subdivision
is contracting for the services of the contractor; or
(c) Regulate a contractor that is not
required to be licensed under this chapter.
701.330
Consumer notice form; notice of procedure form; rules. (1) The Construction Contractors Board shall
adopt by rule a consumer notice form designed to inform a property owner of the
actions the property owner should take to protect the owner in a residential
repair, remodel or construction project. The form shall briefly describe and
identify additional sources of information regarding:
(a) Contractor licensing standards;
(b) Contractor bond and insurance
requirements;
(c) The requirement to offer a warranty
under ORS 701.320; and
(d) Other information specified by the
board.
(2) The board shall adopt by rule a notice
of procedure form that briefly describes and identifies additional sources of
information regarding the procedure described under ORS 701.560 to 701.595 and
other information specified by the board.
(3) The consumer notice form and notice of
procedure form adopted by the board shall include signature lines for the
contractor and the property owner.
(4) The board shall adopt rules specifying
the time and manner for a contractor to deliver a consumer notice form and
notice of procedure form to a property owner.
(5) The board may adopt rules that require
a contractor to maintain evidence of delivery of the consumer notice form and
notice of procedure form and that specify the retention period for and the form
of that evidence. [2007 c.648 §14]
701.335
Recommended maintenance schedule; rules. (1) A contractor that constructs a new residential structure or
zero-lot-line dwelling shall provide a recommended maintenance schedule to the
first purchaser or owner of the structure or dwelling.
(2) The Construction Contractors Board shall
adopt rules specifying the minimum information that a contractor shall provide
to a first purchaser or owner under subsection (1) of this section. The minimum
information shall include, but need not be limited to, the following:
(a) Definitions and descriptions of
moisture intrusion and water damage.
(b) An explanation of how moisture
intrusion and water damage can occur.
(c) A description and recommended schedule
for maintenance to prevent moisture intrusion.
(d) Advice on how to recognize the signs
of water damage.
(e) Appropriate steps to take when water
damage is discovered.
(3) The board shall make the information
developed under this section available without charge to contractors that
construct new residential structures or zero-lot-line dwellings. [2007 c.648 §13]
Note: 701.335 applies to new residential
structures and zero-lot-line dwellings for which the contractor completes
construction on or after July 1, 2008. See section 30, chapter 648, Oregon Laws
2007.
701.340
Commercial structure warranty.
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 components during the warranty period.
The warranty need not cover conditions resulting from improper maintenance by
the owner. [2007 c.836 §12]
Note: 701.340 becomes operative July 1, 2008. See
section 70, chapter 836, Oregon Laws 2007.
701.345
Subcontractor list. (1) 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.
(2) 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 reasonable working
hours. [2007 c.114 §4]
701.348
Sewer contractor requirements.
(1) Every person offering to undertake or undertaking construction of building
sewer piping shall comply with the requirements of ORS chapter 701.
(2) 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:
(a) The persons Construction Contractors
Board license number;
(b) The applicable bonding and liability
coverage; and
(c) The statement described in ORS 701.325
(1).
(3) Any person licensed under ORS 701.026
may install a building sewer after obtaining a permit for plumbing inspection
under ORS 447.095.
(4) As used in this section, building
sewer means that part of the system of drainage piping that conveys sewage
into a septic tank, cesspool or other treatment unit that begins five feet
outside the building or structure within which the sewage originates. [Formerly
701.138]
Note: The amendments to 701.348 (formerly 701.138)
by section 27, chapter 836, Oregon Laws 2007, become operative July 1, 2008.
See section 70, chapter 836, Oregon Laws 2007. The text that is operative until
July 1, 2008, including amendments by section 11, chapter 114, Oregon Laws
2007, is set forth for the users convenience.
701.348. (1) Every person offering to undertake or
undertaking construction of building sewer piping shall comply with the
requirements of ORS chapter 701.
(2) 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:
(a) The persons Construction Contractors
Board license number and category;
(b) The applicable bonding and liability
coverage; and
(c) The statement described in ORS 701.325
(1).
(3) Any person licensed under ORS 701.026
may install a building sewer after obtaining a permit for plumbing inspection
under ORS 447.095.
(4) As used in this section, building
sewer means that part of the system of drainage piping that conveys sewage
into a septic tank, cesspool or other treatment unit that begins five feet
outside the building or structure within which the sewage originates.
Note: 701.348 was enacted into law by the
Legislative Assembly but was not added to or made a part of ORS chapter 701 or
any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
HOME INSPECTORS
701.350
Home inspectors; certification; rules; fees; exemption. (1) 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.
(2) A business may not undertake, offer to
undertake or submit a bid to do work as a home inspector unless the business is
licensed by the board under this chapter and has an owner or an employee who is
certified as a home inspector under this section.
(3) The board shall adopt minimum
standards of practice and professional conduct.
(4) The board shall require that an
applicant for certification as a home inspector pass a test demonstrating the
competency of the applicant to act as a home inspector. The board may adopt
rules accepting the results of competency testing by a nationally recognized
certification program for home inspectors. The board may adopt rules
establishing additional requirements for the issuance or renewal of a home
inspector certificate, including but not limited to training and continuing
education requirements.
(5) The board shall adopt rules
establishing procedures for the issuance, renewal and revocation of home
inspector certification.
(6) The board may adopt rules establishing
fees necessary for the administration of this section. The fees may not exceed
the following:
(a) $50 for application.
(b) $50 for testing.
(c) $150 for issuance of an initial
two-year certificate.
(d) $150 for renewal of a two-year
certificate.
(7) This section does not apply to a
person acting within the scope of a license, certificate or registration issued
to the person by the Appraiser Certification and Licensure Board under ORS
chapter 674. [1997 c.814 §§3,3a; 1997 c.690 §6; 1999 c.402 §39; 2001 c.196 §10;
2005 c.114 §1; 2005 c.254 §13; 2005 c.432 §15a; 2007 c.222 §1]
Note: Section 3b, chapter 814, Oregon Laws 1997,
provides:
Sec.
3b. The requirements of
section 3 of this Act [701.350 (1) and (2)] shall not apply to a person
registered each year as a general contractor under ORS chapter 701 during the
period from January 1, 1991, through the effective date of this Act [August 11,
1997]. [1997 c.814 §3b]
701.355
Home inspector undertaking of repair work on inspected structure. A business licensed as a contractor under
this chapter and providing home inspector services by a home inspector
certified under ORS 701.350 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. [1997
c.814 §7; 2001 c.196 §11; 2005 c.432 §16]
RETAINAGE
701.410
Definitions. (1) As used in
ORS 279C.555, 279C.570, 701.410, 701.420, 701.430, 701.435 and 701.440, unless
the context otherwise requires:
(a) Construction includes:
(A) Excavating, landscaping, demolishing
and detaching existing structures, leveling, filling in and doing other
preparation of land for the making and placement of a building, structure or
superstructure;
(B) Creating or making a building,
structure or superstructure; and
(C) Altering, partially constructing and
doing repairs in and upon a building, structure or superstructure.
