2013 701 1 10 14x 46 Ors

User Manual: 46-701

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2013 OREGON REVISED STATUTES
Construction Contractors Board
700 Summer St. NE, Mailing Address: PO Box 14140
Salem OR 97309-5052
(503) 378-4621 FAX: (503) 373-2007
WEB ADDRESS: www.oregon.gov/ccb
CHAPTER 701:
CONSTRUCTION CONTRACTORS BOARD
GENERAL PROVISIONS (Pages 1-8)
701.002
701.005
701.010
701.013
701.015

701.020

Short title
Definitions
Exemptions from licensure; rules
Intent relating to certain business license
requirements
Business license requirements in cities and
metropolitan service districts; fees; distribution of
fees
Certain cities exempt from application of ORS
701.015
LICENSING (Pages 9-23)

701.021
701.026
701.031
701.035
701.038
701.042
701.046
701.050
701.056
701.060
701.063
701.068
701.073
701.081
701.082
701.083
701.084
701.086
701.088
701.091
701.094
701.098

701.102

License requirement; endorsements
Subcontractor licensing; landscaping
Evidence of doing business as contractor
Applicant required to be independent contractor to
be eligible for license; classes of licenses
Residential limited contractors
Residential or commercial developers
License application
Commercial contractor key employees
Licensing application fee; rules
Licensing in another category; fee
Term of license; fee; renewal; inactive status;
license identification card
Bonding requirements; action against surety; rules
Insurance required of licensed contractors
Residential contractors; bond; insurance;
responsible managing individual
Residential contractor continuing education
requirements; exemptions
Residential contractor specialized education
programs
Commercial contractors; bond; insurance;
responsible managing individual; key employees
Key employee continuing education
Contractor rehabilitating illegal drug
manufacturing site; substitution for bond; fee; rules
Responsible managing individual
Definition for ORS 701.098 and 701.102; rules
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
Sanction for past unresolved activity; probation

701.106
701.107
701.108

701.109
701.112
701.114
701.117
701.119
701.120

701.122

701.128

Sanction for violation or failure to comply with
certain laws
Sanction for assisting evasion of obligations
Failure to comply with prevailing wage rate or
other wage and hour standards for energy
efficiency and sustainable technology projects
Reporting of final judgments
Continuation of board authority when change
occurs in license status
Change in responsible managing individual or
persons exercising control of contractor
Contractor to notify board of address change; effect
of mail to last-known address
Certification to participate in small scale local
energy project program
Specialized education programs; standards;
specialized education notation in credentials;
removal of notation; rules for use of credentials
Training requirements for individuals and
businesses; testing of business license applicant;
exception; rules
Suit for damages for misrepresentation
COMPLAINTS (Pages 23-33)

701.131
701.133
701.139
701.140
701.143
701.144
701.145

701.146

701.149
701.150
701.153
701.157

License required to perfect lien or obtain judicial
or administrative remedy; exception
Notice of intent to file complaint; fees; rules
Board authority over disputes; resolution
processes
Types of allowable complaints; restriction on
processing complaint for recoupment of lien
Requirement for timely filing of complaints;
timelines
Use of binding arbitration and contested case
hearings; rules
Resolution of complaints involving work on
residential structures or certain small commercial
structures
Resolution of complaints involving work on
large commercial structures or certain small
commercial structures
Status reports; alternative dispute resolution
Determination of amount to be paid from bond
Recording of order as lien; satisfaction of order
against residential contractor
Satisfaction of order against commercial
contractor

CONSTRUCTION CONTRACTORS BOARD
701.160

701.180

Nonlawyer may represent certain forms of
businesses before board; rules for additional
business forms
Alternative mediation or arbitration process;
waiver of mediation or arbitration

CONSTRUCTION CONTRACTORS BOARD
(Pages 33-37)
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 or
improperly endorsed 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
701.246
Confidentiality of information; permissible
disclosures
701.250
Board to provide licensee’s status on request; fee
701.255
Funds retained for collection of civil penalties
701.260
Appeal committee; membership; duties
701.265
Continuing education system for residential
contractors; rules
701.267
Agreements with continuing education
providers; credits; rules
701.295
Board duty to investigate and seek prosecution
of illegal activity
CONSTRUCTION CONTRACTS AND NOTICES
(Pages 37-40)
701.305
701.310
701.312
701.315
701.320
701.325

701.330
701.335
701.340
701.345
701.348

Requirement for written contract with residential
property owner; standard contractual terms; rules
Cancellation of contract
Additional grounds for placing contractor on
probation
Contents of contract for work on residential
structure
Offer of warranty; withdrawal of contract offer
Condition for obtaining building permit;
information notice; business licenses; local
regulation
Consumer notice form; notice of procedure form;
rules
Recommended maintenance schedule; rules
Commercial structure warranty
Subcontractor list
Sewer contractor requirements
HOME INSPECTORS (Page 40)

701.350

Home inspectors; certification; rules; fees;
exemption

701.355
701.360

Home inspector undertaking of repair work on
inspected structure
Home inspector services contractor license;
exemption from testing and continuing education
RETAINAGE (Pages 41-42)

701.410
701.420
701.430
701.435
701.440

Definitions
Partial payment; retainage; effect; interest; notice
of completion; payment by contractor and owner
Performance bond; terms
Deposits in lieu of cash retainage
Applicability to federal projects
LOCKSMITHS (Pages 44)

701.475
701.480
701.485

701.490
701.495

Definitions for ORS 701.475 to 701.490
Certification; licensing; holding out as locksmith
or locksmithing business
Standards of practice and professional conduct;
determination of competency; sanctions; rules;
fees
Exemptions from certification, licensure and
other requirements
Residential locksmith services contractor license;
exemption from testing and continuing education

LEAD POISONING AND HAZARD REDUCTION
(Pages 44-45)
701.505
701.510
701.515
701.520

Definitions for ORS 701.505 to 701.515
License required to engage in lead-based paint
activity
Licensing system; fees; rules
Construction Contractors Board Lead-Based
Paint Activities Fund
HOME ENERGY ASSESSMENT AND
PERFORMANCE SCORING (Page 45-46)

701.527
701.529
701.532
701.534
701.536

Definitions for ORS 701.527 to 701.536
Certification and licensing requirements; use of
title
Home energy assessor certification; training;
rules; fees
Home energy performance score contractors
Assessor and contractor exemption from testing
and continuing education
ACCESSIBILITY FEATURES (Page 46)

701.545
701.547

Provision of accessible features list to purchaser;
effect
Model list of accessibility features; rules
MERCURY THERMOSTATS (Pages 46)

701.550

Notice of Department of Consumer and Business
Services rules regarding thermostats containing
mercury

PROHIBITED MATERIAL INSTALLATION
(Page 46-47)
701.555

Barrier-type exterior insulation and finish
systems

CONSTRUCTION CONTRACTORS BOARD
NOTICES OF DEFECT IN RESIDENCE (Pages 47-50)
701.560
701.565
701.570
701.575
701.580

701.585
701.595
701.600

Definitions for ORS 701.560 to 701.595 and
701.605
Notice of defect requirement; contents; mailing
Secondary notice of defect; inspection of
residence; response to notice or secondary notice
Availability of residence; scope of inspection;
report of inspection results
Offer by contractor, subcontractor or supplier;
effect of accepting offer; nonperformance;
compelling arbitration or commencing court
action; admissibility of response or reply
Effect of notice of defect on time for
commencing court action
Failure to follow notice of defect procedure
Nonapplicability of ORS 701.560 to 701.595 and
701.605
WARRANTIES (Page 50)

701.605

Recording of written warranty agreement

HOME SERVICE AGREEMENTS (Pages 50)
701.610

Home services contractor license; exemption
from testing and continuing education

CONSTRUCTION CONTRACT PAYMENTS
(Pages 50-54)
701.620
701.625

701.630
701.635
701.640
701.645

Definitions for ORS 701.620 to 701.640
Progress payments; notice requirements;
nonapproval of billing or estimate; withholding;
final payment
Payments to subcontractors and material
suppliers; failure to pay; omission of payment
Suspension of performance
Prohibition against contrary provisions,
covenants or clauses
Contracts and housing not subject to ORS
701.620 to 701.640
PENALTIES (Pages 54-55)

701.990
701.992
701.995

Criminal penalties
Civil penalties and other sanctions; enforcement
Civil penalties for violations related to leadbased paint activities; reporting of penalties and
sanctions

Chapter 12: Procedure in Civil Proceedings (Part)
(Pages 56-58)
12.010
12.020
12.040

12.050
12.060
12.070
12.080
12.115

Time of commencing actions
When action deemed begun
Limitations of suits generally; land patent suits;
defense of possession by equitable title; suit on
new promise, fraud or mistake
Action to recover real property
Suit or action on land contracts; time when they
cease to affect the property
Action on judgment, decree or sealed instrument
Action on certain contracts or liabilities
Action for negligent injury to person or property

12.135

12.230
12.240
12.250
12.280

Action for damages from construction, alteration
or repair of improvement to real property;
“substantial completion” defined; application
Acknowledgment or promise taking contract
case out of statute; effect of payment
Effect of payment after obligation becomes due
Actions by state, county or public corporations
Action based on practice of land surveying

Chapter 36: Uniform Arbitration Act (part) (Pages 59-60)
36.600
36.605
36.610
36.615
36.620
36.625
36.630
36.635
36.640
36.645
36.650
36.655
36.660
36.665
36.670
36.675
36.680
36.685
36.690
36.695
36.700
36.705
36.710
36.715
36.720
36.725
36.730
36.735
36.740

Definitions
Notice
Effect of agreement to arbitrate; nonwaivable
provisions
Application for judicial relief; fees
Validity of agreement to arbitrate; form of
acknowledgment of agreement
Petition to compel or stay arbitration
Provisional remedies
Initiation of arbitration
Consolidation of separate arbitration proceedings
Appointment of arbitrator; service as neutral
arbitrator
Disclosure by arbitrator
Action by majority
Immunity of arbitrator; competency to testify;
attorney fees and costs
Arbitration process
Representation by a lawyer; representation of
legal or commercial entities
Witnesses; subpoenas; depositions; discovery
Judicial enforcement of preaward ruling by
arbitrator
Award
Change of award by arbitrator
Remedies; fees and expenses of arbitration
proceeding
Confirmation of award
Vacating award
Modification or correction of award
Judgment on award; attorney fees and litigation
expenses
Jurisdiction
Venue
Appeals
Uniformity of application and construction
Relationship to electronic signatures in Global
and National Commerce Act
Chapter 83: Retail Installment Contracts-Home Solicitation Sales (Part)
(Page 67-69)

83.710
83.715
83.720
83.730

Definitions for ORS 83.710 to 83.750;
application of ORS 83.710 to 83.750
Telephone solicitation sale; contract; contents
Cancellation of home solicitation sale; notice;
exception
Written agreement or offer to purchase; contents;
notice of buyer’s right to cancel; form

CONSTRUCTION CONTRACTORS BOARD
83.740
83.750

Duties of seller upon cancellation of sale or
revocation of offer to purchase
Rights and duties of buyer upon cancellation of
sale or revocation of offer to purchase
Chapter 87: Statutory Liens (Part)
(Pages 70-81)

87.001
87.005
87.007

87.010
87.015
87.018
87.021
87.023
87.025

87.027

87.030
87.035
87.036
87.037
87.039
87.045

87.050
87.055
87.057

87.059
87.060
87.070
87.075
87.076
87.078
87.081

Short title
Definitions for ORS 87.001 to 87.060 and
87.075 to 87.093
Protection from construction liens perfected after
sale of residential property completed;
requirements; seller options; rules, delivery of
form to purchaser; penalty; damages; defenses
Construction liens; who is entitled to lien
Land and interests therein subject to lien;
leaseholds
Delivery of notices
Notice to owners; notice from owner to original
contractor; effect of failure to give notice
Notice of right to lien; form of notice
Priority of perfected liens; right to sell
improvements separately from land; notice to
mortgagee; list of materials or supplies
Right of owner to demand list of services,
materials, equipment and labor; penalty for
failure to provide list
Effect of owner knowledge of improvement;
notice of nonresponsibility
Perfecting lien; filing claim of lien; contents of
claim
Subcontractor’s perfection of claim of lien; fee;
rules
Prohibition against claim of lien
Notice of filing claim of lien; effect of failure to
give notice
Completion date of improvement; notice of
completion, abandonment or nonabandonment;
contents of notice
Recording
Duration of lien; when suit to enforce lien
commences
Notice of intent to foreclose; list of materials
furnished and statement of prices; effect of
failure to give notice
Stay in proceedings to enforce lien;
requirements; procedure; dissolution of stay
Foreclosure; right to jury trial; distribution of
proceeds of foreclosure sale
Amount of recovery by contractor; respective
rights of contractor and owner
Exemption of building materials from
attachment by third persons
Bond or deposit of money; amount; demand for
release of lien; effect
Notice of filing bond or depositing money;
contents of notice; effect of failure to give notice
Filing affidavit with county officer

87.083

87.086
87.088
87.091
87.093

Foreclosure after filing of bond or deposit of
money; effect of filing or deposit; disposition of
bond or money
Determination of adequacy of bond
Release of lien or return of money
Limitations on actions
Information Notice to Owner; rules; contents;
when notice must be delivered; effect of failure
to deliver notice; penalty

Chapter 279: Public Contracting—Public Improvements
(part) (pages 82-99)
279C.005
279C.010
279C.365
279C.370
279C.375

279C.580
279C.585
279C.590

General Provisions
Definitions
Applicability
Requirements for solicitation documents and
bids and proposals
First-tier subcontractor disclosure
Award and execution of contract; determination
of responsibility of bidder; bonds; impermissible
exclusions
(Subcontractors)
Contractor’s relations with subcontractors
Authority to substitute undisclosed first-tier
subcontractor; circumstances; rules
Complaint process for substitutions of
subcontractors; civil penalties

(Action on Payment Bonds and Public Works Bonds)
279C.600 Right of action on payment bond or public works
bond of contractor or subcontractor; notice of
claim
279C.605 Notice of claim
279C.610 Action on contractor’s public works bond or
payment bond; time limitation

279C.800
279C.805
279C.807
279C.808
279C.810
279C.815

279C.817
279C.820
279C.825
279C.827
279C.829
279C.830

279C.835
279C.836

Prevailing Wage Rate
Definitions for ORS 279C.800 to 279C.870
Policy
Workforce diversity for public works projects
Rules
Exemptions; rules
Determination of prevailing wage; sources of
information; comparison of state and federal
prevailing wage; other powers of commissioner
Determination of applicability of prevailing
wage rate; time limitation; hearing; rules
Advisory committee to assist commissioner
Fees; rules
Division of public works project; applicability of
prevailing wage rate to divided projects
Agreement with other state to pay less than
prevailing rate of wage
Provisions concerning prevailing rate of wage in
specifications, contracts and subcontracts;
applicability of prevailing wage; bond
Notifying commissioner of public works contract
subject to prevailing wage; payment of fee
Public works bond; rules

CONSTRUCTION CONTRACTORS BOARD
279C.838

279C.840
279C.845
279C.850

279C.855
279C.860

279C.865
279C.870

Applicability of state and federal rates of wage;
determination of site of project; determination of
applicability of wage to transportation workers;
waiver
Payment of prevailing rate of wage; posting of
rates and fringe benefit plan provisions
Certified statements regarding payment of
prevailing rates of wage; retainage
Inspection to determine whether prevailing rate
of wage being paid; civil action for failure to pay
prevailing rate of wage or overtime
Liability for violations
Ineligibility for public works contracts for failure
to pay or post notice of prevailing rates of wage;
certified payroll reports to commissioner
Civil penalties
Civil action to enforce payment of prevailing
rates of wage

Chapter 469: Public Health and Safety (Page 100)
469.703

656.023
656.025
656.027
656.029

656.128

Person performing work under ORS chapter 701
as subject employer
Who are subject employers
Individuals engaged in commuter ridesharing not
subject workers; conditions
Who are subject workers
Obligation of person awarding contract to
provide coverage for workers under contract;
exceptions; effect of failure to provide coverage
Sole proprietors, limited liability company
members, partners, independent contractors may
elect coverage by insurer; cancellation.

Chapter 670: Occupations and Professions (Page 105-109)
670.010

670.020

670.283
670.290
670.300

670.304
670.306
670.310
670.315

Home energy performance score system; home
energy assessors; reports; database; rules.

Chapter 656: Workers’ Compensation (part)
(Pages 101-104)
656.021

670.275
670.280

Educational Requirements
Waiver of educational requirement for admission
to examination for license or certificate to
practice profession, trade or calling.
Filing evidence of complete educational
requirement after taking examination.

670.325

670.335
670.345
670.350

670.380

670.600
670.605
670.610

Licensing Administration
(Generally)
Policy statement
Denial, suspension or revocation of license based
on criminal conviction; denial of license or
imposition of discipline for conduct substantially
related to fitness and ability of applicant or
licensee
Power of state agency to suspend license
includes power to reinstate
Prohibited uses of juvenile records in
employment, licensing or admission
Licensing and advisory board officers; quorum
and meeting requirements; compensation and
expenses of members
Application of ORS 670.300 to 670.380
Administrative officers for boards; other
employees
Rulemaking authority; board seal
Administration of oaths; obtaining and taking
evidence at board proceedings; effect of failure
to obey board subpoena
Proceedings on denial of license; restraining
violations; authority of administrative law judge;
record of proceedings
Disposition of fees received by boards;
procedure for payment of board expenses
Procedure for filling vacancies on board
Administration of professional qualification
examinations
(Reciprocal Agreements)
When reciprocal licensing or registration
agreements authorized; termination
Independent Contractors
Independent contractor defined
Rules for application of definition of
independent contractor
Referees in recreational soccer matches
considered independent contractors

CONSTRUCTION CONTRACTORS AND CONTRACTS

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:
(a) Under an order or arbitration award issued by
the board that has become final by operation of law;
(b) Under a judgment, arbitration award or civil
penalty that has become final by operation of law
arising from construction activities within the United
States; or
(c) Under a judgment or civil penalty that has
become final by operation of law arising from a failure
to comply with ORS 656.017; or
(d) To employees of a construction contracting
business for unpaid wages.
(5) “Contractor” means any of the following:
(a) A person that, 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, a building, highway, road,
railroad, excavation or other structure, project,
development or improvement attached to real estate, 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.

2013 Annotated 1-10-14

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(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) A 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 or a
cross-connection inspector and backflow assembly
tester certified under ORS 448.279.
(g) A person that for compensation arranges,
undertakes, offers to undertake or submits a bid to
clean or service chimneys.
(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)(a) “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.
(b) “General contractor” does not mean a
specialty contractor or a residential limited contractor.
(8)(a) “Home improvement” means a renovation,
remodel, repair or alteration by a residential contractor
to an existing owner-occupied:
(A) Residence that is a site-built home;
(B) 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;
(C) Modular home constructed off-site;
(D) Manufactured dwelling; or
(E) Floating home, as defined in ORS 830.700.
(b) “Home improvement” does not include a
renovation, remodel, repair or alteration by a
residential contractor:
(A) To a structure that contains one or more
dwelling units and is four stories or less above grade;
or
(B) That the residential contractor performed in
the course of constructing a new residential structure.
(9)(a) “Home inspector” means a person who, for
a fee, inspects and provides written reports on the
overall physical condition of a residential structure.
(b) “Home inspector” does not include persons
certified under ORS chapter 455 to inspect new,

OCCUPATIONS AND PROFESSIONS
repaired or altered structures for compliance with the
state building code.
(10) “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 the board identifies by rule.
(11) “Large commercial structure” means a
structure that is not a residential structure or small
commercial structure.
(12) “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 the board defines by rule as an
officer. The definition of officer adopted by board rule
may include persons not listed in this subsection who
may exercise substantial control over a business.
(13) “Residential contractor” means a licensed
contractor that holds an endorsement as a:
(a) Residential general contractor;
(b) Residential specialty contractor;
(c) Residential limited contractor;
(d) Residential developer;
(e) Residential locksmith services contractor;
(f) Home inspector services contractor;
(g) Home services contractor; or
(h) Home energy performance score contractor.
(14) “Residential developer” means a developer
of property that is zoned for or intended for use
compatible with a residential or small commercial
structure.
(15)(a) “Residential structure” 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;
(F) A floating home as defined in ORS 830.700;
or
(G) An appurtenance to a home, structure, unit or
dwelling described in subparagraphs (A) to (F) of this
paragraph.
(b) “Residential structure” 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;

2013 Annotated 1-10-14

Page 2

(D) A state or local correctional facility;
(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.
(16) “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) Successfully completed the training and
testing required for licensing under ORS 701.122
within a period the board identifies by rule;
(B) Demonstrated experience the board requires
by rule; or
(C) Complied with the licensing requirements of
ORS 446.395.
(17) “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;
(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;
or
(d) An appurtenance to a structure or unit
described in paragraphs (a) to (c) of this subsection.
(18) “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.
(19) “Worker leasing company” means a person
licensed under ORS 656.850 (2) to perform the service
of providing nontemporary workers by contract and for
a fee to work for a client.
(20) “Zero-lot-line dwelling” means a singlefamily dwelling unit constructed in a group of attached
units in which:

CONSTRUCTION CONTRACTORS AND CONTRACTS
(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; 2009 c.271 §1; 2009 c.757
§6; 2010 c.77 §4; 2011 c.170 §1; 2011 c.630 §38; 2013
c.130 §6; 2013 c.251 §3; 2013 c.300 §6; 2013 c.383
§8]
Note 1: The amendments to 701.005 by section 8,
chapter 383, Oregon Laws 2013, become operative July 1,
2014. See section 17, chapter 383, Oregon Laws 2013. The
text that is operative on and after July 1, 2014, including
amendments by section 6, chapter 130, Oregon Laws 2013,
section 3, chapter 251, Oregon Laws 2013, and section 6,
chapter 300, Oregon Laws 2013, is set forth for the user’s
convenience.
701.005. 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) Under an order or arbitration award issued by the
board that has become final by operation of law;
(b) Under a judgment or civil penalty that has become
final by operation of law arising from construction activities
within the United States; or
(c) Under a judgment or civil penalty that has become
final by operation of law arising from a failure to comply
with ORS 656.017; or
(d) To employees of a construction contracting
business for unpaid wages.
(5) “Contractor” means any of the following:
(a) A person that, 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, a
building, highway, road, railroad, excavation or other
structure, project, development or improvement attached to
real estate, 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.

2013 Annotated 1-10-14

Page 3

(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) A 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 or a cross-connection
inspector and backflow assembly tester certified under ORS
448.279.
(g) A person that for compensation arranges,
undertakes, offers to undertake or submits a bid to clean or
service chimneys.
(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)(a) “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.
(b) “General contractor” does not mean a specialty
contractor or a residential limited contractor.
(8)(a) “Home improvement” means a renovation,
remodel, repair or alteration by a residential contractor to an
existing owner-occupied:
(A) Residence that is a site-built home;
(B) 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;
(C) Modular home constructed off-site;
(D) Manufactured dwelling; or
(E) Floating home, as defined in ORS 830.700.
(b) “Home improvement” does not include a
renovation, remodel, repair or alteration by a residential
contractor:
(A) To a structure that contains one or more dwelling
units and is four stories or less above grade; or
(B) That the residential contractor performed in the
course of constructing a new residential structure.
(9)(a) “Home inspector” means a person who, for a
fee, inspects and provides written reports on the overall
physical condition of a residential structure.
(b) “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.
(10) “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 the board identifies by rule.
(11) “Large commercial structure” means a structure
that is not a residential structure or small commercial
structure.
(12) “Officer” means any of the following persons:
(a) A president, vice president, secretary, treasurer or
director of a corporation.

OCCUPATIONS AND PROFESSIONS
(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 the board defines by rule as an officer.
The definition of officer adopted by board rule may include
persons not listed in this subsection who may exercise
substantial control over a business.
(13) “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.
(e) Residential locksmith services contractor;
(f) Home inspector services contractor; or
(g) Home services contractor.
(14) “Residential developer” means a developer of
property that is zoned for or intended for use compatible with
a residential or small commercial structure.
(15)(a) “Residential structure” 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;
(F) A floating home as defined in ORS 830.700; or
(G) An appurtenance to a home, structure, unit or
dwelling described in subparagraphs (A) to (F) of this
paragraph.
(b) “Residential structure” 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;
(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.
(16) “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) Successfully completed the training and testing
required for licensing under ORS 701.122 within a period the
board identifies by rule;

2013 Annotated 1-10-14

Page 4

(B) Demonstrated experience the board requires by
rule; or
(C) Complied with the licensing requirements of ORS
446.395.
(17) “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; or
(d) An appurtenance to a structure or unit described in
paragraphs (a) to (c) of this subsection.
(18) “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.
(19) “Worker leasing company” means a person
licensed under ORS 656.850 (2) to perform the service of
providing nontemporary workers by contract and for a fee to
work for a client.
(20) “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.
Note 2: The amendments to 701.005 by section 59,
chapter 630, Oregon Laws 2013, become operative July 1,
2017, and apply to complaints filed on or after July 1, 2017.
See section 73, chapter 630, Oregon Laws 2011. The text
that is operative on and after July 1, 2017, including
amendments by section 7, chapter 130, Oregon Laws 2013,
section 4, chapter 251, Oregon Laws 2013, section 7, chapter
300, Oregon Laws 2013, is set forth for the user’s
convenience.
701.005. 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:

CONSTRUCTION CONTRACTORS AND CONTRACTS
(a) Under an order or arbitration award issued by the
board that has become final by operation of law;
(b) Under a judgment or civil penalty that has become
final by operation of law arising from construction activities
within the United States; or
(c) Under a judgment or civil penalty that has become
final by operation of law arising from a failure to comply
with ORS 656.017; or
(d) To employees of a construction contracting
business for unpaid wages.
(5) “Contractor” means any of the following:
(a) A person that, 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, a
building, highway, road, railroad, excavation or other
structure, project, development or improvement attached to
real estate, 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) A 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 or a cross-connection
inspector and backflow assembly tester certified under ORS
448.279.
(g) A person that for compensation arranges,
undertakes, offers to undertake or submits a bid to clean or
service chimneys.
(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)(a) “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.
(b) “General contractor” does not mean a specialty
contractor or a residential limited contractor.
(8)(a) “Home improvement” means a renovation,
remodel, repair or alteration by a residential contractor to an
existing owner-occupied:
(A) Residence that is a site-built home;
(B) 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;

2013 Annotated 1-10-14

Page 5

(C) Modular home constructed off-site;
(D) Manufactured dwelling; or
(E) Floating home, as defined in ORS 830.700.
(b) “Home improvement” does not include a
renovation, remodel, repair or alteration by a residential
contractor:
(A) To a structure that contains one or more dwelling
units and is four stories or less above grade; or
(B) That the residential contractor performed in the
course of constructing a new residential structure.
(9)(a) “Home inspector” means a person who, for a
fee, inspects and provides written reports on the overall
physical condition of a residential structure.
(b) “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.
(10) “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 the board identifies by rule.
(11) “Large commercial structure” means a structure
that is not a residential structure or small commercial
structure.
(12) “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 the board defines by rule as an officer.
The definition of officer adopted by board rule may include
persons not listed in this subsection who may exercise
substantial control over a business.
(13) “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.
(e) Residential locksmith services contractor;
(f) Home inspector services contractor;
(g) Home services contractor; or
(h) Home energy performance score contractor.
(14) “Residential developer” means a developer of
property that is zoned for or intended for use compatible with
a residential or small commercial structure.
(15)(a) “Residential structure” 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;
(F) A floating home as defined in ORS 830.700; or
(G) An appurtenance to a home, structure, unit or
dwelling described in subparagraphs (A) to (F) of this
paragraph.
(b) “Residential structure” does not mean:

OCCUPATIONS AND PROFESSIONS
(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;
(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.
(16) “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) Successfully completed the training and testing
required for licensing under ORS 701.122 within a period the
board identifies by rule;
(B) Demonstrated experience the board requires by
rule; or
(C) Complied with the licensing requirements of ORS
446.395.
(17) “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; or
(d) An appurtenance to a structure or unit described in
paragraphs (a) to (c) of this subsection.
(18) “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.
(19) “Worker leasing company” means a person
licensed under ORS 656.850 (2) to perform the service of
providing nontemporary workers by contract and for a fee to
work for a client.
(20) “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

2013 Annotated 1-10-14

Page 6

(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 person’s contracts for labor, materials and
all other items is less than $1,000 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 owner’s
employee, whether the property is occupied by the
owner or not, or a person performing work on that
person’s residence, whether or not that person owns the
residence. This subsection does not apply to a person

CONSTRUCTION CONTRACTORS AND CONTRACTS
performing work on a structure owned by that person
or the owner’s 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 or registered in one of the
following trades or professions when operating within
the scope of that license or registration:
(a) An architect registered by the State Board of
Architect Examiners.
(b) A professional engineer registered 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.
(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 landscape contracting business operating
within the scope of a license issued under ORS
671.510 to 671.760 that:
(a) Constructs fences, decks, arbors, patios,
landscape edging, driveways, walkways or retaining
walls and meets the applicable bonding requirements
under ORS 671.690; or
(b) Subcontracts to a licensed plumbing
contractor, or otherwise arranges for a licensed
plumbing contractor to perform, the installation of an
irrigation system described in ORS 671.540(1)(m) or
the repair or maintenance of an irrigation system.
(10) A person who performs work subject to this
chapter as an employee of a contractor.
(11) A manufacturer of a manufactured home
constructed under standards established by the federal
government.
(12) 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.
(13) A surety company, commercial lending
institution, holding company for a commercial lending
institution, subsidiary of a commercial lending
institution or subsidiary of a holding company for a
commercial lending institution that arranges for
completion, repair or remodeling by one or more
licensed contractors of a structure in which the

2013 Annotated 1-10-14

Page 7

company, institution, holding company or subsidiary
holds a legal or security interest. 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.
(14) A real estate licensee who engages in the
management of rental real estate 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.
(15) Units of government other than those
specified in ORS 701.005(5)(c) and (d).
(16) 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.
(17) A worker leasing company or temporary
service provider, both as defined in ORS 656.850, that
supplies personnel to a licensed contractor for the
performance of work under the direction and
supervision of the contractor.
(18) City or county inspectors acting under ORS
701.225 or inspectors described in ORS 455.715.
(19) A person performing work for purposes of
agricultural drainage, agricultural trenching or
agricultural irrigation or involving the construction of
agricultural fences to control livestock.
(20) A person performing work that is subject to
ORS 527.610 to 527.770 on forestlands for which
notice of operation has been filed under ORS 527.670.
[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; 2009 c.259 §31; 2009 c.483 §5; 2011 c.174
§1; 2013 c.196 §22; 2013 c.378 §1]
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 Portland
metropolitan area. It is the purpose of this section and
ORS 701.015 to enable construction contractors to
secure from the metropolitan service district one
business license that will permit the conduct of
business by construction contractors in cities in which
the contractors perform a limited amount of work and
in which they do not have a principal place of business.
Furthermore, it is also the intent of the Legislative
Assembly that this section and ORS 701.015 apply

OCCUPATIONS AND PROFESSIONS
only to construction contractors engaged in the
building trades and crafts without regard to any
subsequent expansion of the jurisdiction of the
Construction Contractors Board over other trades and
crafts. It is declared to be the policy of this state that, to
the maximum extent possible consistent with the
requirements of this section and ORS 701.015, the
cities within the boundaries of the metropolitan service
district be allowed to control the imposition of business
license taxes and to maintain the level of revenues
obtained from those taxes. The amount and trends of
revenue produced or distributed to each city is intended
to reflect the construction business activity within the
participating cities. [1991 c.79 §1; 2001 c.409 §10;
2007 c.541 §43]
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

2013 Annotated 1-10-14

Page 8

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 person’s 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.

CONSTRUCTION CONTRACTORS AND CONTRACTS
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. For purposes of offering to
undertake or submitting a bid to do work, a partnership
or joint venture is licensed and endorsed if any partner
or joint venturer whose name appears in the business
name of the partnership or joint venture has a current
license issued by the board and possesses an
appropriate endorsement.
(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.
(e) Residential locksmith services contractor;
(f) Home inspector services contractor;
(g) Home services contractor; or
(h) Home energy performance score contractor.
(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) Residential locksmith services contractor;
(f) Commercial general contractor level 1.
(g) Commercial specialty contractor level 1.
(h) Commercial general contractor level 2.
(i) Commercial specialty contractor level 2.
(j) 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; 2010 c.57 §1; 2013 c.300 §8;
2013 c.383 §10]
Note: The amendments to 701.021 by section 10,
chapter 383, Oregon Laws 2013, become operative July 1,
2014. See section 17, chapter 383, Oregon Laws 2013. The

2013 Annotated 1-10-14

Page 9

text that is operative on and after July 1, 2014, including
amendments by section 8, chapter 300, Oregon Laws 2013, is
set forth for the user’s convenience.
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. For purposes of
offering to undertake or submitting a bid to do work, a
partnership or joint venture is licensed and endorsed if any
partner or joint venturer whose name appears in the business
name of the partnership or joint venture has a current license
issued by the board and possesses an appropriate
endorsement.
(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.
(e) Residential locksmith services contractor;
(f) Home inspector services contractor; or
(g) Home services contractor.
(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) Residential locksmith services contractor;
(f) Commercial general contractor level 1.
(g) Commercial specialty contractor level 1.
(h) Commercial general contractor level 2.
(i) Commercial specialty contractor level 2.
(j) 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.

701.025 [1989 c.762 §1; 1989 c.870 §§3,3a;
renumbered 670.600 in 1991]
701.026 Subcontractor licensing; landscaping.
(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. [Formerly 701.055]

OCCUPATIONS AND PROFESSIONS
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 person’s own use
performs, employs others to perform, or for
compensation and with the intent to sell the structure
arranges to have performed, work described in ORS
701.005(5); and
(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]
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:
(a) The nonexempt class is composed of the
following entities:
(A) Sole proprietorships, partnerships,
corporations and limited liability companies:
(i) With one or more employees; or
(ii) That utilize one or more workers supplied by
a worker leasing company.
(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 is licensed as exempt under
subsection (2)(b) of this section hires one or more
employees, or utilizes one or more workers supplied by
a worker leasing company 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. If a person who is
licensed as exempt under subsection (2)(b) of this
section hires one or more employees, or utilizes one or
more workers supplied by a worker leasing company,
the person is also subject to licensing sanctions under
ORS 701.098. 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

2013 Annotated 1-10-14

Page 10

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.
[1989 c.870 §4; 1995 c.216 §1; 1999 c.402 §13; 2007
c.836 §15; 2009 c.408 §§2,3; 2013 c.300 §10]
Note: Section 13, chapter 300, Oregon Laws 2013,
provides:
Sec. 13. The amendments to ORS 701.035 and 701.098
by sections 10 and 11, chapter 300, Oregon Laws 2013, apply
to utilization of workers that are supplied by a worker leasing
company 90 or more days after the effective date of this 2013
Act [January 1, 2014]. [2013 c.300 §13]

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]
701.042 Residential or commercial developers.
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. [2997 c.836 §6; 2007 c.836 §7]
701.046 License application. (1) Except as
provided in subsection (2) of this section, an applicant
for a construction contractor license must submit the
application on a form prescribed by the Construction
Contractors Board. The application 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),
(i) and (j) 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:

CONSTRUCTION CONTRACTORS AND CONTRACTS
(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 membermanaged 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 managermanaged 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) 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) The name and address of the following if the
applicant is a limited partnership:
(A) Each partner of any partnership, limited
liability partnership or foreign limited liability
partnership that is the general partner of the applicant.
(B) Each general partner of any limited
partnership that is the general partner of the applicant.
(C) Each joint venture in any joint venture that is
the general partner of the applicant.
(D) The manager and each member of any
manager-managed limited liability company that is the
general partner of the applicant.
(E) Each member of any member-managed
limited liability company that is the general partner of
the applicant.

2013 Annotated 1-10-14

Page 11

(F) Each officer of any corporation that is the
general partner of the applicant.
(k) For each person described in paragraphs (h),
(i) and (j) 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.
(L) The basis on which the applicant meets the
standards for independent contractor status under ORS
670.600.
(2) Subsection (1)(h), (i) and (j) of this section
does not apply if the applicant is a company that offers
securities registered with the United States Securities
and Exchange Commission for sale to the general
public.
(3) 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.
(4) Subsection (3)(a) of this section does not
apply to an applicant for licensing with endorsement
solely as a residential or commercial developer.
(5) An applicant shall conform to the information
provided by the applicant on the application and to the
terms of the application.
[Formerly 701.075; 2009 c.11 §§90,91; 2009 c.226 §3;
2013 c.300 §1]
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.

OCCUPATIONS AND PROFESSIONS
(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 bachelor’s degree in a construction-related
field may substitute for up to three years of experience;
(c) A bachelor’s degree or master’s degree in
business, finance or economics may substitute for up to
two years of experience; and
(d) An associate’s degree in construction or
building management may substitute for up to one year
of experience. [2007 c.836 §8]
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; 2007
c.836 §16; 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]
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]
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

2013 Annotated 1-10-14

Page 12

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 two years after the contractor’s license lapses,
upon the contractor’s 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. [Formerly
701.115; 2009 c.408 §§4,5]
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; 2007 c.836 §58;
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 for a residential contractor
must provide that the applicant, with regard to work

CONSTRUCTION CONTRACTORS AND CONTRACTS
subject to this chapter, will pay amounts determined by
the board as provided under ORS 701.145. The surety
bond for a commercial contractor must provide that the
applicant, with regard to work subject to this chapter,
will pay amounts determined by the board as provided
under ORS 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
determination issued under ORS 701.145 or 701.146,
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
contractor’s 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 amounts for which the
board has determined the surety to have responsibility.
(8) Upon issuance of a determination under ORS
701.145 or 701.146 for a complaint against a contractor
who holds a bond required under this section, the board

2013 Annotated 1-10-14

Page 13

shall notify the surety on the bond of the determination
in a manner determined by the board by rule. The
notification shall include a list of all board
determinations for payment by the surety from the
bond.
(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
determination.
(10) In any action against a surety on a bond
under this section that is based on the failure of the
surety to pay an amount determined by the board, the
court may award:
(a) Costs;
(b) Reasonable attorney fees to the prevailing
party as part of the costs; and
(c) Twice the amount that the board determined
the surety must pay on the complaint, if the surety
arbitrarily and capriciously refused to pay.
[Formerly 701.085; 2009 c.225 §1; 2011 c.630 §39]
Note: The amendments to 701.068 by section 60,
chapter 630, Oregon Laws 2011, become operative July 1,
2017, and apply to complaints filed on or after July 1, 2017.
See section 73, chapter 630, Oregon Laws 2017. The text
that is operative on and after July 1, 2017, is set forth for the
user’s 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 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 for a residential contractor 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. The surety bond for a commercial contractor
must provide that the applicant, with regard to work subject
to this chapter, will pay amounts ordered paid by the board
under ORS 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

OCCUPATIONS AND PROFESSIONS
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 contractor’s 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.

