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| What's New for Contractors (Jan 1, 2008) |
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| General Information |
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Using the information in "What's New for Contractors"
"What's New for Contractors" is intended to create awareness of new information and give contractors easy access to new or revised forms.
Not all new information is listed. The CCB's 2007 Legislative Guide contains a complete review of legislative changes in contractor licensing laws. Copies of the guide will be mailed to contractors directly from the printing facility. Contractors may download a copy of the guide by clicking here.
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| Residential Contractors |
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Residential Contract Terms (Effective January 1, 2008)
Oregon law requires contractors to have a written contract if the contract price (at any time) is $2,000 or more. This law has not changed.
Effective January 1, 2008, HB2654 mandates that written contracts for a residential structures must include the following:
- A statement that the contractor is licensed by the CCB.
- The contractor’s name, address, phone number and CCB license number that is shown on the CCB records.
- The customer’s name, address of where the work is to be performed, a description of the work to be performed, the price and the payment terms.
- A summary of the notices required (Consumer Protection Notice, Notice of Procedure and Information Notice to Owner about Construction Liens).
- An explanation of the property owner’s rights under the contract including but not limited to, the ability to file a complaint with the board and the existence of any mediation and arbitration provision in the contract.
Beginning July 1, 2008 contracts for new residential construction will also require:
- The acknowledgment of a written offer of warranty including an acceptance or rejection of the offer by the property owner.
- The acknowledgment of maintenance information.
Contractors must incorporate language into their contracts to meet these requirements, or include an addendum that meets these requirements.
The CCB has developed an addendum to assist contractors in complying with specific contract terms. Contractors are not required to use the addendum. Click here to download a copy of the addendum.
Contractors that fail to provide a written contract when the total contract price exceeds $2,000 are prohibited from claiming a lien. They may also be subject to fines and other sanctions.
Residential Consumer Notices (Effective January 1, 2008)
HB 2654 updates the requirements for the three notices contractors must provide to property owners when contracting for work on a residential construction project.
Effective January 1, 2008 the following required notices must be given at time of contract:
The Consumer Protection Notice (adopted 12/20/07) is not a newly developed form, but, it has certain differences from the previous version. New mandates now require the notice to be given at time of contract rather than at time of bid (as previously required).
No other version of the notice may be used.
Contractors must maintain proof of delivery for two years after the contract was entered into. Proof may include but not be limited to:
- A signed copy.
- An unambiguous phrase in the written contract that acknowledges receipt and has been initialed by the property owner.
- A copy of the written contract if the notices are fully contained in the written contract.
The Notice of Procedure (adopted 12/4/07) replaces the form “Owners Duty to Notify Contractor in the Event of a Residential Construction Dispute”. Contractors must provide the notice at the time of contract.
No other version of the notice may be used.
Contractors must maintain proof of delivery for two years after the contract was entered into. Proof may include but not be limited to:
- A signed copy.
- An unambiguous phrase in the written contract that acknowledges receipt and has been initialed by the property owner.
- A copy of the written contract if the notices are fully contained in the written contract.
The Information Notice to Owner about Construction Liens (adopted 12/20/07) is not a newly developed form, but, it has certain differences from the previous version. The requirement that a contractor is required to give the notice when the contract is $1,000 has not changed.
The contractor must deliver the notice by any of the three methods listed below:
- In person,
- By registered or certified mail, or
- By first class mail with a certificate of mailing.
Contractors must maintain proof of delivery for two years after the contract was entered into. Proof may include but not be limited to:
- A signed copy.
- An unambiguous phrase in the written contract that acknowledges receipt and has been initialed by the property owner.
- A copy of the written contract if the notices are fully contained in the written contract.
Contractors should download and use the newest version of the form. CCB supplies of the notices are available, though quantities may be limited.
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| Commercial Contractors |
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Workers' Compensation Requirement (Effective July 1, 2010)
All contractors with a commercial endorsement are required to carry workers compensation insurance, whether they qualify as an exempt class of business entity or not.
Warranty for Large Commercial Structures Building Envelope (Effective July 1, 2008)
Commercial general contractors (level 1 or level 2) that construct a new large commercial structure must provide the owner of the structure with a two-year warranty against defects in materials and workmanship of the building envelope. The warranty shall provide that the contractor will annually inspect the building during the warranty period. The warranty may exclude coverage resulting from improper building maintenance by the owner.
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| Bonds for New CCB Licenses |
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Beginning January 1, 2008, contractors that apply for a new CCB license will be required to provide a bond for the following:
| License Category |
Bond Amount |
| General contractor (all structures or residential only) |
$20,000 |
| Specialty contractor (all structures or residential only) |
$15,000 |
| Limited Contractor |
$10,000 |
| Inspector |
$15,000 |
| Licensed Developer |
$20,000 |
This is for NEW LICENSES only.
Contractors that have a renewal between January 1, 2008 and June 30, 2008 will renew from the following:
| License Category |
Bond Amount |
| General contractor (all structures or residential only) |
$15,000 |
| Specialty contractor (all structures or residential only) |
$10,000 |
| Limited Contractor |
$ 5,000 |
| Inspector |
$10,000 |
| Licensed Developer |
$15,000 |
If you make any changes that require a new CCB license, you will be required to provide the bond amount indicated in the new license information.
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