(b) Contractor includes a person who
contracts with an owner on predetermined terms to be responsible for the
performance of all or part of a job of construction in accordance with
established specifications or plans, retaining control of means, method and
manner of accomplishing the desired result.
(c) Owner includes a person who is or
claims to be the owner in fee or a lesser estate of the land, building,
structure or superstructure on which construction is performed and who enters
into an agreement with a contractor for the construction.
(d) Subcontractor includes a person who
contracts with a contractor or another subcontractor on predetermined terms to
be responsible for the performance of all or part of a job of construction in
accordance with established specifications or plans.
(2) As used in ORS 701.410, 701.420,
701.430, 701.435 and 701.440, retainage means the difference between the
amount earned by a contractor or subcontractor under a construction contract
and the amount paid on the contract by the owner or, in the case of a
subcontractor, by a contractor or another subcontractor. [1975 c.772 §1; 1987
c.158 §148; 1999 c.59 §209; 2003 c.794 §319; 2005 c.22 §§480,481]
Note: 701.410 to 701.440 were enacted into law by
the Legislative Assembly but were not added to or made a part of ORS chapter
701 or any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
701.420
Partial payment; retainage; effect; interest; notice of completion; payment by
contractor and owner. (1)
Partial payment shall be allowed and made on contracts for construction. Except
as provided in ORS 701.430 (2), an amount equal to not more than five percent
of the contract price of the work completed may be withheld by an owner,
contractor or subcontractor as retainage. Partial payment allowed under this
subsection shall not be construed as acceptance or approval of some of the work
or as a waiver of any defects therein.
(2) The owner, contractor or subcontractor
shall pay interest at the rate of one percent per month on the final payment
due the contractor or subcontractor. Except as provided in ORS 701.430 (2), the
interest shall commence 30 days after the work under the contract for
construction for which the final payment is due has been completed and accepted
and shall run until the date when final payment is tendered to the contractor
or subcontractor. The contractor or subcontractor shall notify the party to
whom the contractor or subcontractor is responsible for the performance of
construction work under the contract when the contractor or subcontractor
considers the work that the contractor or subcontractor contracted to perform
to be complete and that party shall, within 15 days after receiving the notice,
either accept the work or notify the contractor or subcontractor of work yet to
be performed on the contract. If the party to whom the contractor or
subcontractor is responsible for the performance of construction work under the
contract does not notify the contractor or subcontractor of work yet to be performed
within the time allowed, the interest required under this subsection shall
commence 30 days after the end of the 15-day period.
(3) When a contractor pays a subcontractor
in full, including the amount withheld as retainage, the owner with whom that
contractor has the contract shall pay the contractor, out of the amount that is
withheld by the owner from that contractor as retainage, a sum equal to the
amount of retainage that the contractor paid the subcontractor. The contractor
shall notify the owner when the contractor pays a subcontractor in full under
this section and the owner shall, within 15 days after receiving the notice,
pay the contractor the amount due the contractor under this subsection.
Interest on the amount due the contractor at the rate of one percent per month
shall commence 30 days after the owner receives notice of full payment to the
subcontractor. [1975 c.772 §2]
Note: See note under 701.410.
701.430
Performance bond; terms; effect of not obtaining bond. (1) Except as provided in subsection (2) of
this section, 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 required under this
subsection shall extend to include the period during which claims of lien or
notices of other encumbrances based on the construction performed under the
contract may be filed under applicable law. The bond must be approved by the
owner, contractor or subcontractor entitled to withhold retainage. A faithful
performance bond delivered under this section shall include, but not be limited
to, provisions to the effect that:
(a) The obligations of the contract shall
be faithfully performed;
(b) Payment shall promptly be made to all
persons supplying labor or materials to the contractor or subcontractor for
prosecution of the work provided in the contract;
(c) All contributions due the Industrial
Accident Fund and the State Unemployment Compensation Fund from the contractor
or subcontractor in connection with the performance of the contract shall
promptly be made; and
(d) All sums required to be deducted and
retained from the wages of employees of the contractor or subcontractor
pursuant to the Personal Income Tax Act of 1969, shall be paid over to the
Department of Revenue.
(2) When a contractor or subcontractor does
not obtain the bond required under subsection (1) of this section, the owner,
contractor or subcontractor may withhold that percentage of the contract price
of the work completed as retainage that is agreed to by the parties to the
contract. The owner, contractor or subcontractor shall pay interest at the rate
of one percent per month on the final payment due a contractor or subcontractor
who was unable to obtain the bond required under subsection (1) of this
section. The interest shall commence 10 days after the date on which claims of
lien or notices of other encumbrances based on the construction performed under
the contract must be properly filed under applicable law. For purposes of this
subsection, final payment due a contractor or subcontractor means the amount
withheld as retainage minus the total dollar amount of liens and other
encumbrances resulting from the failure of the contractor or subcontractor to
faithfully perform the obligations of the contract and properly filed within
the time allowed under applicable law. [1975 c.772 §3]
Note: See note under 701.410.
701.435
Deposits in lieu of cash retainage. (1) When a contractor on a public contract deposits bonds or
securities under ORS 279C.560 (3), if the subcontract price exceeds $50,000 and
constitutes more than 10 percent of the cost of the public contract, a
subcontractor on the public contract may deposit bonds or securities with the
contractor or in any bank or trust company to be held in lieu of cash retainage
for the benefit of the contractor. In such event the contractor shall reduce
the retainage in an amount equal to the value of the bonds and securities and
pay the amount of the reduction to the subcontractor in accordance with ORS
701.420 and 701.430. Interest on such bonds or securities shall accrue to the
subcontractor.
(2) When a contractor on a public contract
elects to have the public contracting agency deposit the accumulated retainage
in an interest-bearing account under ORS 279C.560 (4), the contractor, within
30 days following payment of the final amount due for construction of the
public improvement, shall pay to each subcontractor who performed work on the
construction the subcontractors proportional share of the interest earnings
that accrued to the contractor as a result of that election. A subcontractors
share of the total amount of interest earnings under this subsection shall be
determined by the proportion which the amount of retainage withheld from the
subcontractor bears to the amount of retainage withheld from the contractor and
the length of time the retainage was withheld from the subcontractor. A share
of the interest earnings shall be paid to a subcontractor under this subsection
only when:
(a) Retainage is withheld from the
subcontractor for more than 60 days after the day on which the first partial
payment was due the subcontractor under the terms of the subcontract; and
(b) The amount of interest earnings due
the subcontractor exceeds $100.
(3) If the contractor incurs additional
costs as a result of the exercise of the options described in subsections (1)
and (2) of this section, the contractor may recover such costs from the
subcontractor by reduction of the final payment. As work on the subcontract
progresses, the contractor shall, upon demand, inform the subcontractor of all
accrued additional costs.
