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Commercial Contractors:Staying Legal
Continuing Education Requirements-Commerical Endorsements
ORS 701.124
Once a contractor becomes endorsed as a commercial contractor, whether by new application or a renewal, they should begin planning and taking continuing education. At the end of the 2-year license period (your renewal application after July 1, 2010) commercially endorsed contractors will certify that they have completed commercial continuing education (CCE).
 
WHO: All CCB commercially endorsed contractors that renew a commercial CCB license. Training can be taken by any "key" employee of the business.
WHAT:CCB Commercial Contractor CE is now part of the requirements for continued licensing with the CCB.
WHEN:   As of  July 1, 2008, contractors who choose a commercial endorsement should begin taking CCE now. You must have the training completed by the next time you renew your CCB license (after July 2010).
HOW:Determine how much what training is needed for your business NOW, and begin taking all required training.
 
You will be asked to declare that you have taken the training on your next CCB license renewal.
 
You must keep records of all continuing education taken by your "key employees".
 

Information on the training
Topics may include construction means, methods, and business practices. Construction
means and methods include training on topics such as:
  • Installation methods
  • Best practices
  • Product training
  • Construction science
  • Or any other training that provides contractors with information on building better structures or operating a successful business
 
By law, providers for continuing education can be:
  •  Community colleges, colleges, universities
  •  Trade schools
  •  Trade or business associations
  •  Professional societies
  •  Private companies
  •  Public agencies
  •  Product manufacturer training
  •  In-house training
 
Providers for CCE are not approved by the CCB. At present, CCB doesn't have a list of CE providers. The CCB is looking at ways to make this information available on its website.

Who takes the training?
The CE must be taken by key employees of the business. A "key employee" is an owner or employee who is one of the following:
  • Corporate officer
  • Manager
  • Superintendent
  • Foreperson
  • Lead person
  • Any other person who exercises management or supervisory authority over the construction activities of the business


How much CE is required?
CE may be obtained by one key employee or by multiple key employees. The total number of hours required depends on how many key employees the business has. The following CE hours are required for each two-year licensing period:
 

 Commercial Endorsement 
# o f
Key Employees
 # of
CE Hours
Commercial General Contractor Level 1 (CGC1) or
Commercial Specialty Contractor Level 1 (CSC1)
5 or more
4
3
2
1
80
64
48
32
16
 
Commercial General Contractor Level 2 (CGC2) or
Commercial Specialty Contractor Level 2 (CSC2)
 
 
Doesn't matter
 
 32
Commercial Developer (CD)
 
 none
 
 

Is anyone exempt from the CE for commerically endorsed contractors?
The CE requirements do not apply if a contractor is licensed only as a commercial developer.
 
In addition, contractors regulated under ORS 479.510 - 479.945 or ORS 480.510 - 480.670, or ORS chapter 693 are not subject to the CE requirements. This includes but is not limited to, commercially endorsed contractors who are licensed to work as:
  • Electrical contractors
  • Plumbing contractors
  • Boiler or pressure vessels
  • Elevator contractors
  • Renewable energy contractors
  • Pump installation contractors

Commercial Continuing Education Flyer
Click here to download a flyer containing important information on the requirements for commercial continuing education.

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Commercial Warranties
ORS 701.340
The law requires that a Commercial General Contractor, Level 1 or Level 2, who constructs a new, large commercial structure must provide the owner with a two-year warranty against defects in materials and workmanship of the building envelope and penetration components.  The warranty must provide that the contractor will inspect the building envelope and penetration components yearly, during the warranty period.  The warranty does not need to cover conditions that result from the owner’s improper maintenance.
 
The following questions highlight a contractor’s obligations under the new law.
  • What is a “warranty”?
  • What is a “large commercial structure”?
  • What is a “building envelope”?
  • What are “penetration components”?
  • What period of time must the warranty cover?
  • How much may the contractor charge for the warranty?
  • Does this law apply to all contractors who build new large commercial structures or only those endorsed as commercial contractors on or after July 1, 2008?
 

What is a warranty?
A warranty is an obligation by the seller that the seller’s product (here, a commercial building) is free from defective materials or workmanship, together with a promise to repair or replace the defective items and faulty work.  Repair or replacement is satisfied by meeting building industry standards.  There does not need to be complete customer satisfaction. 
 
Generally, a warranty does not cover items that arise from customer neglect.

What is a large commercial structure?
A large commercial structure is not a residential structure and:
  • If a stand-alone building, has a ground area of more than 10,000 square feet;
  • If a unit in a larger building, has a ground area of more than 12,000 square feet; or
  • Is a building or unit more than 20 feet tall.

What is a building envelope?
A building envelope consists of the roof, exterior walls, ground floor, windows and doors of a building.  It separates the inside from the outside.  A building envelope must balance the need for ventilation and daylight while providing protection from heat, cold and moisture. 

What are penetration components?
“Penetration” means the act of entering into or through.  “Component” means an individual part of something else.  Using the ordinary meaning of the phrase “penetration component,” it is possible to identify components in a building that may penetrate the building envelope.  For example, window frames, roof vents or outdoor light receptacle may penetrate the building envelope.

What period of time must the warranty cover?
The warranty is for two years.  While not so stated, the warranty probably begins upon the completion of construction.

Who does the law apply to?
The law applies only to contractors who obtain a new or renewal license, on or after July 1, 2008, endorsed as a Commercial General Contractor, Level 1 or 2.  And, the law applies only to those contractors when they build new, large commercial structures. 
 
The law does not apply to:
  • Commercial General Contractors, Level 1 or 2, building small commercial structures;
  • Commercial Specialty Contractors, Level 1 or 2, building any commercial structure;
  • Residential contractors, any endorsement, building any structure; or
  • Contractors licensed before July 1, 2008 who have not yet renewed in an endorsement, even if they build large commercial structures.

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Workers' Compensation Requirements (July 1, 2010)
Current law requires that every business that employs one or more workers must provide workers' compensation insurance.
 
Beginning July 1, 2010, all contractors endorsed as commercial contractors must carry workers' compensation. (ORS 701.035(5).
 
For more information Click Here to read the CCBlog article on "Workers' Comp Insurance Now Required of All Commercial Contractors"

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