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

2013 Annotated 1-10-14

Page 14

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]
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.
(5) A residential locksmith services 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 of not less than $100,000; and

CONSTRUCTION CONTRACTORS AND CONTRACTS
(c) Have a responsible managing individual for
the business who is certified as a locksmith under ORS
701.485.
(6) A home inspector services 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 of not less than $100,000; and
(c) Have a responsible managing individual for
the business who is certified as a home inspector under
ORS 701.350.
(7) A home services contractor shall:
(a) Obtain a surety bond under ORS 701.068 in
the amount of $10,000; and
(b) Obtain general liability insurance under ORS
701.073 in an amount of not less than $100,000.
(8) A home energy performance score 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 of not less than $100,000; and
(c) Have an owner or employee that is certified
by the board as a home energy assessor.
[2007 c.836 §3; 2013 c.300 §9; 2013 c.383 §11]
Note: The amendments to 701.081 by section 11,
chapter 383, Oregon Laws 2013, become operative July 1,
2014. See section 17, chapter 383, Oregon Laws 2013. The
text that is operative until July 1, 2014, including
amendments by section 9, chapter 300, Oregon Laws 2013, is
set forth for the user’s convenience.
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.
(5) A residential locksmith services contractor shall:

2013 Annotated 1-10-14

Page 15

(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 of not less than $100,000; and
(c) Have a responsible managing individual for the
business who is certified as a locksmith under ORS 701.485.
(6) A home inspector services 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 of not less than $100,000; and
(c) Have a responsible managing individual for the
business who is certified as a home inspector under ORS
701.350.
(7) A home services contractor shall:
(a) Obtain a surety bond under ORS 701.068 in the
amount of $10,000; and
(b) Obtain general liability insurance under ORS
701.073 in an amount of not less than $100,000.

701.082 Residential contractor continuing
education requirements; exemptions. (1)(a) Except
as provided in subsections (2) and (6) of this section
and 701.083, to qualify for the renewal of a residential
contractor license the licensee must complete eight
hours of continuing education during the two-year
licensing period preceding the renewal.
(b) Three of the hours required under paragraph
(a) of this subsection must be education regarding laws,
regulations and business practices. The Construction
Contractors Board shall develop materials for the
education. The education must be offered by the board
or by an approved continuing education provider acting
under an agreement with the board.
(c) Five of the hours required under paragraph (a)
of this subsection must be education from approved
providers and be courses the board has approved as
continuing education regarding one or more of the
following:
(A) Construction business practices.
(B) Marketing.
(C) Customer service.
(D) Accounting.
(E) Business law.
(F) Bidding.
(G) Building codes.
(H) Safety.
(I) Energy efficiency.
(J) Trade specific subjects, such as roofing,
excavation or exterior shell construction.
(K) Other subjects that the board determines by
rule to be appropriate.
(2)(a) In addition to completing the continuing
education required under subsection (1) of this section,
to qualify for the renewal of a residential contractor
license the licensee must complete an additional eight
hours of continuing education during the two-year
licensing period preceding the renewal if the residential
contractor was not licensed by the board as a

OCCUPATIONS AND PROFESSIONS
residential contractor during any part of the six-year
period immediately preceding the renewal.
(b) Continuing education that is required of a
residential contractor under paragraph (a) of this
subsection must be offered by an approved continuing
education provider or the board. The education may be
in any subject described in subsection (1) of this
section related to construction or the business of the
residential contractor.
(3) A residential contractor applying for the
renewal of a license shall certify the number of
continuing education hours completed by the
contractor during the two-year period immediately
preceding the renewal. The board may require
verification of certified continuing education hours
described in subsection (1)(c) of this section.
(4) Notwithstanding subsections (1) to (3) of this
section, the board may adopt rules to adjust the period
allowed for the completion of continuing education
when the renewing residential contractor holds a lapsed
license described under ORS 701.063 (4).
(5) Subsections (1) to (4) of this section do not
apply to a residential contractor endorsed only as a
residential developer.
(6) The board may exempt residential contractors
from continuing education requirements under this
section. The board may create exemptions under this
subsection by rule or may grant an exemption on a
case-by-case basis.
[2013 c.718 §4]
Note: Section 7 (2), chapter 718, Oregon Laws 2013,
provides:
Sec. 7 (2) Notwithstanding subsection (1) of this
section, sections 2 to 5 of this 2013 Act [701.082, 701.083,
701.265 and 701.267] and the repeal of ORS 701.123,
701.126 and 701.127 by section 6 of this 2013 Act, the board
may adopt rules to allow full or partial continuing education
credit for continuing education courses or specialized
education program coursework completed prior to January 1,
2015, regardless of whether a course or program coursework
meets minimum standards adopted by the board under section
2 of this 2013 Act [701.265]. [2013 c.718 §7(2)].

701.083 Residential contractor specialized
education programs. The Construction Contractors
Board may allow a residential contractor to participate
in a specialized education program under ORS 701.120
in lieu of completing continuing education described in
ORS 701.082 (1)(c). The board may establish a
minimum number of specialized education program
hours or courses that the residential contractor must
complete during a two-year period to substitute for all
or part of the required continuing education hours. If
the specialized education program provides training in
one- and two-family dwelling construction, the board
may approve the specialized education program as a
substitute for continuing education only if the program
meets the program criteria described in ORS 455.805

2013 Annotated 1-10-14

Page 16

(3) and Department of Consumer and Business
Services rules adopted under ORS 455.810.
[2013 c.718 §5]
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 eight 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 four 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; 2008 c.5 §1]
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;

CONSTRUCTION CONTRACTORS AND CONTRACTS
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]
701.086 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 contractorprovided 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. [Formerly 701.124]
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

2013 Annotated 1-10-14

Page 17

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 contractor’s 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 notification of a
determination under ORS 701.068 or 701.146.
[2007 c.203 §2; 2011 c.630 §40]
Note: The amendments to 701.088 by section 61,
chapter 630, Oregon Laws 2011, become operative July 1,
2017, and apply to complaints filed on or after July 1, 2017.
See section 73, chapter 630, Oregon Laws 2011. The text
that is operative on and after July 1, 2017, is set forth for the
user’s convenience.
701.088. (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

OCCUPATIONS AND PROFESSIONS
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 contractor’s 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.

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]
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 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

2013 Annotated 1-10-14

Page 18

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.
(m) That the contractor has hired employees
while licensed as exempt under ORS 701.035.
(n) That the contractor has utilized one or more
workers supplied by a worker leasing company while
licensed as exempt under ORS 701.035.
(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 to the board under ORS 701.046, submitted

CONSTRUCTION CONTRACTORS AND CONTRACTS
in a registration of securities described in ORS
701.046(2) 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) Utilizing one or more workers supplied by a
worker leasing company while classed as exempt under
ORS 701.035;
(E) Conduct as a construction contractor that is
dishonest or fraudulent; or
(F) 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 administrator’s 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

2013 Annotated 1-10-14

Page 19

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.
[Formerly 701.135; 2009 c.226 §§4,5; 2009 c.408
§§6,7; 2013 c.300 §11]
Note: See note under 701.035.

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
United States to engage in the business of construction
contracting.
(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

OCCUPATIONS AND PROFESSIONS
that is owing or at the time of an event that resulted in
the revocation or suspension of the other business’s
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
to the board under ORS 701.046, submitted in a
registration of securities described in ORS 701.046(2)
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 12month 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 contractor’s 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; 2009 c.226 §6]
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.

2013 Annotated 1-10-14

Page 20

(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]
701.107 Sanction for assisting evasion of
obligations. In addition to any other authority granted
to the Construction Contractors Board, the board may
revoke, suspend or refuse to issue a license to a person
if the board finds that the person has engaged in
dishonesty by supply any governmental entity or
person with false information regarding the activities of
a construction contracting business, knowing, or
having reason to know, that the false information will
result in any person evading all or part of an obligation
with regard to:
(1) Any federal, state or local income tax laws;
(2) Social security contributions;
(3) Unemployment taxes;
(4) Workers’ compensation premiums;
(5) Wage and hour laws;
(6) Federal or state occupational safety and health
laws;
(7) Child support;
(8) Alimony;
(9) A judgment;
(10) A garnishment; or
(11) Other laws or debts identified by the board
by rule. [2013 c.251 §2]
701.108 Failure to comply with prevailing
wage rate or other wage and hour standards for
energy efficiency and sustainable technology
projects. (1) If a project financed under the energy
efficiency and sustainable technology loan program is
to be constructed for a commercial structure, the State
Department of Energy shall require that the certified
contractor pay the employees used for the project at the
prevailing wage rate determined by the Commissioner
of the Bureau of Labor and Industries for each trade or
occupation employed. If a project is not to be
constructed for a commercial structure, but the
department is uncertain whether prevailing wage
requirements apply to the project, the department shall
consult with the Bureau of Labor and Industries. As
used in this subsection, “commercial structure” means
a structure that is not a residential structure.
(2) If the Construction Contractors Board
receives a complaint that a contractor certified under
ORS 701.119 has failed to comply with a wage and
hours standard for work on a project financed under the
energy efficiency and sustainable technology loan
program, the board shall forward the complaint to the
Bureau of Labor and Industries. If the bureau
determines that the contractor has violated a wage and

CONSTRUCTION CONTRACTORS AND CONTRACTS
hours standard for work on a project financed under the
loan program, the bureau shall notify the board of the
determination. [2009 c.753 §52]
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]
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. (1) Except as provided in this subsection, a
contractor licensed under this chapter shall
immediately notify the Construction Contractors Board
of any change in the identity, name or address of a
person who holds a position with the contractor that is
described in ORS 701.046(1)(h), (i) or (j) or of a
responsible managing individual for the contractor as
defined in ORS 701.091. A contractor described in
ORS 701.046(2) is not required to report a change in
the identity, name or address of a person described in
ORS 701.046(1)(h), (i) or (j).

2013 Annotated 1-10-14

Page 21

(2) Except as provided in this subsection, 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. A
contractor described in ORS 701.046(2) that is a
partnership or joint venture is not required to obtain a
new license upon departure of a partner or joint
venturer. [2007 c.114 §7; 2007 c.478 §1a; 2009 c.226
§7; 2013 c.300 §2]
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; 2007 c.836 §25;
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 contractor’s 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 directed by the board to the lastknown address of record shall be considered delivered
when deposited in the United States mail and sent
registered or certified or post office receipt secured.
Any other communication directed by the board to the
last-known address of record shall be considered
delivered when deposited in the United States mail,
regular mail.
[Formerly 701.080; 2011 c.630 §41]
Note: The amendments to 701.117 by section 62,
chapter 630, Oregon Laws 2011, become operative July 1,
2017, and apply to complaints filed on or after July 1, 2017.
See section 73, chapter 630, Oregon Laws 2011. The text
that is operative on and after July 1, 2017, is set forth for the
user’s convenience.
701.117. A contractor shall notify the Construction
Contractors Board of any change of address while licensed
and for one year following the date the contractor’s license
expires or otherwise becomes inactive. 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
United States mail and sent registered or certified or post
office receipt secured. Any other communication directed by
the board to the last-known address of record shall be
considered delivered when deposited in the United States
mail, regular mail.

701.119 Certification to participate in small
scale local energy project program. (1) A licensed
contractor that possesses an appropriate endorsement
may apply to the Construction Contractors Board for
certification to participate as a primary contractor, as
defined in ORS 470.050, in the construction of small
scale local energy projects financed through the energy

OCCUPATIONS AND PROFESSIONS
efficiency and sustainable technology loan program.
The board may issue the certification to a contractor
that meets the standards established by the State
Department of Energy under ORS 470.560. The board
may charge a reasonable fee for certifying a contractor.
(2) If the board receives information that the
contractor has failed to comply with the certification
standards established by the department or has violated
a wage and hours standard described in ORS 701.108,
the board shall hold a hearing and may revoke the
certification.
(3) The board shall give the department notice of
the issuance or revocation of a certification under this
section.
[2009 c.753 §51, 2013 c.8 §4]
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 contractor’s
licensing record as part of the contractor’s professional
credentials. The board may remove a professional
credential from the contractor’s 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

2013 Annotated 1-10-14

Page 22

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 applicant’s 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]
701.123 [2011 c.170 §6; repealed by 2013 c. 718
§6]
701.124 [2007 c.836 §9; renumbered 701.086 in
2013]
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 [2007 c.648 §2; repealed by 2013 c. 718
§6]
701.127 [2011 c.170 §5; repealed by 2013 c.718
§6]

CONSTRUCTION CONTRACTORS AND CONTRACTS
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 claim in a court of this
state for compensation for the performance of any
work or for the breach of any contract for work that is
subject to this chapter, unless the 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 claim 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;

2013 Annotated 1-10-14

Page 23

(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 claim subject to the
provisions of subsection (1) of this section the
contractor’s 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 contractor’s
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) A contractor that falsely swears to
information submitted to the board under ORS 701.046
or submitted in a registration of securities described in
ORS 701.046(2), or that knowingly violates the
provisions of ORS 656.029, 670.600 or 701.046, may
not perfect a construction lien, file a complaint with the
board or commence an arbitration or a claim in a court
of this state 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; 2009 c.226 §§8,9; 2013 c.251 §5]
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:

OCCUPATIONS AND PROFESSIONS
(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 $100. 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.
(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; 2010 c.107 §§49, 50; 2011 c.595
§137; 2011 c.630 §§42, 43]
Note: The amendments 701.133 by section 63, chapter
630, Oregon Laws 2011, become operative July 1, 2017, and
apply to complaints filed on or after July 1, 2017. See
section 73, chapter 630, Oregon Laws 2011. The text that is
operative on and after July 1, 2017, is set forth for the user’s
convenience.
701.133. (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:

2013 Annotated 1-10-14

Page 24

(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 $100. 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.

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; 2007 c.836 §63; 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

CONSTRUCTION CONTRACTORS AND CONTRACTS
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
involving work on a residential or small commercial
structure 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
involving work on a small commercial or large
commercial structure or an appurtenance to a large
commercial structure 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) Involving work on a residential structure must
be resolved as provided under ORS 701.145.
(b) Involving work on a small commercial
structure may be resolved as provided in ORS 701.145
or 701.146, at the complainant’s election.
(c) Involving work on a large commercial
structure or an appurtenance to a large commercial
structure must be resolved as provided in ORS
701.146.
[2001 c.197 §3; 2001 c.414 §5a; 2007 c.793 §11; 2007
c.836 §64; 2009 c.225 §2; 2011 c.170 §2; 2011 c.630
§44]
Note: The amendments 701.139 by section 64, chapter
630, Oregon Laws 2011, become operative July 1, 2017, and
apply to complaints filed on or after July 1, 2017. See
section 73, chapter 630, Oregon Laws 2011. The text that is
operative on and after July 1, 2017, is set forth for the user’s
convenience.
701.139. 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 involving work
on a residential or small commercial structure 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 involving work
on a small commercial or large commercial structure or an
appurtenance to a large commercial structure 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) Involving work on a residential structure must be
resolved as provided under ORS 701.145.
(b) Involving work on a small commercial structure
may be resolved as provided in ORS 701.145 or 701.146, at
the complainant’s election.
(c) Involving 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 701.144, with prior

2013 Annotated 1-10-14

Page 25

agreement of the complainant and the licensed contractor, a
complaint may be resolved by the board through binding
arbitration under ORS 701.144.

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.
The board shall process complaints
described in this subsection under ORS 701.145 only
if:
(a) The owner paid the contractor for that
contractor’s 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 person’s 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; 2011 c.630 §45]
Note: The amendments to 701.140 by section 65,
chapter 630, Oregon Laws 2011, become operative July 1,
2017, and apply to complaints filed on or after July 1, 2017.
See section 73, chapter 630, Oregon Laws 2011. The text
that is operative on and after July 1, 2017, is set forth for the
user’s convenience.
701.140. A complaint under ORS 701.139 must arise
from the performance, or a contract for the performance, of

OCCUPATIONS AND PROFESSIONS
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 contractor’s
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 person’s 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.

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

2013 Annotated 1-10-14

Page 26

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 contractor’s 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]
701.144 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

CONSTRUCTION CONTRACTORS AND CONTRACTS
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 party’s 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 party’s 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

2013 Annotated 1-10-14

Page 27

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.
[2011 c.630 §58]
Note: 701.144 becomes operative July 1, 2017, and
applies to complaints filed on or after July 1, 2017. See
section 73, chapter 630, Oregon Laws 2011.

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 board’s
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 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

OCCUPATIONS AND PROFESSIONS
determine board jurisdiction over the complaint. The
board shall attempt to conduct one or more meetings
on-site or by telephone to mediate a dispute. During
mediation of a dispute, 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.
(5) If the parties do not resolve or settle the
complaint, except as provided in subsection (6) of this
section, the complainant may recover payment from
the bond of the contractor only by obtaining:
(a) A final judgment against the contractor issued
by a court of competent jurisdiction; or
(b) An arbitration award against the contractor
that a court has reduced to a final judgment.
(6) If the complaint is filed under ORS 701.140
(4), the complainant may recover payment from the
bond of the contractor as provided in subsection (5)(a)
of this section or by obtaining a final order issued by
the Bureau of Labor and Industries that states an
amount of unpaid wages that the licensed contractor
owes under ORS 652.140 or 653.010 to 653.261.
(7) For purposes of subsections (5) and (6) of this
section, “final” means that the judgment or order has
become final by operation or law or on appeal.
(8) The board shall send the surety on the
contractor bond required under ORS 701.068 a copy of
the final judgment or bureau final order, and a copy of
a determination issued by the board that the surety
must pay the amount stated by the board. A
determination issued by the board may not include
payment of any attorney fees awarded in the final
judgment or bureau final order. The determination
issued by the board is an order in other than a contested
case proceeding. The determination order is not
recordable under ORS 701.153 (1) and (2) to create a
lien.
[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; 2011 c.630, §46]
Note: The amendments to 701.145 by section 66,
chapter 630, Oregon Laws 2011, become operative July 1,
2017, and apply to complaints filed on or after July 1, 2017.
See section 73, chapter 630, Oregon Laws 2011. The text
that is operative on and after July 1, 2017, is set forth for the
user’s convenience.
701.145. 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.

2013 Annotated 1-10-14

Page 28

(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 board’s
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 701.144, 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:

CONSTRUCTION CONTRACTORS AND CONTRACTS
(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 complainant’s 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 complainant’s 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
complainant’s 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

2013 Annotated 1-10-14

Page 29

party to an action or arbitration unless the complainant
disputes the validity or timeliness of the surety’s 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 contractor’s
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 determination that
the surety must pay the amount stated by the board.
The determination issued by the board is an order in
other than a contested case proceeding. The
determination shall include 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 board’s 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.
[2001 c.197 §4; 2003 c.294 §1; 2003 c.598 §50; 2005
c.263 §1; 2007 c.793 §15; 2007 c.836 §67; 2011 c.630
§47]
Note: The amendments 701.146 by section 67, chapter
630, Oregon Laws 2011, become operative July 1, 2017, and
apply to complaints filed on or after July 1, 2017. See
section 73, chapter 630, Oregon Laws 2011. The text that is
operative on and after July 1, 2017, is set forth for the user’s
convenience.
701.146. 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 complainant’s court pleading or the demand for
arbitration or other document necessary to initiate arbitration.

OCCUPATIONS AND PROFESSIONS
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 complainant’s 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
complainant’s 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 surety’s 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 contractor’s
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,

2013 Annotated 1-10-14

Page 30

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 board’s 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
surety’s 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 surety’s 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 [2001 c.414 §4; 2001 c.414 §4a; 2003
c.598 §51; 2007 c.793 §17; 2007 c.836 §68; 2011
repealed by c.630 §53]
701.149 Status reports; alternative dispute
resolution. (1) If the Construction Contractors Board
suspends the processing of a complaint because of the
complaint having been submitted to a court or
arbitrator or because of a court having stayed action on
the complaint, the board may require that the
complainant provide status reports on the pending court
action or arbitration. The board may dismiss or close a
complaint filed under ORS 701.139 if the complainant
fails to submit status reports on a pending court action
or arbitration.
(2) ORS 183.605 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
referral for arbitration, to resolve complaints against
contractors filed under ORS 701.139.
[2005 c.207 §2; 2007 c.793 §18; 2011 c.630 §48]
Note: The amendments to 701.149 by section 68,
chapter 630, Oregon Laws 2011, become operative July 1,
2017, and apply to complaints filed on or after July 1, 2017.
See section 73, chapter 630, Oregon Laws 2011. The text
that is operative on and after July 1, 2017, is set forth for the
user’s convenience.
701.149. (1) An arbitration conducted under ORS
701.144 must be held before an administrative law judge
assigned under ORS 183.605 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.

CONSTRUCTION CONTRACTORS AND CONTRACTS
(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 183.605 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 183.605 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.

701.150 Determination of amount to be paid
from bond. (1) If a licensed contractor fails to pay a
complainant amounts due under a court judgment or
under a final order of the Bureau of Labor and
Industries, the Construction Contractors Board shall
issue a determination stating the amount that a surety
must pay the complainant. The surety shall pay the
amount required under the determination as follows:
(a) If the complaint was filed under ORS
701.145, the surety shall pay the amount from a bond
required for a residential contractor.
(b) If the complaint was filed under ORS
701.146, the surety shall pay the amount from a bond
required for a commercial contractor.
(2) 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; 2011 c.630 §49]
Note: The amendments to 701.150 by section 69,
chapter 630, Oregon Laws 2011, become operative July 1,

2013 Annotated 1-10-14

Page 31

2017, and apply to complaints filed on or after July 1, 2017.
See section 73, chapter 630, Oregon Laws 2011. The text
that is operative on and after July 1, 2017, is set forth for the
user’s convenience.
701.150. (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.

701.153 Recording of order as lien; satisfaction
of order against residential contractor. (1) If an
order of the Construction Contractors Board
determines a complaint against a residential contractor
that was filed with the board prior to July 1, 2011, and
the order becomes final by operation of law or on
appeal and remains unpaid 10 days after the date the
order becomes final, the complainant may file the order
with the county clerk in any county of this state.
(2) Upon receipt of an order described in
subsection (1) of this section, the clerk shall record the
order in the County Clerk Lien Record. In addition to
any other remedy provided by law, recording an order
described in subsection (1) of this section 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 a board determination
under ORS 701.145 are satisfied in the following
priority in any 90-day period:
(A) Board determinations 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 determinations described in
subparagraph (A) of this paragraph do not exhaust the
bond, then amounts due under board determinations for
all other types of residential or small commercial
structure complaints filed with the board within that
90-day period may be paid 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

OCCUPATIONS AND PROFESSIONS
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 amount payable under
determinations issued by the board for complaints
against a residential contractor filed with the board
within 90 days after the board receives notice of the
first complaint against the contractor exceed the
amount of the bond available for payment, subject to
the priorities under this section, the board shall decide
how payment of the determined amounts from the bond
is to be apportioned.
(5) If the total amount payable under
determinations issued by the board as a result of
complaints that were filed with the board within 90
days after the board receives notice of the first
complaint do not exceed the amount of the bond
available for payment, those determinations have
payment priority over amounts due under
determinations resulting from subsequently filed
complaints.
(6) The total amount paid from a residential
contractor bond for costs and interest under all
determinations issued by the board under ORS 701.145
may not exceed $3,000.
[2007 c.836 §10; 2007 c.836 §52; 2011 c.630 §50]
Note: The amendments to 701.153 by section 70,
chapter 630, Oregon Laws 2011, become operative July 1,
2017, and apply to complaints filed on or after July 1, 2017.
See section 73, chapter 630, Oregon Laws 2011. The text
that is operative on and after July 1, 2017, is set forth for the
user’s convenience.
701.153. (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

2013 Annotated 1-10-14

Page 32

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.

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

CONSTRUCTION CONTRACTORS AND CONTRACTS
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]
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 Alternative mediation or arbitration
process; waiver and compliance. Notwithstanding the
provisions of ORS 36.600 to 36.740, any other
provision of law or any contractual provision, failure of
a contractor to initiate mediation or arbitration
proceedings within 30 days after notification by the
Construction Contractors Board of a complaint under
ORS 701.145 is a waiver by the contractor of any
contractual right to a mediation or arbitration process

2013 Annotated 1-10-14

Page 33

in lieu of mediation by the board under ORS 701.145.
If the parties do not resolve or settle the dispute
pursuant to board mediation under ORS 701.145,
unless otherwise provided by law regarding a dispute
described under ORS 652.140 or 653.010 to 653.261,
the complainant must comply with any contractual
provision for mediation or arbitration of the dispute as
a condition for obtaining the judgment required under
ORS 701.145 (5).
[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; 2011 c.630 §51]
Note: The amendments to 701.180 by section 71,
chapter 630, Oregon Laws 2011, become operative July 1,
2017, and apply to complaints filed on or after July 1, 2017.
See section 73, chapter 630, Oregon Laws 2011. The text
that is operative on and after July 1, 2017, is set forth for the
user’s convenience.
701.180. 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.

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;

OCCUPATIONS AND PROFESSIONS
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]
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

2013 Annotated 1-10-14

Page 34

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

CONSTRUCTION CONTRACTORS AND CONTRACTS
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
or improperly endorsed 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 or a licensed
contractor that is not properly endorsed to act in
violation of this chapter. [1983 c.616 §2; 1989 c.928
§27; 1999 c.402 §35; 2007 c.836 §35]
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

2013 Annotated 1-10-14

Page 35

relationship between the complainant and the
contractor;
(d) Subject to ORS 701.145, 701.153 and
701.157, exclude or limit recovery from the
contractor’s 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; 2011 c.630
§52]
Note: The amendments to 701.235 by section 72,
chapter 630, Oregon Laws 2011, become operative July 1,
2017, and apply to complaints filed on or after July 1, 2017.
See section 73, chapter 630, Oregon Laws 2011. The text
that is operative on and after July 1, 2017, is set forth for the
user’s 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) Subject to ORS 701.153 and 701.157, exclude or
limit recovery from the contractor’s 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

OCCUPATIONS AND PROFESSIONS
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
board’s 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]
701.246 Confidentiality of information;
permissible disclosures. (1) Social Security numbers,
driver license numbers, dates of birth and other
personal identifier information included in a license or
certificate application filed under this chapter are
confidential. Except as provided in this section, the
Construction Contractors Board may not disclose
personal identifier information contained in a license or
certificate application.
(2) Subsection (1) of this section does not
prohibit the board from making the following
disclosures:
(a) Disclosures made with the written consent of
the person to whom the personal identifier information
pertains.
(b) Disclosures of information that a license or
certificate holder is required by law or rule to disclose
to the public, including but not limited to board-issued
license or certificate numbers.
(c) Disclosures for the purpose of causing,
conducting or assisting an investigation into possible
violations of law, rules or regulations, including but not
limited to disclosures to an administrative agency, law
enforcement agency or district attorney office. A public
body receiving information from the board under this
paragraph may not disclose the information except as
necessary to an investigation or as necessary to
criminal, civil or contested case proceedings. [2009
c.226 §2]

2013 Annotated 1-10-14

Page 36

701.250 Board to provide licensee’s 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]
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
board’s 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]
701.265 Continuing education system for
residential contractors; rules. (1) The Construction
Contractors Board shall adopt rules establishing a
continuing education system for residential contractors
licensed by the board. The rules shall include, but need
not be limited to, minimum standards to be met:
(a) By approved providers of continuing
education; and
(b) By courses that the board approves as
continuing education.
(2) In establishing the continuing education
system, the board may give consideration to any
continuing education program adopted by national

CONSTRUCTION CONTRACTORS AND CONTRACTS
construction licensing trade associations. [2013 c.718
§2]
701.267 Agreements with continuing education
providers; credits; fees. (1) The Construction
Contractors Board may enter into agreements with
approved continuing education providers for the
providers to offer education developed by the board
under ORS 701.082 (1)(b). The agreements may
provide for the board to collect payment from the
providers for the use of the education materials
developed by the board.
(2) In determining whether to approve an entity
as a provider of continuing education that is required
under ORS 701.082 (1)(c), the board shall consider:
(a) Instructor qualifications; and
(b) Attendance verification procedures.
(3) In determining whether to approve a course as
continuing education described in ORS 701.082 (1)(c),
the board shall consider the course content.
(4) In determining any process for approving an
entity as a provider of continuing education that is not
required under ORS 701.082 (1), the board may
consider attendance verification procedures.
(5) The board may determine the number of
continuing education hours to be credited to a
continuing education course or to a specialized
education program described in ORS 701.083.
(6) The board may establish reasonable fees for
approvals of entities as continuing education providers,
approvals of continuing education courses and
approvals of specialized education programs described
in ORS 701.083 and reasonable fees for any continuing
education courses offered by the board. The board may
charge an approved provider a reasonable fee for each
attendee completing course hours in approved
continuing education to cover board costs associated
with administering the residential contractor continuing
education system. [2013 c.718 §3]

701.300 [1989 c.928 §11; repealed by 1991 c.181
§16]
CONSTRUCTION CONTRACTS AND NOTICES
701.305 Requirement for written contract with
residential property owner; standard contractual
terms; rules. (1) A contractor may not perform work
to construct, improve or repair a residential structure or
zero-lot-line dwelling for a property owner without a
written contract if the aggregate contract price exceeds
$2,000. If the price of a contract was initially less than
$2,000, but during the course of performance the
contract exceeds that amount, the contractor shall mail
or otherwise deliver a written contract to the property
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
and use words of common understanding.
[2007 c.648 §7; 2009 c.408 §8; 2009 c.409 §1; 2013
c.168 §1]

701.290 [1995 c.560 §1; repealed by 2001 c.850

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 on real property
owned by the property owner may cancel the contract
by delivery of a written notice of cancellation any time
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; 2009 c.409 §2]

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]

701.312 Additional grounds for placing
contractor on probation.
Notwithstanding the
conditions specified for probation in ORS 701.102 (3),
the Construction Contractors Board may place a
contractor on probation as provided in ORS 701.102
(3) if the contractor offers to perform a home
improvement, accepts a deposit of more than 50
percent of the total contract price and:

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]
§8]

2013 Annotated 1-10-14

Page 37

OCCUPATIONS AND PROFESSIONS
(1) Fails to perform diligently and in accordance
with the contract specifications the home improvement
for which the contractor received the deposit; or
(2) Fails to perform the home improvement for
which the contractor received the deposit and fails to
return the deposit within 10 days after a reasonable
demand to return the deposit. [2010 c.77 §6]
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 contractor that enters into a
contract to construct a new residential structure or
zero-lot-line dwelling, or to sell a new residential
structure or zero-lot-line dwelling constructed by the
contractor, shall make a written offer to the property
owner or original purchaser of the structure or dwelling
of a warranty against defects in materials and
workmanship for the structure or dwelling. The
property owner or original purchaser 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 the
property owner both sign a written construction
contract and the property 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;
2009 c.409 §3]
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
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 contractor’s 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

2013 Annotated 1-10-14

Page 38

or state agency shall list the contractor’s 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.

CONSTRUCTION CONTRACTORS AND CONTRACTS
(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; 2007 c.836
§16a]
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 or
original purchaser of the actions the property owner or
original purchaser should take to protect the property
owner in a residential structure or zero-lot-line
dwelling repair, remodel or construction project or to
protect the original purchaser in a residential structure
or zero-lot-line dwelling 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 for the property
owner or original purchaser.
(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.
(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

2013 Annotated 1-10-14

Page 39

and that specify the retention period for and the form of
that evidence. [2007 c.648 §14; 2009 c.409 §4]
701.335 Recommended maintenance schedule;
rules. (1) A contractor that enters into a contract to
construct a new residential structure or zero-lot-line
dwelling shall provide a recommended maintenance
schedule to the property owner or original purchaser of
the proposed structure or dwelling at the time that the
contractor makes a written offer of warranty under
ORS 701.320.
(2) The Construction Contractors Board shall
adopt rules describing the minimum information that a
contractor shall provide to a property owner or original
purchaser 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. [2007 c.648 §13; 2009 c.409 §5]
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]
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:

OCCUPATIONS AND PROFESSIONS
(a) The person’s 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 701.021 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; 2013 c.1 §90]
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.
The board may adopt rules for determining whether an
inspection and report that is limited to one or more
specific systems or components of a residential
structure or appurtenance is a sufficient assessment of
the overall physical condition of the structure or
appurtenance to constitute the services of a home
inspector.
(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.

2013 Annotated 1-10-14

Page 40

(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; 2011 c.79 §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]
701.360 Home inspector services contractor
license; exemption from testing and continuing
education. (1) A home inspector services contractor
license authorizes the holder to operate a business
providing the services of home inspectors as defined in
ORS 701.005, but does not authorize the holder to
engage in other contractor activities.
(2) Notwithstanding ORS 701.126, the
Construction Contractors Board may not impose a
continuing education requirement for a home inspector
services contractor. This subsection does not exempt a
responsible managing individual for the business from
compliance
with
any
continuing
education
requirements established by the board under ORS
701.350 for a certified home inspector.
(3) Notwithstanding ORS 701.122, the board may
not require a home inspector services contractor or the
responsible managing individual for the business to
take a test measuring the knowledge of the contractor
or responsible managing individual regarding business
practices and laws affecting construction contractors.
[2013 c.300 §5]
Note: 701.126 was repealed by section 6, chapter 718,
Oregon Laws 2013. The text of 701.360 was not amended by
enactment of the Legislative Assembly to reflect the repeal.
Editorial adjustment of 701.360 for the repeal of 701.126 has
not been made.

CONSTRUCTION CONTRACTORS AND CONTRACTS
RETAINAGE
701.410 Definitions. (1) As used in ORS
279C.555, 279C.570, 701.410, 701.420, 701.430,
701.435 and 701.440:
(a) “Construction” means:
(A) Excavating, landscaping, demolishing and
detaching existing structures, leveling, filling in and
otherwise preparing land for the making and placement
of a building, structure or superstructure;
(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” means a person that contracts
with an owner on predetermined terms to be
responsible for performing all or part of a job of
construction in accordance with established
specifications or plans, and that retains control of the
means, method and manner of accomplishing the
desired result.
(c) “Owner” means a person that 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 that enters into an
agreement with a contractor for the construction.
(d) “Subcontractor” means a person that contracts
with a contractor or another subcontractor on
predetermined terms to be responsible for performing
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 a contractor or subcontractor earns
under a construction contract and the amount the owner
pays on the contract to the contractor, the amount the
contractor pays on the contract to the subcontractor or
the amount the subcontractor pays on the contract to
another subcontractor.
[1975 c.772 §1; 1987 c.158 §148; 1999 c.59 §209; 2003
c.794 §319; 2005 c.22 §§480,481; 2010 c. 77 §7]
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 is allowed
and may be made on contracts for construction and
home improvement. An owner, contractor or
subcontractor may withhold as retainage an amount
equal to not more than five percent of the contract price
of the work completed. Partial payment allowed under
this subsection is not acceptance or approval of some
of the work or a waiver of defects in the work.

2013 Annotated 1-10-14

Page 41

(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. The
interest shall commence 30 days after the contractor or
subcontractor has completed and the owner has
accepted the work under the contract for construction
for which the final payment is due. The interest shall
run until the date when final payment is tendered to the
contractor or subcontractor. When the contractor or
subcontractor considers the work that the contractor or
subcontractor is contracted to perform to be complete,
the contractor or subcontractor shall notify the party to
whom the contractor or subcontractor is responsible for
performing the construction work under the contract.
The 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 under the
contract. If the party does not accept the work or 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 the contractor withheld as
retainage, the owner with whom the contractor has the
contract shall pay the contractor, out of the amount that
the owner withheld from the 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; 2010 c. 77 §8; 2013 c.410 §2]
Note: See note under 701.410.

701.430 Performance bond; terms. A contractor
or subcontractor may execute and deliver to the owner,
contractor or subcontractor before the commencement
of construction for which the contractor or
subcontractor will be responsible for performing a
good and sufficient bond in a sum equal to the contract
price for the faithful performance of the contract. The
term of the bond obtained under this subsection must
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 must include, but not be
limited to, provisions to the effect that:
(1) The obligations of the contract must be
faithfully performed;

OCCUPATIONS AND PROFESSIONS
(2) Payment must promptly be made to all
persons supplying labor or materials to the contractor
or subcontractor for prosecution of the work provided
in the contract;
(3) All contributions due the Industrial Accident
Fund and the Unemployment Compensation Trust
Fund from the contractor or subcontractor in
connection with the performance of the contract must
be made promptly; and
(4) 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, must be paid over to the Department of
Revenue.
[1975 c.772 §3; 2013 c.410 §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,
securities or other instruments under ORS
279C.560(4), 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, securities or other instruments with
the contractor or in a bank or trust company for the
contractor to hold for the contractor’s benefit in lieu of
moneys held as retainage. If the contractor accepts the
bonds, securities or other instruments deposited as
provided in this subsection, the contractor shall reduce
the moneys held as retainage in an amount equal to the
value of the bonds, securities and other instruments and
pay the amount of the reduction to the subcontractor in
accordance with ORS 701.420 and 701.430. Interest or
earnings on the bonds, securities or other instruments
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(5), 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 subcontractor’s proportional share of
the interest earnings that accrued to the contractor as a
result of the election. A subcontractor’s share of the
total amount of interest earnings under this subsection
shall be determined by the proportion that 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

2013 Annotated 1-10-14

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(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 an option described in
subsection (1) or (2) of this section, the contractor may
recover the costs from the subcontractor by reducing
the final payment. As work on the subcontract
progresses, the contractor shall, upon demand, inform
the subcontractor of all accrued additional costs.
(4) Bonds, securities and other instruments
deposited or acquired in lieu of retainage, as permitted
by this section, must 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 United
States.
(b) Other obligations of the United States or
agencies of the United States.
(c) Obligations of a corporation wholly owned by
the federal government.
(d) Indebtedness of the Federal National
Mortgage Association.
(e) General obligation bonds of the State of
Oregon or a political subdivision of the State of
Oregon.
(f) Irrevocable letters of credit issued by an
insured institution, as defined in ORS 706.008.
[1977 c.767 §2; 1983 c.690 §16; 2003 c.794 §320;
2009 c.568 §2]
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 United States or any agency
thereof or when the construction is paid for, in whole
or in part, with federal moneys. [1975 c.772 §6; 2003
c.794 §321]
Note: See note under 701.410.