(4) Bonds and securities deposited or
acquired in lieu of retainage, as permitted by this section, shall be of a
character approved by the Director of the Oregon Department of Administrative
Services, including but not limited to:
(a) Bills, certificates, notes or bonds of
the
(b) Other obligations of the
(c) Obligations of any corporation wholly
owned by the federal government.
(d) Indebtedness of the Federal National
Mortgage Association. [1977 c.767 §2; 1983 c.690 §16; 2003 c.794 §320]
Note: See note under 701.410.
701.440
Applicability to federal projects. ORS 279C.555, 701.410, 701.420 and 701.430 do not apply when the owner
is the
Note: See note under 701.410.
LEAD POISONING AND
HAZARD REDUCTION
701.500
Legislative findings. The
Legislative Assembly finds that:
(1) The federal government regulates lead
poisoning and lead hazard reduction through:
(a)(A) The Lead-Based Paint Poisoning
Prevention Act;
(B) The Lead Contamination Control Act of
1988;
(C) The Safe Drinking Water Act;
(D) The Resource Conservation and Recovery
Act of 1976; and
(E) The Residential Lead-Based Paint
Hazard Reduction Act of 1992; and
(b) Implementing regulations of:
(A) The Department of Housing and Urban
Development;
(B) The Environmental Protection Agency;
(C) The Occupational Safety and Health
Administration; and
(D) The Centers for Disease Control and
Prevention.
(2) In 1992, Congress passed the federal
Residential Lead-Based Paint Hazard Reduction Act, which requires that:
(a) States provide for the accreditation
of lead-based paint activities training programs, the certification of persons
completing such training programs and the licensing of lead-based paint
activities contractors pursuant to standards to be developed by the
Environmental Protection Agency.
(b) Effective October 28, 1995, sellers
and landlords of residential housing constructed before 1978 notify buyers and
tenants of known lead-based paint hazards.
(3) Lead affects every system of the body.
It is harmful to individuals of all ages and is especially harmful to children,
fetuses and women of childbearing age. Lead poisoning is one of the most common
and preventable pediatric health problems today. [1995 c.795 §2; 2007 c.71 §227]
701.505
Definitions for ORS 431.920 and 701.500 to 701.515. For the purposes of ORS 431.920 and 701.500
to 701.515:
(1) 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 701.500.
(2) Accredited training program means a
training program that has been accredited by the Department of Human Services
to provide training for individuals engaged in lead-based paint activities.
(3) Certified means an action by the
Department of Human Services verifying the successful completion of a training
program accredited by the department and any other requirements.
(4) Discipline means a specific type or
category of lead-based paint activity.
(5) Evaluation has the meaning given
that term in P.L. 102-550, section 1004, and as further defined pursuant
to the authorities described in ORS 701.500.
(6) Inspection 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 701.500.
(7) Lead-based paint has the meaning
given that term in P.L. 102-550, section 1004, and as further defined pursuant
to the authorities described in ORS 701.500.
(8) Lead-based paint activities has the
meaning given that term in 40 C.F.R. 745.223 and as further defined pursuant to
the authorities described in ORS 701.500.
(9) Lead-based paint hazard means any
condition that causes exposure to lead from lead-contaminated dust,
lead-contaminated soil, lead-contaminated paint that is deteriorated or present
in accessible surfaces, friction surfaces or impact surfaces that would result
in adverse human health effects as established by the appropriate federal
agency.
(10) Licensed means a person who has
been certified by the Department of Human Services in one or more disciplines
and has completed the requirements of the Construction Contractors Board.
(11) Registered means a person or
business that has met the requirements for registration under this chapter. [1995
c.795 §3]
701.510
License required to engage in lead-based paint activity. (1) A person may not perform lead-based
paint activities in this state unless the person is licensed in the appropriate
lead-based paint discipline under ORS 701.515.
(2) A person required by subsection (1) of
this section to obtain a license must comply with the provisions of ORS 431.920
and 701.500 to 701.515 or any rules adopted pursuant thereto.
(3) A person registered to conduct a
lead-based paint activities business may not employ any individual to perform
lead-based paint activities unless the person is licensed in the appropriate
lead-based paint discipline under ORS 701.515.
(4) A construction contractor who
successfully completes an accredited training program in lead-based paint
activities qualifies to have certification in that activity included in the
professional credentials of the contractor as described in ORS 701.120. The
provisions of this subsection do not affect the licensing requirements
established in ORS 701.515. [1995 c.795 §4; 2001 c.428 §3]
701.515
Licensing and business registration system; fees; rules. (1) In accordance with any applicable
provisions of ORS chapter 183, the Construction Contractors Board by rule shall
establish a system to license persons and individuals in lead-based paint
disciplines required to be licensed under ORS 701.510. Such licensing shall
include disciplines and requirements described in 40 C.F.R. 745.225. Such a
system shall include but not be limited to provisions:
(a) Prescribing the form and content of
the times and procedures for submitting applications for license issuance or
renewal.
(b) Prescribing the fees for original
issuance and renewal of the license in amounts that do not exceed the cost of
administering the program.
(c) Prescribing those actions or
circumstances that constitute failure to achieve or maintain licensing
requirements, or that otherwise are contrary to the public interest, for which
the agency may refuse to issue or renew or may suspend or revoke a license.
(2) In accordance with any applicable
provisions of ORS chapter 183, the Construction Contractors Board by rule shall
establish a system to register businesses that employ persons or individuals in
lead-based paint disciplines required to be licensed under ORS 701.510. Such
registration shall include the requirements described in 40 C.F.R. 745.226.
Such a system shall include but not be limited to provisions:
(a) Prescribing the form and content of
the times and procedures for submitting applications for registration or renewal.
(b) Prescribing the fees for original
registration and renewal of the registration in amounts that do not exceed the
cost of administering the program.
(c) Prescribing those actions or
circumstances that constitute failure to achieve or maintain licensing
requirements, or that otherwise are contrary to the public interest, for which
the agency may refuse to issue or renew or may suspend or revoke a license.
(3) The Construction Contractors Board may
impose the following licensing fees:
(a) Lead abatement contractor, up to $50
per year;
(b) Lead inspection contractor, up to $50
per year;
(c) Lead supervisor or lead contractor, up
to $50 per year;
(d) Lead inspector or assessor, up to $50
per year; and
(e) Lead worker, up to $25 per year. [1995
c.795 §5]
ACCESSIBILITY
FEATURES
701.525
Provision of accessible features list to purchaser; effect. (1) As used in this section and ORS 701.530:
(a) 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.
(b) Residential housing:
(A) Means a structure designed for use as
a residence and containing dwelling units for three or fewer families.
(B) Means a structure that is a
condominium as defined in ORS 100.005.
(C) Does not mean a manufactured structure
as defined in ORS 446.003.
