New CCB requirements for Oregon contractors
March, 2008
As in previous years, Oregon's Construction Contractors Board (CCB) will have new and revised licensing and bonding rules to enforce for residential and commercial developers, contractors and subcontractors. The following is a brief summary of these new and revised rules:
Residential Contractors. Oregon law currently requires contractors to have a written contract if the contract price (at any time) is $2,000 or more. Effective January 1, 2008, however, HB2654 mandates that written contracts for a residential structure must include the following:
- A statement that the contractor is licensed by the CCB;
- Contractor's name, address, phone number and CCB license number that is shown on the CCB records;
- 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.
In addition, the following residential consumer notices are required effective as of January 1, 2008 (with proof of delivery maintained by the contractor for two (2) years):
- Consumer Protection Notice (adopted 12/20/07)
- Notice of Procedure (adopted 12/4/07)
- Information Notice to Owner about Construction Liens (adopted 12/20/07)
- Approved forms can be found on the CCB website, or by clicking here.
Commercial Contractors. Effective July 1, 2008, 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. Also effective July 1, 2008, and this should have interesting impacts on the industry, commercial general contractors (level 1 or 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.
Bonding requirements. New bonding requirements available upon request.
To obtain a more comprehensive summary, please contact Tim Calderbank at Bullivant Houser Bailey PC, 503.499.4642 or tim.calderbank@bullivant.com.