LOCKSMITHS
701.475 Definitions for ORS 701.475 to
701.490. As used in ORS 701.475 to 701.490:
(1)
“Key”
means
a
mechanical,
electromechanical, electronic, electromagnetic or other
device for operating a lock.
(2)
“Lock”
means
a
mechanical,
electromechanical, electronic, electromagnetic or other
device that is designed to control access from one area
to another or control the use of a device in a structure
or vehicle.
(3) “Locksmith” means a person who services,
installs, repairs, rebuilds, rekeys, repins or adjusts
locks, hardware peripheral to locks, safes, vaults, safe
deposit boxes or mechanical or electronic security
systems. [2009 c.781 §2]
701.480 Certification; licensing; holding out as
locksmith or locksmithing business. (1) An
individual may not undertake, offer to undertake or

CONSTRUCTION CONTRACTORS AND CONTRACTS
submit a bid to do work as a locksmith for
compensation, or with the expectation to be
compensated, unless the individual is certified as a
locksmith under ORS 701.485 by the Construction
Contractors Board and is an owner of, or employed by,
a business that is licensed by the board.
(2) A business may not undertake, offer to
undertake or submit a bid to provide locksmith services
unless the business is licensed by the board under this
chapter and has an owner or an employee who is
certified as a locksmith under ORS 701.485.
(3) A person may not use the title of locksmith,
locksmith professional, commercial locksmith, lock
installer or any title using a form of the word
“locksmith” that indicates or tends to indicate that the
person is a locksmith or provider of locksmith services
unless the person is certified as a locksmith by the
board or is a business licensed by the board that has an
owner or employee who is certified by the board as a
locksmith.
(4) A person may not use any sign, card or device
that indicates or tends to indicate that the person is a
locksmith or provider of locksmith services unless the
person is certified as a locksmith by the board or is a
business licensed by the board that has an owner or
employee who is certified by the board as a locksmith.
[2009 c.781 §3]
701.485 Standards of practice and professional
conduct; determination of competency; sanctions;
rules; fees. (1) The Construction Contractors Board
shall adopt rules establishing minimum standards of
practice and professional conduct for locksmiths and
businesses that provide locksmith services.
(2) The board shall require that an applicant for
certification as a locksmith pass a test demonstrating
the competency of the applicant to act as a locksmith.
(3) The board may adopt rules to regulate the
practice of locksmithing, including but not limited to
rules:
(a) Accepting the results of competency testing
by a nationally recognized certification program for
locksmiths;
(b) Establishing requirements for the issuance or
renewal of a locksmith certificate, including but not
limited to training and continuing education
requirements;
(c) Establishing standards of professional conduct
for certified locksmiths; and
(d) Establishing fees necessary for the
administration of ORS 701.475 to 701.490 that do not
exceed the following amounts:
(A) $100 for application.
(B) $100 for testing.
(C) $300 for issuance of an initial two-year
certificate.
(D) $300 for renewal of a two-year certificate.

2013 Annotated 1-10-14

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(4) The board shall adopt rules establishing
procedures for the issuance, renewal and revocation of
a locksmith certificate.
(5) The board may suspend or revoke a locksmith
certificate if the locksmith:
(a) Fails to comply with a continuing education
requirement established by the board; or
(b) Violates a standard of professional conduct
for certified locksmiths established by board rule.
[2009 c.781 §4]
701.490 Exemptions from certification,
licensure and other requirements. ORS 701.480 and
701.485 do not apply to:
(1) A person offering key duplication services at
a fixed location or ancillary to other business activities,
if the person does not undertake, offer to undertake or
submit a bid to undertake other locksmith services;
(2) An individual performing work within the
scope of a license described in ORS 479.905 to
479.945;
(3) A tow truck operator performing work for a
towing business certified under ORS 822.205;
(4) A construction contractor licensed under this
chapter or an owner, officer or employee of the
licensed construction contractor, when acting within
the scope of the contractor’s license, if the contractor,
owner, officer or employee does not hold out as a
provider of locksmith services;
(5) Work performed by a manufacturer on a
manufactured structure, modular building or structure
or prefabricated structure that is or was produced by
the manufacturer;
(6) A property owner or regular employee of the
property owner, when performing work on the
property;
(7) A property management company or the
regular employee of a property management company,
when performing work on the managed property;
(8) A real estate property manager as defined in
ORS 696.010, or the employee of a property manager,
performing work in the course of managing rental real
estate;
(9) A landlord or landlord’s agent, both as
defined in ORS 90.100;
(10) A manufacturer of locks; or
(11) A person performing work as the
representative of a manufacturer, wholesaler,
distributor or retailer of locks. [2009 c.781 §5]
701.495
Residential
locksmith
services
contractor license; exemption from testing and
continuing education. (1) A residential locksmith
services contractor license authorizes the holder to
operate a business providing the services of locksmiths
as defined in ORS 701.475 for residential or small
commercial structures, but does not authorize the
holder to engage in other contractor activities.

OCCUPATIONS AND PROFESSIONS
(2) Notwithstanding ORS 701.126, the
Construction Contractors Board may not impose a
continuing education requirement for a residential
locksmith services contractor. This subsection does not
exempt a responsible managing individual for the
business from compliance with any continuing
education requirements established by the board under
ORS 701.485 for a certified locksmith.
(3) Notwithstanding ORS 701.122, the board may
not require a residential locksmith services contractor
or the responsible managing individual for the business
to take a test measuring the knowledge of the
contractor or responsible managing individual
regarding business practices and laws affecting
construction contractors. [2013 c.300 §4]
Note: 701.126 was repealed by section 6, chapter 718,
Oregon Laws 2013. The text of 701.495 was not amended by
enactment of the Legislative Assembly to reflect the repeal.
Editorial adjustment of 701.495 for the repeal of 701.126 has
not been made.

701.500 [1995 c.795 §2; 2007 c.71 §227;
repealed by 2009 c.757 §12]
LEAD POISONING AND HAZARD REDUCTION
701.505 Definitions for ORS 701.505 to
701.515. For the purposes of ORS 701.505 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 431.917.
(2) “Accredited training program” means a
training program that has been accredited by the
Oregon Health Authority to provide training for
individuals engaged in lead-based paint activities.
(3) “Certified lead-based paint renovation
contractor” means a contractor that is licensed by the
Construction Contractors Board to conduct lead-based
paint renovation under ORS 701.515.
(4) “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 431.917.
(5) “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
431.917.
(6) “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
431.917.
(7) “Lead-based paint activities contractor”
means a contractor that is licensed by the Construction
Contractors Board to conduct lead-based paint
activities under ORS 701.515.
(8) “Renovation” has the meaning given that term
in 40 C.F.R. 745.83 and as further defined pursuant to
the authorities described in ORS 431.917. [1995 c.795
§3; 2009 c.595 §1112; 2009 c.828 §68]

2013 Annotated 1-10-14

Page 44

701.510 License required to engage in leadbased paint activity. (1) A contractor may not perform
lead-based paint activities in this state unless the
contractor is a lead-based paint activities contractor.
(2) A contractor may not perform lead-based
paint renovation in this state unless the contractor is a
certified lead-based paint renovation contractor.
(3) A lead-based paint activities contractor or
certified lead-based paint renovation contractor must
comply with the provisions of ORS 431.920 and
701.505 to 701.515 and any rules adopted pursuant
thereto.
(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; 2009 c.757 §8]
701.515 Licensing system; fees; rules. (1) In
accordance with applicable provisions of ORS chapter
183, the Construction Contractors Board by rule shall
establish a system to license contractors as lead-based
paint activities contractors and certified lead-based
paint renovation contractors. The licensing system
must include the requirements described in 40 C.F.R.
745.226. The licensing system must include but need
not be limited to provisions:
(a) Prescribing the form and content of the times
and procedures for submitting applications for
licensing or renewal.
(b) Prescribing the fees for original licensing and
renewal of the license in amounts that do not exceed
the cost of administering the program.
(c) Requiring an applicant for a certified leadbased paint renovation contractor license to show that
an employee of the applicant has completed an
accredited training program.
(d) Prescribing the actions or circumstances that
constitute failure to achieve or maintain licensing
requirements, or that otherwise are contrary to the
public interest, for which the board may refuse to issue
or renew or may suspend or revoke a lead-based paint
activities contractor or certified lead-based paint
renovation contractor license.
(2) The board may establish by rule the
requirements for specific types of licenses for leadbased paint activities contractors.
(3) The 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;

CONSTRUCTION CONTRACTORS AND CONTRACTS
(d) Lead inspector or assessor, up to $50 per year;
(e) Lead worker, up to $25 per year; and
(f) Certified lead-based paint renovation
contractor, up to $50 per year. [1995 c.795 §5; 2009
c.757 §9]
701.520 Construction Contractors Board
Lead-Based Paint Activities Fund. The Construction
Contractors Board Lead-Based Paint Activities Fund is
established in the State Treasury, separate and distinct
from the General Fund. Interest earned by the
Construction Contractors Board Lead-Based Paint
Activities Fund shall be credited to the fund. The fund
consists of moneys received by the Construction
Contractors Board under ORS 701.995. Moneys in the
fund are continuously appropriated to the Construction
Contractors Board for the purposes of lead poisoning
prevention, including consumer and industry outreach,
public education and other activities. [2009 c.757 §11]
Note: 701.520 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.

701.525 [2005 c.734 §4; 2007 c.70 §316;
renumbered 701.545 in 2013]
HOME ENERGY ASSESSMENT AND
PERFORMANCE SCORING
701.527 Definitions for ORS 701.527 to
701.536. As used in ORS 701.527 to 701.536:
(1) “Home energy assessor” means a person who
assigns residential buildings a home energy
performance score.
(2) “Home energy performance score” means a
score assigned to a residential building using the home
energy performance score system adopted by the State
Department of Energy under ORS 701.469.703. [2013
c.383 §3]
Note: 701.527 becomes operative July 1, 2014. See
section 17, chapter 383, Oregon Laws 2013.

701.529
Certification
and
licensing
requirements; use of title. (1) An individual may not
undertake, offer to undertake or submit a bid to do
work as a home energy assessor unless the individual is
certified as a home energy assessor under ORS
701.532.
(2) A business may not undertake, offer to
undertake or submit a bid to assign home energy
performance scores unless the business:
(a) Is licensed by the Construction Contractors
Board under this chapter or endorsed as a residential
contractor by the board under ORS 701.534; and
(b) Has an owner or an employee who is certified
as a home energy assessor under ORS 701.532.
(3) A person may not use the title of home energy
assessor or any title that indicates or tends to indicate
that the person is a home energy assessor or an

2013 Annotated 1-10-14

Page 45

assignor of home energy performance scores unless the
person is certified as a home energy assessor under
ORS 701.532 or is a business licensed by the board
under this chapter or endorsed by the board under ORS
701.534 that has an owner or an employee who is
certified as a home energy assessor under ORS
701.532.
(4) A person may not use any sign, card or device
that indicates or tends to indicate that the person is a
home energy assessor or an assignor of home energy
performance scores unless the person is certified as a
home energy assessor under ORS 701.532 or is a
business licensed by the board under this chapter or
endorsed by the board under ORS 701.534 that has an
owner or an employee who is certified as a home
energy assessor under ORS 701.532. [2013 c.383 §4]
Note: 701.529 becomes operative July 1, 2014. See
section 17, chapter 383, Oregon Laws 2013.

701.530 [2005 c.734 §5; renumbered 701.547 in
2013]
701.532 Home energy assessor certification;
training; rules; fees. (1) The Construction Contractors
Board shall certify an individual as a home energy
assessor if the individual meets the requirements of this
section and of any rule adopted by the board under this
section. A home energy assessor certificate must be
renewed annually.
(2) The board shall require that an applicant for a
home energy assessor certificate present proof of
passing a training program designated by the State
Department of Energy under ORS 469.703.
(3) The board may adopt rules to regulate the
practice of assigning home energy performance scores,
including:
(a) Prescribing the form and manner of applying
for a home energy assessor certificate;
(b) Establishing procedures for the issuance,
renewal or revocation of a home energy assessor
certificate; and
(c) Establishing fees necessary for the
administration of ORS 701.527 to 701.536 that do not
exceed the following amounts:
(A) $100 for application for a home energy
assessor certificate;
(B) $100 for issuance of an initial one-year home
energy assessor certificate; and
(C) $100 for renewal of a one-year home energy
assessor certificate. [2013 c.383 §5]
Note: 701.532 becomes operative July 1, 2014. See
section 17, chapter 383, Oregon Laws 2013.

701.534 Home energy performance score
contractors. A home energy performance score
contractor endorsement authorizes the holder to operate
a business assigning home energy performance scores.
[2013 c.383 §6]

OCCUPATIONS AND PROFESSIONS
Note: 701.534 becomes operative July 1, 2014. See
section 17, chapter 383, Oregon Laws 2013.

701.536 Assessor and contractor exemption
from testing and continuing education. (1)
Notwithstanding ORS 701.126, the Construction
Contractors Board may not impose a continuing
education requirement for a home energy assessor or a
home energy performance score contractor.
(2) Notwithstanding ORS 701.122, the board may
not require a home energy assessor or a home energy
performance score contractor to take a test measuring
the knowledge of the home energy assessor, contractor
or responsible managing individual regarding business
practices and laws affecting construction contractors.
[2013 c.383 §7]
Note: 701.536 becomes operative July 1, 2014. See
section 17, chapter 383, Oregon Laws 2013.
Note: 701.126 was repealed by section 6, chapter 718,
Oregon Laws 2013. The text of 701.536 was not amended by
enactment of the Legislative Assembly to reflect the repeal.
Editorial adjustment of 701.536 for the repeal of 701.126 has
not been made.

ACCESSIBILITY FEATURES
701.545 Provision of accessible features list to
purchaser; effect. (1) As used in this section and ORS
701.545:
(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

2013 Annotated 1-10-14

Page 46

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 701.547, does not
affect the requirement that installation of a feature
comply with the state building code or be approved
under ORS 455.060. [Formerly 701.525]
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.

701.547 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
701.545. In developing the model list of features, the
board shall solicit the comments of advocacy groups
and other organizations serving persons with
disabilities. [Formerly 701.530]
Note: See note under 701.545.

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, “barriertype 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:

CONSTRUCTION CONTRACTORS AND CONTRACTS
(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 owner’s 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
owner’s 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.

2013 Annotated 1-10-14

Page 47

(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) Except as provided in ORS
701.600, an owner may not compel arbitration or
commence a court action against a contractor,
subcontractor or supplier to assert a claim arising out of
or related to any defect in the construction, alteration or
repair of a residence or in any system, component or
material incorporated into a residence located in this
state unless 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 or certified 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 Oregon business
address of the supplier or, if none, to the registered
agent of the supplier.
(3) A notice of defect sent by an owner must
include:
(a) The name and mailing address of the owner or
the owner’s 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; 2011 c.268 §1]
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,

OCCUPATIONS AND PROFESSIONS
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 or certified
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 owner’s 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

2013 Annotated 1-10-14

Page 48

response must be sent by registered or certified 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; 2011 c.268 §2]
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

CONSTRUCTION CONTRACTORS AND CONTRACTS
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 supplier’s 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;

2013 Annotated 1-10-14

Page 49

(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.

OCCUPATIONS AND PROFESSIONS
(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 registered under
ORS 671.010 to 671.220.
(4) To complaints filed in a small claims
department established in a justice court or circuit court
as described in ORS 55.011.
(5) To counterclaims or other responses to a
contractor, subcontractor or supplier claim, arbitration
demand or complaint that arises out of, or is related to,
a contract for the construction, alteration or repair of a
residence or a system, component or material
incorporated into a residence.
[2003 c.660 §9; 2007 c.149 §10; 2007 c.793 §25; 2011
c.268 §3; 2013 c.196 §23]
Note: See note under 701.560.

WARRANTIES
701.605 Recording of written warranty
agreement. (1) To facilitate the handling of warranty

2013 Annotated 1-10-14

Page 50

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: See note under 701.560.

HOME SERVICE AGREEMENTS
701.610 Home services contractor license;
exemption from testing and continuing education.
(1) As used in this section, “home” and “home
service agreement” have the meanings given those
terms in ORS 731.164.
(2) A home services contractor license authorizes
the holder to operate a business providing service,
repair or replacement for homes through a licensed
contractor under a home service agreement.
(3) Notwithstanding ORS 701.126, the
Construction Contractors Board may not impose a
continuing education requirement for a home services
contractor.
(4) Notwithstanding ORS 701.122, the board may
not require a home services contractor to take a test
measuring the knowledge of the contractor or
responsible managing individual regarding business
practices and laws affecting construction contractors.
[2013 c.300 §5a]
Note: 701.126 was repealed by section 6, chapter 718,
Oregon Laws 2013. The text of 701.610 was not amended by
enactment of the Legislative Assembly to reflect the repeal.
Editorial adjustment of 701.610 for the repeal of 701.126 has
not been made.

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 drawings,
specifications and addenda relating to:
(a) Excavating, landscaping, demolishing and
detaching existing structures, leveling, filling in and

CONSTRUCTION CONTRACTORS AND CONTRACTS
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 oral authorization, written contract,
purchase order, price agreement, rental agreement or
other contractual means.
(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; 2011 c.553 §1]
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;
notice
requirements; nonapproval of billing or estimate;
withholding; final payment. (1) If a construction
contract is for construction work that is expected to
take 60 or more days to complete, an owner shall make
progress payments to the original contractor. By
mutual agreement with an original contractor, an owner
may make progress payments to the original contractor
under a construction contract for which the
construction work is expected to take less than 60 days
to complete.
(2) The owner shall make progress payments on
the basis of a certified billing or estimate for work
performed, and for materials or products supplied,
during the preceding monthly billing cycle or during an
alternative billing cycle identified in the construction
contract. If a construction contract identifies an
alternative billing cycle, the construction contract must
expressly state in a clear and conspicuous manner that
there is an alternative billing cycle and the owner must
provide on each page of drawings and specifications in
the construction contract a statement substantially
similar to the following:
____________________________________________
Notice of Alternative Billing Cycle
The construction contract will allow the owner to
require the submission of billings or estimates in
billing cycles other than monthly cycles. Billings or
estimates for the construction contract shall be
submitted as follows:

2013 Annotated 1-10-14

Page 51

_____________________________________
_____________________________________
_____________________________________
_________________________________________
(3)(a) Except as provided in this subsection, the
owner shall:
(A) Make progress payments no later than 14
days after the date the billing is received; and
(B) Make final payment of all remaining amounts
no later than seven days after the date that the owner
approves the work.
(b) An owner may make progress payments or
final payment later than the time allowed under
paragraph (a) of this subsection if:
(A) The owner provides drawings and
specifications that expressly state in a clear and
conspicuous manner that an extended payment period
is allowed and identify the extended payment period as
a specific number of days after the date that the billing
or estimate is received or the date that the owner
approves all work; and
(B) The owner provides on each page of drawings
and specifications a statement substantially similar to
the following:
____________________________________________
Notice of Extended Payment Provision
The construction contract will allow the owner to
make:
(1) Progress payments no later than _____ days
after the date a billing or estimate is received.
(2) Final payment of all remaining amounts no
later than _____ days after the date the owner approves
all work.
__________________________________________
(4) Payment is not required under this section
unless the owner receives from the original contractor a
billing or estimate for the work performed or the
materials or products supplied in accordance with the
terms of the construction contract.
(5) The owner is deemed to have received the
billing or estimate when the billing or estimate is
received by 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 owner’s 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 because of:
(a) Unsatisfactory work progress;
(b) Defective construction work, materials or
products not remedied;

OCCUPATIONS AND PROFESSIONS
(c) Disputed work, materials or products, except
that the declined amount may not exceed 150 percent
of the amount in dispute;
(d) Failure to comply with other material
provisions of the construction contract;
(e) A third party claim being filed or reasonable
evidence that a third party 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 construction
contract terms and conditions.
(6) An owner may extend the period within which
the billing or estimate may be certified if:
(a) The owner provides drawings 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 drawings
and specifications, including bid drawings and
specifications and construction drawings and
specifications, a statement substantially similar to the
following statement:
____________________________________________
Notice of Extended Certification Period Provision
The construction contract will allow the owner to
certify billings and estimates no later than _____ days
after the billings and estimates are received from the
original contractor.
____________________________________________
(7) Any requirement under this section that a
statement be provided on a page of drawings or
specifications may be satisfied by placing the required
statement on either side of the page.
(8) 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 agree in writing to 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. The billings by any subcontractor or
material supplier that does not provide written consent
to the change remain subject to the certification period
indicated in the drawings and specifications. A
construction contract may not be changed in a manner
that alters the right of any subcontractor or material
supplier to receive prompt and timely progress
payments as provided under ORS 701.630.

2013 Annotated 1-10-14

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(9) 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 detailed in a written statement under
subsection (5) of this section. The owner may also
withhold a reasonable amount as retainage. As used in
this subsection, “retainage” has the meaning given that
term in ORS 701.410.
(10) 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 as
described in subsection (3) of this section. When an
original contractor completes and an owner approves
all work under a portion of a construction contract for
which the construction 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 items
detailed under subsection (5) of this section or ORS
701.630(4).
(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 no later than 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
no later than five days after the owner makes the final
payment to the original contractor on the construction
contract.
(13) If the owner and original contractor are a
single entity, that entity shall make progress and final
payments to subcontractors and material suppliers as
described in subsection (3) or (6) of this section.
(14) In any action, claim or arbitration brought to
collect interest pursuant to this section, the prevailing
party shall be awarded costs and reasonable attorney
fees.
[2003 c.675 §55; 2011 c.553 §2]
Note: See note under 701.620.

701.630 Payments to subcontractors and
material suppliers; failure to pay; omission of
payment. (1) An original contractor, subcontractor or
material supplier that performs in accordance with a
construction contract is entitled to payment from the
party with whom the original contractor, subcontractor
or material supplier contracts.
(2)(a) If a subcontractor has performed in
accordance with a construction contract, and the
original contractor receives payment from the owner

CONSTRUCTION CONTRACTORS AND CONTRACTS
for work performed by the subcontractor, the original
contractor shall pay the subcontractor for that work no
later than seven days after the original contractor
receives the payment. If a material supplier has
performed in accordance with a construction contract,
and the original contractor receives payment from the
owner for materials or products provided by the
material supplier, the original contractor shall pay the
material supplier for those materials and products no
later than seven days after the original contractor
receives the payment. An original subcontractor that
receives payment under this subsection for work
provided to the original subcontractor by another
subcontractor, or for materials or products provided to
the original subcontractor, shall pay the other
subcontractor or material supplier for the work,
materials or products no later than seven days after the
original subcontractor receives the payment.
(b) 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 lien for labor, equipment, services, materials or
products 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) An original contractor that submits a billing or
estimate to an owner, or an original subcontractor that
submits a billing or estimate to the original contractor,
may omit from the billing or estimate amounts to be
withheld from payment to a subcontractor or material
supplier because of:
(a) Unsatisfactory work progress;
(b) Defective construction work, materials or
products not remedied;
(c) Disputed work, materials or products, except
that the withheld amount may not exceed 150 percent
of the amount in dispute;
(d) Failure to comply with other material
provisions of the construction contract;
(e) A third party claim being filed or reasonable
evidence that a third party 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;

2013 Annotated 1-10-14

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(h) Reasonable evidence that the subcontract
cannot be completed for the unpaid balance of the
subcontract sum; or
(i) Other items as allowed under the subcontract
or purchase order terms and conditions.
(5) An original contractor or original
subcontractor may also omit from a billing or estimate
a reasonable amount for retainage, except that the
amount omitted may not exceed the actual percentage
allowed by the construction contract, subcontract or
purchase order. As used in this subsection, “retainage”
has the meaning given that term in ORS 701.410.
(6) 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)
or (5) 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.
(7) In any action, claim or arbitration brought to
collect interest under this section, the prevailing party
shall be awarded costs and reasonable attorney fees.
[2003 c.675 §56; 2011 c.553 §3]
Note: See note under 701.620.

701.635 Suspension of performance. (1) An
original contractor may suspend performance under a
construction contract, or if performance is suspended
for longer than one month may terminate a
construction contract, if the owner fails to make timely
payment of the amount certified under ORS 701.625.
An original contractor shall provide written notice to
an owner at least seven days before the original
contractor suspends performance or terminates the
construction contract, unless a shorter notice period is
prescribed in the construction 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 if performance is
suspended for longer than one month may terminate a
construction contract, if the owner fails to make timely
payment of amounts certified under ORS 701.625 or
the subcontractor does not 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 construction
contract, unless a shorter notice period is prescribed in
the construction contract. A subcontractor may not be
deemed in breach of a construction contract for

OCCUPATIONS AND PROFESSIONS
suspending performance or terminating a construction
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 if performance is
suspended for longer than one month may terminate a
construction contract, if the owner makes timely
payment of amounts certified under ORS 701.625 for
the subcontractor’s 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 construction contract, unless a shorter
notice period is prescribed in the construction contract.
A subcontractor 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.
(4) A subcontractor may suspend performance
under a construction contract, or if performance is
suspended for longer than one month may terminate a
construction contract, if the owner declines or fails to
approve portions of the contractor’s billing or estimate
under ORS 701.625 for that subcontractor’s work and
the reasons for nonapproval are not the fault of or
directly related to the subcontractor’s 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 construction contract, unless a shorter
notice period is prescribed in the construction contract.
A subcontractor 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.
(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 may
condition the supplying of further labor, equipment,
services, materials or products upon the owner or
original contractor paying, in addition to any amounts
certified under ORS 701.625, 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 costs and reasonable attorney fees.
(8) Written notice required under this section is
deemed to have been provided if the notice:

2013 Annotated 1-10-14

Page 54

(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; 2011 c.553 §4]
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 construction contract subject to the
laws of another state or that requires any litigation,
arbitration or other dispute resolution proceeding
arising from the construction contract to be conducted
in another state; or
(b) States that a party to the construction contract
cannot suspend performance under the construction
contract or terminate the construction contract if
another party to the construction contract fails to make
prompt payments under the construction 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; 2011 c.553 §5]
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 701.021 is a Class A misdemeanor.
(2) The intentional use of a contractor’s license
number without the authorization of the licensed
contractor is a Class A misdemeanor.

CONSTRUCTION CONTRACTORS AND CONTRACTS
(3) Use of a contractor’s license number, with or
without the authorization of the licensed contractor,
with the intent to deceive the public is a Class A
misdemeanor. [1971 c.740 §22; 1999 c.344 §7; 2001
c.104 §282; 2001 c.850 §7; 2007 c.836 §37]
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)(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 person’s license for six
months for a third offense;
(d) Suspension of the person’s license for three
years for a fourth offense; and
(e) Revocation of the person’s 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; 2007 c.836 §38]

2013 Annotated 1-10-14

Page 55

701.995 Civil penalties for violations related to
lead-based paint activities; reporting of penalties
and sanctions. (1) A person who violates any
provision of, or any rule adopted under, ORS 701.505
to 701.515 shall pay to the Construction Contractors
Board Lead-Based Paint Activities Fund established
under ORS 701.520 a civil penalty of not more than
$5,000 for each violation.
(2) Civil penalties under this section shall be
imposed as provided in ORS 183.745.
(3) A civil penalty imposed under this section is
in addition to and not in lieu of any other penalty or
sanction provided by law.
(4) The board shall report all civil penalties or
sanctions imposed under this section to each of the
following state agencies:
(a) The Oregon Health Authority;
(b) The Occupational Safety and Health Division
of the Department of Consumer and Business Services;
and
(c) The Department of Environmental Quality.
[2009 c.757 §10; 2009 c.828 §69]
Note: 701.995 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.

PROCEDURE IN CIVIL PROCEEDINGS
GENERAL PROVISIONS
12.010 Time of commencing actions. Actions
shall only be commenced within the periods prescribed
in this chapter, after the cause of action shall have
accrued, except where a different limitation is
prescribed by statute. [Amended by 1979 c.284 §43]
12.020 When action deemed begun. (1) Except
as provided in subsection (2) of this section, for the
purpose of determining whether an action has been
commenced within the time limited, an action shall be
deemed commenced as to each defendant, when the
complaint is filed, and the summons served on the
defendant, or on a codefendant who is a joint
contractor, or otherwise united in interest with the
defendant.
(2) If the first publication of summons or other
service of summons in an action occurs before the
expiration of 60 days after the date on which the
complaint in the action was filed, the action against
each person of whom the court by such service has
acquired jurisdiction shall be deemed to have been
commenced upon the date on which the complaint in
the action was filed. [Amended by 1973 c.731 §1]
12.030 [Repealed by 1973 c.731 §2]
12.040 Limitations of suits generally; land
patent suits; defense of possession by equitable title;
suit on new promise, fraud or mistake. (1) A suit
shall only be commenced within the time limited to
commence an action as provided in this chapter; and a
suit for the determination of any right or claim to or
interest in real property shall be deemed within the
limitations provided for actions for the recovery of the
possession of real property.
(2) No suit shall be maintained to set aside,
cancel, annul or otherwise affect a patent to lands
issued by the United States or this state, or to compel
any person claiming or holding under such patent to
convey the lands described therein, or any portion of
them, to the plaintiff in such suit, or to hold the same in
trust for, or to the use and benefit of such plaintiff, or
on account of any matter, thing or transaction which
was had, done, suffered or transpired prior to the date
of such patent, unless such suit is commenced within
10 years from the date of such patent.
(3) This section shall not bar an equitable owner
in possession of real property from defending
possession by means of the equitable title; and in any
action for the recovery of any real property, or the
possession thereof, by any person or persons claiming
or holding the legal title to the same under such patent
against any person or persons in possession of such real
property under any equitable title, or having in equity
the right to the possession thereof as against the
plaintiff in such action, such equitable right of
possession may be pleaded by answer in such action, or

2013 Annotated 1-10-14

Page 56

set up by bill in equity to enjoin such action or
execution upon any judgment rendered therein; and the
right of such equitable owner to defend possession in
such action, or by bill for injunction, shall not be
barred by lapse of time while an action for the
possession of such real property is not barred.
(4) In a suit upon a new promise, fraud or
mistake, the limitation shall only be deemed to
commence from the making of the new promise or the
discovery of the fraud or mistake.
12.050 Action to recover real property. An
action for the recovery of real property, or for the
recovery of the possession thereof, shall be
commenced within 10 years. No action shall be
maintained for such recovery unless it appear that the
plaintiff, an ancestor, predecessor, or grantor was
seized or possessed of the premises in question within
10 years before the commencement of the action.
12.060 Suit or action on land contracts; time
when they cease to affect the property. (1) Unless
suit or action to enforce a contract for the sale of real
property is instituted in the county in which the real
property is situated within five years from the date of
maturity of the final payment provided for in the
contract, or from the date to which the final payment
shall have been extended by agreement of record, the
contract shall not thereafter be a lien, encumbrance, or
cloud on the title of the property.
(2) When the purchase price fixed in the contract
is payable in installments, the contract shall be deemed
to mature on the date upon which the final payment
would be payable if the minimum amount of the
principal due on each installment had been paid as
provided in the terms of the contract.
12.070 Action on judgment, decree or sealed
instrument. (1) An action upon a judgment or decree
of any court of the United States, or of any state or
territory within the United States; or
(2) An action upon a sealed instrument entered
into before August 13, 1965, shall be commenced
within 10 years. [Amended by 1965 c.502 §3]
12.080 Action on certain contracts or
liabilities. (1) An action upon a contract or liability,
express or implied, excepting those mentioned in ORS
12.070, 12.110 and 12.135 and except as otherwise
provided in ORS 72.7250;
(2) An action upon a liability created by statute,
other than a penalty or forfeiture, excepting those
mentioned in ORS 12.110;
(3) An action for waste or trespass upon or for
interference with or injury to any interest of another in
real property, excepting those mentioned in ORS
12.050, 12.060, 12.135, 12.137 and 273.241; or
(4) An action for taking, detaining or injuring
personal property, including an action for the specific
recovery thereof, excepting an action mentioned in

PROCEDURE IN CIVIL PROCEEDINGS
ORS 12.137; shall be commenced within six years.
[Amended by 1957 c.374 §3; 1961 c.726 §396; 1973
c.363 §1; 1983 c.437 §2; 1987 c.705 §3; 1991 c.968
§2]
12.115 Action for negligent injury to person or
property. (1) In no event shall any action for negligent
injury to person or property of another be commenced
more than 10 years from the date of the act or omission
complained of.
(2) Nothing in this section shall be construed to
extend any period of limitation otherwise established
by law, including but not limited to the limitations
established by ORS 12.110. [1967 c.406 §2]
12.135 Action for damages from construction,
alteration or repair of improvement to real
property; “substantial completion” defined;
application. (1) An action against a person by a
plaintiff who is not a public body, whether in contract,
tort or otherwise, arising from the person having
performed the construction, alteration or repair of any
improvement to real property or the supervision or
inspection thereof, or from the person having furnished
design, planning, surveying, architectural or
engineering services for the improvement, must be
commenced before the earliest of:
(a) The applicable period of limitation otherwise
established by law;
(b) Ten years after substantial completion or
abandonment of the construction, alteration or repair of
a small commercial structure, as defined in ORS
701.005, a residential structure, as defined in ORS
701.005, or a large commercial structure, as defined in
ORS 701.005, that is owned or maintained by a
homeowners association, as defined in ORS 94.550, or
that is owned or maintained by an association of unit
owners, as defined in ORS 100.005; or
(c) Six years after substantial completion or
abandonment of the construction, alteration or repair of
a large commercial structure, as defined in ORS
701.005, other than a large commercial structure
described in paragraph (b) of this subsection.
(2) An action against a person by a public body,
whether in contract, tort or otherwise, arising from the
person having performed the construction, alteration or
repair of any improvement to real property or the
supervision or inspection thereof, or from the person
having furnished design, planning, surveying,
architectural or engineering services for the
improvement, must be commenced not more than 10
years after substantial completion or abandonment of
such construction, alteration or repair of the
improvement to real property.
(3)(a) Notwithstanding subsections (1) and (2) of
this section, an action against a person registered to
practice architecture under ORS 671.010 to 671.220, a
person registered to practice landscape architecture
under ORS 671.310 to 671.459 or a person registered

2013 Annotated 1-10-14

Page 57

to practice engineering under ORS 672.005 to 672.325
to recover damages for injury to a person, property or
to any interest in property, including damages for delay
or economic loss, regardless of legal theory, arising out
of the construction, alteration or repair of any
improvement to real property must be commenced
before the earliest of:
(A) Two years after the date the injury or damage
is first discovered or in the exercise of reasonable care
should have been discovered;
(B) Ten years after substantial completion or
abandonment of the construction, alteration or repair of
a small commercial structure, as defined in ORS
701.005, a residential structure, as defined in ORS
701.005, or a large commercial structure, as defined in
ORS 701.005, that is owned or maintained by an
association of unit owners, as defined in ORS 100.005
or
(C) Six years after substantial completion or
abandonment of the construction, alteration or repair of
a large commercial structure, as defined in ORS
701.005, other than a large commercial structure
described in subparagraph (B) of this paragraph.
(b) This subsection applies to actions brought by
any person or public body.
(4) For purposes of this section:
(a) “Public body” has the meaning given that
term in ORS 174.109; and
(b) “Substantial completion” means the date
when the contractee accepts in writing the construction,
alteration or repair of the improvement to real property
or any designated portion thereof as having reached
that state of completion when it may be used or
occupied for its intended purpose or, if there is no such
written acceptance, the date of acceptance of the
completed construction, alteration or repair of such
improvement by the contractee.
(5) For purposes of this section, an improvement
to real property shall be considered abandoned on the
same date that the improvement is considered
abandoned under ORS 87.045.
(6) This section:
(a) Applies to an action against a manufacturer,
distributor, seller or lessor of a manufactured dwelling,
as defined in ORS 446.003, or of a prefabricated
structure, as defined in ORS 455.010; and
(b) Does not apply to actions against any person
in actual possession and control of the improvement, as
owner, tenant or otherwise, at the time such cause of
action accrues. [1971 c.664 §§2,3,4; 1983 c.437 §1;
1991 c.968 §1; 2009 c.485 §3; 2009 c.715 §1; 2013
c.469 §1]
Note: Section 3, chapter 715, Oregon Laws 2009,
provides:
Sec. 3. The amendments to ORS 12.135 and 12.280 by
sections 1 and 2 of this 2009 Act apply only to causes of
action arising on or after the effective date of this 2009 Act
[January 1, 2010]. [2009 c.715 §3]

PROCEDURE IN CIVIL PROCEEDINGS
Note: Section 2, chapter 469 Oregon Laws 2013,
provides:
Sec. 2. The amendments to ORS 12.135 by section 1 of
this 2013 Act apply only to causes of action arising on or
after the effective date of this 2013 Act [January 1, 2014].
[2013 c.469 §2]

12.230 Acknowledgment or promise taking
contract case out of statute; effect of payment. No
acknowledgment or promise shall be sufficient
evidence of a new or continuing contract, whereby to
take the case out of the operation of this chapter, unless
the same is contained in some writing, signed by the
party to be charged thereby; but this section shall not
alter the effect of any payment of principal or interest.
12.240 Effect of payment after obligation
becomes due. Whenever any payment of principal or
interest is made after it has become due, upon an
existing contract, whether it is a bill of exchange,
promissory note, bond, or other evidence of
indebtedness, the limitation shall commence from the
time the last payment was made.
12.250 Actions by state, county or public
corporations. Unless otherwise made applicable
thereto, the limitations prescribed in this chapter shall
not apply to actions brought in the name of the state, or
any county, or other public corporation therein, or for
its benefit.
12.280 Action based on practice of land
surveying. Notwithstanding ORS 12.135 or any other
statute of limitation, an action against a person for the
practice of land surveying, as defined in ORS 672.005,
to recover damages for injury to a person, property or
to any interest in property, including damages for delay
or economic loss, regardless of legal theory, arising out
of the survey of real property must be commenced
within two years after the date the injury or damage is
first discovered or in the exercise of reasonable care
should have been discovered. In no event may an
action arising out of a survey be commenced more than
10 years after the date on which any map prepared by
the land surveyor is filed under the provisions of ORS
209.250, or, if no map is filed, more than 10 years after
the completion of work on the survey. [1995 c.310 §2;
2009 c.715 §2]
Note: See note under 12.135.

2013 Annotated 1-10-14

Page 58

RETAIL INSTALLMENT CONTRACTS
Note: See notes under 36.600.

UNIFORM ARBITRATION ACT
36.600 Definitions. As used in ORS 36.600 to
36.740:
(1) “Arbitration organization” means an
association, agency, board, commission or other entity
that is neutral and initiates, sponsors or administers an
arbitration proceeding or is involved in the
appointment of an arbitrator.
(2) “Arbitrator” means an individual appointed to
render an award, alone or with others, in a controversy
that is subject to an agreement to arbitrate.
(3) “Court” means a circuit court.
(4) “Knowledge” means actual knowledge.
(5) “Person” means an individual, corporation,
business trust, partnership, limited liability company,
association, joint venture, government, governmental
subdivision, agency or instrumentality, public
corporation or any other legal or commercial entity.
(6) “Record” means information that is inscribed
on a tangible medium or that is stored in an electronic
or other medium and is retrievable in perceivable form.
[2003 c.598 §1; 2009 c.294 §3]
Note: Sections 3 and 31, chapter 598, Oregon Laws
2003, provide:
Sec. 3. (1) Sections 1 to 30 of this 2003 Act [36.600 to
36.740] govern an agreement to arbitrate made on or after the
effective date of this 2003 Act [January 1, 2004].
(2) Sections 1 to 30 of this 2003 Act govern an
agreement to arbitrate made before the effective date of this
2003 Act if all the parties to the agreement or to the
arbitration proceeding so agree in a record.
(3) On or after September 1, 2004, sections 1 to 30 of
this 2003 Act govern an agreement to arbitrate whenever
made. [2003 c.598 §3]
Sec. 31. ORS 36.600 to 36.740 do not affect an action
or proceeding commenced or right accrued before January 1,
2004. Subject to section 3, chapter 598, Oregon Laws 2003,
an arbitration agreement made before January 1, 2004,
continues to be governed by ORS 36.300 to 36.365 as though
those sections were not repealed by section 57, chapter 598,
Oregon Laws 2003. [2003 c.598 §31; 2005 c.22 §30]
Note: 36.600 to 36.740 were enacted into law by the
Legislative Assembly but were not added to or made a part of
ORS chapter 36 or any series therein by legislative action.
See Preface to Oregon Revised Statutes for further
explanation.