(2) A developer who enters into a contract
to construct or arrange for the construction of new residential housing may, at
the time of providing a purchaser with a written contract, also provide the
purchaser with a list of features that may make residential housing more
accessible to a person with a disability. The list may include the features
identified in the model list of features adopted by the Construction
Contractors Board by rule under ORS 701.530.
(3) The inclusion of a feature on the list
supplied by the developer under subsection (2) of this section does not
obligate the developer to make the feature available to a purchaser. The list
supplied by the developer may specify for each feature whether the feature is
standard, optional, available on a limited basis or unavailable from the
developer. If a listed feature is available from the developer as an option or
on a limited basis, the list of features may specify the stage of construction
by which the purchaser must submit to the developer any request that the
residential housing be constructed with that feature.
(4) This section, or the inclusion of a
feature on the model list developed under ORS 701.530, does not affect the
requirement that installation of a feature comply with the state building code
or be approved under ORS 455.060. [2005 c.734 §4; 2007 c.70 §316]
Note: 701.525 and 701.530 were enacted into law by
the Legislative Assembly but were not added to or made a part of ORS chapter
701 or any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
701.530
Model list of accessibility features; rules. 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 701.525. In developing
the model list of features, the board shall solicit the comments of advocacy
groups and other organizations serving persons with disabilities. [2005 c.734 §5]
Note: See note under 701.525.
MERCURY
THERMOSTATS
701.550
Notice of Department of Consumer and Business Services rules regarding thermostats
containing mercury. 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 thermostats that contain
mercury. [2001 c.924 §22]
PROHIBITED MATERIAL
INSTALLATION
701.555
Barrier-type exterior insulation and finish systems. (1) 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:
(a) The layers are bonded to the outside
face of an exterior wall;
(b) The middle or exterior layer, but not
the inner layer, provides a water resistant barrier for the exterior of the
building envelope;
(c) The layers do not provide a means of
drainage for water that accumulates behind the exterior surface; and
(d) The layers insulate the building.
(2) A person licensed or required to be
licensed under this chapter may not install a barrier-type exterior insulation
and finish system on:
(a) A new building; or
(b) An existing building, except as
necessary to repair or replace a previously installed barrier-type exterior
insulation and finish system.
(3) Subsection (2) of this section does
not apply to the application of a barrier-type exterior insulation and finish
system:
(a) As an architectural feature that is
not intended to protect an interior space of the building; or
(b) To a concrete wall or a concrete
masonry unit block wall. [2007 c.851 §2]
NOTICES OF DEFECT
IN RESIDENCE
701.560
Definitions for ORS 701.560 to 701.595 and 701.605. As used in ORS 701.560 to 701.595 and
701.605:
(1) Contractor means a person that
performed services for the construction, alteration or repair of a residence.
(2) 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 insufficiency in a system, component or material incorporated
into a residence.
(3) Owner means a person that possesses
an interest in a residence or in land that is a residential site or has entered
into a contract for the purchase of an interest in the residence or land. Owner
includes:
(a) A homeowners association as defined in
ORS 94.550;
(b) A managing entity as defined in ORS
94.803;
(c) An owners association as described in
ORS 94.858;
(d) An association of unit owners as
defined in ORS 100.005; and
(e) Any other entity that possesses an
interest in a residence or represents owners of a residence.
(4) Remediation means the repair or
replacement of some or all of the defects described in an owners notice of
defect sent under ORS 701.565.
(5) Residence means:
(a) A residential structure as defined in
ORS 701.005;
(b) Common property as defined in ORS
94.550; and
(c) A common element as defined in ORS
100.005.
(6) Secondary notice means a copy of an
owners notice of defect that a contractor, subcontractor or supplier sends to
another contractor, subcontractor or supplier that may be responsible for a
defect.
(7) Subcontractor means any person that
performed services for the construction, alteration or repair of a residence at
the request or direction of a contractor.
(8) Supplier means any person that
furnished or manufactured the systems, components or materials incorporated
into a residence as part of the construction, alteration or repair of the
residence. [2003 c.660 §1]
Note: 701.560 to 701.605 were enacted into law by
the Legislative Assembly but were not added to or made a part of ORS chapter
701 or any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
701.565
Notice of defect requirement; contents; mailing. (1) 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 the owner has sent
that contractor, subcontractor or supplier a notice of defect as provided in
this section and has complied with ORS 701.575.
(2) An owner must send a notice of defect
by registered mail, return receipt requested. If a notice of defect is sent to
a contractor or subcontractor, the owner must send the notice to the last known
address for the contractor or subcontractor as shown in the records of the
Construction Contractors Board. If a notice of defect is sent to a supplier,
the owner must send the notice to the
(3) A notice of defect sent by an owner
must include:
(a) The name and mailing address of the
owner or the owners legal representative, if any;
(b) A statement that the owner may seek to
compel arbitration or bring a court action against the contractor,
subcontractor or supplier;
(c) The address and location of the
affected residence;
(d) A description of:
(A) Each defect;
(B) The remediation the owner believes is
necessary; and
(C) Any incidental damage not curable by
remediation as described in subparagraph (B) of this paragraph; and
(e) Any report or other document
evidencing the existence of the defects and any incidental damage. [2003 c.660 §2]
Note: See note under 701.560.
701.570
Secondary notice of defect; inspection of residence; response to notice or
secondary notice. (1) 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, subcontractor or supplier must send the
secondary notice by registered mail, return receipt requested, to an address
described in ORS 701.565 (2). The secondary notice must be accompanied by a
statement describing the basis for contending that the other contractor,
subcontractor or supplier may be responsible for some or all of the defects.
(2) A contractor, subcontractor or
supplier that receives a notice of defect or secondary notice may send the
owner a written request to conduct a visual examination of the residence. The
written request must be sent not later than 14 days after the requesting
contractor, subcontractor or supplier receives a notice of defect or secondary
notice. The written request to conduct a visual examination of the residence
must state the estimated time required for the visual examination.
(3) A contractor, subcontractor or
supplier that receives a notice of defect or secondary notice may send the
owner a written request to inspect the residence. The written request must be
sent not later than 14 days after the requesting contractor, subcontractor or
supplier conducted a visual examination of the residence. The written request
to inspect the residence must state the nature and scope of the inspection,
whether any testing is to be performed and the estimated time required for the
inspection. The recipient of a secondary notice that requests to inspect the
residence shall send a copy of the request to the sender of the secondary
notice.
(4) A contractor, subcontractor or
supplier that sends a secondary notice and intends to hold the recipient of the
secondary notice liable for a defect described in a notice of defect shall
coordinate the scheduling of any inspection with the owner and all recipients
of a secondary notice from the contractor, subcontractor or supplier. The
contractor, subcontractor or supplier shall deliver a copy of any written
request to inspect the residence to each recipient of the secondary notice in
time to provide the recipient with an opportunity to attend the requested
inspection and to participate in any remediation. The sender of a secondary
notice shall give reasonable advance notice to the owner or the owners legal representative,
if any, of the identity of any contractor, subcontractor or supplier who will
attend the inspection.
(5) Unless otherwise agreed to by the
owner, a contractor, subcontractor or supplier that receives a notice of defect
or secondary notice shall send a written response to the owner not later than
90 days after the contractor, subcontractor or supplier receives a notice of
defect or secondary notice. A contractor, subcontractor or supplier that
receives a secondary notice also shall send a copy of the written response to
the sender of the secondary notice. The written response must be sent by
registered mail, return receipt requested. The written response must include:
(a) One or more of the following for each
defect described in the notice of defect or secondary notice or discovered
during the course of any visual examination or inspection:
(A) An acknowledgment of the existence,
nature and extent of the defect without regard to responsibility for the
defect.
(B) A statement describing the existence
of a defect different in nature or extent from the defect described in the
notice of defect or secondary notice, without regard to responsibility for the
defect.
(C) A denial of the existence of the
defect.
(b) A copy of the documents described in
ORS 701.575 (4).
(c) One or more of the following:
(A) An offer to perform some or all of the
remediation. The offer must specify the date by which the offered remediation
will be completed.
(B) An offer to pay a stated amount of
monetary compensation to the owner for some or all of the acknowledged defects
and any incidental damage. The offer must specify the date by which payment
will be made.
(C) A denial of responsibility for some or
all of the acknowledged defects or incidental damage. [2003 c.660 §3]
Note: See note under 701.560.
701.575
Availability of residence; scope of inspection; report of inspection results. (1) 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. 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
for visual examination.
(2) An owner sending a notice of defect
under ORS 701.565 shall make the residence available for an inspection pursuant
to any written request sent under ORS 701.570. The owner shall make the
residence available for inspection during normal business hours or at a time
that is mutually agreeable to the owner and the requester.
(3) An inspection by a contractor,
subcontractor or supplier may include any reasonable measures, including
testing, for determining the nature, cause and extent of the defects described
in the notice of defect or incidental damage and the nature and extent of the
necessary remediation. Unless the contractor, subcontractor or supplier
conducting the inspection and the owner agree otherwise, the contractor,
subcontractor or supplier conducting the inspection shall repair any damage
caused by the inspection. Any damage caused by the inspection that is not
repaired may be sought as incidental damage in any subsequent arbitration or
court action by an owner against the contractor, subcontractor or supplier
conducting the inspection.
(4) A contractor, subcontractor or
supplier that requests to inspect a residence must include as part of the
written response of the contractor, subcontractor or supplier under ORS
701.570, a written report or other document evidencing the result of the
inspection and the existence or nonexistence of the defects described in the
notice of defect or discovered during the inspection. [2003 c.660 §4]
Note: See note under 701.560.
701.580
Offer by contractor, subcontractor or supplier; effect of accepting offer;
nonperformance; compelling arbitration or commencing court action; admissibility
of response or reply. (1) 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.
(2) If the owner accepts a contractor,
subcontractor or suppliers offer to perform remediation or to pay monetary
compensation, completion of the remediation or payment satisfies the claims by
the owner for those defects included in the offer for which remediation was
performed or compensation paid, but not for any other defect. Except as
provided in subsection (3) of this section, if the owner accepts an offer by a
contractor, subcontractor or supplier that received a secondary notice,
completion of the remediation or payment satisfies claims for those defects
included in the offer for which remediation was performed or compensation paid,
including claims by the owner and claims for contribution or indemnity against
the contractor, subcontractor or supplier by the sender of the secondary
notice, but not for any other defect.
(3) If the owner accepts an offer by a
contractor, subcontractor or supplier that received a secondary notice to
perform remediation or to pay monetary compensation and the contractor,
subcontractor or supplier fails to perform in accordance with the accepted
offer, then the sender of the secondary notice may perform the remediation or
pay the monetary compensation offered by the nonperforming contractor,
subcontractor or supplier.
(4) An owner that sends a notice of defect
under ORS 701.565 may compel arbitration or commence a court action against a
contractor, subcontractor or supplier if:
(a) The contractor, subcontractor or
supplier that receives the notice of defect sent under ORS 701.565 does not
send a timely written response under ORS 701.570;
(b) The written response of the
contractor, subcontractor or supplier that received the notice of defect or a
secondary notice does not offer remediation or monetary compensation;
(c) The owner rejects a written offer, or
any part thereof, made by the contractor, subcontractor or supplier; or
(d) The contractor, subcontractor or
supplier fails to perform in accordance with an accepted offer.
(5) A notice of defect and the documents
described in ORS 701.575 (4) are admissible in any arbitration or court action
between or among an owner, contractor, subcontractor or supplier arising out of
or related to the construction, alteration or repair of the residence.
(6) Except as provided in this subsection,
a written response containing an offer to perform remediation or pay monetary
compensation made under ORS 701.570 (5) that is not accepted by the owner, and
any reply by an owner, unless the reply contains a counteroffer accepted by a
contractor, subcontractor or supplier, are not admissible during any subsequent
arbitration or court action. A response or reply described in this subsection
is admissible solely for the purpose of proving that an owner is qualified to
compel arbitration or commence a court action under subsection (4)(c) of this section
or determining the timeliness of an action under ORS 701.585. [2003 c.660 §5]
Note: See note under 701.560.
701.585
Effect of notice of defect on time for commencing court action. (1) 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 repose, until the later of:
(a) One hundred and twenty days after the
owner receives a written response from the contractor, subcontractor or
supplier that received the notice of defect if the written response does not
contain a written offer to perform remediation or pay monetary compensation for
one or more of the defects or incidental damage described in the notice of
defect;
(b) One hundred and twenty days after the
owner rejects a written offer by any contractor, subcontractor or supplier to
perform remediation or pay monetary compensation for one or more of the defects
or incidental damage described in the notice of defect; or
(c) Thirty days after the date specified
in an accepted written offer by which the offering contractor, subcontractor or
supplier is to complete the remediation or complete payment of monetary
compensation for one or more of the defects and any incidental damage described
in the notice of defect.
(2) Subsection (1) of this section does
not shorten or terminate the time for bringing a claim in accordance with
applicable statutes of ultimate repose and statutes of limitation.
(3) Delivery of a secondary notice sent by
a contractor, subcontractor or supplier under ORS 701.570 does not act to toll
the expiration of any right of the owner to commence a court action against the
recipient of the secondary notice.
(4) Any remediation performed pursuant to
an accepted offer made under ORS 701.570 does not constitute a new performance
and, for purposes of ORS 12.135, relates back to the earliest date of
substantial completion or abandonment of the construction, alteration or repair
of the improvement to real property. [2003 c.660 §6]
Note: See note under 701.560.
701.590 [2003 c.660 §7; 2007 c.114 §12; repealed by
2007 c.648 §18]
701.595
Failure to follow notice of defect procedure. 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 arbitration or
action without prejudice. The owner may not commence a new arbitration or
action unless the owner follows the procedure set forth in ORS 701.565 and
701.575. [2003 c.660 §8]
Note: See note under 701.560.