36.605 Notice. (1) Except as otherwise provided
in ORS 36.600 to 36.740, a person gives notice to
another person by taking action that is reasonably
necessary to inform the other person in ordinary
course, whether or not the other person acquires
knowledge of the notice.
(2) A person has notice if the person has
knowledge of the notice or has received notice.
(3) A person receives notice when it comes to the
person’s attention or the notice is delivered at the
person’s place of residence or place of business, or at
another location held out by the person as a place of
delivery of such communications. [2003 c.598 §2]

2013 Annotated 1-10-14

Page 59

36.610 Effect of agreement to arbitrate;
nonwaivable provisions. (1) Except as otherwise
provided in this section, a party to an agreement to
arbitrate or to an arbitration proceeding may waive, or
the parties may vary the effect of, the requirements of
ORS 36.600 to 36.740 to the extent permitted by law.
(2) Before a controversy arises that is subject to
an agreement to arbitrate, a party to the agreement may
not:
(a) Waive or agree to vary the effect of the
requirements of this section or ORS 36.615, 36.620 (1),
36.630, 36.675 (1) or (2), 36.720 or 36.730;
(b) Agree to unreasonably restrict the right under
ORS 36.635 to notice of the initiation of an arbitration
proceeding;
(c) Agree to unreasonably restrict the right under
ORS 36.650 to disclosure of any facts by a neutral
arbitrator; or
(d) Waive the right under ORS 36.670 of a party
to an agreement to arbitrate to be represented by a
lawyer at any proceeding or hearing under ORS 36.600
to 36.740, but an employer and a labor organization
may waive the right to representation by a lawyer in a
labor arbitration.
(3) A party to an agreement to arbitrate or
arbitration proceeding may not waive, or the parties
may not vary the effect of, the requirements of this
section or ORS 36.625, 36.660, 36.680, 36.690 (4) or
(5), 36.700, 36.705, 36.710, 36.715 (1) or (2), 36.735
or 36.740 or section 3 (1) or (3) or 31, chapter 598,
Oregon Laws 2003.
(4) Subsections (2) and (3) of this section do not
apply to agreements to arbitrate entered into by two or
more insurers, as defined by ORS 731.106, or selfinsured persons for the purpose of arbitration of
disputes arising out of the provision of insurance.
[2003 c.598 §4; 2011 c.595 §118]
Note: See notes under 36.600.

36.615 Application for judicial relief; fees. (1)
Except as otherwise provided in ORS 36.730, an
application for judicial relief under ORS 36.600 to
36.740 must be made by petition to the court. The
petitioner and the respondent must pay the filing fees
established under ORS 21.135.
(2) Unless a civil action involving the agreement
to arbitrate is pending, notice of a first petition to the
court under ORS 36.600 to 36.740 must be served in
the manner provided by ORCP 7 D. Otherwise, notice
of the petition must be given in the manner provided by
ORCP 9. [2003 c.598 §5; 2003 c.737 §§40a,40c; 2005
c.702 §§45,46,47; 2007 c.860 §6; 2010 c.107 §§40,41;
2011 c.595 §44]
Note: See notes under 36.600.

SPECIAL ACTIONS AND PROCEEDINGS

36.620 Validity of agreement to arbitrate;
form of acknowledgment of agreement. (1) An
agreement contained in a record to submit to arbitration
any existing or subsequent controversy arising between
the parties to the agreement is valid, enforceable and
irrevocable except upon a ground that exists at law or
in equity for the revocation of a contract.
(2) Subject to ORS 36.625 (8), the court shall
decide whether an agreement to arbitrate exists or a
controversy is subject to an agreement to arbitrate.
(3) An arbitrator shall decide whether a condition
precedent to arbitrability has been fulfilled.
(4) If a party to a judicial proceeding challenges
the existence of, or claims that a controversy is not
subject to, an agreement to arbitrate, the arbitration
proceeding may continue pending final resolution of
the issue by the court, unless the court otherwise
orders.
(5) A written arbitration agreement entered into
between an employer and employee and otherwise
valid under subsection (1) of this section is voidable
and may not be enforced by a court unless:
(a) At least 72 hours before the first day of the
employee’s employment, the employee has received
notice in a written employment offer from the
employer that an arbitration agreement is required as a
condition of employment, and the employee has been
provided with the required arbitration agreement that
meets the requirements of, and includes the
acknowledgment set forth in, subsection (6) of this
section; or
(b) The arbitration agreement is entered into upon
a subsequent bona fide advancement of the employee
by the employer.
(6) The acknowledgment required by subsection
(5) of this section must be signed by the employee and
must include the following language in boldfaced type:
____________________________________________
__________________________________
I acknowledge that I have received and read or
have had the opportunity to read this arbitration
agreement. I understand that this arbitration agreement
requires that disputes that involve the matters subject to
the agreement be submitted to mediation or arbitration
pursuant to the arbitration agreement rather than to a
judge and jury in court.
____________________________________________
__________________________________ [2003 c.598
§6; 2007 c.902 §1; 2011 c.489 §1]
Note: Section 4, chapter 902, Oregon Laws 2007,
provides:
Sec. 4. The amendments to ORS 36.620 by section 1 of
this 2007 Act apply to arbitration agreements entered into on
or after the effective date of this 2007 Act [January 1, 2008].
[2007 c.902 §4]
Note: Section 2, chapter 489, Oregon Laws 2011,
provides:

2013 Annotated 1-10-14

Page 60

Sec. 2. The amendments to ORS 36.620 by section 1 of
this 2011 Act apply to arbitration agreements entered into on
or after the effective date of this 2011 Act [January 1, 2012].
[2011 c.489 §2]
Note: See notes under 36.600.

36.625 Petition to compel or stay arbitration.
(1) On petition of a person showing an agreement to
arbitrate and alleging another person’s refusal to
arbitrate pursuant to the agreement:
(a) If the refusing party does not appear or does
not oppose the petition, the court shall order the parties
to arbitrate; and
(b) If the refusing party opposes the petition, the
court shall proceed summarily to decide the issue as
provided in subsection (8) of this section and order the
parties to arbitrate unless it finds that there is no
enforceable agreement to arbitrate.
(2) On petition of a person alleging that an
arbitration proceeding has been initiated or threatened
but that there is no agreement to arbitrate, the court
shall proceed summarily to decide the issue as
provided in subsection (8) of this section. If the court
finds that there is an enforceable agreement to arbitrate,
it shall order the parties to arbitrate.
(3) If the court finds that there is no enforceable
agreement to arbitrate, it may not order the parties to
arbitrate pursuant to subsection (1) or (2) of this
section.
(4) The court may not refuse to order arbitration
because the claim subject to arbitration lacks merit or
grounds for the claim have not been established.
(5) If a proceeding involving a claim referable to
arbitration under an alleged agreement to arbitrate is
pending in court, a petition under this section must be
made in that court. Otherwise, a petition under this
section may be made in any court as provided in ORS
36.725.
(6) If a party makes a petition to the court to
order arbitration, the court on just terms shall stay any
judicial proceeding that involves a claim alleged to be
subject to the arbitration until the court renders a final
decision under this section.
(7) If the court orders arbitration, the court on just
terms shall stay any judicial proceeding that involves a
claim subject to the arbitration. If a claim subject to the
arbitration is severable, the court may limit the stay to
that claim.
(8) A judge shall decide all issues raised under a
petition filed under ORS 36.600 to 36.740 unless there
is a constitutional right to jury trial on the issue. If
there is a constitutional right to jury trial on an issue,
the issue shall be tried to a jury upon the request of any
party to the proceeding. [2003 c.598 §7]
Note: See notes under 36.600.

36.630 Provisional remedies. (1) Before an
arbitrator is appointed and is authorized and able to act,
the court, upon petition of a party to an arbitration

RETAIL INSTALLMENT CONTRACTS
proceeding and for good cause shown, may enter an
order for provisional remedies to protect the
effectiveness of the arbitration proceeding to the same
extent and under the same conditions as if the
controversy were the subject of a civil action.
(2) After an arbitrator is appointed and is
authorized and able to act:
(a) The arbitrator may issue such orders for
provisional remedies, including interim awards, as the
arbitrator finds necessary to protect the effectiveness of
the arbitration proceeding and to promote the fair and
expeditious resolution of the controversy, to the same
extent and under the same conditions as if the
controversy were the subject of a civil action; and
(b) A party to an arbitration proceeding may
move the court for a provisional remedy only if the
matter is urgent and the arbitrator is not able to act
timely or the arbitrator cannot provide an adequate
remedy.
(3) A party does not waive a right of arbitration
by making a petition under subsection (1) or (2) of this
section. [2003 c.598 §8]
Note: See notes under 36.600.

36.635 Initiation of arbitration. (1) A person
initiates an arbitration proceeding by giving notice in a
record to the other parties to the agreement to arbitrate
in the agreed manner between the parties or, in the
absence of agreement, by certified mail, return receipt
requested and obtained, or by service as authorized for
summons under ORCP 7 D. The notice must describe
the nature of the controversy and the remedy sought.
(2) Unless a person objects for lack or
insufficiency of notice under ORS 36.665 (3) not later
than the beginning of the arbitration hearing, the person
by appearing at the hearing waives any objection to
lack or insufficiency of notice. [2003 c.598 §9]
Note: See notes under 36.600.

36.640 Consolidation of separate arbitration
proceedings. (1) Except as otherwise provided in
subsection (3) of this section, upon petition of a party
to an agreement to arbitrate or to an arbitration
proceeding, the court may order consolidation of
separate arbitration proceedings as to all or some of the
claims if:
(a) There are separate agreements to arbitrate or
separate arbitration proceedings between the same
persons or one of them is a party to a separate
agreement to arbitrate or a separate arbitration
proceeding with a third person;
(b) The claims subject to the agreements to
arbitrate arise in substantial part from the same
transaction or series of related transactions;
(c) The existence of a common issue of law or
fact creates the possibility of conflicting decisions in
the separate arbitration proceedings; and
(d) Prejudice resulting from a failure to
consolidate is not outweighed by the risk of undue

2013 Annotated 1-10-14

Page 61

delay or prejudice to the rights of or hardship to parties
opposing consolidation.
(2) The court may order consolidation of separate
arbitration proceedings as to some claims and allow
other claims to be resolved in separate arbitration
proceedings.
(3) The court may not order consolidation of the
claims of a party to an agreement to arbitrate if the
agreement prohibits consolidation. [2003 c.598 §10]
Note: See notes under 36.600.

36.645 Appointment of arbitrator; service as
neutral arbitrator. (1) If the parties to an agreement
to arbitrate agree on a method for appointing an
arbitrator, that method must be followed, unless the
method fails. If the parties have not agreed on a
method, the agreed method fails, or an arbitrator
designated or appointed fails or is unable to act and a
successor has not been appointed, the court, on petition
of a party to the arbitration proceeding, shall appoint
the arbitrator. An arbitrator so appointed has all the
powers of an arbitrator designated in the agreement to
arbitrate or appointed pursuant to the agreed method.
(2) An individual who has a known, direct and
material interest in the outcome of the arbitration
proceeding or a known, existing and substantial
relationship with a party may not serve as an arbitrator
required by an agreement to be neutral. [2003 c.598
§11]
Note: See notes under 36.600.

36.650 Disclosure by arbitrator. (1) Before
accepting appointment, an individual who is requested
to serve as an arbitrator, after making a reasonable
inquiry, shall disclose to all parties to the agreement to
arbitrate and arbitration proceeding and to any other
arbitrators in the arbitration proceeding any known
facts that a reasonable person would consider likely to
affect the impartiality of the arbitrator in the arbitration
proceeding, including:
(a) A financial or personal interest in the outcome
of the arbitration proceeding; and
(b) An existing or past relationship with any of
the parties to the agreement to arbitrate or the
arbitration proceeding, their counsel or representatives,
a witness or another arbitrator in the proceeding.
(2) An arbitrator has a continuing obligation to
disclose to all parties to the agreement to arbitrate and
arbitration proceeding and to any other arbitrators in
the proceeding any facts that the arbitrator learns after
accepting appointment that a reasonable person would
consider likely to affect the impartiality of the
arbitrator.
(3) If an arbitrator discloses a fact required by
subsection (1) or (2) of this section to be disclosed and
a party timely objects to the appointment or continued
service of the arbitrator based upon the fact disclosed,
the objection may be a ground under ORS 36.705
(1)(b) for vacating an award made by the arbitrator.

SPECIAL ACTIONS AND PROCEEDINGS
(4) If the arbitrator did not disclose a fact as
required by subsection (1) or (2) of this section, upon
timely objection by a party, the court under ORS
36.705 (1)(b) may vacate an award.
(5) An arbitrator appointed as a neutral arbitrator
who does not disclose a known, direct and material
interest in the outcome of the arbitration proceeding or
a known, existing and substantial relationship with a
party, the party’s counsel or representatives, a witness
or another arbitrator in the proceeding is presumed to
act with evident partiality under ORS 36.705 (1)(b).
(6) If the parties to an arbitration proceeding
agree to the procedures of an arbitration organization
or any other procedures for challenges to arbitrators
before an award is made, substantial compliance with
those procedures is a condition precedent to a petition
to vacate an award on that ground under ORS 36.705
(1)(b). [2003 c.598 §12]
Note: See notes under 36.600.

36.655 Action by majority. If there is more than
one arbitrator, the powers of an arbitrator must be
exercised by a majority of the arbitrators, but all of
them shall conduct the hearing under ORS 36.665 (3).
[2003 c.598 §13]
Note: See notes under 36.600.

36.660 Immunity of arbitrator; competency to
testify; attorney fees and costs. (1) An arbitrator or an
arbitration organization acting in that capacity is
immune from civil liability to the same extent as a
judge of a court of this state acting in a judicial
capacity.
(2) The immunity afforded by this section
supplements any immunity under other law.
(3) The failure of an arbitrator to make a
disclosure required by ORS 36.650 does not cause any
loss of immunity under this section.
(4) In a judicial, administrative or similar
proceeding, an arbitrator or representative of an
arbitration organization is not competent to testify, and
may not be required to produce records as to any
statement, conduct, decision or ruling occurring during
the arbitration proceeding, to the same extent as a
judge of a court of this state acting in a judicial
capacity. This subsection does not apply:
(a) To the extent necessary to determine the claim
of an arbitrator, arbitration organization or
representative of the arbitration organization against a
party to the arbitration proceeding; or
(b) To a hearing on a petition to vacate an award
under ORS 36.705 (1)(a) or (b) if the petitioner
establishes prima facie that a ground for vacating the
award exists.
(5) If a person commences a civil action against
an arbitrator, arbitration organization or representative
of an arbitration organization arising from the services
of the arbitrator, organization or representative, or if a
person seeks to compel an arbitrator or a representative

2013 Annotated 1-10-14

Page 62

of an arbitration organization to testify or produce
records in violation of subsection (4) of this section,
and the court decides that the arbitrator, arbitration
organization or representative of an arbitration
organization is immune from civil liability or that the
arbitrator or representative of the organization is not
competent to testify, the court shall award to the
arbitrator, organization or representative reasonable
attorney fees. [2003 c.598 §14]
Note: See notes under 36.600.

36.665 Arbitration process. (1) An arbitrator
may conduct an arbitration in such manner as the
arbitrator considers appropriate for a fair and
expeditious disposition of the proceeding. The
authority conferred upon the arbitrator includes the
power to hold conferences with the parties to the
arbitration proceeding before the hearing and, among
other matters, determine the admissibility, relevance,
materiality and weight of any evidence.
(2) An arbitrator may decide a request for
summary disposition of a claim or particular issue:
(a) If all interested parties agree; or
(b) Upon request of one party to the arbitration
proceeding, if that party gives notice to all other parties
to the proceeding and the other parties have a
reasonable opportunity to respond.
(3) If an arbitrator orders a hearing, the arbitrator
shall set a time and place and give notice of the hearing
not less than five days before the hearing begins.
Unless a party to the arbitration proceeding makes an
objection to lack or insufficiency of notice not later
than the beginning of the hearing, the party’s
appearance at the hearing waives any objection based
on lack or insufficiency of notice. Upon request of a
party to the arbitration proceeding and for good cause
shown, or upon the arbitrator’s own initiative, the
arbitrator may adjourn the hearing from time to time as
necessary but may not postpone the hearing to a time
later than that fixed by the agreement to arbitrate for
making the award unless the parties to the arbitration
proceeding consent to a later date. The arbitrator may
hear and decide the controversy upon the evidence
produced although a party who was duly notified of the
arbitration proceeding did not appear. The court, on
request, may direct the arbitrator to conduct the hearing
promptly and render a timely decision.
(4) At a hearing under subsection (3) of this
section, a party to the arbitration proceeding has a right
to be heard, to present evidence material to the
controversy and to cross-examine witnesses appearing
at the hearing.
(5) If an arbitrator ceases or is unable to act
during the arbitration proceeding, a replacement
arbitrator must be appointed in accordance with ORS
36.645 to continue the proceeding and to resolve the
controversy. [2003 c.598 §15]
Note: See notes under 36.600.

RETAIL INSTALLMENT CONTRACTS
36.670
Representation
by
a
lawyer;
representation of legal or commercial entities. A
party to an arbitration proceeding may be represented
by a lawyer admitted to practice in this state or any
other state. A corporation, business trust, partnership,
limited liability company, association, joint venture or
other legal or commercial entity may be represented by
a lawyer admitted to practice in this state or any other
state, by an officer of the entity, or by an employee or
other agent authorized by the entity to represent the
entity in the proceeding. [2003 c.598 §16]
Note: See notes under 36.600.

36.675 Witnesses; subpoenas; depositions;
discovery. (1) An arbitrator may administer oaths. An
arbitrator or an attorney for any party to the arbitration
proceeding may issue a subpoena for the attendance of
a witness and for the production of records and other
evidence at any hearing. A subpoena must be served in
the manner for service of subpoenas under ORCP 55 D
and, upon petition to the court by a party to the
arbitration proceeding or the arbitrator, enforced in the
manner provided by ORCP 55 G.
(2) In order to make the proceedings fair,
expeditious and cost-effective, upon request of a party
to or a witness in an arbitration proceeding, an
arbitrator may permit a deposition of any witness to be
taken for use as evidence at the hearing, including a
witness who cannot be subpoenaed for or is unable to
attend a hearing. The arbitrator shall determine the
conditions under which the deposition is taken.
(3) An arbitrator may permit such discovery as
the arbitrator decides is appropriate in the
circumstances, taking into account the needs of the
parties to the arbitration proceeding and other affected
persons and the desirability of making the proceeding
fair, expeditious and cost-effective.
(4) If an arbitrator permits discovery under
subsection (3) of this section, the arbitrator may order a
party to the arbitration proceeding to comply with the
arbitrator’s discovery-related orders, issue subpoenas
for the attendance of a witness and for the production
of records and other evidence at a discovery
proceeding, and take action against a noncomplying
party to the extent a court could if the controversy were
the subject of a civil action in this state.
(5) An arbitrator may issue a protective order to
prevent the disclosure of privileged information,
confidential information, trade secrets and other
information protected from disclosure to the extent a
court could if the controversy were the subject of a
civil action in this state.
(6) All laws compelling a person under subpoena
to testify and all fees for attending a judicial
proceeding, a deposition or a discovery proceeding as a
witness apply to an arbitration proceeding as if the
controversy were the subject of a civil action in this
state.

2013 Annotated 1-10-14

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(7) The court may enforce a subpoena or
discovery-related order for the attendance of a witness
within this state, and for the production of records and
other evidence issued by an arbitrator or by an attorney
for any party to the proceeding in connection with an
arbitration proceeding in another state, upon conditions
determined by the court so as to make the arbitration
proceeding fair, expeditious and cost-effective. A
subpoena or discovery-related order issued by an
arbitrator or by an attorney for any party to the
proceeding in another state must be served in the
manner provided by ORCP 55 D for service of
subpoenas in a civil action in this state and, upon
petition to the court by a party to the arbitration
proceeding or the arbitrator, enforced in the manner
provided by ORCP 55 G for enforcement of subpoenas
in a civil action in this state. [2003 c.598 §17]
Note: See notes under 36.600.

36.680 Judicial enforcement of preaward
ruling by arbitrator. If an arbitrator makes a preaward
ruling in favor of a party to the arbitration proceeding,
the party may request the arbitrator to incorporate the
ruling into an award under ORS 36.685. A prevailing
party may make a petition to the court for an expedited
order to confirm the award under ORS 36.700, in
which case the court shall summarily decide the
petition. The court shall issue an order to confirm the
award unless the court vacates, modifies, or corrects
the award under ORS 36.705 or 36.710. [2003 c.598
§18]
Note: See notes under 36.600.

36.685 Award. (1) An arbitrator shall make a
record of an award. The record must be signed or
otherwise authenticated by any arbitrator who concurs
with the award. If the award requires the payment of
money, including but not limited to payment of costs or
attorney fees, the award must be accompanied by a
separate statement that contains the information
required by ORS 18.042 for judgments that include
money awards. The arbitrator or the arbitration
organization shall give notice of the award, including a
copy of the award, to each party to the arbitration
proceeding.
(2) An award must be made within the time
specified by the agreement to arbitrate or, if not
specified therein, within the time ordered by the court.
The court may extend or the parties to the arbitration
proceeding may agree in a record to extend the time.
The court or the parties may extend the time within or
after the time specified or ordered. A party waives any
objection that an award was not timely made unless the
party gives notice of the objection to the arbitrator
before receiving notice of the award. [2003 c.598 §19;
2003 c.576 §169a]
Note: See notes under 36.600.

SPECIAL ACTIONS AND PROCEEDINGS

36.690 Change of award by arbitrator. (1)
Upon request by a party to an arbitration proceeding,
an arbitrator may modify or correct an award:
(a) Upon a ground stated in ORS 36.710 (1)(a) or
(c);
(b) Because the arbitrator has not made a final
and definite award upon a claim submitted by the
parties to the arbitration proceeding; or
(c) To clarify the award.
(2) A request under subsection (1) of this section
must be made and notice given to all parties within 20
days after the requesting party receives notice of the
award.
(3) A party to the arbitration proceeding must
give notice of any objection to the request within 10
days after receipt of the notice under subsection (2) of
this section.
(4) If a petition to the court is pending under ORS
36.700, 36.705 or 36.710, the court may submit the
claim to the arbitrator to consider whether to modify or
correct the award:
(a) Upon a ground stated in ORS 36.710 (1)(a) or
(c);
(b) Because the arbitrator has not made a final
and definite award upon a claim submitted by the
parties to the arbitration proceeding; or
(c) To clarify the award.
(5) An award modified or corrected pursuant to
this section is subject to ORS 36.685 (1), 36.700,
36.705 and 36.710. [2003 c.598 §20]
Note: See notes under 36.600.

36.695 Remedies; fees and expenses of
arbitration proceeding. (1) An arbitrator may award
punitive damages or other exemplary relief if such an
award is authorized by law in a civil action involving
the same claim and the evidence produced at the
hearing justifies the award under the legal standards
otherwise applicable to the claim.
(2) An arbitrator may award reasonable attorney
fees and other reasonable expenses of arbitration as
may be specified in the arbitration agreement if such an
award is authorized by law in a civil action involving
the same claim or by the agreement of the parties to the
arbitration proceeding.
(3) As to all remedies other than those authorized
by subsections (1) and (2) of this section, an arbitrator
may order such remedies as the arbitrator considers just
and appropriate under the circumstances of the
arbitration proceeding. The fact that such a remedy
could not or would not be granted by the court is not a
ground for refusing to confirm an award under ORS
36.700 or for vacating an award under ORS 36.705.
(4) An arbitrator’s expenses and fees, together
with other expenses, must be paid as provided in the
award.
(5) If an arbitrator awards punitive damages or
other exemplary relief under subsection (1) of this

2013 Annotated 1-10-14

Page 64

section, the arbitrator
basis in fact justifying
the award and state
punitive damages or
c.598 §21]

shall specify in the award the
and the basis in law authorizing
separately the amount of the
other exemplary relief. [2003

Note: See notes under 36.600.

36.700 Confirmation of award. (1) After a party
to an arbitration proceeding receives notice of an
award, the party may make a petition to the court for an
order confirming the award. The party filing the
petition must serve a copy of the petition on all other
parties to the proceedings. The court shall issue a
confirming order unless within 20 days after the
petition is served on the other parties:
(a) A party requests that the arbitrator modify or
correct the award under ORS 36.690; or
(b) A party petitions the court to vacate, modify
or correct the award under ORS 36.705 or 36.710.
(2) If a party requests that the arbitrator modify or
correct the award under ORS 36.690, or petitions the
court to vacate, modify or correct the award under ORS
36.705 or 36.710, the court may stay entry of an order
on a petition filed under this section until a final
decision is made on the request or petition. [2003 c.598
§22]
Note: See notes under 36.600.

36.705 Vacating award. (1) Upon petition to the
court by a party to an arbitration proceeding, the court
shall vacate an award made in the arbitration
proceeding if:
(a) The award was procured by corruption, fraud
or other undue means;
(b) There was:
(A) Evident partiality by an arbitrator appointed
as a neutral arbitrator;
(B) Corruption by an arbitrator; or
(C) Misconduct by an arbitrator prejudicing the
rights of a party to the arbitration proceeding;
(c) An arbitrator refused to postpone the hearing
upon showing of sufficient cause for postponement,
refused to consider evidence material to the
controversy or otherwise conducted the hearing
contrary to ORS 36.665 so as to prejudice substantially
the rights of a party to the arbitration proceeding;
(d) An arbitrator exceeded the arbitrator’s
powers;
(e) There was no agreement to arbitrate, unless
the person participated in the arbitration proceeding
without raising an objection under ORS 36.665 (3) not
later than the beginning of the arbitration hearing; or
(f) The arbitration was conducted without proper
notice of the initiation of an arbitration as required in
ORS 36.635 so as to prejudice substantially the rights
of a party to the arbitration proceeding.
(2) A petition under this section must be filed
within 20 days after the petitioner is served with a
petition for confirmation of an award under ORS

RETAIL INSTALLMENT CONTRACTS
36.700, unless the petitioner alleges that the award was
procured by corruption, fraud or other undue means. If
the petitioner alleges that the award was procured by
corruption, fraud or other undue means, a petition
under this section must be filed within 90 days after the
grounds for challenging the award are known or, by the
exercise of reasonable care, would have been known by
the petitioner. A party filing a petition under this
section must serve a copy of the petition on all other
parties to the proceedings.
(3) If the court vacates an award on a ground
other than that set forth in subsection (1)(e) of this
section, it may order a rehearing. If the award is
vacated on a ground stated in subsection (1)(a) or (b) of
this section, the rehearing must be before a new
arbitrator. If the award is vacated on a ground stated in
subsection (1)(c), (d) or (f) of this section, the
rehearing may be before the arbitrator who made the
award or before any successor appointed for that
arbitrator. The arbitrator must render the decision in the
rehearing within the same time as that provided for an
award in ORS 36.685 (2).
(4) If the court denies a petition to vacate an
award, it shall confirm the award unless a petition to
modify or correct the award is pending. [2003 c.598
§23]
Note: See notes under 36.600.

36.710 Modification or correction of award. (1)
Upon petition filed within 20 days after the petitioner is
served with a petition for confirmation of an award
under ORS 36.700, the court shall modify or correct
the award if:
(a) There was an evident mathematical
miscalculation or an evident mistake in the description
of a person, thing or property referred to in the award;
(b) The arbitrator has made an award on a claim
not submitted to the arbitrator and the award may be
corrected without affecting the merits of the decision
upon the claims submitted; or
(c) The award is imperfect in a matter of form not
affecting the merits of the decision on the claims
submitted.
(2) If a petition made under subsection (1) of this
section is granted, the court shall modify or correct and
confirm the award as modified or corrected. Otherwise,
unless a petition to vacate is pending, the court shall
confirm the award.
(3) A petition to modify or correct an award
pursuant to this section may be joined with a petition to
vacate the award.
(4) A party filing a petition under this section
must serve a copy of the petition on all other parties to
the proceedings. [2003 c.598 §24]
Note: See notes under 36.600.

36.715 Judgment on award; attorney fees and
litigation expenses. (1) Upon granting an order
confirming, vacating without directing a rehearing,

2013 Annotated 1-10-14

Page 65

modifying or correcting an award, the court shall enter
a judgment in conformity with the order. The judgment
may be entered in the register and enforced as any
other judgment in a civil action.
(2) A court may allow reasonable costs of the
petition and subsequent judicial proceedings.
(3) On application of a prevailing party to a
contested judicial proceeding under ORS 36.700,
36.705 or 36.710, the court may add reasonable
attorney fees incurred in a judicial proceeding after the
award is made to a judgment confirming, vacating
without directing a rehearing, modifying or correcting
an award. [2003 c.598 §25]
Note: See notes under 36.600.

36.720 Jurisdiction. (1) A court having
jurisdiction over the controversy and the parties may
enforce an agreement to arbitrate.
(2) An agreement to arbitrate providing for
arbitration in this state confers exclusive jurisdiction on
the court to enter judgment on an award under ORS
36.600 to 36.740. [2003 c.598 §26]
Note: See notes under 36.600.

36.725 Venue. A petition pursuant to ORS
36.615 must be made in the court for the county in
which the agreement to arbitrate specifies the
arbitration hearing is to be held or, if the hearing has
been held, in the court for the county in which it was
held. Otherwise, the petition may be made in the court
for any county in which an adverse party resides or has
a place of business or, if no adverse party has a
residence or place of business in this state, in the court
of any county in this state. All subsequent petitions
must be made in the court hearing the initial petition
unless the court otherwise directs. [2003 c.598 §27]
Note: See notes under 36.600.
36.730 Appeals. (1) An appeal may be taken
from:
(a) An order denying a petition to compel
arbitration.
(b) An order granting a petition to stay
arbitration.
(c) A judgment entered pursuant to ORS 36.600
to 36.740, including but not limited to a judgment:
(A) Confirming or denying confirmation of an
award.
(B) Modifying or correcting an award.
(C) Vacating an award without directing a
rehearing.
(2) An appeal under this section must be taken as
provided in ORS chapter 19. [2003 c.598 §28]
Note: See notes under 36.600.

36.735 Uniformity of application and
construction. In applying and construing ORS 36.600
to 36.740, consideration must be given to the need to
promote uniformity of the law with respect to its
subject matter among states that enact it. [2003 c.598

SPECIAL ACTIONS AND PROCEEDINGS
§29]
Note: See notes under 36.600.

36.740 Relationship to electronic signatures in
Global and National Commerce Act. The provisions
of ORS 36.600 to 36.740 governing the legal effect,
validity and enforceability of electronic records or
electronic signatures, and of contracts performed with
the use of such records or signatures, conform to the
requirements of Section 102 of the Electronic
Signatures in Global and National Commerce Act, 15
U.S.C. 7001 and 7002, as in effect on January 1, 2004.
[2003 c.598 §30]
Note: See notes under 36.600.

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RETAIL INSTALLMENT CONTRACTS
HOME SOLICITATION SALES
83.710 Definitions for ORS 83.710 to 83.750;
application of ORS 83.710 to 83.750. (1) As used in
ORS 83.710 to 83.750:
(a) A transaction is a “home solicitation sale” if:
(A) It is a sale, lease or rental of goods or services,
as defined in ORS 83.010;
(B) The seller or the seller’s representative
personally solicits the sale, lease or rental, including a
sale, lease or rental in response to or following an
invitation by the buyer; and
(C) The buyer’s written agreement or offer to
purchase is made at a place other than the place of
business of the seller. As used in this subparagraph, “a
place other than the place of business of the seller”
means a place that is not the seller’s main or permanent
branch office or permanent local address and includes
but is not limited to the residence or workplace of the
buyer and facilities rented by the seller on a temporary
or short-term basis, such as a hotel or motel room,
restaurant or dormitory lounge.
(b) A transaction is a “telephone solicitation sale”
if:
(A) The seller or person acting for the seller
engages in a solicitation conducted by telephone to a
residence;
(B) The transaction is initiated by the seller or
person acting for the seller and is in no way solicited
by the buyer;
(C) The buyer’s agreement or offer to purchase is
given over the telephone to the seller or person acting
for the seller; and
(D) There is no personal contact between the buyer
and the seller or person acting for the seller prior to
delivery of goods or performance of services.
(c) “Business day” does not include a Saturday,
Sunday or legal holiday.
(2) The provisions of ORS 83.710 to 83.750
relating to home solicitation sales do not apply to:
(a) A sale made pursuant to a preexisting revolving
charge account unless the sale is made at the residence
of the buyer;
(b) The activities of a financial institution as
defined in 15 U.S.C. 6827;
(c) A contract in writing for the sale or lease of a
house or business property or the construction of a new
house or business property;
(d) A sale made pursuant to prior business
negotiations relevant to the sale between the parties at a
business establishment at a fixed location where goods
or services are offered or exhibited for sale;
(e) A sale for cash or check in the amount of less
than $25;
(f) A sale of insurance, farm equipment or motor
vehicles;
(g) A sale of arts and crafts at a fair;
(h) A sale made at an event conducted under and

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governed by ORS chapter 565; or
(i) Except as provided in subsection (3) of this
section, a transaction in which the buyer initiated the
contact and specifically requested that the seller come
to the buyer’s home for the purpose of repairing or
performing maintenance on the buyer’s personal
property.
(3) The provisions of ORS 83.710 to 83.750 apply
to a sale under subsection (2)(i) of this section if the
seller, while at the home of the buyer to repair or
perform maintenance on the buyer’s personal property
at the request of the buyer, sells the buyer the right to
receive additional goods or services other than
replacement parts necessary to perform the
maintenance or to make the repairs on the buyer’s
personal property.
(4) The provisions of ORS 83.710 to 83.750
relating to telephone solicitation sales apply only to a
sale of periodicals, magazines or any other reading
material with or without illustrations that the buyer is
to receive at fixed intervals and do not apply to sales of
newspaper subscriptions or advertising and sales in
which the buyer is offered reasonable opportunity to
preview and return reading material without
contractual obligation. [1971 c.744 §21(1); 1977 c.170
§1; 1979 c.503 §1; 2005 c.223 §1]
83.715 Telephone solicitation sale; contract;
contents. (1) Except as provided in this section, no
enforceable agreement may be formed by a telephone
solicitation sale.
(2) To form a binding agreement by telephone
solicitation sale, the seller must receive from the buyer
a signed, written contract that contains all of the terms
of the agreement between the seller and the buyer. The
seller must provide a copy of the completed contract to
the buyer.
(3) Any term or agreement between a buyer and
seller in a telephone solicitation sale is void and
unenforceable unless it is contained in the contract
required by subsection (2) of this section.
(4) A contract required by subsection (2) of this
section shall contain the following notice on a separate
sheet that contains no other provision:
____________________________________________
This contract is a contract made pursuant to a
telephone solicitation sale regulated by Oregon
Revised Statutes 83.710 to 83.750. The person offering
to buy goods or services under this contract
understands that:
(1) No discussions or agreements between the
buyer and the person offering to sell goods or services
formed a binding agreement except as provided by this
contract;
(2) There is no binding agreement between the
buyer and seller until the seller receives a copy of this
contract signed by the buyer; and

RETAIL INSTALLMENT CONTRACTS
(3) All of the terms of the agreement between the
buyer and the seller are contained, in writing, in this
contract.
___________________________________________
[1979 c.503 §3]
83.720 Cancellation of home solicitation sale;
notice; exception. (1) Except as provided in subsection
(5) of this section, in addition to any other right to
revoke an offer or rescind a transaction that the buyer
may have, the buyer has the right to cancel a home
solicitation sale until 12 midnight of the third business
day after the day on which the buyer signs an
agreement or offer to purchase that complies with ORS
83.710 to 83.750 or pays by cash or check.
(2) Cancellation occurs when the buyer gives
written notice of cancellation to the seller at the address
stated in the agreement or offer to purchase.
(3) Notice of cancellation, if given by mail, is
given when it is deposited in a mailbox properly
addressed and postage prepaid.
(4) Notice of cancellation given by the buyer need
not take a particular form and is sufficient if it indicates
by a form of written expression the intention of the
buyer not to be bound by the home solicitation sale.
(5) The buyer may not cancel a home solicitation
sale if the buyer initiates the contact with the seller and
the buyer, in a separate signed writing not furnished by
the seller, requests that the seller provide goods or
services without delay because of an emergency,
describes the emergency and expressly acknowledges
and waives the right to cancel the sale within three
business days, and:
(a) The seller in good faith makes a substantial
beginning of performance of the contract before the
buyer gives notice of cancellation; and
(b) In case of goods, the goods cannot be returned
to the seller in substantially as good condition as when
received by the buyer. [1971 c.744 §21(2); 2005 c.223
§2]
83.730 Written agreement or offer to purchase;
contents; notice of buyer’s right to cancel; form. (1)
A home solicitation sale must be evidenced by a
written agreement or offer to purchase signed by the
buyer. At the time a buyer executes the written
agreement or offer to purchase:
(a) The seller must furnish the buyer with a fully
completed copy of the written agreement or offer to
purchase.
(b) The written agreement or offer to purchase
must:
(A) Designate as the date of the transaction the
date on which the buyer actually signs;
(B) Contain the name of the seller and address of
the seller’s place of business;
(C) Be in the same language as the language that is
principally used in the sales presentation; and
(D) Contain, in immediate proximity to a space