701.600
Nonapplicability of ORS 701.560 to 701.595 and 701.605. ORS 701.560 to 701.595 and 701.605 do not
apply:
(1) To personal injury or death claims.
(2) To claims or complaints filed pursuant
to ORS 671.695 or 701.139.
(3) To claims against a person licensed
under ORS 671.010 to 671.220. [2003 c.660 §9; 2007 c.149 §10; 2007 c.793 §25]
Note: Section 11 (1), chapter 149, Oregon Laws
2007, provides:
Sec.
11. (1) Section 2 of this
2007 Act [671.695] and the amendments to ORS 671.700, 671.710 and 701.600 by
sections 6, 9 and 10 of this 2007 Act apply to claims filed with the State
Landscape Contractors Board on or after the effective date of this 2007 Act
[January 1, 2008]. [2007 c.149 §11(1)]
Note: See note under 701.560.
WARRANTIES
701.605
Recording of written warranty agreement. (1) 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:
(a) Is signed by the contractor and the
original owner of the new structure;
(b) Sets forth any express warranties
furnished by the contractor; and
(c) Contains the names of the contractor
and the original property owner, the title of the document, a legal description
of the property and acknowledgment of the signatures of the parties in the same
manner as the parties to a deed are acknowledged.
(2) The warranties set forth in the
recorded warranty agreement:
(a) Benefit and burden subsequent owners
of the structure.
(b) Cease to affect title to the property
10 years after the date the instrument is recorded. [2005 c.169 §2; 2007 c.648 §29]
Note: The amendments to 701.605 by section 29,
chapter 648, Oregon Laws 2007, apply to new residential structures and
zero-lot-line dwellings for which the contractor enters into a written
construction contract on or after July 1, 2008. See section 30, chapter 648,
Oregon Laws 2007. The text that applies until July 1, 2008, is set forth for
the users convenience.
701.605. (1) To facilitate the handling of warranty
work or remediation of defects to a new commercial or residential structure, 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:
(a) Is signed by the contractor and the
original owner of the new structure;
(b) Sets forth any express warranties
furnished by the contractor; and
(c) Contains the names of the contractor
and the original property owner, the title of the document, a legal description
of the property and acknowledgment of the signatures of the parties in the same
manner as the parties to a deed are acknowledged.
(2) The warranties set forth in the
recorded warranty agreement:
(a) Benefit and burden subsequent owners
of the structure.
(b) Cease to affect title to the property
10 years after the date the instrument is recorded.
Note: See note under 701.560.
CONSTRUCTION
CONTRACT PAYMENTS
701.620
Definitions for ORS 701.620 to 701.640. As used in ORS 701.620 to 701.640:
(1) Construction contract means a
written or oral construction agreement, including all plans, specifications and
addenda relating to:
(a) 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
superstructure;
(b) Creation or making of a building,
structure or superstructure; and
(c) Alteration, partial construction and
repairs done in and upon a building, structure or superstructure.
(2) Contractor has the meaning given
that term in ORS 87.005.
(3) Days means calendar days.
(4) Material supplier means any person
providing materials or products under a construction contract by any
contractual means including oral authorization, written contract, purchase
order, price agreement or rental agreement.
(5) Original contractor has the meaning
given that term in ORS 87.005.
(6) Owner has the meaning given that
term in ORS 701.410.
(7) Subcontractor has the meaning given
that term in ORS 87.005. [2003 c.675 §54]
Note: 701.620 to 701.645 were enacted into law by
the Legislative Assembly but were not added to or made a part of ORS chapter
701 or any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
701.625
Progress payments; alternative billing cycle; certification of billing or
estimate; payment in full; prohibited agreements. (1) By mutual agreement with an original contractor,
an owner may make progress payments to the original contractor on a
construction contract that is anticipated to last less than 60 days. An owner
shall make progress payments to the original contractor on all other
construction contracts. Progress payments shall be made on the basis of a
certified billing or estimate for the work performed and the materials or
products supplied during the preceding 30-day billing cycle, or an alternate
billing cycle as stated in the construction contract. If billings or estimates
are to be submitted in alternate, rather than 30-day billing cycles, the
construction contract shall specify the alternate billing cycles in a clear and
conspicuous manner as prescribed in subsection (2) of this section. Except as
provided in subsection (3) of this section, the owner shall make progress
payments to the original contractor within 14 days after the date the billing
is submitted pursuant to subsection (4) of this section.
(2) A construction contract may provide
for an alternate billing cycle if the plans and specifications specifically set
forth that there is an alternate billing cycle and the owner provides for each
page of plans and specifications a statement substantially similar to the
following statement:
______________________________________________________________________________
Notice of Alternate Billing Cycle
The contract will allow the owner to
require the submission of billings or estimates in billing cycles other than
30-day cycles.
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
(3) An owner may make progress payments
later than 14 days after the date the billing or estimate is submitted if:
(a) The owner is responsible for providing
plans and specifications that expressly allow in a clear and conspicuous manner
an extended payment, defined by a specified number of days after the billing or
estimate is submitted; and
(b) The owner provides for each page of
plans and specifications a statement substantially similar to the following
statement:
______________________________________________________________________________
Notice of Extended Payment Provision
The contract will allow the owner to make
payment within _____ days after the date a billing or estimate is
submitted.
______________________________________________________________________________
(4) The owner is deemed to have received
the billing or estimate when the billing or estimate is submitted to any person
designated by the owner for the receipt, review or approval of the billing or
estimate. A billing or estimate is deemed to be certified 10 days after the
owner receives the billing or estimate, unless before that time the owner or
the owners agent prepares and issues a written statement detailing those items
in the billing or estimate that are not approved. An owner may decline to
approve a billing or estimate or portion of a billing or estimate for:
(a) Unsatisfactory work progress;
(b) Defective construction work, materials
or products not remedied;
(c) Disputed work, materials or products,
not to exceed 150 percent of the amount in dispute;
(d) Failure to comply with other material
provisions of the construction contract;
(e) Third party claims filed or reasonable
evidence that such a claim will be filed;
(f) Failure of the original contractor or
a subcontractor to make timely payments to subcontractors and material
suppliers for labor, equipment, materials and products;
(g) Damage to the owner;
(h) Reasonable evidence that the
construction contract cannot be completed for the unpaid balance of the
construction contract sum; or
(i) Other items as allowed under the
contract terms and conditions.
(5) An owner may withhold from a progress
payment an amount that is sufficient to pay the direct expenses the owner
reasonably expects to incur to correct any items set forth in writing pursuant
to subsection (4) of this section. The owner may also withhold a reasonable
amount as retainage as defined in ORS 701.410.
(6) An owner may extend the period within
which the billing or estimate may be certified if:
(a) The owner is responsible for providing
plans and specifications that expressly allow in a clear and conspicuous manner
an extended period within which a billing or estimate may be certified; and
(b) The owner provides for each page of
plans and specifications, including bid plans and construction plans, a
statement substantially similar to the following statement:
______________________________________________________________________________
Notice of Extended Certification Period Provision
The contract will allow the owner to
certify billings and estimates within _____ days after the billings and
estimates are received from the original contractor.
______________________________________________________________________________
(7) After a subcontractor or material
supplier submits a bid or proposal or other written pricing information to an
original contractor, an owner and the original contractor may change the
specified number of days after certification during which the owner may make
payment to the original contractor or within which the owner must certify a
billing or estimate. Any original contractor, subcontractor or material
supplier that does not provide written consent to the change will continue to
be paid as indicated in the plans and specifications.
(8) When an original contractor completes
and an owner approves all work under a construction contract, the owner shall
make payment in full of all remaining amounts due on the construction contract
within seven days. When an original contractor completes and an owner approves
all work under a portion of a construction contract for which the contract
states a separate price, the owner shall make payment in full of all remaining
amounts due on that portion of the construction contract, subject to the
satisfaction of any issue described in subsection (4) of this section or ORS
701.630 (4).
(9) Payment is not required under this
section unless the original contractor provides the owner with a billing or
estimate for the work performed or the materials or products supplied in
accordance with the terms of the construction contract between the parties.
(10) A construction contract may not alter
the right of any original contractor, subcontractor or material supplier to
receive prompt and timely progress payments as provided under this section.
(11) If an owner or a person designated by
the owner as responsible for making progress payments on a construction
contract does not make a timely payment under this section, the owner shall pay
the original contractor interest on the unpaid balance at the rate of one and
one-half percent a month or fraction of a month, or at a higher rate as the
parties to the construction contract may agree.
(12) On the written request of a
subcontractor, the owner shall notify the subcontractor within five days after
the issuance of a progress payment to the original contractor. On the written
request of a subcontractor, the owner shall notify the subcontractor within
five days after the owner makes the final payment to the original contractor on
the construction contract.
(13) In any action, claim or arbitration
brought to collect payments or interest pursuant to this section, the
prevailing party shall be awarded reasonable costs and attorney fees.
(14) If the owner and original contractor
are a single entity, that entity shall pay subcontractors and material
suppliers within 14 days after the billing or estimate is received unless the
deadlines for certification or payment have been modified pursuant to
subsection (3) or (6) of this section. [2003 c.675 §55]
Note: See note under 701.620.
701.630
Payments to subcontractors and material suppliers; failure to pay; omission of payment;
board discipline. (1)
Performance by an original contractor, subcontractor or material supplier in
accordance with the provisions of a construction contract entitles the original
contractor, subcontractor or material supplier to payment from the party with
whom the original contractor, subcontractor or material supplier contracts.
(2) If a subcontractor or material
supplier has performed in accordance with the provisions of a construction
contract, the original contractor shall pay to the subcontractor or material
supplier, and each subcontractor shall pay to its subcontractors or material
suppliers, the full amount received for such subcontractors work and for
materials and products supplied based on the subcontract or purchase order
terms and conditions within seven days of receipt by the original contractor or
subcontractor of a progress payment or final payment. Payment is not required
under this subsection unless a subcontractor or material supplier provides to
the original contractor or subcontractor a billing or invoice for the work
performed or materials or products supplied in compliance with the terms of the
contract between the parties. Each subcontractor or material supplier must
provide an appropriate waiver of any mechanics or materialmans lien in
accordance with subcontract or purchase order terms and conditions. The
original contractor or subcontractor may require that such waivers of lien be
notarized.
(3) Any failure to reasonably account for
the application or use of payments, as proven in a legal proceeding authorized
under the terms of the construction contract, may constitute grounds for
disciplinary action by the Construction Contractors Board under ORS 701.098.
(4) Nothing in this section prevents an
original contractor when submitting a bill or estimate to an owner, or a
subcontractor when submitting a bill or estimate to the original contractor,
from omitting from the bill estimate amounts withheld from payment to a
subcontractor or material supplier for:
(a) Unsatisfactory work progress;
(b) Defective construction work, materials
or products not remedied;
(c) Disputed work, materials or products,
not to exceed 150 percent of the amount in dispute;
(d) Failure to comply with other material
provisions of the construction contract;
(e) Third party claims filed or reasonable
evidence that such a claim will be filed;
(f) Failure of the subcontractor to make
timely payments to subcontractors and material suppliers for labor, equipment,
materials and products;
(g) Damage to an original contractor,
subcontractor or material supplier;
(h) Reasonable evidence that the
subcontract cannot be completed for the unpaid balance of the subcontract sum;
(i) A reasonable amount for retainage, as
defined in ORS 701.410, that does not exceed the actual percentage allowed by
the subcontract or purchase order; or
(j) Other items as allowed under the
subcontract or purchase order terms and conditions.
(5) If a progress or final payment to a
subcontractor or material supplier is delayed by more than seven days after
receipt of a progress or final payment by an original contractor or
subcontractor, the original contractor or subcontractor shall pay its
subcontractor or material supplier interest beginning on the eighth day, except
during periods of time during which payment is withheld pursuant to subsection
(4) of this section, at the rate of one and one-half percent a month or a
fraction of a month on the unpaid balance or at such higher rate as the parties
agree.
(6) In any action, claim or arbitration
brought to collect payments or interest under this section, the prevailing
party shall be awarded reasonable costs and attorney fees. [2003 c.675 §56]
Note: See note under 701.620.
701.635
Suspension of performance.
(1) An original contractor may suspend performance under a construction
contract, or terminate a construction contract if performance is suspended for
longer than 30 days, for failure by the owner 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 original contractor
suspends performance or terminates the contract, unless a shorter notice period
is prescribed in the contract. An original contractor may not be deemed in
breach of a construction contract for suspending performance or terminating a
construction contract pursuant to this subsection. A construction contract may
not extend the notice period under this subsection.
(2) A subcontractor may suspend
performance under a construction contract, or terminate a construction contract
if performance is suspended for longer than 30 days, for failure by the owner
to make timely payment of amounts certified under ORS 701.625 or the
subcontractor fails to receive payment for the certified work under ORS 701.630
(2). A subcontractor shall provide written notice to the original contractor
and owner at least three days before the subcontractor suspends performance or
terminates the contract, unless a shorter notice period is prescribed in the
contract. A subcontractor may not be deemed in breach of a construction
contract for suspending performance or terminating a contract pursuant to this
subsection. A construction contract may not extend the notice period under this
subsection.
(3) A subcontractor may suspend
performance under a construction contract, or terminate a construction contract
if performance is suspended for longer than 30 days, if the owner makes timely
payment of amounts certified under ORS 701.625 for the subcontractors work but
the original contractor fails to pay the subcontractor for the certified work.