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reserved for the signature of the buyer, in at least 10point boldfaced type, a statement in substantially the
following form:
___________________________________________
You, the buyer, may cancel this transaction at any
time prior to midnight of the third business day after
the date of this transaction. See the attached notice of
buyer’s right to cancel for an explanation of the right to
cancel.
____________________________________________
(c) The seller must provide the buyer, by a method
chosen by the seller, with a duplicate copy of the notice
of the buyer’s right to cancel described in subsection
(2) of this section so that, if the buyer cancels the
transaction, the buyer can retain a complete copy of the
written agreement or offer to purchase. If both copies
of the notice are not attached to the written agreement
or offer to purchase, the seller shall change the last
sentence in the statement required under paragraph
(b)(D) of this subsection to conform to the actual
location of the copies of the notice. Both copies of the
notice must contain:
(A) The name of the seller;
(B) The address of the seller’s place of business;
(C) The date of the transaction; and
(D) The date, not earlier than the third business
day following the date of the transaction, by which the
buyer may give notice of cancellation.
(d) The seller must orally inform the buyer of the
buyer’s right to cancel.
(2) The notice of the buyer’s right to cancel must
be in conspicuous type, 10-point or larger, and must
read as follows:
____________________________________________
NOTICE OF BUYER’S RIGHT TO CANCEL
(1) (Date) You, the buyer, may cancel this
agreement without any penalty, cancellation fee or
other financial obligation by mailing or delivering a
notice to the seller within THREE BUSINESS DAYS
from the above date.
(2) If you cancel:
(a) Any property you traded in, any payments you
made under the sales contract and any checks or notes
you signed will be returned within 10 business days
following receipt by the seller of your notice of
cancellation. Any security interest that arises from the
transaction will be canceled.
(b) You may either make available to the seller at
your residence, in substantially as good condition as
when received, any goods delivered to you under the
sales contract or you may comply with the seller’s
instructions regarding the return shipment of the goods
at the seller’s expense and risk.
(c) If you make the goods available to the seller at

RETAIL INSTALLMENT CONTRACTS
your residence and the seller does not pick up the
goods within 20 days of the date of your notice of
cancellation, you may keep or discard the goods
without further obligation.
(d) If you do not make the goods available to the
seller, or if you agree to return the goods to the seller
and you do not return the goods, you must perform all
of your obligations under the sales contract.
(3) To cancel this transaction, mail or deliver a
signed and dated copy of this notice or other written
expression of your intention to cancel, or send a
telegram, to (name of seller) at (address of seller’s
place of business) not later than 12 midnight on (date),
the third business day after you signed the written
agreement or offer to purchase.
I HEREBY CANCEL THIS TRANSACTION.
__________________
(Signature of buyer)

_____
(Date)

____________________________________________
(3) In a home solicitation sale subject to federal
rules under 16 C.F.R. part 429, the seller may provide
the notice required by the federal rules in lieu of the
notice required under subsection (2) of this section if
the notice required under federal rules contains the
information specified in subsection (1)(c) of this
section.
(4) Until the seller has complied with this section
the buyer may cancel the home solicitation sale by
notifying the seller in any manner and by any means of
an intention to cancel. [1971 c.744 §21(3); 1977 c.170
§2; 2005 c.223 §3]
83.740 Duties of seller upon cancellation of sale
or revocation of offer to purchase. (1) The seller
must tender to the buyer any payments made by the
buyer and any note or other evidence of indebtedness
within 10 days after a home solicitation sale has been
canceled or an offer to purchase has been revoked.
(2) If the down payment includes goods traded in,
the goods must be tendered in substantially as good
condition as when received by the seller. If the seller
fails to tender the goods as provided by this section, the
buyer may elect to recover an amount equal to the
trade-in allowance stated in the agreement.
(3) The buyer may retain possession of goods
delivered to the buyer by the seller, and has a lien on
the goods in the possession or control of the buyer for
any recovery to which the buyer is entitled, until the
seller has complied with the obligations imposed by
this section. [1971 c.744 §21(4); 1977 c.170 §3]
83.750 Rights and duties of buyer upon
cancellation of sale or revocation of offer to
purchase. (1) Except as provided by ORS 83.740 (3),
within a reasonable time after a home solicitation sale

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has been canceled or an offer to purchase revoked, the
buyer must tender to the seller upon demand any goods
delivered by the seller pursuant to the sale, but the
buyer is not obliged to tender at any place other than
the residence of the buyer. If the seller fails to demand
possession of goods within a reasonable time after
cancellation or revocation, the goods become the
property of the buyer without obligation to pay for
them. For the purpose of this subsection, 20 days is
presumed to be a reasonable time.
(2) The buyer has a duty to take reasonable care of
the goods in the possession of the buyer before
cancellation or revocation and for a reasonable time
thereafter, during which time the goods are otherwise
at the seller’s risk.
(3) If the seller has performed any services
pursuant to a home solicitation sale prior to its
cancellation, the seller is entitled to no compensation.
[1971 c.744 §21(5); 1977 c.170 §4]

STATUTORY LIENS
CONSTRUCTION LIENS
87.001 Short title. ORS 87.001 to 87.060 and
87.075 to 87.093 shall be known and may be cited as
the Construction Lien Law. [1975 c.466 §1]
87.005 Definitions for ORS 87.001 to 87.060
and 87.075 to 87.093. As used in ORS 87.001 to
87.060 and 87.075 to 87.093:
(1) “Commencement of the improvement” means
the first actual preparation or construction upon the site
or the first delivery to the site of materials of such
substantial character as to notify interested persons that
preparation or construction upon the site has begun or
is about to begin.
(2) “Construction” means creating or making an
improvement or performing an alteration, partial
construction or repair in and upon an improvement.
(3) “Construction agent” means a contractor,
architect, builder or other person having charge of
construction or preparation.
(4) “Contractor” means a person that contracts on
predetermined terms to be responsible for performing
all or part of a job of preparation or construction in
accordance with established specifications or plans,
retaining control of the means, method and manner of
accomplishing the desired result, and that provides:
(a) Labor at the site; or
(b) Materials, supplies and labor at the site.
(5) “Improvement” means a building, wharf,
bridge, ditch, flume, reservoir, well, tunnel, fence,
street, sidewalk, machinery, aqueduct or other structure
or superstructure.
(6) “Mortgagee” means a person:
(a)(A) Whose name and address appear as
mortgagee or beneficiary in a mortgage of record or a
trust deed of record that is recorded under ORS
205.234 with the county clerk of the county within
which the property or improvement is located; and
(B) That has a valid subsisting mortgage of
record or trust deed of record that secures a loan upon
land or upon an improvement; or
(b)(A) Whose name and address appear as the
assignee of the mortgagee or beneficiary in an
assignment of mortgage of record or a trust deed of
record that is recorded under ORS 205.234 with the
county clerk of the county within which the property or
improvement is located; and
(B) That has a valid subsisting mortgage of
record or trust deed of record that secures a loan upon
land or upon an improvement.
(7) “Original contractor” means a contractor that
has a contractual relationship with the owner.
(8) “Owner” means:
(a) A person that is or claims to be the owner in
fee or a lesser estate of the land on which preparation
or construction is performed;
(b) A person that entered into a contract to

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purchase an interest in the land or improvement sought
to be charged with a lien created under ORS 87.010; or
(c) A person that has a valid lease on land or an
improvement and that possesses an interest in the land
or improvement by reason of the lease.
(9) “Preparation” means excavating, surveying,
landscaping, demolishing or detaching existing
structures or leveling, filling in or otherwise making
land ready for construction.
(10) “Site” means the land on which construction
or preparation is performed.
(11) “Subcontractor” means a contractor that has
no direct contractual relationship with the owner.
[Amended by 1957 c.651 §1; 1973 c.671 §1; 1975
c.466 §2; 1977 c.596 §1; 2005 c.22 §52; 2011 c.505
§1]
87.007 Protection from construction liens
perfected after sale of residential property
completed; requirements; seller options; rules;
delivery of form to purchaser; penalty; damages;
defenses. (1) This section applies to a sale of the
following residential property:
(a) A new single family residence or a single
family residence where the sales price is $50,000 or
more for original construction or the contract price is
$50,000 or more for improvements to the residence
completed within three months before the date the
property is sold.
(b) A new condominium unit or a condominium
unit where the sales price is $50,000 or more for
original construction or the contract price is $50,000 or
more for improvements to the condominium unit
completed within three months before the date the
property is sold. As used in this paragraph,
“condominium unit” has the meaning given that term
in ORS 100.005.
(c) A new residential building or a residential
building where the sales price is $50,000 or more for
original construction or the contract price is $50,000 or
more for improvements to the residential building
completed within three months before the date the
property is sold. As used in this paragraph, “residential
building” means a building or structure that contains
not more than four dwelling units capable of use as
residences or homes.
(2) An owner of record at the time the owner of
record sells residential property to a purchaser shall
protect the purchaser from claims of lien that arise
before the date on which the sale is complete but that
may become perfected under ORS 87.035 after the date
on which the sale is complete by one of the following
methods:
(a) Purchase or otherwise provide title insurance
on the purchaser’s behalf by means of a policy issued:
(A) Without exception for filed and unfiled
claims of construction lien that exist at the closing date
of the purchase; and

MORTGAGES AND LIENS
(B) On forms and at rates filed with, but not
disapproved by, the Director of the Department of
Consumer and Business Services.
(b) Retain in escrow, as defined in ORS 696.505,
an amount of funds that is not less than 25 percent of
the sale price of the residential property. The funds
must be maintained in or released from escrow in
accordance with written instructions to the escrow
agent from the purchaser and the owner that sold the
property. The written instructions shall require the
escrow agent to pay upon the purchaser’s demand a
claim of lien that is perfected after the date of the sale
of the property and that the owner that sold the
property has not paid. The escrow agent shall make the
payment from the amount maintained in escrow. The
escrow agent shall release the unused funds from
escrow to the owner that sold the property if the escrow
agent receives a request from the owner that sold the
property and the owner that sold the property provides
documentation from a title company that:
(A) A claim of lien has not been perfected against
the property and 90 days have passed since the date
that construction was completed; or
(B) A claim of lien has been perfected against the
property, that 135 days have passed since the date that
each such claim of lien was filed and that all perfected
claims of lien have been released or waived.
(c) Maintain a bond or letter of credit in an
amount that is not less than 25 percent of the sale price
of the property. The Construction Contractors Board
shall prescribe by rule the amount, terms and
conditions of the bond or letter of credit to be
maintained under this paragraph.
(d) Obtain written waivers from every person that
claims or perfects a lien or liens under ORS 87.010 or
87.035 that, in an aggregate amount, exceed $5,000
with respect to the property and provide copies of the
waivers to the purchaser not later than the date the sale
of the property is completed.
(e) Complete the sale of the residential property
after the deadline for perfecting a claim of lien under
ORS 87.035 with respect to the property.
(3) Not later than the date on which the sale of
the residential property is completed, the owner who
sold the property shall complete, sign and deliver to the
purchaser a form that specifies the method that the
owner has selected to comply with the requirements of
subsection (2) of this section or that states that
subsection (2) of this section does not apply to the sale
of the property. The notice must be in a form the
Construction Contractors Board designates by rule
under ORS 701.235.
(4) A real estate licensee, as defined in ORS
696.010, acting in the professional capacity of a
licensee is not liable in a criminal, civil or
administrative proceeding that arises out of the failure
of an owner of record to comply with subsection (2) or
(3) of this section.

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(5) Violation of subsection (3) of this section is a
Class A violation.
(6) In addition to any other remedy or penalty
provided by law, a purchaser may bring an action to
recover up to twice the amount of actual damages
caused by a violation of subsection (2) of this section.
The court may award to the prevailing party, in
addition to costs and disbursements, reasonable
attorney fees. Any action brought under this subsection
must be commenced not later than two years after the
date on which the sale of the property is completed.
(7) For purposes of subsections (5) and (6) of this
section and ORS 646.608:
(a) It is a defense to a violation of subsection (2)
or (3) of this section that no enforcement or attempt to
enforce a claim of lien against the property that is the
subject of the sale occurred before the date the sale of
the property was completed; and
(b) As to a claim of lien, it is a defense to a
violation of subsection (2) or (3) of this section if the
owner that sold the property:
(A) Proves that the claim of lien against the
property that is the subject of the sale is invalid; or
(B) Satisfies the claim of lien or obtains a release
from the claim of lien on the property that is the subject
of the sale.
(8) A violation of subsection (2) or (3) of this
section does not occur with respect to a lien described
in ORS 87.010 during the period that the validity of the
lien is disputed in a judicial proceeding or a proceeding
described in ORS chapter 701.
(9) Nothing in this section requires the payment
of a lien that is not otherwise valid. This section does
not apply to claims of lien perfected by persons that
furnish materials, equipment, services or labor at the
request of the purchaser of the residential property.
[2003 c.778 §2; 2010 c.77 §1]
87.010 Construction liens; who is entitled to
lien. (1) Any person performing labor upon,
transporting or furnishing any material to be used in, or
renting equipment used in the construction of any
improvement shall have a lien upon the improvement
for the labor, transportation or material furnished or
equipment rented at the instance of the owner of the
improvement or the construction agent of the owner.
(2) Any person who engages in or rents
equipment for the preparation of a lot or parcel of land,
or improves or rents equipment for the improvement of
a street or road adjoining a lot or parcel of land at the
request of the owner of the lot or parcel, shall have a
lien upon the land for work done, materials furnished
or equipment rented.
(3) A lien for rented equipment under subsection
(1) or (2) of this section shall be limited to the
reasonable rental value of the equipment
notwithstanding the terms of the underlying rental
agreement.

STATUTORY LIENS
(4) Trustees of an employee benefit plan shall
have a lien upon the improvement for the amount of
contributions, due to labor performed on that
improvement, required to be paid by agreement or
otherwise into a fund of the employee benefit plan.
(5) An architect, landscape architect, land
surveyor or registered engineer who, at the request of
the owner or an agent of the owner, prepares plans,
drawings or specifications that are intended for use in
or to facilitate the construction of an improvement or
who supervises the construction shall have a lien upon
the land and structures necessary for the use of the
plans, drawings or specifications so provided or
supervision performed.
(6) A landscape architect, land surveyor or other
person who prepares plans, drawings, surveys or
specifications that are used for the landscaping or
preparation of a lot or parcel of land or who supervises
the landscaping or preparation shall have a lien upon
the land for the plans, drawings, surveys or
specifications used or supervision performed.
[Amended by 1957 c.651 §2; 1973 c.671 §2; 1975
c.466 §3; 1977 c.596 §2; 1981 c.757 §1]
87.015 Land and interests therein subject to
lien; leaseholds. (1) The site together with the land
that may be required for the convenient use and
occupation of the improvement constructed on the site,
to be determined by the court at the time of the
foreclosure of the lien, shall also be subject to the liens
created under ORS 87.010 (1), (4) and (5) if, at the
time of the commencement of the improvement, the
person who caused the improvement to be constructed
was the owner of that site and land. If the person
owned less than a fee-simple estate in the site and land,
then only the interest of the person therein shall be
subject to the lien.
(2) If a lien created under ORS 87.010 (1), (4)
and (5) is claimed against a unit as defined in ORS
100.005 to 100.910, the Oregon Condominium Act, the
common elements appertaining to that unit are also
subject to the lien.
(3) When the interest of the person who caused
the improvement to be constructed is a leasehold
interest, and that person has forfeited the rights of the
person thereto, the purchaser of the improvement and
leasehold term at any sale under the provisions of ORS
87.001 to 87.060 and 87.075 to 87.093, is deemed to be
the assignee of the leasehold term, and may pay the
lessor all arrears of rent or other money and costs due
under the lease. If the lessor regains possession of the
property, or obtains judgment for the possession
thereof prior to the commencement of construction of
the improvement, the purchaser may remove the
improvement within 30 days after the purchaser
purchases it, and the owner of the land shall receive the
rent due the owner, payable out of the proceeds of the
sale, according to the terms of the lease, down to the

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time of removal. [Amended by 1975 c.466 §4]
87.018 Delivery of notices. (1) Except as
provided in ORS 87.093, all notices required under
ORS 87.001 to 87.060 and 87.075 to 87.093 must be in
writing and be delivered in person or by registered or
certified mail.
(2) A notice that must be given under ORS
87.001 to 87.060 or 87.075 to 87.093 to a mortgagee
must be delivered to the mortgagee only if the name
and address of the mortgagee appear in a mortgage of
record or a trust deed of record as required under ORS
205.234 (1)(b) or in the instrument that assigns a
mortgage or trust deed as required under ORS 205.234
(1)(g). [1975 c.466 §5; 1981 c.757 §2; 2007 c.648 §15;
2011 c.505 §2]
87.020 [Amended by 1965 c.446 §1; 1967 c.600
§1; 1967 c.602 §1; repealed by 1975 c.466 §6 (87.021
enacted in lieu of 87.020)]
87.021 Notice to owners; notice from owner to
original contractor; effect of failure to give notice.
(1) Except when material, equipment, services or labor
described in ORS 87.010 (1) to (3), (5) and (6) is
furnished at the request of the owner, a person
furnishing any materials, equipment, services or labor
described in ORS 87.010 (1) to (3), (5) and (6) for
which a lien may be perfected under ORS 87.035 shall
give a notice of right to a lien to the owner of the site.
The notice of right to a lien may be given at any time
during the progress of the improvement, but the notice
only protects the right to perfect a lien for materials,
equipment and labor or services provided after a date
which is eight days, not including Saturdays, Sundays
and other holidays as defined in ORS 187.010, before
the notice is delivered or mailed. However, no lien is
created under ORS 87.010 (5) or (6) for any services
provided for an owner-occupied residence at the
request of an agent of the owner.
(2) The notice required by subsection (1) of this
section shall be substantially in the form set forth in
ORS 87.023.
(3)(a) Except as provided in paragraph (b) of this
subsection, a lien created under ORS 87.010 (1) to (3),
(5) or (6) may be perfected under ORS 87.035 only to
the extent that the notice required by subsection (1) of
this section is given.
(b) A person who performs labor upon a
commercial improvement or provides labor and
material for a commercial improvement or who rents
equipment used in the construction of a commercial
improvement need not give the notice required by
subsection (1) of this section in order to perfect a lien
created under ORS 87.010. As used in this paragraph:
(A) “Commercial improvement” means any
structure or building not used or intended to be used as
a residential building, or other improvements to a site
on which such a structure or building is to be located.

MORTGAGES AND LIENS
(B) “Residential building” means a building or
structure that is or will be occupied by the owner as a
residence and that contains not more than four units
capable of being used as residences or homes.
(4) Unless otherwise agreed or the lien claimant
who is required to give the notice under subsection (1)
of this section is in privity with the original contractor,
when a provision in an agreement for the construction
of a commercial improvement requires the original
contractor to hold an owner harmless or to indemnify
an owner for a lien created under ORS 87.010 and
perfected under ORS 87.035, that provision is not
enforceable as to any lien which requires that a notice
under this section be given to the owner unless a copy
of the notice is delivered pursuant to ORS 87.018 to the
original contractor not later than 10 days after its
receipt by the owner. [1975 c.466 §7 (enacted in lieu of
87.020); 1981 c.757 §3; 1983 c.674 §1; 1983 c.757 §1;
1987 c.662 §1; 2001 c.311 §1; 2002 s.s.1 c.6 §§1,4;
2003 c.778 §10]
87.023 Notice of right to lien; form of notice.
The notice of right to a lien required under ORS 87.021
shall include, but not be limited to, the following
information and shall be substantially in the following
form:
_____________________________________
NOTICE OF RIGHT TO A LIEN. WARNING:
READ THIS NOTICE. PROTECT YOURSELF
FROM PAYING ANY CONTRACTOR OR
SUPPLIER TWICE FOR THE SAME SERVICE.
To: ____________________
Owner
______________________
Owner’s address

IF YOU HAVE ANY QUESTIONS ABOUT THIS
NOTICE, FEEL FREE TO CALL US.
IMPORTANT INFORMATION ON REVERSE SIDE
_____________________________________
_____________________________________
IMPORTANT INFORMATION FOR YOUR
PROTECTION
Under Oregon’s laws, those who work on your
property or provide labor, equipment, services or
materials and are not paid have a right to enforce their
claim for payment against your property. This claim is
known as a construction lien.
If your contractor fails to pay subcontractors,
material suppliers, rental equipment suppliers, service
providers or laborers or neglects to make other legally
required payments, the people who are owed money
can look to your property for payment, even if you
have paid your contractor in full.
The law states that all people hired by a
contractor to provide you with materials, equipment,
labor or services must give you a notice of right to a
lien to let you know what they have provided.
WAYS TO PROTECT YOURSELF ARE:

Date of mailing: _____

This is to inform you that ____________ has
begun to provide ____________ (description of
materials, equipment, labor or services) ordered by
____________ for improvements to property you own.
The property is located at__________________.
A lien may be claimed for all materials,
equipment, labor and services furnished after a date
that is eight days, not including Saturdays, Sundays
and other holidays, as defined in ORS 187.010, before
this notice was mailed to you.
Even if you or your mortgage lender have made
full payment to the contractor who ordered these
materials or services, your property may still be subject
to a lien unless the supplier providing this notice is
paid.
THIS IS NOT A LIEN. It is a notice sent to you
for your protection in compliance with the construction
lien laws of the State of Oregon.
This notice has been sent to you by:

2013 Annotated 1-10-14

NAME: _________
ADDRESS: ________
TELEPHONE: ______

Page 73

- RECOGNIZE that this notice of right to a lien
may result in a lien against your property unless all
those supplying a notice of right to a lien have been
paid.
- LEARN more about the lien laws and the
meaning of this notice by contacting the Construction
Contractors Board, an attorney or the firm sending this
notice.
- ASK for a statement of the labor, equipment,
services or materials provided to your property from
each party that sends you a notice of right to a lien.
- WHEN PAYING your contractor for materials,
equipment, labor or services, you may make checks
payable jointly to the contractor and the firm furnishing
materials, equipment, labor or services for which you
have received a notice of right to a lien.
- OR use one of the methods suggested by the
“Information Notice to Owners.” If you have not
received such a notice, contact the Construction
Contractors Board.
- GET EVIDENCE that all firms from whom you
have received a notice of right to a lien have been paid
or have waived the right to claim a lien against your
property.
- CONSULT an attorney, a professional escrow
company or your mortgage lender.
_____________________________________
[1981 c.757 §5; 1983 c.757 §2; 1987 c.662 §2]

STATUTORY LIENS
87.025 Priority of perfected liens; right to sell
improvements separately from land; notice to
mortgagee; list of materials or supplies. (1) A lien
created under ORS 87.010 (2) or (6) and perfected
under ORS 87.035 upon any lot or parcel of land shall
be preferred to any lien, mortgage or other
encumbrance which attached to the land after or was
unrecorded at the time of commencement of the
improvement.
(2) Except as provided in subsections (3) and (6)
of this section, a lien created under ORS 87.010 (1), (4)
or (5) and perfected under ORS 87.035 upon any
improvement shall be preferred to all prior liens,
mortgages or other encumbrances upon the land upon
which the improvement was constructed. To enforce
such lien the improvement may be sold separately from
the land; and the purchaser may remove the
improvement within a reasonable time thereafter, not to
exceed 30 days, upon the payment to the owner of the
land of a reasonable rent for its use from the date of its
purchase to the time of removal. If such removal is
prevented by legal proceedings, the 30 days shall not
begin to run until the final determination of such
proceedings in the court of first resort or the appellate
court if appeal is taken.
(3) No lien for materials or supplies shall have
priority over any recorded mortgage or trust deed on
either the land or improvement unless the person
furnishing the material or supplies, not later than eight
days, not including Saturdays, Sundays and other
holidays as defined in ORS 187.010, after the date of
delivery of material or supplies for which a lien may be
claimed delivers to the mortgagee either a copy of the
notice given to the owner under ORS 87.021 to protect
the right to claim a lien on the material or supplies or a
notice in any form that provides substantially the same
information as the form set forth in ORS 87.023.
(4) A mortgagee who has received notice of
delivery of materials or supplies in accordance with the
provisions of subsection (3) of this section, may
demand a list of those materials or supplies including a
statement of the amount due by reason of delivery
thereof. The list of materials or supplies shall be
delivered to the mortgagee within 15 days, not
including Saturdays, Sundays and other holidays as
defined in ORS 187.010, of receipt of demand, as
evidenced by a receipt or a receipt of delivery of a
registered or certified letter containing the demand.
Failure to furnish the list or the amount due by the
person giving notice of delivery of the materials or
supplies shall constitute a waiver of the preference
provided in subsections (1) and (2) of this section.
(5) Upon payment and acceptance of the amount
due to the supplier of materials or supplies, and upon
demand of the person making payment, the supplier
shall execute a waiver of all lien rights as to materials
or supplies for which payment has been made.

2013 Annotated 1-10-14

Page 74

(6) Unless the mortgage or trust deed is given to
secure a loan made to finance the alteration or repair, a
lien created under ORS 87.010 and perfected under
ORS 87.035 for the alteration and repair of an
improvement commenced and made subsequent to the
date of record of a duly executed and recorded
mortgage or trust deed on that improvement or on the
site shall not take precedence over the mortgage or
trust deed.
(7) The perfection of a lien under ORS 87.035
relates to the date of commencement of the
improvement as defined in ORS 87.005. Except as
provided in subsection (3) of this section, the date of
creation of the lien under ORS 87.010 and the date of
perfection of the lien under ORS 87.035 do not affect
the priorities under this section, the equal priority of
perfected lien claimants, or the distribution of proceeds
to perfected lien claimants under ORS 87.060 (6).
[Amended by 1965 c.446 §2; 1967 c.602 §2; 1975
c.466 §8; 1981 c.757 §6; 1983 c.513 §1; 1983 c.674
§3; 1985 c.513 §1; 1987 c.662 §3]
87.027 Right of owner to demand list of
services, materials, equipment and labor; penalty
for failure to provide list. An owner who receives a
notice of right to a lien in accordance with the
provisions of ORS 87.021 may demand, in writing,
from the person providing materials, equipment,
services or labor a list of materials or equipment or
description of labor or services supplied or a statement
of the contractual basis for supplying the materials,
equipment, services or labor, including the percentage
of the contract completed, and the charge therefor to
the date of the demand. The supplier’s statement shall
be delivered to the owner within 15 days, not including
Saturdays, Sundays and other holidays as defined in
ORS 187.010, of receipt of the owner’s written
demand, as evidenced by a receipt or a receipt of
delivery of a certified or registered letter containing the
demand. Failure of the supplier to furnish the
information requested constitutes a loss of attorney fees
and costs otherwise allowable in a suit to foreclose a
lien. [1981 c.757 §8; 1985 c.513 §2; 1987 c.662 §4]
87.030 Effect of owner’s knowledge of
improvement; notice of nonresponsibility. (1) Every
improvement except an improvement made by a person
other than the landowner in drilling or boring for oil or
gas, constructed upon lands with the knowledge of the
owner shall be deemed constructed at the instance of
the owner, and the interest owned shall be subject to
any lien perfected pursuant to the provisions of ORS
87.001 to 87.060 and 87.075 to 87.093, unless the
owner shall, within three days after the owner obtains
knowledge of the construction, give notice that the
owner will not be responsible for the same by posting a
notice in writing to that effect in some conspicuous
place upon the land or the improvement situated
thereon.

MORTGAGES AND LIENS
(2) Subsection (1) of this section does not apply
to a lien prohibited under ORS 87.037. [Amended by
1975 c.466 §9; 1987 c.662 §5; 2007 c.648 §9]
87.035 Perfecting lien; filing claim of lien;
contents of claim. (1) Every person claiming a lien
created under ORS 87.010 (1) or (2) shall perfect the
lien not later than 75 days after the person has ceased
to provide labor, rent equipment or furnish materials or
75 days after completion of construction, whichever is
earlier. Every other person claiming a lien created
under ORS 87.010 shall perfect the lien not later than
75 days after the completion of construction. All liens
claimed shall be perfected as provided by subsections
(2) to (4) of this section.
(2) A lien created under ORS 87.010 shall be
perfected by filing a claim of lien with the recording
officer of the county or counties in which the
improvement, or some part thereof, is situated.
(3) A claim of lien shall contain:
(a) A true statement of demand, after deducting
all just credits and offsets;
(b) The name of the owner, or reputed owner, if
known;
(c) The name of the person by whom the claimant
was employed or to whom the claimant furnished the
materials or rented the equipment or by whom
contributions are owed; and
(d) A description of the property to be charged
with the lien sufficient for identification, including the
address if known.
(4) The claim of lien shall be verified by the oath
of the person filing or of some other person having
knowledge of the facts, subject to the criminal penalties
for false swearing provided under ORS 162.075.
[Amended by 1961 c.609 §1; 1973 c.671 §3; 1975
c.466 §10; 1983 c.517 §1; 1985 c.596 §1; 1987 c.662
§6]
87.036 Subcontractor’s perfection of claim of
lien; notice; fee; rules. (1) A subcontractor or a person
that provides labor, materials or equipment for a
project to renovate, remodel, repair or otherwise alter
an existing owner-occupied residence may not perfect a
claim of lien against the owner’s property under ORS
87.035 if the subcontractor or the person provided or
contracted to provide services, labor, materials or
equipment to a contractor that was unlicensed at the
earlier of the following times:
(a) The time the subcontractor or the person first
contracted with the contractor for the project; or
(b) The time the person first delivered labor,
materials or equipment to the project site.
(2) Subsection (1) of this section does not apply if
the services, labor, materials or equipment is purchased
with cash or consumer credit.
(3) The Construction Contractors Board may
notify a person at the person’s request of the status of a
contractor’s license using any means the board uses to

2013 Annotated 1-10-14

Page 75

notify a contractor of the contractor’s license status.
The board may charge the person a fee in an amount
the board specifies by rule for the cost of providing the
notice to the person. [2010 c.77 §3]
Note: 87.036 was added to and made a part of the
Construction Lien Law by legislative action but was
not added to any smaller series therein. See Preface to
Oregon Revised Statutes for further explanation.
87.037 Prohibition against claim of lien. An
original contractor may not claim a lien arising from
the improvement of real property if a written contract
for the work is required by ORS 701.305 and the
contractor does not have a written contract. [2007
c.648 §5]
Note: 87.037 was added to and made a part of 87.001
to 87.060 by legislative action but was not added to any
smaller series therein. See Preface to Oregon Revised
Statutes for further explanation.

87.039 Notice of filing claim of lien; effect of
failure to give notice. (1) A person filing a claim of
lien pursuant to ORS 87.035 shall mail to the owner
and to the mortgagee a notice in writing that the claim
has been filed. A copy of the claim of lien shall be
attached to the notice. The notice shall be mailed not
later than 20 days after the date of filing. Notice mailed
to the owner who received the notice of right to a lien
as provided by ORS 87.021 shall be deemed in
compliance with the requirement of this subsection,
unless the person giving notice has actual knowledge
of changed ownership. Notice mailed by any person to
the mortgagee who received the notice required under
ORS 87.025 shall be deemed in compliance with this
subsection unless the person giving the notice has
actual knowledge of a change of mortgagee.
(2) No costs, disbursements or attorney fees
otherwise allowable as provided by ORS 87.060 shall
be allowed to any party failing to comply with
subsection (1) of this section. [1975 c.466 §14; 1983
c.674 §4; 1985 c.513 §3; 1987 c.662 §7]
87.040 [Repealed by 1975 c.466 §25]
87.045 Completion date of improvement;
notice
of
completion,
abandonment
or
nonabandonment; contents of notice. (1) The
completion of construction of an improvement shall
occur when:
(a) The improvement is substantially complete;
(b) A completion notice is posted and recorded as
provided by subsections (2) and (3) of this section; or
(c) The improvement is abandoned as provided
by subsection (5) of this section.
(2) When all original contractors employed on the
construction of an improvement have substantially
performed their contracts, any original contractor, the
owner or mortgagee, or an agent of any of them may
post and record a completion notice. The completion
notice shall state in substance the following:

STATUTORY LIENS
_________________________________________
Notice hereby is given that the building, structure
or other improvement on the following described
premises, (insert the legal description of the property
including the street address, if known) has been
completed.
All persons claiming a lien upon the same under
the Construction Lien Law hereby are notified to file a
claim of lien as required by ORS 87.035.
Dated______, 2__
______________________
Original Contractor, Owner or Mortgagee
P. O. Address: _____________________
_________________________________________
(3) Any notice provided for in this section shall
be posted on the date it bears in some conspicuous
place upon the land or upon the improvement situated
thereon. Within five days from the date of posting the
notice, the party posting it or the agent of the party
shall record with the recording officer of the county in
which the property, or some part thereof, is situated, a
copy of the notice, together with an affidavit indorsed
thereon or attached thereto, made by the person posting
the notice, stating the date, place and manner of posting
the notice. The recording officer shall indorse upon the
notice the date of the filing thereof and record and
index the notice in the statutory lien record as required
by ORS 87.050.
(4) Anyone claiming a lien created under ORS
87.010 on the premises described in a completion or
abandonment notice for labor or services performed
and materials or equipment used prior to the date of the
notice shall perfect the lien pursuant to ORS 87.035.
(5) Except as provided in subsection (6) of this
section, an improvement is abandoned:
(a) On the 75th day after work on the
construction of the improvement ceases; or
(b) When the owner or mortgagee of the
improvement or an agent of either posts and records an
abandonment notice in writing signed by either the
owner or the mortgagee.
(6) When work on the construction of an
improvement ceases, if the owner or mortgagee of the
improvement intends to resume construction and does
not want abandonment to occur, the owner or
mortgagee or an agent of either shall post and record a
nonabandonment notice in writing signed by either the
owner or mortgagee. The notice of nonabandonment
shall be posted and recorded not later than the 74th day
after work on the construction ceases. The notice of
nonabandonment may be renewed at intervals of 150
days by rerecording the notice.
(7) The notices of abandonment or
nonabandonment described in subsections (5) and (6)
of this section shall state in substance:

2013 Annotated 1-10-14

Page 76

(a) That the improvement is either abandoned or
not abandoned.
(b) The legal description of the property,
including the street address if known, on which the
improvement is located.
(c) In the case of an abandonment notice, that all
persons claiming a lien on the improvement should file
a claim of lien pursuant to ORS 87.035.
(d) In the case of a nonabandonment notice, the
reasons for the delay in construction.
(e) The date of the notice.
(f) The address of the person who signs the
notice. [Amended by 1975 c.466 §11; 1985 c.596 §2;
1987 c.662 §8; 2001 c.577 §6; 2005 c.22 §53]
87.050 Recording. The recording officer of each
county shall record all notices and claims of lien
required to be filed by the provisions of ORS 87.001 to
87.060 and 87.075 to 87.093 in the statutory lien
record. The notices and claims recorded in the statutory
lien record shall be indexed as deeds and other
conveyances are required by law to be indexed and
shall constitute a public record of the county.
[Amended by 1975 c.466 §12; 1987 c.662 §9; 2001
c.577 §2]
87.055 Duration of lien; when suit to enforce
lien commences. No lien created under ORS 87.010
shall bind any improvement for a longer period than
120 days after the claim of lien is filed unless suit is
brought in a proper court within that time to enforce
the lien, or if extended payment is provided and the
terms thereof are stated in the claim of lien, then 120
days after the expiration of such extended payment, but
no lien shall be continued in force for a longer time
than two years from the time the claim of lien is filed
under ORS 87.035 by any agreement to extend
payment. For purposes of this section:
(1) Subject to subsection (2) of this section, a suit
to enforce the lien shall be deemed commenced as
provided in ORS 12.020.
(2) With regard to other parties who are
construction lien claimants under ORS 87.035, a suit to
enforce the lien shall be deemed to commence when
the complaint is filed, whether or not summons or
service with regard to such parties is completed within
the time required by ORS 12.020. [Amended by 1975
c.466 §13; 1985 c.341 §1; 1985 c.513 §4; 1987 c.662
§10]
87.057 Notice of intent to foreclose; list of
materials furnished and statement of prices; effect
of failure to give notice. (1) A person intending to
foreclose a lien shall deliver to the owner of the
property upon which the lien is claimed and to the
mortgagee a notice in writing not later than 10 days
prior to commencement of the suit stating that such
person, or others, intends to commence suit to
foreclose the lien. Notice delivered to the mortgagee

MORTGAGES AND LIENS
who received the notice required by ORS 87.025 shall
be deemed in compliance with this subsection, unless
the person giving notice has actual knowledge of a
change of mortgagee.
(2) Where a notice of intent to foreclose a lien has
been given as provided by subsection (1) of this
section, the sender of the notice upon demand of the
owner shall furnish to the owner within five days after
the demand a list of the materials and supplies with the
charge therefor, or a statement of a contractual basis
for the owner’s obligation, for which a claim will be
made in the suit to foreclose.
(3) A plaintiff or cross-complainant seeking to
foreclose a lien in a suit to foreclose shall plead and
prove compliance with subsections (1) and (2) of this
section. No costs, disbursements or attorney fees
otherwise allowable as provided by ORS 87.060 shall
be allowed to any party failing to comply with the
provisions of this section. [1975 c.466 §15; 1987 c.662
§11]
87.058 [1981 c.618 §16; 1987 c.662 §12; 1991
c.181 §15; 2001 c.197 §8; 2007 c.793 §2; repealed by
2011 c.630 §53]
87.059 Stay in proceedings to enforce lien;
requirements; procedure; dissolution of stay. (1) As
used in this section:
(a) Notwithstanding ORS 87.005, “contractor”
has the meaning given that term in ORS 701.005.
(b) “Board” means the Construction Contractors
Board established in ORS 701.205.
(2) If a person files a suit to enforce a lien
perfected under ORS 87.035 and the owner of the
structure subject to that lien files a complaint that is
being processed by the board under ORS 701.145
against a contractor who performed work on the
structure, the owner may obtain a stay of proceedings
on the suit to enforce the lien if:
(a) The owner already has paid the contractor for
that contractor’s work that is subject to this chapter on
the structure;
(b) The person suing to enforce the lien perfected
under ORS 87.035:
(A) Performed work that is subject to ORS
chapter 701 on the structure for the contractor who has
been paid by the owner;
(B) Furnished labor, services or materials or
rented or supplied equipment used on the structure to
the contractor who has been paid by the owner; or
(C) Otherwise acquired the lien as a result of a
contribution toward completion of the structure for
which the contractor has been paid by the owner; and
(c) The continued existence of the lien on which
the suit is pending is attributable to the failure of the
contractor who has been paid by the owner to pay the
person suing for that person’s contribution toward
completion of the structure.

2013 Annotated 1-10-14

Page 77

(3) The owner may petition for the stay of
proceedings described in subsection (2) of this section
by filing the following papers in the circuit court in
which the suit on the lien is pending:
(a) A certified copy of the complaint filed for
processing by the board under ORS 701.145; and
(b) An affidavit signed by the owner that
contains:
(A) A description of the structure;
(B) The street address of the structure;
(C) A statement that the structure is the structure
upon which the suit to enforce the lien is pending; and
(D) A statement that the petitioner is the owner of
the structure.
(4) Upon receipt of a complete petition described
in subsection (3) of this section, the circuit court shall
stay proceedings on the suit to enforce the lien.
(5) After the board order on the complaint
becomes final and the board issues any required notice
for payment against the contractor’s bond or deposit,
the circuit court shall dissolve the stay ordered under
subsection (4) of this section. [2011 c.630 §56]
Note: 87.059 becomes operative July 1, 2017, and
applies to complaints filed on or after July 1, 2017. See
section 73, chapter 630, Oregon Laws 2011.
Note: 87.059 was added to and made a part of 87.001
to 87.060 by legislative action but was not added to any
smaller series therein. See Preface to Oregon Revised
Statutes for further explanation.