A subcontractor shall provide written notice to the original contractor and
owner at least seven days before the subcontractor suspends performance or
terminates the contract, unless a shorter notice period is prescribed in the
contract. A subcontractor may not be deemed in breach of a construction
contract for suspending performance or terminating a contract pursuant to this
subsection. A construction contract may not extend the notice period under this
subsection.
(4) A subcontractor may suspend
performance under a construction contract, or terminate a construction contract
if performance is suspended for longer than 30 days, if the owner fails to
approve portions of the contractors billing or estimate under ORS 701.625 for
that subcontractors work but the reasons for that failure are not the fault of
or directly related to the subcontractors work. A subcontractor shall provide
written notice to the original contractor and the owner at least seven days
before the subcontractor suspends performance or terminates the contract,
unless a shorter notice period is prescribed in the contract. A subcontractor
may not be deemed in breach of a construction contract for suspending
performance or terminating a contract pursuant to this subsection. A
construction contract may not extend the notice period under this subsection.
(5) A contractor or subcontractor may not
submit a notice of suspension under this section until the lawful period for
payment to the contractor or subcontractor has expired.
(6) An original contractor or
subcontractor that suspends performance as provided in this section is not
required to furnish further labor, materials, products or services until the
original contractor or subcontractor is paid the amount that was certified
under ORS 701.625, together with any documented, substantial and reasonably
incurred costs for mobilization resulting from the shutdown or start-up of a
project.
(7) In any action, claim or arbitration
brought pursuant to this section, the prevailing party shall be awarded
reasonable costs and attorney fees.
(8) Written notice required under this
section is deemed to have been provided if the notice:
(a) Is delivered in person to the owner,
original contractor, subcontractor or a person designated by the owner,
original contractor or subcontractor to receive notice; or
(b) Is delivered by certified mail, return
receipt requested, or other means that provides written, third party
verification of delivery to the last business address of the owner, original
contractor or subcontractor known to the party giving notice. [2003 c.675 §57]
Note: See note under 701.620.
701.640
Prohibition against contrary provisions, covenants or clauses. (1) A construction contract may not include
any provision, covenant or clause that:
(a) Makes the contract subject to the laws
of another state or that requires any litigation, arbitration or other dispute
resolution proceeding arising from the contract to be conducted in another
state; or
(b) States that a party to the contract
cannot suspend performance under the contract or terminate the contract if
another party to the contract fails to make prompt payments under the contract
pursuant to ORS 701.620 to 701.640.
(2) Any provision, covenant or clause
described in subsection (1) of this section is void and unenforceable. [2003
c.675 §58]
Note: See note under 701.620.
701.645
Contracts and housing not subject to ORS 701.620 to 701.640. ORS 701.620 to 701.640 do not apply to:
(1) A contract for the construction,
alteration, repair, maintenance, moving or demolition of a building that is
subject to the Low-Rise Residential Dwelling Code;
(2) A public contract under ORS 279.835 to
279.855 or ORS chapter 279A, 279B or 279C; or
(3) Housing in which all or part of the
dwelling units are reserved for rental to persons having an income equal to or
less than 80 percent of the median household income for the area as determined
by the Housing and Community Services Department. [2003 c.675 §59; 2003 c.794 §331d]
Note: See note under 701.620.
701.900 [1989 c.928 §31; 1999 c.402 §40; renumbered
701.002 in 2001]
PENALTIES
701.990
Criminal penalties. (1)
Violation of ORS 701.026 (1) is a Class A misdemeanor.
(2) The intentional use of a contractors
license number without the authorization of the licensed contractor is a Class
A misdemeanor.
(3) Use of a contractors license number,
with or without the authorization of the licensed contractor, with the intent
to deceive the public is a Class A misdemeanor. [1971 c.740 §22; 1999 c.344 §7;
2001 c.104 §282; 2001 c.850 §7]
Note: The amendments to 701.990 by section 37,
chapter 836, Oregon Laws 2007, become operative July 1, 2010. See section 70,
chapter 836, Oregon Laws 2007. The text that is operative on and after July 1,
2010, is set forth for the users convenience.
701.990. (1) Violation of ORS 701.021 is a Class A
misdemeanor.
(2) The intentional use of a contractors
license number without the authorization of the licensed contractor is a Class
A misdemeanor.
(3) Use of a contractors license number,
with or without the authorization of the licensed contractor, with the intent
to deceive the public is a Class A misdemeanor.
701.992
Civil penalties and other sanctions; enforcement. (1) 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.
(2) Civil penalties under this section
shall be imposed as provided in ORS 183.745.
(3) The provisions of this section are in
addition to and not in lieu of any other penalty or sanction provided by law.
(4) The board shall impose sanctions for
violation of ORS 701.098 (1)(g) on both the person to whom the contract is
awarded and the person who awards the contract as follows:
(a) A penalty not less than $500 nor more
than $1,000 for the first offense;
(b) A penalty not less than $1,000 nor
more than $2,000 for the second offense;
(c) Suspension of the persons license for
six months for a third offense;
(d) Suspension of the persons license for
three years for a fourth offense; and
(e) Revocation of the persons license for
a fifth offense.
(5) The board may impose a civil penalty
not to exceed $100 for each violation of ORS 87.007 (3). [1971 c.740 §21; 1979
c.874 §5; 1981 c.618 §14; 1983 c.616 §16; 1983 c.696 §27; 1991 c.734 §90; 1995
c.216 §4; 1995 c.771 §6; 1999 c.402 §41; 2003 c.14 §441; 2003 c.778 §7; 2005
c.432 §17]
Note: Section 2, chapter 511, Oregon Laws 2007,
provides:
Sec.
2. Notwithstanding the
amendments to ORS 701.005 by section 1 of this 2007 Act, the Construction
Contractors Board may not impose a civil penalty under ORS 701.992 for
unlicensed cleaning or servicing of a chimney that occurs not more than one
year after the effective date of this 2007 Act [January 1, 2008]. [2007 c.511 §2]
Note: The amendments to 701.992 by section 38,
chapter 836, Oregon Laws 2007, become operative July 1, 2010. See section 70,
chapter 836, Oregon Laws 2007. The text that is operative on and after July 1,
2010, is set forth for the users convenience.
701.992. (1) 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.
(2) Civil penalties under this section
shall be imposed as provided in ORS 183.745.
(3) The provisions of this section are in
addition to and not in lieu of any other penalty or sanction provided by law.
(4) The board shall impose sanctions for
violation of ORS 701.098 (1)(h) on both the person to whom the contract is
awarded and the person who awards the contract as follows:
(a) A penalty not less than $500 nor more
than $1,000 for the first offense;
(b) A penalty not less than $1,000 nor
more than $2,000 for the second offense;
(c) Suspension of the persons license for
six months for a third offense;
(d) Suspension of the persons license for
three years for a fourth offense; and
(e) Revocation of the persons license for
a fifth offense.
(5) The board may impose a civil penalty
not to exceed $100 for each violation of ORS 87.007 (3).
_______________
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