87.060 Foreclosure; right to jury trial;
distribution of proceeds of foreclosure sale. (1) A
suit to enforce a lien perfected under ORS 87.035 shall
be brought in circuit court, and the pleadings, process,
practice and other proceedings shall be the same as in
other cases.
(2) In a suit to enforce a lien perfected under ORS
87.035, evidence of the actual costs of the labor,
equipment, services and material provided by the lien
claimant establishes a rebuttable presumption that
those costs are the reasonable value of that labor,
equipment, services and material.
(3) In a suit to enforce a lien perfected under ORS
87.035, the court shall allow or disallow the lien. If the
lien is allowed, the court shall proceed with the
foreclosure of the lien and resolve all other pleaded
issues. If the lien is disallowed, and a party has made a
demand for a jury trial as provided for in subsection (4)
of this section, the court shall impanel a jury to decide
any issues triable of right by a jury. All other issues in
the suit shall be tried by the court.
(4) A party may demand a trial by jury of any
issue triable of right by a jury after the lien is
disallowed, if that party serves a demand therefor in
writing upon the other parties at any time prior to
commencement of the trial to foreclose the lien. The
demand shall be filed with the court. The failure of a
party to serve a demand as required by this subsection
shall constitute a waiver by the party of trial by jury. A

STATUTORY LIENS
demand for trial by jury made as provided in this
subsection may not be withdrawn without the consent
of the parties.
(5) When notice of intent to foreclose the lien has
been given, pleaded and proven as provided for in ORS
87.057, the court, upon entering judgment for the lien
claimant, shall allow as part of the costs all moneys
paid for the filing or recording of the lien and all
moneys paid for title reports required for preparing and
foreclosing the lien. In a suit to enforce a lien perfected
under ORS 87.035 the court shall allow a reasonable
amount as attorney fees at trial and on appeal to the
party who prevails on the issues of the validity and
foreclosure of the lien.
(6) In case the proceeds of any sale under ORS
87.001 to 87.060 and 87.075 to 87.093 are insufficient
to pay all lienholders claiming under such statutes, the
liens of all persons shall be paid pro rata. Each
claimant is entitled to execution for any balance due
the claimant after the distribution of the proceeds, and
that execution shall be issued by the clerk of the court,
upon demand, after the return of the sheriff or other
officer making the sale showing the balance due.
(7) All suits to enforce any lien perfected under
ORS 87.035 shall have preference on the calendar of
the court over every civil suit, except suits to which the
state is a party, and shall be tried by the court without
unnecessary delay. In such a suit, all persons
personally liable, and all lienholders whose claims
have been filed for record pursuant to ORS 87.035,
shall, and all other persons interested in the matter in
controversy, or in the property sought to be charged
with the lien, may be made parties; but persons not
made parties are not bound by the proceedings. The
proceedings upon the foreclosure of the liens perfected
under ORS 87.035 shall, as nearly as possible, conform
to the proceedings of a foreclosure of a mortgage lien
upon real property. [Amended by 1975 c.466 §16;
1981 c.897 §20; 1981 c.898 §44; 1983 c.517 §2; 1987
c.662 §13]
87.065 [Amended by 1961 c.609 §2; repealed by
1975 c.466 §25]
87.070 Amount of recovery by contractor;
respective rights of contractor and owner. Any
contractor may recover, upon a lien perfected by the
contractor, only the amount due to the contractor
according to the terms of the contract, after deducting
all claims of other parties for work done and materials
furnished for which a lien is perfected under ORS
87.035. Where a claim of lien is filed pursuant to ORS
87.035 for work done or material or equipment
furnished to any contractor, the contractor shall defend
any action brought thereupon at the expense of the
contractor, and during the pendency of such action the
owner may withhold from the contractor the amount of
money for which such claim of lien is filed. In case of
judgment against the owner or the property of the

2013 Annotated 1-10-14

Page 78

owner upon the lien, the owner may deduct from any
amount due or to become due by the owner to the
contractor the amount of such judgment and costs; and
if the amount of the judgment and costs exceeds the
amount due by the owner to the contractor, or if the
owner has settled with the contractors in full, the owner
may recover back from the contractor any amount so
paid in excess of the contract price, and for which the
contractor was originally the party liable. [Amended by
1987 c.662 §14]
87.075 Exemption of building materials from
attachment by third persons. When a person
furnishes or procures materials for use in the
construction of an improvement, those materials are
not subject to attachment, execution or other legal
process to enforce any debt due by the purchaser of the
materials, except a debt due for the purchase money
thereof, so long as in good faith the materials are about
to be applied to the construction of the improvement.
[Amended by 1975 c.466 §23]
87.076 Bond or deposit of money; amount;
demand for release of lien; effect. (1) The owner of
an improvement or land against which a lien perfected
under ORS 87.035 is claimed, or an interested person,
may file with the recording officer of the county in
whose office the claim of lien is filed a bond executed
by a corporation authorized to issue surety bonds in the
State of Oregon to the effect that the principal or
principals on the bond shall pay the amount of the
claim and all costs and attorney fees that are awarded
against the improvement or land on account of the lien.
The bond shall be in an amount not less than 150
percent of the amount claimed under the lien, or in the
amount of $1,000, whichever is greater.
(2)(a) In lieu of the surety bond provided for in
subsection (1) of this section, the owner of an
improvement or land against which a lien perfected
under ORS 87.035 is claimed, or an interested person,
may deposit with the treasurer of the county in which
the claim of lien is filed a sum of money or the
equivalent of money equal in value to 150 percent of
the amount claimed under the lien, or in the amount of
$1,000, whichever is greater.
(b) A person who makes a deposit under
paragraph (a) of this subsection is entitled to any
investment income. The treasurer shall pay the
investment income to the person who makes the
deposit at the time the treasurer, in accordance with
ORS 87.083, distributes the money deposited under
this subsection. The person who makes the deposit
bears the risk for a loss that results from an investment
of the money deposited.
(3) A person may file a bond or deposit money
under subsection (1) or (2) of this section at any time
after the claim of lien is filed under ORS 87.035.
(4)(a) A person entitled to post a bond under
subsection (1) of this section or a cash deposit under

MORTGAGES AND LIENS
subsection (2) of this section may deliver pursuant to
ORS 87.018 a written demand to the lien claimant that
a lien perfected under ORS 87.035 be released and a
notice that if the lien is not released the person may
recover the actual costs the person incurred in
complying with this section and ORS 87.078 and
87.081 or the sum of $500, whichever is greater. If the
lien is not released within 10 days after the demand and
notice is delivered and the lien claimant or an assignor
of the lien claimant does not bring a suit to foreclose
the lien within the time provided in ORS 87.055, and if
the person who made the demand has complied with
this section and ORS 87.078 and 87.081, then the lien
claimant or assignor of the lien claimant who fails to
release or foreclose the lien is liable to the person for
the actual costs the person incurred in complying with
this section and ORS 87.078 and 87.081 or the sum of
$500, whichever is greater, in addition to any other
remedy provided by law or equity.
(b) In an action to recover damages under this
subsection in which the plaintiff prevails, the court, at
trial and on appeal, shall allow and fix a reasonable
amount for attorney fees for prosecution of the action,
if the court finds that a written demand for payment of
the claim was made on the defendant not less than 20
days before commencement of the action. However,
the court may not allow attorney fees to the plaintiff,
but shall allow attorney fees to the defendant, if the
court finds that the defendant tendered to the plaintiff
prior to commencement of the action an amount not
less than the damages awarded to the plaintiff.
(c) If a lien claimant or an assignor of the lien
claimant is served with a demand under paragraph (a)
of this subsection and is a prevailing party in the suit to
foreclose the lien, then in addition to other costs and
attorney fees to which the lien claimant or the assignor
of the lien claimant is entitled, the court shall allow the
actual costs incurred in addressing the demand or the
sum of $500, whichever is greater. [1975 c.466 §17;
1983 c.513 §3; 1987 c.662 §15; 1999 c.845 §1; 2009
c.513 §1]
87.078 Notice of filing bond or depositing
money; contents of notice; effect of failure to give
notice. (1) A person who files a bond or deposits
money under ORS 87.076 shall cause to be served
upon the lien claimant a notice of the filing or deposit
and, if a bond, a copy thereof, not later than 20 days
after the filing or deposit. The notice shall state the
location and time of the filing or deposit.
(2) If a person does not notify the lien claimant as
required by subsection (1) of this section, the filing of
the bond or the deposit of money is of no effect and the
provisions of ORS 87.083 shall not apply in a suit to
foreclose the lien for which the filing or deposit is
made. [1975 c.466 §18]
87.080 [Amended by 1967 c.407 §3; repealed by
1975 c.648 §72]

2013 Annotated 1-10-14

Page 79

87.081 Filing affidavit with county officer. (1)
When a person files a bond with the recording officer
of the county under ORS 87.076 and serves notice of
the filing upon the lien claimant, the person shall file
with the same recording officer an affidavit stating that
such notice was served.
(2) When a person deposits money with the
treasurer of a county under ORS 87.076 and serves
notice of the deposit upon the lien claimant, the person
shall file with the recording officer of the same county
an affidavit stating that the deposit was made and
notice was served. [1975 c.466 §19; 2005 c.22 §54]
87.082 [1967 c.407 §§1,2; repealed by 1975
c.648 §72]
87.083 Foreclosure after filing of bond or
deposit of money; effect of filing or deposit;
disposition of bond or money. (1) A suit to foreclose
a lien pursuant to ORS 87.060 that is commenced or
pending after a bond is filed or money deposited under
ORS 87.076 shall proceed as if no filing or deposit was
made except that the lien shall attach to the bond or
money upon the filing or deposit and the service of
notice thereof upon the lien claimant. The property
described in the claim of lien is thereafter entirely free
of the lien and is not involved in subsequent
proceedings.
(2) The county or an officer or employee of the
county may not be named or otherwise made a party to
a suit described in subsection (1) of this section.
(3) When a bond is filed or money is deposited,
if, in a suit to enforce the lien for which the filing or
deposit is made, the court allows the lien, the lien must
be satisfied out of the bond or money. The court shall
include as part of the court’s judgment an order that
specifies the amount the treasurer must release to the
judgment creditor and the amount of the remaining
balance that the treasurer must release to the person
who deposited the money.
(4) When a bond is filed or money is deposited,
if, in a suit to enforce the lien for which the filing or
deposit is made, the court disallows the lien, the court
shall include as part of the court’s judgment an order to
return the bond or money to the person who filed the
bond or deposited the money.
(5) Notwithstanding an order from the court
under subsection (3) or (4) of this section or an order or
notice under ORS 87.088, if the county treasurer is not
certain about how to distribute money deposited under
ORS 87.076, the treasurer shall notify the lien claimant
and the person who deposited the money of how the
treasurer intends to distribute the money. If within 10
days after the date of the treasurer’s notice a party to
the suit to foreclose the lien objects to the notice, the
treasurer may:
(a) Hold the money until the court or a stipulation
of the parties provides further direction; or

STATUTORY LIENS
(b) Commence an interpleader proceeding under
ORCP 31. [1975 c.466 §20; 1987 c.662 §16; 2005 c.22
§55; 2009 c.513 §2]
87.085 [Repealed by 1975 c.648 §72]
87.086 Determination of adequacy of bond. If a
lien claimant considers the bond filed with a recording
officer of a county inadequate to protect the claim of
the lien claimant for some reason other than the amount
of the bond, the lien claimant shall, within 10 days of
receipt of the notice of filing, petition the court in
which the suit to foreclose the lien may be brought for
a determination of the adequacy of the bond. The lien
claimant shall state in detail the reasons for the
inadequacy. Not later than two days after the filing of
the petition with the court, the lien claimant shall send
a notice of the filing and a copy of the petition by
registered or certified mail to the person who filed the
bond. After a hearing, if the court determines that the
bond is inadequate for one or more of the reasons
stated by the lien claimant, the court shall order such
action as shall make the bond adequate to protect the
claim of lien. [1975 c.466 §21; 1987 c.662 §17]
87.088 Release of lien or return of money. The
county recording officer shall record a written release
of the lien or the county treasurer in whose office
money is deposited under ORS 87.076 shall return the
money to the person who made the deposit if:
(1) The person who filed the bond or deposited
the money under ORS 87.076 notifies the lien claimant
and the treasurer in writing and by certified mail that a
suit to foreclose the lien was not commenced within the
time specified by ORS 87.055. The notice shall provide
that the lien claimant has 15 calendar days in which to
object to the release of the lien and the return of the
money and to provide documentation that demonstrates
that a suit was timely commenced or that the time for
commencement has not expired. If the treasurer
receives an objection, the treasurer may decide how to
distribute the money or may commence an interpleader
proceeding under ORCP 31.
(2) The person who filed the bond or deposited
the money presents a certified copy of a court’s order
for the release of the bond or all or some of the money
to the person.
(3) The person who filed the bond or deposited
the money presents a written release of lien signed by
the lien claimant. [1975 c.466 §22; 1999 c.654 §5;
2009 c.513 §3]
87.089 Limitations on actions. The provisions of
ORS 87.076, 87.083 and 87.088 do not create a cause
of action and may not be asserted as a basis for a per se
negligence action. [2009 c.513 §5]
87.090 [Repealed by 1975 c.648 §72]
87.091 [2003 c.778 §9; repealed by 2010 c.77 §9]

2013 Annotated 1-10-14

Page 80

87.093 Information Notice to Owner; rules;
contents; when notice must be delivered; effect of
failure to deliver notice; penalty. (1) The
Construction Contractors Board shall adopt by rule a
form entitled “Information Notice to Owner” which
shall describe, in nontechnical language and in a clear
and coherent manner using words in their common and
everyday meanings, the pertinent provisions of the
Construction Lien Law of this state and the rights and
responsibilities of an owner of property and an original
contractor under that law. The “Information Notice to
Owner” shall include signature lines for the contractor
and the property owner. The rights and responsibilities
described in the form shall include, but not be limited
to:
(a) Methods by which an owner may avoid
multiple payments for the same materials and labor;
(b) The right to file a complaint against a licensed
contractor with the board and, if appropriate, to be
reimbursed from the contractor’s bond filed under ORS
chapter 701; and
(c) The right to receive, upon written request
therefor, a statement of the reasonable value of
materials, equipment, services or labor provided from
the persons providing the materials, equipment,
services or labor at the request of an original contractor
and who have also provided notices of right to a lien.
(2) Each original contractor shall deliver a copy
of the “Information Notice to Owner” adopted by the
board under this section to:
(a) The first purchaser of residential property
constructed by the contractor and sold before or within
the 75-day period immediately following the
completion of construction; and
(b) The owner or an agent of the owner, other
than an original contractor, at the time of signing a
residential construction or improvement contract with
the owner.
(3) The contractor shall deliver the “Information
Notice to Owner” personally, by registered or certified
mail or by first class mail with certificate of mailing.
(4) This section applies only to a residential
construction or improvement contract for which the
aggregate contract price exceeds $2,000. If the price of
a residential construction or improvement contract was
initially less than $2,000, but during the course of the
performance of the contract exceeds that amount, the
original contractor shall mail or otherwise deliver the
“Information Notice to Owner” not later than five days
after the contractor knows or should reasonably know
that the contract price will exceed $2,000.
(5) Notwithstanding subsections (2) and (4) of
this section, the original contractor need not send the
owner an “Information Notice to Owner” if the owner
is a contractor licensed with the board under ORS
chapter 701.
(6) Notwithstanding ORS 87.010 and 87.030, if
an original contractor does not deliver an owner or

MORTGAGES AND LIENS
agent with an “Information Notice to Owner” as
required under subsections (2) to (4) of this section, the
original contractor may not claim any lien created
under ORS 87.010 upon any improvement, lot or
parcel of land of the owner for labor, services or
materials supplied under the residential construction or
improvement contract for which the original contractor
failed to deliver the required “Information Notice to
Owner”.
(7) If an original contractor does not deliver an
“Information Notice to Owner” to an owner or agent as
required under subsection (2) of this section, the board
may suspend the license of the original contractor for
any period of time that the board considers appropriate
or impose a civil penalty of not more than $5,000 upon
the original contractor as provided in ORS 701.992.
(8) As used in this section:
(a) “Residential construction or improvement”
means the original construction of residential property
and the repair, replacement, remodeling, alteration or
improvement of residential property.
(b) “Residential construction or improvement
contract” means a written agreement between an
original contractor and an owner for the performance
of a residential construction or improvement and all
labor, services and materials furnished and performed
under the agreement.
(c) “Residential property” includes, but is not
limited to, a residential dwelling and the driveways,
swimming pools, terraces, patios, fences, porches,
garages, basements, other structures and land that are
adjacent or appurtenant to a residential dwelling. [1981
c.757 §9; 1983 c.757 §3; 1985 c.596 §3; 1987 c.662
§18; 1991 c.67 §14; 1995 c.771 §7; 1999 c.402 §1;
2007 c.648 §16; 2007 c.793 §3; 2009 c.408 §1]
87.095 [Repealed by 1975 c.648 §72]
87.100 [Amended by 1973 c.54 §1; repealed by
1975 c.648 §72]
87.105 [Repealed by 1975 c.648 §72]

2013 Annotated 1-10-14

Page 81

87.110 [Repealed by 1975 c.648 §72]
87.115 [Repealed by 1975 c.648 §72]
87.120 [Repealed by 1975 c.648 §72]
87.122 [1955 c.438 §§1,2; repealed by 1975
c.648 §72]
87.125 [Amended by 1967 c.327 §1; 1973 c.307
§1; repealed by 1975 c.648 §72]
87.130 [Amended by 1961 c.519 §1; repealed by
1975 c.648 §72]
87.135 [Repealed by 1975 c.648 §72]
87.140 [Repealed by 1975 c.648 §72]

PUBLIC CONTRACTING –PUBLIC IMPROVEMENTS
GENERAL PROVISIONS
279C.005 Definitions. ORS 279A.010 (1)
contains general definitions applicable throughout this
chapter. [2003 c.794 §88]
279C.010 Applicability. Except as provided in
ORS 279C.320, public contracting under this chapter is
subject to ORS chapter 279A, but not ORS chapter
279B. [2003 c.794 §88a; 2005 c.103 §9]
279C.365
Requirements
for
solicitation
documents and bids and proposals. (1) A contracting
agency that prepares solicitation documents for a
public improvement contract shall, at a minimum,
include in the solicitation documents:
(a) A designation for or description of the public
improvement project;
(b) The office where the specifications for the
project may be reviewed;
(c) The date that prequalification applications must
be filed under ORS 279C.430 and the class or classes
of work for which bidders must be prequalified if
prequalification is a requirement;
(d) The date and time after which bids will not be
received, which must be at least five days after the date
of the last publication of the advertisement, and may, in
the sole discretion of the contracting agency, direct or
permit bidders to submit and the contracting agency to
receive bids by electronic means;
(e) The name and title of the person designated to
receive bids;
(f) The date on which and the time and place at
which the contracting agency will publicly open the
bids;
(g) A statement that, if the contract is for a public
works project subject to the state prevailing rates of
wage under ORS 279C.800 to 279C.870, the federal
prevailing rates of wage under the Davis-Bacon Act
(40 U.S.C. 3141 et seq.) or both the state and federal
prevailing rates of wage, the contracting agency will
not receive or consider a bid unless the bid contains a
statement by the bidder that the bidder will comply
with ORS 279C.838 or 279C.840 or 40 U.S.C. 3141 et
seq.;
(h) A statement that each bid must identify
whether the bidder is a resident bidder, as defined in
ORS 279A.120;
(i) A statement that the contracting agency may
reject a bid that does not comply with prescribed public
contracting procedures and requirements, including the
requirement to demonstrate the bidder’s responsibility
under ORS 279C.375 (3)(b), and that the contracting
agency may reject for good cause all bids after finding
that doing so is in the public interest;
(j) Information addressing whether a contractor or
subcontractor must be licensed under ORS 468A.720;
and
(k) A statement that the contracting agency may

2013 Annotated 1-10-14

Page 82

not receive or consider a bid for a public improvement
contract unless the bidder is licensed by the
Construction Contractors Board or the State Landscape
Contractors Board.
(2) A contracting agency may provide solicitation
documents by electronic means.
(3) A bid made to the contracting agency under
ORS 279C.335 or 279C.400 must be:
(a) In writing;
(b) Filed with the person the contracting agency
designates to receive bids; and
(c) Opened publicly by the contracting agency
immediately after the deadline for submitting bids.
(4) After the contracting agency opens the bids,
the contracting agency shall make the bids available for
public inspection.
(5) A bidder shall submit or post a surety bond,
irrevocable letter of credit issued by an insured
institution as defined in ORS 706.008, cashier’s check
or certified check for all bids as bid security unless the
contracting agency has exempted the contract for
which the bidder submits a bid from this requirement
under ORS 279C.390. The security may not exceed 10
percent of the amount bid for the contract.
(6) Subsection (5) of this section applies only to
public improvement contracts with a value, estimated
by the contracting agency, of more than $100,000 or, in
the case of contracts for highways, bridges and other
transportation projects, more than $50,000. [2003 c.794
§115; 2005 c.103 §15; 2007 c.764 §25; 2007 c.844 §2;
2009 c.368 §1]
279C.370 First-tier subcontractor disclosure.
(1)(a) Within two working hours after the date and time
of the deadline when bids are due to a contracting
agency for a public improvement contract, a bidder
shall submit to the contracting agency a disclosure of
the first-tier subcontractors that:
(A) Will be furnishing labor or will be furnishing
labor and materials in connection with the public
improvement contract; and
(B) Will have a contract value that is equal to or
greater than five percent of the total project bid or
$15,000, whichever is greater, or $350,000 regardless
of the percentage of the total project bid.
(b) For each contract to which this subsection
applies, the contracting agency shall designate a
deadline for submission of bids that has a date on a
Tuesday, Wednesday or Thursday and a time between
2 p.m. and 5 p.m., except that this paragraph does not
apply to public contracts for maintenance or
construction of highways, bridges or other
transportation facilities.
(c) This subsection applies only to public
improvement contracts with a value, estimated by the
contracting agency, of more than $100,000.
(d) This subsection does not apply to public
improvement contracts that have been exempted from

PUBLIC CONTRACTING –PUBLIC IMPROVEMENTS
competitive bidding requirements under ORS
279C.335 (2).
(2) The disclosure of first-tier subcontractors under
subsection (1) of this section must include the name of
each subcontractor, the category of work that each
subcontractor will perform and the dollar value of each
subcontract. The information shall be disclosed in
substantially the following form:
____________________________________________
FIRST-TIER SUBCONTRACTOR
DISCLOSURE FORM
PROJECT NAME: ____________
BID #: _________
BID CLOSING: Date: _____Time: _____
This form must be submitted at the location specified
in the Invitation to Bid on the advertised bid closing
date and within two working hours after the advertised
bid closing time.
List below the name of each subcontractor that will be
furnishing labor or will be furnishing labor and
materials and that is required to be disclosed, the
category of work that the subcontractor will be
performing and the dollar value of the subcontract.
Enter “NONE” if there are no subcontractors that need
to be disclosed. (ATTACH ADDITIONAL SHEETS
IF NEEDED.)
NAME
1) ____________
____________
2) ____________
____________
3) ____________
____________
4) ____________
____________

DOLLAR
VALUE
$___________
____________
$___________
____________
$___________
____________
$___________
____________

CATEGORY
OF WORK
____________
____________
____________
____________
____________
____________
____________
____________

Failure to submit this form by the disclosure deadline
will result in a nonresponsive bid. A nonresponsive bid
will not be considered for award.
Form
submitted
by
(bidder
name):
______________________
Contact name: _______________
Phone no.: _________
____________________________________________
(3) A contracting agency shall accept the
subcontractor disclosure. The contracting agency shall
consider the bid of any contractor that does not submit
a subcontractor disclosure to the contracting agency to
be a nonresponsive bid and may not award the contract

2013 Annotated 1-10-14

Page 83

to the contractor. A contracting agency is not required
to determine the accuracy or the completeness of the
subcontractor disclosure.
(4) After the bids are opened, the subcontractor
disclosures must be made available for public
inspection.
(5) A contractor may substitute a first-tier
subcontractor under the provisions of ORS 279C.585.
(6) A subcontractor may file a complaint under
ORS 279C.590 based on the disclosure requirements of
subsection (1) of this section. [2003 c.794 §116; 2005
c.103 §16]
279C.375 Award and execution of contract;
determination of responsibility of bidder; bonds;
impermissible exclusions. (1) After a contracting
agency has opened bids and determined that the
contracting agency will award a public improvement
contract, the contracting agency shall award the
contract to the lowest responsible bidder.
(2) At least seven days before awarding a public
improvement contract, unless the contracting agency
determines that seven days is impractical under rules
adopted under ORS 279A.065, the contracting agency
shall issue to each bidder or post, electronically or
otherwise, a notice of the contracting agency’s intent to
award a contract. This subsection does not apply to a
contract to which competitive bidding does not apply
under ORS 279C.335 (1)(c) or (d). The notice and the
manner in which the notice is posted or issued must
conform to rules adopted under ORS 279A.065.
(3) In determining the lowest responsible bidder, a
contracting agency shall do all of the following:
(a) Check the list created by the Construction
Contractors Board under ORS 701.227 for bidders who
are not qualified to hold a public improvement
contract.
(b) Determine whether the bidder is responsible. A
responsible bidder must demonstrate to the contracting
agency that the bidder:
(A) Has available the appropriate financial,
material, equipment, facility and personnel resources
and expertise, or has the ability to obtain the resources
and expertise, necessary to meet all contractual
responsibilities.
(B) Holds current licenses that businesses or
service professionals operating in this state must hold
in order to undertake or perform the work specified in
the contract.
(C) Is covered by liability insurance and other
insurance in amounts the contracting agency requires in
the solicitation documents.
(D) Qualifies as a carrier-insured employer or a
self-insured employer under ORS 656.407 or has
elected coverage under ORS 656.128.
(E) Has made the disclosure required under ORS
279C.370.

PUBLIC CONTRACTING –PUBLIC IMPROVEMENTS
(F) Completed previous contracts of a similar
nature with a satisfactory record of performance. For
purposes of this subparagraph, a satisfactory record of
performance means that to the extent that the costs
associated with and time available to perform a
previous contract remained within the bidder’s control,
the bidder stayed within the time and budget allotted
for the procurement and otherwise performed the
contract in a satisfactory manner. The contracting
agency shall document the bidder’s record of
performance if the contracting agency finds under this
subparagraph that the bidder is not responsible.
(G) Has a satisfactory record of integrity. The
contracting agency in evaluating the bidder’s record of
integrity may consider, among other things, whether
the bidder has previous criminal convictions for
offenses related to obtaining or attempting to obtain a
contract or subcontract or in connection with the
bidder’s performance of a contract or subcontract. The
contracting agency shall document the bidder’s record
of integrity if the contracting agency finds under this
subparagraph that the bidder is not responsible.
(H) Is legally qualified to contract with the
contracting agency.
(I) Supplied all necessary information in
connection with the inquiry concerning responsibility.
If a bidder fails to promptly supply information
concerning responsibility that the contracting agency
requests, the contracting agency shall determine the
bidder’s responsibility based on available information,
or may find that the bidder is not responsible.
(c) Document the contracting agency’s compliance
with the requirements of paragraphs (a) and (b) of this
subsection in substantially the following form:
____________________________________________

[ ] Determined whether the bidder has met the
standards of responsibility. In so doing, the contracting
agency has found that the bidder demonstrated that
the bidder:
[ ] Has available the appropriate financial,
material, equipment, facility and personnel resources
and expertise, or the ability to obtain the resources and
expertise, necessary to meet all contractual
responsibilities.
[ ] Holds current licenses that businesses or
service professionals operating in this state must hold
in order to undertake or perform the work specified in
the contract.
[ ] Is covered by liability insurance and other
insurance in amounts required in the solicitation
documents.
[ ] Qualifies as a carrier-insured employer or a
self-insured employer under ORS 656.407 or has
elected coverage under ORS 656.128.
[ ] Has disclosed the bidder’s first-tier
subcontractors in accordance with ORS 279C.370.
[ ] Has a satisfactory record of performance.
[ ] Has a satisfactory record of integrity.
[ ] Is legally qualified to contract with the
contracting agency.
[ ] Has supplied all necessary information in
connection with the inquiry concerning responsibility.
[ ] Determined the bidder to be (check one of the
following):
[ ] Responsible under ORS 279C.375 (3)(a) and
(b).
[ ] Not responsible under ORS 279C.375 (3)(a)
and (b).

RESPONSIBILITY DETERMINATION FORM

(Attach documentation if the contracting agency
finds the bidder not to be responsible.)
____________________________________________

Project Name: ____________
Bid Number: ____________
Business Entity Name: ____________
CCB License Number: ____________
Form Submitted By (Contracting Agency):
____________
Form
Submitted
By
(Contracting
Agency
Representative’s Name): ____________
Title: ____________
Date: ____________
(The contracting agency must submit this form
with attachments, if any, to the Construction
Contractors Board within 30 days after the date of
contract award.)
The contracting agency has (check all of the
following):
[ ] Checked the list created by the Construction
Contractors Board under ORS 701.227 for bidders who
are not qualified to hold a public improvement
contract.

(d) Submit the form described in paragraph (c) of
this subsection, with any attachments, to the
Construction Contractors Board within 30 days after
the date the contracting agency awards the contract.
(4) The successful bidder shall:
(a) Promptly execute a formal contract; and
(b) Execute and deliver to the contracting agency a
performance bond and a payment bond when required
under ORS 279C.380.
(5) Based on competitive bids, a contracting
agency may award a public improvement contract or
may award multiple public improvement contracts
when specified in the invitation to bid.
(6) A contracting agency may not exclude a
commercial contractor from competing for a public
contract on the basis that the license issued by the
Construction Contractors Board is endorsed as a level 1
or level 2 license. As used in this section, “commercial
contractor” has the meaning given that term in ORS
701.005. [2003 c.794 §117; 2005 c.103 §§17,18; 2005

2013 Annotated 1-10-14

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PUBLIC CONTRACTING –PUBLIC IMPROVEMENTS
c.376 §1; 2007 c.764 §§26,27; 2007 c.836 §§42,43;
2009 c.880 §§9,9a]
(Subcontractors)
Effective 2/27/12, Operative 5/28/12
279C.580. (1) A contractor may not request
payment from the contracting agency of any amount
withheld or retained in accordance with subsection (5)
of this section until the contractor has determined and
certified to the contracting agency that the
subcontractor has determined and certified to the
contracting agency that the subcontractor is entitled to
the payment .
(2) A dispute between a contractor and first-tier
subcontractor relating to the amount or entitlement of a
first-tier subcontractor to a payment or a late payment
interest penalty under a clause included in the
subcontract under subsection (3) or (4) of this section
does not constitute a dispute to which the contracting
agency is a party. The contracting agency may not be
included as a party in any administrative or judicial
proceeding involving such a dispute.
(3) Each public improvement contract awarded
by a contracting agency must include a clause that
requires the contractor to include in each subcontract
for property or services the contractor enters into with a
first-tier subcontractor, including a material supplier,
for the purpose of performing a construction contract:
(a) A payment clause that obligates the contractor
to pay the first-tier subcontractor for satisfactory
performance under the subcontract within 10 days out
of amounts the contracting agency pays to the
contractor under the public improvement contract.
(b) A clause that requires the contractor to
provide a first-tier subcontractor with a standard form
that the first-tier subcontractor may use as an
application for payment or as another method by which
the subcontractor may claim a payment due from the
contractor.
(c) A clause that requires the contractor, except as
otherwise provided in this paragraph, to use the same
form and regular administrative procedures for
processing payments during the entire term of the
subcontract. A contractor may change the form or the
regular administrative procedures the contractor uses
for processing payments if the contractor:
(A) Notifies the subcontractor in writing at least
45 days before the date on which the contractor makes
the change; and
(B) Includes with the written notice a copy of the
new or changed form or a description of the new or
changed procedure.
(d) An interest penalty clause that obligates the
contractor, if the contractor does not pay the first-tier
subcontractor within 30 days after receiving payment
from the contracting agency, to pay the first-tier
subcontractor an interest penalty on amounts due in

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each payment the contractor does not make in
accordance with the payment clause included in the
subcontract under paragraph (a) of this subsection. A
contractor or first-tier subcontractor is not obligated to
pay an interest penalty if the only reason that the
contractor or first-tier subcontractor did not make
payment when payment was due is that the contractor
or first-tier subcontractor did not receive payment from
the contracting agency or contractor when payment
was due. The interest penalty:
(A) Applies to the period that begins on the day
after the required payment date and that ends on the
date on which the amount due is paid; and
(B) Is computed at the rate specified in ORS
279C.515 (2).
(4) A public improvement contract that the
contracting agency awards shall obligate the contractor,
in each of the contractor’s subcontracts, to require the
first-tier subcontractor to include a payment clause and
an interest penalty clause that conforms to the
standards of subsection (3) of this section in each of the
first-tier subcontractor’s subcontracts and to require
each of the first-tier subcontractor’s subcontractors to
include such clauses in the first-tier subcontractors’
subcontracts with each lower-tier subcontractor or
supplier.
(5)(a) The clauses required by subsections (3) and
(4) of this section do not impair the right of a
contractor or a subcontractor at any tier to negotiate,
and to include in the subcontract, provisions that:
(A) Permit the contractor or a subcontractor to
retain, in the event of a good faith dispute, an amount
not to exceed 150 percent of the amount in dispute
from the amount due a subcontractor under the
subcontract without incurring any obligation to pay a
late payment interest penalty, in accordance with terms
and conditions the parties to the subcontract agree
upon, giving such recognition as the parties consider
appropriate to the ability of a subcontractor to furnish a
performance bond and a payment bond;
(B) Permit the contractor or subcontractor to
make a determination that part or all of the
subcontractor’s request for payment may be withheld
in accordance with the subcontract; and
(C) Permit such withholdings without incurring
any obligation to pay a late payment interest penalty if:
(i) A notice that conforms to the standards of
subsection (8) of this section has been previously
furnished to the subcontractor; and
(ii) A copy of any notice a contractor issues under
sub-subparagraph (i) of this subparagraph has been
furnished to the contracting agency.
(b) As used in this subsection, “good faith
dispute” means a documented dispute concerning:
(A) Unsatisfactory job progress.
(B) Defective work not remedied.
(C) Third-party claims filed or reasonable
evidence that claims will be filed.

PUBLIC CONTRACTING –PUBLIC IMPROVEMENTS
(D) Failure to make timely payments for labor,
equipment and materials.
(E) Damage to the contractor or subcontractor.
(F) Reasonable evidence that the subcontract
cannot be completed for the unpaid balance of the
subcontract sum.
(6) If, after applying to a contracting agency for
payment under a public improvement contract but
before paying a subcontractor for the subcontractor’s
performance covered by the application, a contractor
discovers that all or a portion of the payment otherwise
due the subcontractor is subject to withholding from
the subcontractor in accordance with the subcontract,
the contractor shall:
(a) Furnish to the subcontractor a notice
conforming to the standards of subsection (8) of this
section as soon as practicable after ascertaining the
cause for the withholding, but before the due date for
payment to the subcontractor;
(b) Furnish to the contracting agency, as soon as
practicable, a copy of the notice furnished to the
subcontractor under paragraph (a) of this subsection;
(c) Reduce the progress payment to the
subcontractor by an amount not to exceed the amount
specified in the notice of withholding furnished under
paragraph (a) of this subsection;
(d) Pay the subcontractor as soon as practicable
after the correction of the identified subcontract
performance deficiency;
(e) Make such payment within:
(A) Seven days after correction of the identified
subcontract performance deficiency unless the funds
for the payment must be recovered from the
contracting agency because of a reduction under
paragraph (f)(A) of this subsection; or
(B) Seven days after the contractor recovers the
funds from the contracting agency;
(f) Notify the contracting agency upon:
(A) Reduction of the amount of any subsequent
certified application for payment; or
(B) Payment to the subcontractor of any withheld
amounts of a progress payment, specifying:
(i) The amounts of the progress payments
withheld under paragraph (a) of this subsection; and
(ii) The dates on which the withholding began
and ended; and
(g) Be obligated to pay to the contracting agency
an amount equal to interest on the withheld payments
computed in the manner provided in ORS 279C.570
from the 11th day after receiving the withheld amounts
from the contracting agency until:
(A) The day the identified subcontractor
performance deficiency is corrected; or
(B) The date that any subsequent payment is
reduced under paragraph (f)(A) of this subsection.
(7)(a) If a contractor, after paying a first-tier
subcontractor, receives from a supplier or
subcontractor of the first-tier subcontractor a written

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notice asserting a deficiency in the first-tier
subcontractor’s performance under the public
improvement contract for which the contractor may be
ultimately liable and the contractor determines that all
or a portion of future payments otherwise due the firsttier subcontractor is subject to withholding in
accordance with the subcontract , the contractor may,
without incurring an obligation to pay a late payment
interest penalty under subsection (6)(e) of this section:
(A) Furnish to the first-tier subcontractor a notice
that conforms to the standards of subsection (8) of this
section as soon as practicable after making the
determination; and
(B) Withhold from the first-tier subcontractor’s
next available progress payment or payments an
amount not to exceed the amount specified in the
notice of withholding furnished under subparagraph
(A) of this paragraph.
(b) As soon as practicable, but not later than 10
days after receiving satisfactory written notice that the
identified subcontract performance deficiency has been
corrected, the contractor shall pay the amount withheld
under paragraph (a)(B) of this subsection to the firsttier subcontractor, or shall incur an obligation to pay a
late payment interest penalty to the first-tier
subcontractor computed at the rate specified in ORS
279C.570.
(8) A written notice of any withholding must be
issued to a subcontractor, with a copy to the
contracting agency, that specifies:
(a) The amount to be withheld;
(b) The specified causes for the withholding
under the terms of the subcontract; and
(c) The remedial actions the subcontractor must
take in order to receive payment of the amounts
withheld.
(9) Except as provided in subsection (2) of this
section, this section does not limit or impair any
contractual, administrative or judicial remedies
otherwise available to a contractor or a subcontractor in
the event of a dispute involving a contractor’s late
payment or nonpayment or a subcontractor’s deficient
performance or nonperformance.
(10) A contractor’s obligation to pay a late
payment interest penalty to a subcontractor under the
clause included in a subcontract under subsection (3) or
(4) of this section is not an obligation of the contracting
agency. A contract modification may not be made for
the purpose of providing reimbursement of a late
payment interest penalty. A cost reimbursement claim
may not include any amount for reimbursement of a
late payment interest penalty.
[2003 c.794 §151; 2005 c.103 §34; 2012 c.4 §2]
Note: The amendments to 279C.580 by section 2, chapter 4,
Oregon Laws 2012, become effective upon the Governor’s signature
on February 27, 2012, and becomes operative 91 days later, Mary 28,
2012. The text that is operative until May 28, 2012, is set forth for
the user’s convenience.

PUBLIC CONTRACTING –PUBLIC IMPROVEMENTS
279C.580 Contractor’s relations with subcontractors. (1) A
contractor may not request payment from the contracting agency of
any amount withheld or retained in accordance with subsection (5) of
this section until such time as the contractor has determined and
certified to the contracting agency that the subcontractor has
determined and certified to the contracting agency that the
subcontractor is entitled to the payment of such amount.
(2) A dispute between a contractor and first-tier subcontractor
relating to the amount or entitlement of a first-tier subcontractor to a
payment or a late payment interest penalty under a clause included in
the subcontract under subsection (3) or (4) of this section does not
constitute a dispute to which the contracting agency is a party. The
contracting agency may not be included as a party in any
administrative or judicial proceeding involving such a dispute.
(3) Each public improvement contract awarded by a contracting
agency shall include a clause that requires the contractor to include in
each subcontract for property or services entered into by the
contractor and a first-tier subcontractor, including a material supplier,
for the purpose of performing a construction contract:
(a) A payment clause that obligates the contractor to pay the
first-tier subcontractor for satisfactory performance under its
subcontract within 10 days out of such amounts as are paid to the
contractor by the contracting agency under the contract; and
(b) An interest penalty clause that obligates the contractor, if
payment is not made within 30 days after receipt of payment from
the contracting agency, to pay to the first-tier subcontractor an
interest penalty on amounts due in the case of each payment not
made in accordance with the payment clause included in the
subcontract under paragraph (a) of this subsection. A contractor or
first-tier subcontractor may not be obligated to pay an interest
penalty if the only reason that the contractor or first-tier
subcontractor did not make payment when payment was due is that
the contractor or first-tier subcontractor did not receive payment
from the contracting agency or contractor when payment was due.
The interest penalty shall be:
(A) For the period beginning on the day after the required
payment date and ending on the date on which payment of the
amount due is made; and
(B) Computed at the rate specified in ORS 279C.515 (2).
(4) The contract awarded by the contracting agency shall
require the contractor to include in each of the contractor’s
subcontracts, for the purpose of performance of such contract
condition, a provision requiring the first-tier subcontractor to include
a payment clause and an interest penalty clause conforming to the
standards of subsection (3) of this section in each of the first-tier
subcontractor’s subcontracts and to require each of the first-tier
subcontractor’s subcontractors to include such clauses in their
subcontracts with each lower-tier subcontractor or supplier.
(5)(a) The clauses required by subsections (3) and (4) of this
section are not intended to impair the right of a contractor or a
subcontractor at any tier to negotiate, and to include in the
subcontract, provisions that:
(A) Permit the contractor or a subcontractor to retain, in the
event of a good faith dispute, an amount not to exceed 150 percent of
the amount in dispute from the amount due a subcontractor under the
subcontract without incurring any obligation to pay a late payment
interest penalty, in accordance with terms and conditions agreed to
by the parties to the subcontract, giving such recognition as the
parties consider appropriate to the ability of a subcontractor to
furnish a performance bond and a payment bond;
(B) Permit the contractor or subcontractor to make a
determination that part or all of the subcontractor’s request for
payment may be withheld in accordance with the subcontract
agreement; and
(C) Permit such withholdings without incurring any obligation
to pay a late payment interest penalty if:
(i) A notice conforming to the standards of subsection (8) of
this section has been previously furnished to the subcontractor; and
(ii) A copy of any notice issued by a contractor under subsubparagraph (i) of this subparagraph has been furnished to the
contracting agency.

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(b) As used in this subsection, “good faith dispute” means a
documented dispute concerning:
(A) Unsatisfactory job progress.
(B) Defective work not remedied.
(C) Third-party claims filed or reasonable evidence that claims
will be filed.
(D) Failure to make timely payments for labor, equipment and
materials.
(E) Damage to the prime contractor or subcontractor.
(F) Reasonable evidence that the subcontract cannot be
completed for the unpaid balance of the subcontract sum.
(6) If, after making application to a contracting agency for
payment under a contract but before making a payment to a
subcontractor for the subcontractor’s performance covered by such
application, a contractor discovers that all or a portion of the payment
otherwise due the subcontractor is subject to withholding from the
subcontractor in accordance with the subcontract agreement, the
contractor shall:
(a) Furnish to the subcontractor a notice conforming to the
standards of subsection (8) of this section as soon as practicable upon
ascertaining the cause giving rise to a withholding, but prior to the
due date for subcontractor payment;
(b) Furnish to the contracting agency, as soon as practicable, a
copy of the notice furnished to the subcontractor under paragraph (a)
of this subsection;
(c) Reduce the subcontractor’s progress payment by an amount
not to exceed the amount specified in the notice of withholding
furnished under paragraph (a) of this subsection;
(d) Pay the subcontractor as soon as practicable after the
correction of the identified subcontract performance deficiency;
(e) Make such payment within:
(A) Seven days after correction of the identified subcontract
performance deficiency unless the funds therefor must be recovered
from the contracting agency because of a reduction under paragraph
(f)(A) of this subsection; or
(B) Seven days after the contractor recovers such funds from
the contracting agency;
(f) Notify the contracting agency upon:
(A) Reduction of the amount of any subsequent certified
application for payment; or
(B) Payment to the subcontractor of any withheld amounts of a
progress payment, specifying:
(i) The amounts of the progress payments withheld under
paragraph (a) of this subsection; and
(ii) The dates that such withholding began and ended; and
(g) Be obligated to pay to the contracting agency an amount
equal to interest on the withheld payments computed in the manner
provided in ORS 279C.570 from the 11th day after receipt of the
withheld amounts from the contracting agency until:
(A) The day the identified subcontractor performance
deficiency is corrected; or
(B) The date that any subsequent payment is reduced under
paragraph (f)(A) of this subsection.
(7)(a) If a contractor, after making payment to a first-tier
subcontractor, receives from a supplier or subcontractor of the firsttier subcontractor a written notice asserting a deficiency in such firsttier subcontractor’s performance under the contract for which the
contractor may be ultimately liable and the contractor determines that
all or a portion of future payments otherwise due such first-tier
subcontractor is subject to withholding in accordance with the
subcontract agreement, the contractor may, without incurring an
obligation to pay a late payment interest penalty under subsection
(6)(e) of this section:
(A) Furnish to the first-tier subcontractor a notice conforming
to the standards of subsection (8) of this section as soon as
practicable upon making such determination; and
(B) Withhold from the first-tier subcontractor’s next available
progress payment or payments an amount not to exceed the amount
specified in the notice of withholding furnished under subparagraph
(A) of this paragraph.
(b) As soon as practicable, but not later than 10 days after
receipt of satisfactory written notification that the identified

PUBLIC CONTRACTING –PUBLIC IMPROVEMENTS
subcontract performance deficiency has been corrected, the
contractor shall pay the amount withheld under paragraph (a)(B) of
this subsection to such first-tier subcontractor, or shall incur an
obligation to pay a late payment interest penalty to such first-tier
subcontractor computed at the rate specified in ORS 279C.570.
(8) A written notice of any withholding shall be issued to a
subcontractor, with a copy to the contracting agency of any such
notice issued by a contractor, specifying:
(a) The amount to be withheld;
(b) The specified causes for the withholding under the terms of
the subcontract; and
(c) The remedial actions to be taken by the subcontractor in
order to receive payment of the amounts withheld.
(9) Except as provided in subsection (2) of this section, this
section does not limit or impair any contractual, administrative or
judicial remedies otherwise available to a contractor or a
subcontractor in the event of a dispute involving late payment or
nonpayment by a contractor or deficient performance or
nonperformance by a subcontractor.
(10) A contractor’s obligation to pay a late payment interest
penalty to a subcontractor under the clause included in a subcontract
under subsection (3) or (4) of this section is not intended to be an
obligation of the contracting agency. A contract modification may
not be made for the purpose of providing reimbursement of such late
payment interest penalty. A cost reimbursement claim may not
include any amount for reimbursement of such late payment interest
penalty. [2003 c.794 §151; 2005 c.103 §34]

279C.585 Authority to substitute undisclosed
first-tier subcontractor; circumstances; rules. A
contractor whose bid is accepted may substitute a firsttier subcontractor that was not disclosed under ORS
279C.370 by submitting the name of the new
subcontractor and the reason for the substitution in
writing to the contracting agency. A contractor may
substitute a first-tier subcontractor under this section in
the following circumstances:
(1) When the subcontractor disclosed under ORS
279C.370 fails or refuses to execute a written contract
after having had a reasonable opportunity to do so after
the written contract, which must be reasonably based
upon the general terms, conditions, plans and
specifications for the public improvement project or the
terms of the subcontractor’s written bid, is presented to
the subcontractor by the contractor.
(2) When the disclosed subcontractor becomes
bankrupt or insolvent.
(3) When the disclosed subcontractor fails or
refuses to perform the subcontract.
(4) When the disclosed subcontractor fails or
refuses to meet the bond requirements of the contractor
that had been identified prior to the bid submittal.
(5) When the contractor demonstrates to the
contracting agency that the subcontractor was disclosed
as the result of an inadvertent clerical error.
(6) When the disclosed subcontractor does not
hold a license from, or has a license that is not properly
endorsed by, the Construction Contractors Board and is
required to be licensed by the board.
(7) When the contractor determines that the work
performed by the disclosed subcontractor is
substantially unsatisfactory and not in substantial
accordance with the plans and specifications or that the

2013 Annotated 1-10-14

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subcontractor is substantially delaying or disrupting the
progress of the work.
(8) When the disclosed subcontractor is ineligible
to work on a public improvement contract under
applicable statutory provisions.
(9) When the substitution is for good cause. The
Construction Contractors Board shall define “good
cause” by rule. “Good cause” includes but is not
limited to the financial instability of a subcontractor.
The definition of “good cause” must reflect the leastcost policy for public improvements established in
ORS 279C.305.
(10) When the substitution is reasonably based on
the contract alternates chosen by the contracting
agency. [2003 c.794 §152; 2007 c.836 §45]
279C.590 Complaint process for substitutions of
subcontractors; civil penalties. (1)(a) A subcontractor
disclosed under ORS 279C.370 may file a complaint
based on the subcontractor disclosure requirements
under ORS 279C.370 with the Construction
Contractors Board about a contractor if the contractor
has substituted another subcontractor for the
complaining subcontractor.
(b) If more than one subcontractor files a
complaint with the board under paragraph (a) of this
subsection relating to a single subcontractor disclosure,
the board shall consolidate the complaints into one
proceeding. If the board imposes a civil penalty under
this section against a contractor, the amount collected
by the board shall be divided evenly among all of the
complaining subcontractors.
(c) Each subcontractor filing a complaint under
paragraph (a) of this subsection shall post a deposit of
$500 with the board upon filing the complaint.
(d) If the board determines that a contractor’s
substitution was not in compliance with ORS
279C.585, the board shall return the full amount of the
deposit posted under paragraph (c) of this subsection to
the complaining subcontractor.
(e) If the board determines that a contractor has not
substituted a subcontractor or that the contractor’s
substitution was in compliance with ORS 279C.585,
the board shall award the contractor $250 of the deposit
and shall retain the other $250, which may be
expended by the board.
(2) Upon receipt of a complaint under subsection
(1) of this section, the board shall investigate the
complaint. If the board determines that a contractor has
substituted a subcontractor in a manner not in
compliance with ORS 279C.585, the board may
impose a civil penalty against the contractor under
subsections (3) to (5) of this section. Civil penalties
under this section shall be imposed in the manner
provided under ORS 183.745.
(3) If the board imposes a civil penalty under
subsection (2) of this section and it is the first time the
board has imposed a civil penalty under subsection (2)

PUBLIC CONTRACTING –PUBLIC IMPROVEMENTS
of this section against the contractor during a threeyear period, the board shall:
(a) Impose a civil penalty on the contractor of up
to 10 percent of the amount of the subcontract bid
submitted by the complaining subcontractor to the
contractor or $15,000, whichever is less. Amounts
collected by the board under this paragraph shall be
awarded to the complaining subcontractor or
subcontractors; and
(b) Impose a civil penalty on the contractor of up
to $1,000. Amounts collected by the board under this
paragraph shall be retained by the board and may be
expended by the board.
(4) If the board imposes a civil penalty under
subsection (2) of this section and it is the second time
the board has imposed a civil penalty under subsection
(2) of this section against the contractor during a threeyear period, the board may:
(a) Impose a civil penalty on the contractor of up
to 10 percent of the amount of the subcontract bid
submitted by the complaining subcontractor to the
contractor or $15,000, whichever is less. Amounts
collected by the board under this paragraph shall be
awarded to the complaining subcontractor or
subcontractors; and
(b) Impose a civil penalty on the contractor of up
to $1,000 and shall place the contractor on the list
established under ORS 701.227 for up to six months.
Amounts collected by the board under this paragraph
shall be retained by the board and may be expended by
the board.
(5) If the board imposes a civil penalty under
subsection (2) of this section and the board has
imposed a civil penalty under subsection (2) of this
section against the contractor three or more times
during a three-year period, the board may:
(a) Impose a civil penalty on the contractor of up
to 10 percent of the amount of the subcontract bid
submitted by the complaining subcontractor to the
contractor or $15,000, whichever is less. Amounts
collected by the board under this paragraph shall be
awarded to the complaining subcontractor or
subcontractors; and
(b) Impose a civil penalty on the contractor of up
to $1,000 and shall place the contractor on the list
established under ORS 701.227 for up to one year.
Amounts collected by the board under this paragraph
shall be retained by the board and may be expended by
the board.
(6) Within 10 working days after receiving a
complaint under subsection (1) of this section, the
board shall notify, in writing, any contracting agency
that is a party to the contract for which the complaint
has been filed that the complaint has been filed. [2003
c.794 §153]

2013 Annotated 1-10-14

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(Action on Payment Bonds and
Public Works Bonds)
279C.600 Right of action on payment bond or
public works bond of contractor or subcontractor;
notice of claim. (1) A person claiming to have
supplied labor or materials for the performance of the
work provided for in a public contract, including any
person having a direct contractual relationship with the
contractor furnishing the payment bond or a direct
contractual relationship with any subcontractor, or an
assignee of such person, or a person claiming moneys
due the State Accident Insurance Fund Corporation, the
Unemployment Compensation Trust Fund or the
Department of Revenue in connection with the
performance of the contract, has a right of action on the
contractor’s payment bond as provided for in ORS
279C.380 and 279C.400 only if:
(a) The person or the assignee of the person has
not been paid in full; and
(b) The person gives written notice of claim, as
prescribed in ORS 279C.605, to the contractor and the
contracting agency.
(2) When, upon investigation, the Commissioner
of the Bureau of Labor and Industries has received
information indicating that one or more workers
providing labor on a public works have not been paid
in full at the prevailing rate of wage or overtime wages,
the commissioner has a right of action first on the
contractor’s public works bond required under ORS
279C.836 and then, for any amount of a claim not
satisfied by the public works bond, on the contractor’s
payment bond, as provided in ORS 279C.380 and
279C.400. When an investigation indicates that a
subcontractor’s workers have not been paid in full at
the prevailing rate of wage or overtime wages, the
commissioner has a right of action first on the
subcontractor’s public works bond and then, for any
amount of a claim not satisfied by the subcontractor’s
public works bond, on the contractor’s payment bond.
The commissioner’s right of action exists without
necessity of an assignment and extends to workers on
the project who are not identified when the written
notice of claim is given, but for whom the
commissioner has received information indicating that
the workers have provided labor on the public works
and have not been paid in full. The commissioner shall
give written notice of the claim, as prescribed in ORS
279C.605, to the contracting agency, the Construction
Contractors Board, the contractor and, if applicable, the
subcontractor. The commissioner may not make a
claim for the same unpaid wages against more than one
bond under this section. [2003 c.794 §154; 2005 c.360
§3]
279C.605 Notice of claim. (1) The notice of claim
required by ORS 279C.600 must be sent by registered
or certified mail or hand delivered no later than 180

PUBLIC CONTRACTING –PUBLIC IMPROVEMENTS
days after the day the person last provided labor or
furnished materials or 180 days after the worker listed
in the notice of claim by the Commissioner of the
Bureau of Labor and Industries last provided labor. The
notice may be sent or delivered to the contractor or
subcontractor at any place the contractor or
subcontractor maintains an office or conducts business
or at the residence of the contractor or subcontractor.
(2) Notwithstanding subsection (1) of this section,
if the claim is for a required contribution to a fund of
an employee benefit plan, the notice required by ORS
279C.600 must be sent or delivered within 200 days
after the employee last provided labor or materials.
(3) The notice must be in writing substantially as
follows:
____________________________________________
To (here insert the name of the contractor or
subcontractor and the name of the public body):
Notice hereby is given that the undersigned (here
insert the name of the claimant) has a claim for (here
insert a brief description of the labor or materials
performed or furnished and the person by whom
performed or furnished; if the claim is for other than
labor or materials, insert a brief description of the
claim) in the sum of (here insert the amount) dollars
against the (here insert public works bond or payment
bond, as applicable) taken from (here insert the name
of the principal and, if known, the surety or sureties
upon the public works bond or payment bond) for the
work of (here insert a brief description of the work
concerning which the public works bond or payment
bond was taken). Such material or labor was supplied
to (here insert the name of the contractor or
subcontractor).
_____________________
(here to be signed)
__________________________________________
(4) When notice of claim is given by the
commissioner and if the claim includes a worker who
is then unidentified, the commissioner shall include in
the notice a statement that the claim includes an
unidentified worker for whom the commissioner has
received information indicating that the worker has not
been paid in full at the prevailing rate of wage required
by ORS 279C.840 or overtime wages required by ORS
279C.540.
(5) The person making the claim or giving the
notice shall sign the notice. [2003 c.794 §155; 2005
c.360 §4; 2009 c.160 §1]
279C.610 Action on contractor’s public works
bond or payment bond; time limitation. (1) The
Commissioner of the Bureau of Labor and Industries or
a person who has a right of action on the public works
bond or the payment bond under ORS 279C.600 and,
where required, who has filed and served the notice or

2013 Annotated 1-10-14

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notices of claim, as required under ORS 279C.600 and
279C.605, or that person’s assignee, may institute an
action on the contractor’s public works bond or
payment bond in a circuit court of this state or the
federal district court of the district.
(2) The action shall be on the relation of the
commissioner, the claimant, or that person’s assignee,
as the case may be, and shall be in the name of the
contracting agency that let the contract or, when
applicable, the public agency or agencies for whose
benefit the contract was let. It may be prosecuted to
final judgment and execution for the use and benefit of
the commissioner or the claimant, or that person’s
assignee, as the fact may appear.
(3) The action shall be instituted no later than two
years after the person last provided labor or materials
or two years after the worker listed in the
commissioner’s notice of claim last provided labor.
[2003 c.794 §156; 2005 c.360 §5]
PREVAILING WAGE RATE
279C.800 Definitions for ORS 279C.800 to
279C.870. As used in ORS 279C.800 to 279C.870:
(1) “Fringe benefits” means the amount of:
(a) The rate of contribution a contractor or
subcontractor makes irrevocably to a trustee or to a
third person under a plan, fund or program; and
(b) The rate of costs to the contractor or
subcontractor that may be reasonably anticipated in
providing the following items, except for items that
federal, state or local law requires the contractor or
subcontractor to provide:
(A) Benefits to workers pursuant to an enforceable
written commitment to the workers to carry out a
financially responsible plan or program for:
(i) Medical or hospital care;
(ii) Pensions on retirement or death; or
(iii) Compensation for injuries or illness that result
from occupational activity;
(B) Insurance to provide the benefits described in
subparagraph (A) of this paragraph;
(C) Unemployment benefits;
(D) Life insurance;
(E) Disability and sickness insurance or accident
insurance;
(F) Vacation and holiday pay;
(G) Costs of apprenticeship or other similar
programs; or
(H) Other bona fide fringe benefits.
(2) “Housing” has the meaning given that term in
ORS 456.055.
(3) “Locality” means the following district in
which the public works, or the major portion thereof, is
to be performed:
(a) District 1, composed of Clatsop, Columbia and
Tillamook Counties;
(b) District 2, composed of Clackamas,
Multnomah and Washington Counties;

PUBLIC CONTRACTING –PUBLIC IMPROVEMENTS
(c) District 3, composed of Marion, Polk and
Yamhill Counties;
(d) District 4, composed of Benton, Lincoln and
Linn Counties;
(e) District 5, composed of Lane County;
(f) District 6, composed of Douglas County;
(g) District 7, composed of Coos and Curry
Counties;
(h) District 8, composed of Jackson and Josephine
Counties;
(i) District 9, composed of Hood River, Sherman
and Wasco Counties;
(j) District 10, composed of Crook, Deschutes and
Jefferson Counties;
(k) District 11, composed of Klamath and Lake
Counties;
(L) District 12, composed of Gilliam, Grant,
Morrow, Umatilla and Wheeler Counties;
(m) District 13, composed of Baker, Union and
Wallowa Counties; and
(n) District 14, composed of Harney and Malheur
Counties.
(4) “Prevailing rate of wage” means the rate of
hourly wage, including all fringe benefits, that the
Commissioner of the Bureau of Labor and Industries
determines is paid in the locality to the majority of
workers employed on projects of a similar character in
the same trade or occupation.
(5) “Public agency” means the State of Oregon or
a political subdivision of the State of Oregon, or a
county, city, district, authority, public corporation or
public entity organized and existing under law or
charter or an instrumentality of the county, city,
district, authority, public corporation or public entity.
(6)(a) “Public works” includes, but is not limited
to:
(A) Roads, highways, buildings, structures and
improvements of all types, the construction,
reconstruction, major renovation or painting of which
is carried on or contracted for by any public agency to
serve the public interest;
(B) A project that uses funds of a private entity
and $750,000 or more of funds of a public agency for
constructing, reconstructing, painting or performing a
major renovation on a privately owned road, highway,
building, structure or improvement of any type;
(C) A project that uses funds of a private entity for
constructing a privately owned road, highway,
building, structure or improvement of any type in
which a public agency will use or occupy 25 percent or
more of the square footage of the completed project; or
(D) Notwithstanding the provisions of ORS
279C.810 (2)(a), (b) and (c), a device, structure or
mechanism, or a combination of devices, structures or
mechanisms, that:
(i) Uses solar radiation as a source for generating
heat, cooling or electrical energy; and

2013 Annotated 1-10-14

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(ii) Is constructed or installed, with or without
using funds of a public agency, on land, premises,
structures or buildings that a public body, as defined in
ORS 174.109, owns.
(E) Notwithstanding paragraph (b)(A) of this
subsection and ORS 279C.810 (2)(b) and (c),
construction, reconstruction, painting or major
renovation of a road, highway, building, structure or
improvement of any type that occurs, with or without
using funds of a public agency, on real property that
the Oregon University System owns.
(b) “Public works” does not include:
(A) The reconstruction or renovation of privately
owned property that a public agency leases; or
(B) The renovation of publicly owned real
property that is more than 75 years old by a private
nonprofit entity if:
(i) The real property is leased to the private
nonprofit entity for more than 25 years;
(ii) Funds of a public agency used in the
renovation do not exceed 15 percent of the total cost of
the renovation; and
(iii) Contracts for the renovation were advertised
or, if not advertised, were entered into before July 1,
2003, but the renovation has not been completed on or
before July 13, 2007. [2003 c.794 §165; 2007 c.764
§34; 2010 c.45 §; 2013 c.203 §1]
279C.805 Policy. The Legislative Assembly
declares that the purposes of the prevailing rate of
wage law are:
(1) To ensure that contractors compete on the
ability to perform work competently and efficiently
while
maintaining
community-established
compensation standards.
(2) To recognize that local participation in publicly
financed construction and family wage income and
benefits are essential to the protection of community
standards.
(3) To encourage training and education of
workers to industry skills standards.
(4) To encourage employers to use funds allocated
for employee fringe benefits for the actual purchase of
those benefits. [2003 c.794 §166]
279C.807 Workforce diversity for public works
projects. (1) The Bureau of Labor and Industries shall
develop and adopt a plan to increase diversity
statewide among workers employed on projects subject
to ORS 279C.800 to 279C.870. The bureau shall
develop the plan after conducting a statewide public
process to solicit proposals to increase diversity and
shall adopt the plan after considering proposals
submitted to the bureau.
(2) The bureau shall report each year to the
Legislative Assembly or to the appropriate legislative
interim committee concerning progress that results
from the plan adopted under this section and may
submit recommendations for legislation or other

PUBLIC CONTRACTING –PUBLIC IMPROVEMENTS
measures that will improve diversity among workers
employed on projects subject to ORS 279C.800 to
279C.870. The bureau shall submit the first report no
later than January 1, 2009. [2007 c.844 §9]
Note: 279C.807 was enacted into law by the Legislative
Assembly but was not added to or made a part of ORS
chapter 279C or any series therein by legislative action. See
Preface to Oregon Revised Statutes for further explanation.

279C.808 Rules. In accordance with applicable
provisions of ORS chapter 183, the Commissioner of
the Bureau of Labor and Industries shall adopt rules
necessary to administer ORS 279C.800 to 279C.870.
[2007 c.764 §45]
279C.810 Exemptions; rules. (1) As used in this
section:
(a) “Funds of a public agency” does not include:
(A) Funds provided in the form of a government
grant to a nonprofit organization, unless the
government grant is issued for the purpose of
construction, reconstruction, major renovation or
painting;
(B) Building and development permit fees paid or
waived by the public agency;
(C) Tax credits or tax abatements;
(D) Land that a public agency sells to a private
entity at fair market value;
(E) The difference between:
(i) The value of land that a public agency sells to a
private entity as determined at the time of the sale after
taking into account any plan, requirement, covenant,
condition, restriction or other limitation, exclusive of
zoning or land use regulations, that the public agency
imposes on the development or use of the land; and
(ii) The fair market value of the land if the land is
not subject to the limitations described in subsubparagraph (i) of this subparagraph;
(F) Staff resources of the public agency used to
manage a project or to provide a principal source of
supervision, coordination or oversight of a project;
(G) Staff resources of the public agency used to
design or inspect one or more components of a project;
(H) Moneys derived from the sale of bonds that
are loaned by a state agency to a private entity, unless
the moneys will be used for a public improvement;
(I) Value added to land as a consequence of a
public agency’s site preparation, demolition of real
property or remediation or removal of environmental
contamination, except for value added in excess of the
expenses the public agency incurred in the site
preparation, demolition or remediation or removal
when the land is sold for use in a project otherwise
subject to ORS 279C.800 to 279C.870; or
(J) Bonds, or loans from the proceeds of bonds,
issued in accordance with ORS chapter 289 or ORS
441.525 to 441.595, unless the bonds or loans will be
used for a public improvement.

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(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) ORS 279C.800 to 279C.870 do not apply to:
(a) Projects for which the contract price does not
exceed $50,000. In determining the price of a project, a
public agency:
(A) May not include the value of donated materials
or work performed on the project by individuals
volunteering to the public agency without pay; and
(B) Shall include the value of work performed by
every person paid by a contractor or subcontractor in
any manner for the person’s work on the project.
(b) Projects for which no funds of a public agency
are directly or indirectly used. In accordance with ORS
chapter 183, the Commissioner of the Bureau of Labor
and Industries shall adopt rules to carry out the
provisions of this paragraph.
(c) Projects:
(A) That are privately owned;
(B) That use funds of a private entity;
(C) In which less than 25 percent of the square
footage of a completed project will be occupied or used
by a public agency; and
(D) For which less than $750,000 of funds of a
public agency are used.
(d) Projects for residential construction that are
privately owned and that predominantly provide
affordable housing. As used in this paragraph:
(A) “Affordable housing” means housing that
serves occupants whose incomes are no greater than 60
percent of the area median income or, if the occupants
are owners, whose incomes are no greater than 80
percent of the area median income.
(B) “Predominantly” means 60 percent or more.
(C) “Privately owned” includes:
(i) Affordable housing provided on real property
owned by a public agency if the real property and
related structures are leased to a private entity for 50 or
more years; and
(ii) Affordable housing owned by a partnership,
nonprofit corporation or limited liability company in
which a housing authority, as defined in ORS 456.005,
is a general partner, director or managing member and
the housing authority is not a majority owner in the
partnership, nonprofit corporation or limited liability
company.
(D) “Residential construction” includes the
construction, reconstruction, major renovation or
painting of single-family houses or apartment buildings
not more than four stories in height and all incidental
items, such as site work, parking areas, utilities, streets
and sidewalks, pursuant to the United States
Department of Labor’s “All Agency Memorandum No.
130: Application of the Standard of Comparison
“Projects of a Character Similar” Under Davis-Bacon

PUBLIC CONTRACTING –PUBLIC IMPROVEMENTS
and Related Acts,” dated March 17, 1978. However,
the commissioner may consider different definitions of
residential construction in determining whether a
project is a residential construction project for purposes
of this paragraph, including definitions that:
(i) Exist in local ordinances or codes; or
(ii) Differ, in the prevailing practice of a particular
trade or occupation, from the United States Department
of Labor’s description of residential construction.
[2003 c.794 §172; 2005 c.153 §1; 2005 c.360 §8; 2007
c.764 §35]
279C.815 Determination of prevailing wage;
sources of information; comparison of state and
federal prevailing wage; other powers of
commissioner. (1) As used in this section, “person”
means an employer, a labor organization or an official
representative of an employee or employer association.
(2)(a) The Commissioner of the Bureau of Labor
and Industries at least once each year shall determine
the prevailing rate of wage for workers in each trade or
occupation in each locality described in ORS 279C.800
by means of an independent wage survey and shall
make this information available at least twice each
year. The commissioner may amend the rate at any
time.
(b) If the data derived only from the survey
described in paragraph (a) of this subsection appear to
the commissioner to be insufficient to determine the
prevailing rate of wage, the commissioner shall
consider additional information such as collective
bargaining agreements, other independent wage
surveys and the prevailing rates of wage determined by
appropriate federal agencies or agencies of adjoining
states. If there is not a majority in the same trade or
occupation paid at the same rate, the average rate of
hourly wage, including all fringe benefits, paid in the
locality to workers in the same trade or occupation is
the prevailing rate. If the wage a contractor or
subcontractor pays to workers on a public works is
based on a period of time other than an hour, the hourly
wage must be mathematically determined by the
number of hours worked in that period of time.
(3) A person shall make reports and returns to the
Bureau of Labor and Industries that the commissioner
requires to determine the prevailing rates of wage,
using forms the bureau provides and within the time
the commissioner prescribes. The person or an
authorized representative of the person shall certify to
the accuracy of the reports and returns.
(4) Notwithstanding ORS 192.410 to 192.505,
reports and returns or other information provided to the
commissioner under this section are confidential and
not available for inspection by the public.
(5) The commissioner may enter into a contract
with a public or private party to obtain data and
information the commissioner needs to determine the
prevailing rate of wage. The contract may provide for

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the manner and extent of the market review of affected
trades and occupations and for other requirements
regarding timelines of reports, accuracy of data and
information and supervision and review as the
commissioner prescribes. [2003 c.794 §173; 2005
c.360 §9; 2007 c.764 §36; 2007 c.844 §3; 2011 c.265
§1]
279C.817 Determination of applicability of
prevailing wage rate; time limitation; hearing;
rules. (1) The Commissioner of the Bureau of Labor
and Industries shall, upon the request of a public
agency or other interested person, make a
determination about whether a project or proposed
project is or would be a public works on which
payment of the prevailing rate of wage is or would be
required under ORS 279C.840.
(2) The requester shall provide the commissioner
with information necessary to enable the commissioner
to make the determination.
(3) The commissioner shall make the
determination within 60 days after receiving the
request or 60 days after the requester has provided the
commissioner with the information necessary to enable
the commissioner to make the determination,
whichever is later. The commissioner may take
additional time to make the determination if the
commissioner and the requester mutually agree that the
commissioner may do so.
(4) The commissioner shall afford the requester or
a person adversely affected or aggrieved by the
commissioner’s determination a hearing in accordance
with ORS 183.413 to 183.470. An order the
commissioner issues under ORS 183.413 to 183.470 is
subject to judicial review as provided in ORS 183.482.
(5) The commissioner shall adopt rules
establishing the process for requesting and making the
determinations described in this section. [2007 c.764
§43]
279C.820 Advisory committee to assist
commissioner. (1) The Commissioner of the Bureau of
Labor and Industries shall appoint an advisory
committee to assist the commissioner in the
administration of ORS 279C.800 to 279C.870.
(2) The advisory committee must include equal
representation of members from management and labor
in the building and construction industry who perform
work on public works contracts and such other
interested parties as the commissioner shall appoint.
[2003 c.794 §179]
279C.825 Fees; rules. (1)(a) The Commissioner
of the Bureau of Labor and Industries, by order, shall
establish a fee to be paid by the public agency that
awards a public works contract subject to ORS
279C.800 to 279C.870. The commissioner shall use the
fee to pay the costs of:

PUBLIC CONTRACTING –PUBLIC IMPROVEMENTS
(A) Surveys to determine the prevailing rates of
wage;
(B) Administering and providing investigations
under and enforcement of ORS 279C.800 to 279C.870;
and
(C) Providing educational programs on public
contracting law under the Public Contracting Code.
(b) The commissioner shall establish the fee at 0.1
percent of the contract price. However, in no event may
a fee be charged and collected that is less than $250 or
more than $7,500.
(2) The commissioner shall pay moneys received
under this section into the State Treasury. The moneys
shall be credited to the Prevailing Wage Education and
Enforcement Account created by ORS 651.185.
(3) The public agency shall pay the fee at the time
the public agency notifies the commissioner under
ORS 279C.835 a contract subject to the provisions of
ORS 279C.800 to 279C.870 has been awarded. [2003
c.794 §178; 2007 c.844 §7; 2009 c.161 §1; 2009 c.788
§1]
279C.827 Division of public works project;
applicability of prevailing wage rate to divided
projects. (1)(a) A public agency may not divide a
public works project into more than one contract for
the purpose of avoiding compliance with ORS
279C.800 to 279C.870.
(b) When the Commissioner of the Bureau of
Labor and Industries determines that a public agency
has divided a public works project into more than one
contract for the purpose of avoiding compliance with
ORS 279C.800 to 279C.870, the commissioner shall
issue an order compelling compliance.
(c) In making determinations under this
subsection, the commissioner shall consider:
(A) The physical separation of the project
structures;
(B) The timing of the work on project phases or
structures;
(C) The continuity of project contractors and
subcontractors working on project parts or phases;
(D) The manner in which the public agency and
the contractors administer and implement the project;
(E) Whether a single public works project includes
several types of improvements or structures; and
(F) Whether the combined improvements or
structures have an overall purpose or function.
(2) If a project is a public works of the type
described in ORS 279C.800 (6)(a)(B) or (C), the
commissioner shall divide the project, if appropriate,
after applying the considerations set forth in subsection
(1)(c) of this section to separate the parts of the project
that include funds of a public agency or that will be
occupied or used by a public agency from the parts of
the project that do not include funds of a public agency
and that will not be occupied or used by a public
agency. If the commissioner divides the project, any

2013 Annotated 1-10-14

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part of the project that does not include funds of a
public agency and that will not be occupied or used by
a public agency is not subject to ORS 279C.800 to
279C.870.
(3) If a project includes parts that are owned by a
public agency and parts that are owned by a private
entity, the commissioner shall divide the project, if
appropriate, after applying the considerations set forth
in subsections (1)(c) and (2) of this section to separate
the parts of the project that are public works from the
parts of the project that are not public works. If the
commissioner divides the project, parts of the project
that are not public works are not subject to ORS
279C.800 to 279C.870. [2007 c.764 §44]
279C.829 Agreement with other state to pay less
than prevailing rate of wage. Notwithstanding any
other provision of law, a contracting agency may not
enter into an agreement with another state or a political
subdivision or agency of another state in which the
contracting agency agrees that a contractor or
subcontractor may pay less than the prevailing rate of
wage determined in accordance with ORS 279C.815
under the terms of a contract for public works to which
the contracting agency is a party or of which the
contracting agency is a beneficiary. [2009 c.322 §2]
279C.830 Provisions concerning prevailing rate
of wage in specifications, contracts and
subcontracts; applicability of prevailing wage;
bond. (1)(a) Except as provided in paragraph (e) of this
subsection, the specifications for every contract for
public works must contain a provision that states the
existing state prevailing rate of wage and, if applicable,
the federal prevailing rate of wage required under the
Davis-Bacon Act (40 U.S.C. 3141 et seq.) that must be
paid to workers in each trade or occupation that the
contractor or subcontractor or other person who is a
party to the contract uses in performing all or part of
the contract. If the prevailing rates of wage are
available electronically or are accessible on the
Internet, the rates may be incorporated into the
specifications by referring to the electronically
accessible or Internet-accessible rates and by providing
adequate information about how to access the rates.
(b) If a public agency under paragraph (a) of this
subsection must include the state and federal prevailing
rates of wage in the specifications, the public agency
shall also require the contractor to pay the higher of the
applicable state or federal prevailing rate of wage to all
workers on the public works.
(c) Every contract and subcontract must provide
that the workers must be paid not less than the
specified minimum hourly rate of wage in accordance
with ORS 279C.838 and 279C.840.
(d) If a public works project is subject both to ORS
279C.800 to 279C.870 and to the Davis-Bacon Act,
every contract and subcontract must provide that
workers on the public works must be paid not less than

PUBLIC CONTRACTING –PUBLIC IMPROVEMENTS
the higher of the applicable state or federal prevailing
rate of wage.
(e) A public works project described in ORS
279C.800 (6)(a)(B) or (C) is subject to the existing
state prevailing rate of wage or, if applicable, the
federal prevailing rate of wage required under the
Davis-Bacon Act that is in effect at the time a public
agency enters into an agreement with a private entity
for the project. After that time, the specifications for a
contract for the public works must include the
applicable prevailing rate of wage.
(2) The specifications for a contract for public
works must provide that the contractor and every
subcontractor must have a public works bond filed with
the Construction Contractors Board before starting
work on the project, unless exempt under ORS
279C.836 (4), (7), (8) or (9). Every contract that a
contracting agency awards must require the contractor
to:
(a) Have a public works bond filed with the
Construction Contractors Board before starting work
on the project, unless exempt under ORS 279C.836 (4),
(7), (8) or (9).
(b) Require, in every subcontract, that the
subcontractor have a public works bond filed with the
Construction Contractors Board before starting work
on the project, unless exempt under ORS 279C.836 (4),
(7), (8) or (9). [2003 c.794 §168; 2005 c.360 §10; 2007
c.415 §2; 2007 c.764 §37; 2007 c.844 §4; 2009 c.161
§2; 2011 c.265 §2]
279C.835 Notifying commissioner of public
works contract subject to prevailing wage; payment
of fee. Public agencies shall notify the Commissioner
of the Bureau of Labor and Industries in writing, on a
form prescribed by the commissioner, whenever a
contract subject to the provisions of ORS 279C.800 to
279C.870 has been awarded. The notification shall be
made within 30 days of the date that the contract is
awarded. The notification shall include payment of the
fee required under ORS 279C.825 and a copy of the
disclosure of first-tier subcontractors that was
submitted under ORS 279C.370. [2003 c.794 §175;
2009 c.161 §3]
279C.836 Public works bond; rules. (1) Except
as provided in subsection (4), (7), (8) or (9) of this
section, before starting work on a contract or
subcontract for a public works project, a contractor or
subcontractor shall file with the Construction
Contractors Board a public works bond with a
corporate surety authorized to do business in this state
in the amount of $30,000. The bond must provide that
the contractor or subcontractor will pay claims ordered
by the Bureau of Labor and Industries to workers
performing labor upon public works projects. The bond
must be a continuing obligation, and the surety’s
liability for the aggregate of claims that may be
payable from the bond may not exceed the penal sum

2013 Annotated 1-10-14

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of the bond. The bond must remain in effect
continuously until depleted by claims paid under this
section, unless the surety sooner cancels the bond. The
surety may cancel the bond by giving 30 days’ written
notice to the contractor or subcontractor, to the board
and to the Bureau of Labor and Industries. When the
bond is canceled, the surety is relieved of further
liability for work performed on contracts entered into
after the cancellation. The cancellation does not limit
the surety’s liability for work performed on contracts
entered into before the cancellation.
(2) Before permitting a subcontractor to start work
on a public works project, the contractor shall verify
that the subcontractor has filed a public works bond as
required under this section, has elected not to file a
public works bond under subsection (7) or (8) of this
section or is exempt under subsection (4) or (9) of this
section.
(3) A contractor or subcontractor is not required
under this section to file a separate public works bond
for each public works project for which the contractor
or subcontractor has a contract.
(4) A person that is not required under ORS
279C.800 to 279C.870 to pay prevailing rates of wage
on a public works project is not required to file a public
works bond under this section.
(5) A public works bond required by this section is
in addition to any other bond the contractor or
subcontractor is required to obtain.
(6) The board may, by rule, require a contractor or
subcontractor to obtain a new public works bond if a
surety pays a claim out of an existing public works
bond. The new bond must be in the amount of $30,000.
The board may allow a contractor or subcontractor to
obtain, instead of a new bond, a certification that the
surety remains liable for the full penal sum of the
existing bond, notwithstanding payment by the surety
on the claim.
(7)(a) A disadvantaged, minority, women or
emerging small business enterprise certified under
ORS 200.055 may, for up to four years after
certification, elect not to file a public works bond as
required under subsection (1) this section. If a business
enterprise elects not to file a public works bond, the
business enterprise shall give the board written
verification of the certification and written notice that
the business enterprise elects not to file the bond.
(b) A business enterprise that elects not to file a
public works bond under this subsection shall notify
the public agency for whose benefit the contract was
awarded or, if the business enterprise is a
subcontractor, the contractor of the election before
starting work on a public works project. When a
business enterprise elects not to file a public works
bond under this subsection, a claim for unpaid wages
may be made against the payment bond of the business
enterprise or, if the business enterprise is a
subcontractor, the payment bond of the contractor.

PUBLIC CONTRACTING –PUBLIC IMPROVEMENTS
(c) An election not to file a public works bond
expires four years after the date the business enterprise
is certified. After an election has expired and before
starting or continuing work on a contract or subcontract
for a public works project, the business enterprise shall
file a public works bond with the board as required
under subsection (1) of this section.
(8) A contractor or subcontractor may elect not to
file a public works bond as required under subsection
(1) of this section for any public works project for
which the contract price does not exceed $100,000.
(9) In cases of emergency, or when the interest or
property of the public agency for whose benefit the
contract was awarded probably would suffer material
injury by delay or other cause, the requirement for
filing a public works bond may be excused, if a
declaration of the emergency is made in accordance
with rules adopted under ORS 279A.065.
(10) The board shall make available on a
searchable public website information concerning
public works bonds filed with the board, claims made
on those bonds, elections made by certified business
enterprises not to file those bonds and the expiration
date of each election. The board may adopt rules
necessary to perform the duties required of the board
by this section.
(11) The Commissioner of the Bureau of Labor
and Industries, with approval of the board, shall adopt
rules that establish language for public works bonds.
[2005 c.360 §2; 2007 c.415 §1; 2007 c.764 §38]
279C.838 Applicability of state and federal
rates of wage; determination of site of project;
determination of applicability of wage to
transportation workers; waiver. When a public
works project is subject to the Davis-Bacon Act (40
U.S.C. 3141 et seq.):
(1) If the state prevailing rate of wage is higher
than the federal prevailing rate of wage, the contractor
and every subcontractor on the project shall pay at least
the state prevailing rate of wage as determined under
ORS 279C.815;
(2) The Commissioner of the Bureau of Labor and
Industries shall determine the site of the project in a
manner consistent with the term “site of the work” as
that term is used in federal law and in regulations
adopted or guidelines issued in accordance with the
Davis-Bacon Act;
(3) The commissioner shall determine in a manner
that is consistent with federal law and regulations
adopted or guidelines issued in accordance with the
Davis-Bacon Act whether workers transporting
materials and supplies to and from the site of the
project are subject to the Davis-Bacon Act and are
entitled to be paid the prevailing rate of wage;
(4) Except as provided in subsection (1) of this
section, the commissioner, in consultation with the
advisory committee appointed under ORS 279C.820,

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may administer and enforce ORS 279C.800 to
279C.870 in a manner that is consistent with federal
law and regulations adopted or guidelines issued in
accordance with the Davis-Bacon Act. The
commissioner may provide a waiver from a
requirement set forth in ORS 279C.800 to 279C.870 if
necessary to achieve consistency with the Davis-Bacon
Act and to further the purposes of ORS 279C.805; and
(5) ORS 279C.800 to 279C.870 do not apply to
workers enrolled in skill training programs that are
certified by the United States Secretary of
Transportation under the Federal-Aid Highway Act (23
U.S.C. 113(c)). [2005 c.360 §7; 2007 c.844 §5]
279C.840 Payment of prevailing rate of wage;
posting of rates and fringe benefit plan provisions.
(1) The hourly rate of wage to be paid by any
contractor or subcontractor to workers upon all public
works shall be not less than the prevailing rate of wage
for an hour’s work in the same trade or occupation in
the locality where the labor is performed. The
obligation of a contractor or subcontractor to pay the
prevailing rate of wage may be discharged by making
the payments in cash, by the making of contributions of
a type referred to in ORS 279C.800 (1)(a), or by the
assumption of an enforceable commitment to bear the
costs of a plan or program of a type referred to in ORS
279C.800 (1)(b), or any combination thereof, where the
aggregate of any such payments, contributions and
costs is not less than the prevailing rate of wage. The
contractor or subcontractor shall pay all wages due and
owing to the contractor’s or subcontractor’s workers
upon public works on the regular payday established
and maintained under ORS 652.120.
(2) After a contract for public works is executed
with any contractor or work is commenced upon any
public works, the amount of the prevailing rate of wage
is not subject to attack in any legal proceeding by any
contractor or subcontractor in connection with that
contract.
(3) It is not a defense in any legal proceeding that
the prevailing rate of wage is less than the amount
required to be in the specifications of a contract for
public works, or that there was an agreement between
the employee and the employer to work at less than the
wage rates required to be paid under this section.
(4) Every contractor or subcontractor engaged on a
project for which there is a contract for a public works
shall keep the prevailing rates of wage for that project
posted in a conspicuous and accessible place in or
about the project. The Commissioner of the Bureau of
Labor and Industries shall furnish without charge
copies of the prevailing rates of wage to contractors
and subcontractors.
(5) Every contractor or subcontractor engaged on a
project for which there is a contract for a public works
to which the prevailing wage requirements apply that
also provides or contributes to a health and welfare

PUBLIC CONTRACTING –PUBLIC IMPROVEMENTS
plan or a pension plan, or both, for the contractor or
subcontractor’s employees on the project shall post a
notice describing the plan in a conspicuous and
accessible place in or about the project. The notice
preferably shall be posted in the same place as the
notice required under subsection (4) of this section. In
addition to the description of the plan, the notice shall
contain information on how and where to make claims
and where to obtain further information.
(6)(a) Except as provided in paragraph (c) of this
subsection, no person other than the contractor or
subcontractor may pay or contribute any portion of the
prevailing rate of wage paid by the contractor or
subcontractor to workers employed in the performance
of a public works contract.
(b) For the purpose of this subsection, the
prevailing rate of wage is the prevailing rate of wage
specified in the contract.
(c) This subsection is not intended to prohibit
payments to a worker who is enrolled in any
government-subsidized training or retraining program.
(7) A person may not take any action that
circumvents the payment of the prevailing rate of wage
to workers employed on a public works contract,
including, but not limited to, reducing an employee’s
regular rate of pay on any project not subject to ORS
279C.800 to 279C.870 in a manner that has the effect
of offsetting the prevailing rate of wage on a public
works project. [2003 c.794 §167; 2009 c.161 §4]
279C.845 Certified statements regarding
payment of prevailing rates of wage; retainage. (1)
The contractor or the contractor’s surety and every
subcontractor or the subcontractor’s surety shall file
certified statements with the public agency in writing,
on a form prescribed by the Commissioner of the
Bureau of Labor and Industries, certifying:
(a) The hourly rate of wage paid each worker
whom the contractor or the subcontractor has employed
upon the public works; and
(b) That no worker employed upon the public
works has been paid less than the prevailing rate of
wage or less than the minimum hourly rate of wage
specified in the contract.
(2) The certified statement shall be verified by the
oath of the contractor or the contractor’s surety or
subcontractor or the subcontractor’s surety that the
contractor or subcontractor has read the certified
statement, that the contractor or subcontractor knows
the contents of the certified statement and that to the
contractor or subcontractor’s knowledge the certified
statement is true.
(3) The certified statements shall set out accurately
and completely the contractor’s or subcontractor’s
payroll records, including the name and address of each
worker, the worker’s correct classification, rate of pay,
daily and weekly number of hours worked and the

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gross wages the worker earned upon the public works
during each week identified in the certified statement.
(4) The contractor or subcontractor shall deliver or
mail each certified statement required by subsection (1)
of this section to the public agency. Certified
statements for each week during which the contractor
or subcontractor employs a worker upon the public
works shall be submitted once a month, by the fifth
business day of the following month. Information
submitted on certified statements may be used only to
ensure compliance with the provisions of ORS
279C.800 to 279C.870.
(5) Each contractor or subcontractor shall preserve
the certified statements for a period of three years from
the date of completion of the contract.
(6) Certified statements received by a public
agency are public records subject to the provisions of
ORS 192.410 to 192.505.
(7) Notwithstanding ORS 279C.555 or 279C.570
(7), if a contractor is required to file certified
statements under this section, the public agency shall
retain 25 percent of any amount earned by the
contractor on the public works until the contractor has
filed with the public agency certified statements as
required by this section. The public agency shall pay
the contractor the amount retained under this
subsection within 14 days after the contractor files the
certified statements as required by this section,
regardless of whether a subcontractor has failed to file
certified statements as required by this section. The
public agency is not required to verify the truth of the
contents of certified statements filed by the contractor
under this section.
(8) Notwithstanding ORS 279C.555, the contractor
shall retain 25 percent of any amount earned by a firsttier subcontractor on a public works until the
subcontractor has filed with the public agency certified
statements as required by this section. The contractor
shall verify that the first-tier subcontractor has filed the
certified statements before the contractor may pay the
subcontractor any amount retained under this
subsection. The contractor shall pay the first-tier
subcontractor the amount retained under this
subsection within 14 days after the subcontractor files
the certified statements as required by this section.
Neither the public agency nor the contractor is required
to verify the truth of the contents of certified statements
filed by a first-tier subcontractor under this section.
[2003 c.794 §169; 2005 c.360 §11; 2009 c.7 §1]
279C.850 Inspection to determine whether
prevailing rate of wage being paid; civil action for
failure to pay prevailing rate of wage or overtime.
(1) At any reasonable time the Commissioner of the
Bureau of Labor and Industries may enter the office or
business establishment of any contractor or
subcontractor performing public works and gather facts
and information necessary to determine whether the

PUBLIC CONTRACTING –PUBLIC IMPROVEMENTS
prevailing rate of wage is actually being paid by such
contractor or subcontractor to workers upon public
works.
(2) Upon request by the commissioner, every
contractor or subcontractor performing work on public
works shall make available to the commissioner for
inspection during normal business hours any payroll or
other records in the possession or under the control of
the contractor or subcontractor that are deemed
necessary by the commissioner to determine whether
the prevailing rate of wage is actually being paid by
such contractor or subcontractor to workers upon
public works. The commissioner’s request must be
made a reasonable time in advance of the inspection.
(3) Notwithstanding ORS 192.410 to 192.505, any
record obtained or made by the commissioner under
this section is not open to inspection by the public.
(4) The commissioner may, without necessity of
an assignment, initiate legal proceedings against
employers to enjoin future failures to pay required
prevailing rates of wage or overtime pay and to require
the payment of prevailing rates of wage or overtime
pay due employees. The commissioner is entitled to
recover, in addition to other costs, such sum as the
court or judge may determine reasonable as attorney
fees. If the commissioner does not prevail in the action,
the commissioner shall pay all costs and disbursements
from the Bureau of Labor and Industries Account.
[2003 c.794 §170]
279C.855 Liability for violations. (1) A
contractor or subcontractor or contractor’s or
subcontractor’s surety that violates the provisions of
ORS 279C.840 is liable to the workers affected in the
amount of the workers’ unpaid minimum wages,
including all fringe benefits, and in an additional
amount equal to the unpaid wages as liquidated
damages.
(2) Actions to enforce liability to workers under
subsection (1) of this section may be brought as actions
on contractors’ bonds as provided for in ORS
279C.610.
(3) If a public agency fails to provide in the
advertisement for bids, the request for bids, the
contract specifications, the accepted bid or elsewhere
in the contract documents that the contractor and any
subcontractor must comply with ORS 279C.840, the
liability of the public agency for unpaid minimum
wages, as described in subsection (1) of this section, is
joint and several with a contractor or subcontractor that
had notice of the requirement to comply with ORS
279C.840.
(4) If a public works project is subject to the
Davis-Bacon Act, 40 U.S.C. 3141 et seq., and a public
agency fails to include the state and federal prevailing
rates of wage in the specifications for the contract for
public works as required under ORS 279C.830 (1)(a),
or fails to provide in the contract that workers on the

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public works must be paid not less than the higher of
the applicable state or federal prevailing rate of wage
as required under ORS 279C.830 (1)(d), the public
agency is liable to each affected worker for:
(a) The worker’s unpaid minimum wages,
including fringe benefits, in an amount that equals, for
each hour worked, the difference between the
applicable higher rate of wage and the lower rate of
wage; and
(b) An additional amount, equal to the amount of
unpaid minimum wages due under paragraph (a) of this
subsection, as liquidated damages.
(5) The Commissioner of the Bureau of Labor and
Industries may enforce the provisions of subsections
(3) and (4) of this section by a civil action under ORS
279C.850 (4), by a civil action on an assigned wage
claim under ORS 652.330, or by an administrative
proceeding on an assigned wage claim under ORS
652.332. [2003 c.794 §171; 2007 c.844 §6; 2011 c.265
§3]
279C.860 Ineligibility for public works
contracts for failure to pay or post notice of
prevailing rates of wage; certified payroll reports to
commissioner. (1) A contractor, subcontractor or any
firm, corporation, partnership, limited liability
company or association in which the contractor or
subcontractor has a financial interest may not receive a
contract or subcontract for public works for a period of
three years after the date on which the Commissioner
of the Bureau of Labor and Industries publishes the
contractor’s or subcontractor’s name on the list
described in subsection (2) of this section. The
commissioner shall add a contractor’s or
subcontractor’s name to the list after determining, in
accordance with ORS chapter 183, that:
(a) The contractor or subcontractor has
intentionally failed or refused to pay the prevailing rate
of wage to workers employed upon public works;
(b) The subcontractor has failed to pay to the
subcontractor’s employees amounts required by ORS
279C.840 and the contractor has paid those amounts on
the subcontractor’s behalf;
(c) The contractor or subcontractor has
intentionally failed or refused to post the prevailing
rates of wage as required by ORS 279C.840 (4); or
(d) The contractor or subcontractor has
intentionally falsified information in the certified
statements the contractor or subcontractor submitted
under ORS 279C.845.
(2) The commissioner shall maintain a written list
of the names of those contractors and subcontractors
the commissioner determines are ineligible under this
section and the period of time for which they are
ineligible. The commissioner shall publish the list,
furnish a copy of the list upon request and make the list
available to contracting agencies.

PUBLIC CONTRACTING –PUBLIC IMPROVEMENTS
(3) If the contractor or subcontractor is a
corporation or a limited liability company, the
provisions of this section apply to any corporate officer
or agent of the corporation or any member or manager
of the limited liability company who is responsible for
the failing or refusing to pay or post the prevailing rate
of wage, failing to pay to a subcontractor’s employees
amounts required by ORS 279C.840 that the contractor
pay on the subcontractor’s behalf or the intentional
falsification of information in the certified statements
the contractor or subcontractor submits under ORS
279C.845.
(4) For good cause shown, the commissioner may
direct the removal of the name of a contractor or
subcontractor from the ineligible list.
(5) When a prevailing rate of wage claim is filed
or the commissioner receives evidence indicating that a
violation has occurred, a contractor or subcontractor
required to pay the prevailing rate of wage to workers
employed upon public works under ORS 279C.800 to
279C.870 shall send a certified copy of the payroll for
workers employed upon public works when the
commissioner requests the certified copy. [2003 c.794
§174; 2009 c.107 §1; 2013 c.239 §1]
279C.865 Civil penalties. (1) In addition to any
other penalty provided by law, the Commissioner of
the Bureau of Labor and Industries may assess a civil
penalty not to exceed $5,000 for each violation of any
provision of ORS 279C.800 to 279C.870 or any rule of
the commissioner adopted thereunder.
(2) Civil penalties under this section shall be
imposed as provided in ORS 183.745.
(3) All moneys collected as penalties under this
section shall be first applied toward reimbursement of
costs incurred in determining violations, conducting
hearings and assessing and collecting the penalties. The
remainder, if any, of moneys collected as penalties
under this section shall be paid into the State Treasury
and credited to the General Fund and are available for
general governmental expenses. [2003 c.794 §177]
279C.870 Civil action to enforce payment of
prevailing rates of wage. (1) The Commissioner of the
Bureau of Labor and Industries or any other person
may bring a civil action in any court of competent
jurisdiction to require a public agency under a public
contract with a contractor to withhold twice the wages
in dispute if it is shown that the contractor or
subcontractor on the contract has intentionally failed or
refused to pay the prevailing rate of wage to workers
employed on that contract and to require the contractor
to pay the prevailing rate of wage and any deficiencies
that can be shown to exist because of improper wage
payments already made. In addition to other relief, the
court may also enjoin the contractor or subcontractor
from committing future violations. The contractor or
subcontractor involved shall be named as a party in all
civil actions brought under this section. In addition to

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other costs, the court may award the prevailing party
reasonable attorney fees at the trial and on appeal.
However, attorney fees may not be awarded against the
commissioner under this section.
(2) The court shall require any party, other than the
commissioner, that brings a civil action under this
section to post a bond sufficient to cover the estimated
attorney fees and costs to the public agency and to the
contractor or subcontractor of any temporary
restraining order, preliminary injunction or permanent
injunction awarded in the action, in the event that the
party bringing the action does not ultimately prevail.
(3) In addition to any other relief, the court in a
civil action brought under this section may enjoin the
public agency from contracting with the contractor or
subcontractor if the court finds that the commissioner
would be entitled to place the contractor or
subcontractor on the ineligible list established under
ORS 279C.860. If the court issues such an injunction,
the commissioner shall place the contractor or
subcontractor on the list for a period of three years,
subject to the provision of ORS 279C.860 (4). [2003
c.794 §176; 2007 c.764 §39; 2009 c.107 §2]

PUBLIC HEALTH AND SAFETY
(Home Energy Performance Score System)
469.703 Home energy performance score
system; home energy assessors; reports; database;
rules. (1) As used in this section:
(a) “Home energy assessor” has the meaning given
that term in ORS 701.527.
(b) “Home energy audit” means the evaluation or
testing of components or systems in a residential
building for the purpose of identifying options for
increasing energy conservation and energy efficiency.
(c) “Home energy performance score” has the
meaning given that term in ORS 701.527.
(2) In consultation with the Public Utility
Commission, the State Department of Energy shall
adopt by rule a home energy performance score system
by which a person may assign a residential building a
home energy performance score for the purpose of
evaluating the energy conservation and energy
efficiency of the building.
(3) The department shall designate by rule
programs for the training of home energy assessors.
Programs designated by the department under this
subsection must ensure competency in conducting
home energy audits and assigning home energy
performance scores.
(4) Subject to subsection (5) of this section, the
department may adopt by rule requirements under
which home energy assessors who are certified under
ORS 701.532 must report to the department the home
energy performance scores assigned by the home
energy assessors. The department shall keep and
maintain a database of information reported to the
department under this subsection.
(5) Rules adopted under subsection (4) of this
section may not allow for the reporting of individual
addresses of residential structures or the names of
individual homeowners, but may allow for the
reporting of information regarding the jurisdiction in
which a residential structure is located and the utility
services provided, any specific energy efficiency
features of the residential structure or other general
information that allows the department to make any
aggregated evaluations of savings attributable to
energy efficiency. [2013 c.383 §12]
Note: 469.703 was enacted into law by the Legislative
Assembly but was not added to or made a part of ORS
chapter 469 or any series therein by legislative action. See
Preface to Oregon Revised Statutes for further explanation.

2013 Annotated 1-10-14

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WORKERS COMPENSATION
656.021 Person performing work under ORS
chapter 701 as subject employer. Notwithstanding
ORS 656.029 (1), a person who is licensed pursuant to
an application under ORS 701.046 and is acting under
a contract to perform work described by ORS chapter
701 shall be considered the subject employer for all
individuals employed by that person. [1989 c.870 §13;
1999 c.402 §7; 2007 c.836 §48]
656.023 Who are subject employers. Every
employer employing one or more subject workers in
the state is subject to this chapter. [1965 c.285 §8]
656.025 Individuals engaged in commuter
ridesharing not subject workers; conditions. (1) For
the purpose of this chapter, an individual is not a
subject worker while commuting in a voluntary
commuter ridesharing arrangement unless:
(a) The worker is reimbursed for travel expenses
incurred therein;
(b) The worker receives payment for commuting
time from the employer; or
(c) The employer makes an election to provide
coverage for the worker pursuant to ORS 656.039.
(2) As used in this section “voluntary commuter
ridesharing arrangement” means a carpool or vanpool
arrangement in which participation is not required as a
condition of employment and in which not more than
15 persons are transported to and from their places of
employment, in a single daily round trip where the
driver also is on the way to or from the driver’s place
of employment. [1981 c.227 §4]
656.027 Who are subject workers. All workers
are subject to this chapter except those nonsubject
workers described in the following subsections:
(1) A worker employed as a domestic servant in or
about a private home. For the purposes of this
subsection “domestic servant” means any worker
engaged in household domestic service by private
employment contract, including, but not limited to,
home health workers.
(2) A worker employed to do gardening,
maintenance, repair, remodeling or similar work in or
about the private home of the person employing the
worker.
(3)(a) A worker whose employment is casual and
either:
(A) The employment is not in the course of the
trade, business or profession of the employer; or
(B) The employment is in the course of the trade,
business or profession of a nonsubject employer.
(b) For the purpose of this subsection, “casual”
refers only to employments where the work in any 30day period, without regard to the number of workers
employed, involves a total labor cost of less than $500.
(4) A person for whom a rule of liability for injury
or death arising out of and in the course of employment
is provided by the laws of the United States.
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(5) A worker engaged in the transportation in
interstate commerce of goods, persons or property for
hire by rail, water, aircraft or motor vehicle, and whose
employer has no fixed place of business in this state.
(6) Firefighter and police employees of any city
having a population of more than 200,000 that provides
a disability and retirement system by ordinance or
charter.
(7)(a) Sole proprietors, except those described in
paragraph (b) of this subsection. When labor or
services are performed under contract, the sole
proprietor must qualify as an independent contractor.
(b) Sole proprietors actively licensed under ORS
671.525 or 701.021. When labor or services are
performed under contract for remuneration,
notwithstanding ORS 656.005 (30), the sole proprietor
must qualify as an independent contractor. Any sole
proprietor licensed under ORS 671.525 or 701.021 and
involved in activities subject thereto is conclusively
presumed to be an independent contractor.
(8) Except as provided in subsection (23) of this
section, partners who are not engaged in work
performed in direct connection with the construction,
alteration, repair, improvement, moving or demolition
of an improvement on real property or appurtenances
thereto. When labor or services are performed under
contract, the partnership must qualify as an
independent contractor.
(9) Except as provided in subsection (25) of this
section, members, including members who are
managers, of limited liability companies, regardless of
the nature of the work performed. However, members,
including members who are managers, of limited
liability companies with more than one member, while
engaged in work performed in direct connection with
the construction, alteration, repair, improvement,
moving or demolition of an improvement on real
property or appurtenances thereto, are subject workers.
When labor or services are performed under contract,
the limited liability company must qualify as an
independent contractor.
(10) Except as provided in subsection (24) of this
section, corporate officers who are directors of the
corporation and who have a substantial ownership
interest in the corporation, regardless of the nature of
the work performed by such officers, subject to the
following limitations:
(a) If the activities of the corporation are
conducted on land that receives farm use tax
assessment pursuant to ORS chapter 308A, corporate
officer includes all individuals identified as directors in
the corporate bylaws, regardless of ownership interest,
and who are members of the same family, whether
related by blood, marriage or adoption.
(b) If the activities of the corporation involve the
commercial harvest of timber and all officers of the
corporation are members of the same family and are
parents, daughters or sons, daughters-in-law or sons-in-

WORKERS COMPENSATION
law or grandchildren, then all such officers may elect
to be nonsubject workers. For all other corporations
involving the commercial harvest of timber, the
maximum number of exempt corporate officers for the
corporation shall be whichever is the greater of the
following:
(A) Two corporate officers; or
(B) One corporate officer for each 10 corporate
employees.
(c) When labor or services are performed under
contract, the corporation must qualify as an
independent contractor.
(11) A person performing services primarily for
board and lodging received from any religious,
charitable or relief organization.
(12) A newspaper carrier utilized in compliance
with the provisions of ORS 656.070 and 656.075.
(13) A person who has been declared an amateur
athlete under the rules of the United States Olympic
Committee or the Canadian Olympic Committee and
who receives no remuneration for performance of
services as an athlete other than board, room, rent,
housing, lodging or other reasonable incidental
subsistence allowance, or any amateur sports official
who is certified by a recognized Oregon or national
certifying authority, which requires or provides liability
and accident insurance for such officials. A roster of
recognized Oregon and national certifying authorities
will be maintained by the Department of Consumer and
Business Services, from lists of certifying
organizations submitted by the Oregon School
Activities Association and the Oregon Park and
Recreation Society.
(14) Volunteer personnel participating in the
ACTION programs, organized under the Domestic
Volunteer Service Act of 1973, P.L. 93-113, known as
the Foster Grandparent Program and the Senior
Companion Program, whether or not the volunteers
receive a stipend or nominal reimbursement for time
and travel expenses.
(15) A person who has an ownership or leasehold
interest in equipment and who furnishes, maintains and
operates the equipment. As used in this subsection
“equipment” means:
(a) A motor vehicle used in the transportation of
logs, poles or piling.
(b) A motor vehicle used in the transportation of
rocks, gravel, sand, dirt or asphalt concrete.
(c) A motor vehicle used in the transportation of
property by a for-hire motor carrier that is required
under ORS 825.100 or 825.104 to possess a certificate
or permit or to be registered.
(16) A person engaged in the transportation of the
public for recreational down-river boating activities on
the waters of this state pursuant to a federal permit
when the person furnishes the equipment necessary for
the activity. As used in this subsection, “recreational
down-river boating activities” means those boating
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activities for the purpose of recreational fishing,
swimming or sightseeing utilizing a float craft with
oars or paddles as the primary source of power.
(17) A person who receives no wage other than ski
passes or other noncash remuneration for performing
volunteer:
(a) Ski patrol activities; or
(b) Ski area program activities sponsored by a ski
area operator, as defined in ORS 30.970, or by a
nonprofit corporation or organization.
(18) A person 19 years of age or older who
contracts with a newspaper publishing company or
independent newspaper dealer or contractor to
distribute newspapers to the general public and perform
or undertake any necessary or attendant functions
related thereto.
(19) A person performing foster parent or adult
foster care duties pursuant to ORS 412.001 to 412.161
and 412.991 or ORS chapter 411, 418, 430 or 443.
(20) A person performing services on a volunteer
basis for a nonprofit, religious, charitable or relief
organization, whether or not such person receives
meals or lodging or nominal reimbursements or
vouchers for meals, lodging or expenses.
(21) A person performing services under a
property tax work-off program established under ORS
310.800.
(22) A person who performs service as a caddy at
a golf course in an established program for the training
and supervision of caddies under the direction of a
person who is an employee of the golf course.
(23)(a) Partners who are actively licensed under
ORS 671.525 or 701.021 and who have a substantial
ownership interest in a partnership. If all partners are
members of the same family and are parents, spouses,
sisters, brothers, daughters or sons, daughters-in-law or
sons-in-law or grandchildren, all such partners may
elect to be nonsubject workers. For all other
partnerships licensed under ORS 671.510 to 671.760 or
701.021, the maximum number of exempt partners
shall be whichever is the greater of the following:
(A) Two partners; or
(B) One partner for each 10 partnership
employees.
(b) When labor or services are performed under
contract for remuneration, notwithstanding ORS
656.005 (30), the partnership qualifies as an
independent contractor. Any partnership licensed under
ORS 671.525 or 701.021 and involved in activities
subject thereto is conclusively presumed to be an
independent contractor.
(24)(a) Corporate officers who are directors of a
corporation actively licensed under ORS 671.525 or
701.021 and who have a substantial ownership interest
in the corporation, regardless of the nature of the work
performed. If all officers of the corporation are
members of the same family and are parents, spouses,
sisters, brothers, daughters or sons, daughters-in-law or

WORKERS COMPENSATION
sons-in-law or grandchildren, all such officers may
elect to be nonsubject workers. For all other
corporations licensed under ORS 671.510 to 671.760
or 701.021, the maximum number of exempt corporate
officers shall be whichever is the greater of the
following:
(A) Two corporate officers; or
(B) One corporate officer for each 10 corporate
employees.
(b) When labor or services are performed under
contract for remuneration, notwithstanding ORS
656.005 (30), the corporation qualifies as an
independent contractor. Any corporation licensed
under ORS 671.525 or 701.021 and involved in
activities subject thereto is conclusively presumed to be
an independent contractor.
(25)(a) Limited liability company members who
are members of a company actively licensed under
ORS 671.525 or 701.021 and who have a substantial
ownership interest in the company, regardless of the
nature of the work performed. If all members of the
company are members of the same family and are
parents, spouses, sisters, brothers, daughters or sons,
daughters-in-law or sons-in-law or grandchildren, all
such members may elect to be nonsubject workers. For
all other companies licensed under ORS 671.510 to
671.760 or 701.021, the maximum number of exempt
company members shall be whichever is the greater of
the following:
(A) Two company members; or
(B) One company member for each 10 company
employees.
(b) When labor or services are performed under
contract for remuneration, notwithstanding ORS
656.005 (30), the company qualifies as an independent
contractor. Any company licensed under ORS 671.525
or 701.021 and involved in activities subject thereto is
conclusively presumed to be an independent contractor.
(26) A person serving as a referee or assistant
referee in a youth or adult recreational soccer match
whose services are retained on a match-by-match basis.
(27) A person performing language translator or
interpreter services that are provided for others through
an agent or broker.
(28) A person who operates, and who has an
ownership or leasehold interest in, a passenger motor
vehicle that is operated as a taxicab or for
nonemergency medical transportation. As used in this
subsection:
(a) “Lease” means a contract under which the
lessor provides a vehicle to a lessee for consideration.
(b) “Leasehold” includes, but is not limited to, a
lease for a shift or a longer period.
(c) “Passenger motor vehicle that is operated as a
taxicab” means a vehicle that:
(A) Has a passenger seating capacity that does not
exceed seven persons;
(B) Is transporting persons, property or both on a
2013 Annotated 1-10-14

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route that begins or ends in Oregon; and
(C)(i) Carries passengers for hire when the
destination and route traveled may be controlled by a
passenger and the fare is calculated on the basis of any
combination of an initial fee, distance traveled or
waiting time; or
(ii) Is in use under a contract to provide specific
service to a third party to transport designated
passengers or to provide errand services to locations
selected by the third party.
(d) “Passenger motor vehicle that is operated for
nonemergency medical transportation” means a vehicle
that:
(A) Has a passenger seating capacity that does not
exceed seven persons;
(B) Is transporting persons, property or both on a
route that begins or ends in Oregon; and
(C) Provides medical transportation services under
contract with or on behalf of a mass transit or
transportation district. [1965 c.285 §9; 1971 c.386 §1;
1977 c.683 §1; 1977 c.817 §2; 1977 c.835 §7; 1979
c.821 §1; 1981 c.225 §1; 1981 c.444 §1; 1981 c.535
§3; 1981 c.839 §1; 1983 c.341 §1; 1983 c.541 §1; 1983
c.579 §3; 1985 c.431 §1; 1985 c.706 §2; 1987 c.94
§168; 1987 c.414 §161; 1987 c.800 §2; 1989 c.762 §4;
1990 c.2 §4; 1991 c.469 §1; 1991 c.707 §1; 1993 c.18
§138a; 1993 c.494 §2; 1993 c.777 §10; 1995 c.93 §32;
1995 c.216 §§3,3a; 1995 c.332 §6; 1997 c.337 §1;
1999 c.314 §91; 1999 c.402 §8; 2001 c.363 §1; 2001
c.765 §4; 2003 c.677 §1; 2005 c.167 §1; 2007 c.465
§6; 2007 c.541 §9; 2007 c.721 §1; 2007 c.836 §49;
2008 c.32 §§2,3]
656.029 Obligation of person awarding contract
to provide coverage for workers under contract;
exceptions; effect of failure to provide coverage. (1)
If a person awards a contract involving the
performance of labor where such labor is a normal and
customary part or process of the person’s trade or
business, the person awarding the contract is
responsible for providing workers’ compensation
insurance coverage for all individuals, other than those
exempt under ORS 656.027, who perform labor under
the contract unless the person to whom the contract is
awarded provides such coverage for those individuals
before labor under the contract commences. If an
individual who performs labor under the contract
incurs a compensable injury, and no workers’
compensation insurance coverage is provided for that
individual by the person who is charged with the
responsibility for providing such coverage before labor
under the contract commences, that person shall be
treated as a noncomplying employer and benefits shall
be paid to the injured worker in the manner provided in
this chapter for the payment of benefits to the worker
of a noncomplying employer.
(2) If a person to whom the contract is awarded is
exempt from coverage under ORS 656.027, and that

WORKERS COMPENSATION
person engages individuals who are not exempt under
ORS 656.027 in the performance of the contract, that
person shall provide workers’ compensation insurance
coverage for all such individuals. If an individual who
performs labor under the contract incurs a compensable
injury, and no workers’ compensation insurance
coverage is provided for that individual by the person
to whom the contract is awarded, that person shall be
treated as a noncomplying employer and benefits shall
be paid to the injured worker in the manner provided in
this chapter for the payment of benefits to the worker
of a noncomplying employer.
(3) As used in this section:
(a) “Person” includes partnerships, joint ventures,
associations, corporations, limited liability companies,
governmental agencies and sole proprietorships.
(b) “Sole proprietorship” means a business entity
or individual who performs labor without the assistance
of others. [1979 c.864 §2; 1981 c.725 §1; 1981 c.854
§4; 1983 c.397 §1; 1983 c.579 §2a; 1985 c.706 §1;
1989 c.762 §5; 1995 c.93 §34; 1995 c.332 §6a]
656.128 Sole proprietors, limited liability
company
members,
partners,
independent
contractors may elect coverage by insurer;
cancellation. (1) Any person who is a sole proprietor,
or a member, including a member who is a manager, of
a limited liability company, or a member of a
partnership, or an independent contractor pursuant to
ORS 670.600, may make written application to an
insurer to become entitled as a subject worker to
compensation benefits. Thereupon, the insurer may
accept such application and fix a classification and an
assumed monthly wage at which such person shall be
carried on the payroll as a worker for purposes of
computations under this chapter.
(2) When the application is accepted, such person
thereupon is subject to the provisions and entitled to
the benefits of this chapter. The person shall promptly
notify the insurer whenever the status of the person as
an employer of subject workers changes. Any subject
worker employed by such a person after the effective
date of the election of the person shall, upon being
employed, be considered covered automatically by the
same workers’ compensation insurance policy that
covers such person.
(3) No claim shall be allowed or paid under this
section, except upon corroborative evidence in addition
to the evidence of the claimant.
(4) Any person subject to this chapter as a worker
as provided in this section may cancel such election by
giving written notice to the insurer. The cancellation
shall become effective at 12 midnight ending the day of
filing the notice with the insurer. [Amended by 1957
c.440 §2; 1959 c.448 §12; 1965 c.285 §18; 1969 c.400
§1; 1975 c.556 §23; 1981 c.854 §9; 1981 c.876 §3;
1993 c.777 §11; 1995 c.93 §33; 1995 c.332 §11; 2007
c.241 §9]
2013 Annotated 1-10-14

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OCCUPATIONS AND PROFESSIONS
EDUCATIONAL REQUIREMENTS

qualified by education, training and experience to make
the necessary judgments. [Formerly 184.575]

670.010 Waiver of educational requirement for
admission to examination for license or certificate to
practice profession, trade or calling. Any state board
or commission that examines applicants for license or
certification to practice a profession or engage in a
trade or calling may, in its discretion, waive the
educational requirement for admission to such
examination, provided that the applicant furnishes
evidence satisfactory to such state board or commission
that the applicant is currently enrolled in a school,
college or university approved by such state board or
commission and will satisfy the educational
requirement for admission to such examination on
satisfactory completion of courses for which the
applicant is currently enrolled and that this educational
requirement will be met not later than four calendar
months from the first day of the month following the
month in which the examination is given. [1953 c.103
§1; 1975 c.429 §5; 1977 c.47 §1]

Note: Legislative Counsel has substituted “chapter 753,
Oregon Laws 1971,” for the words “this Act” in section 1,
chapter 753, Oregon Laws 1971, compiled as 670.275
[Formerly 184.575]. Specific ORS references have not been
substituted pursuant to 173.160. These sections may be
determined by referring to the 1971 Comparative Section
Table located in Volume 20 of ORS.

670.020 Filing evidence of complete educational
requirement after taking examination. (1) Evidence
of completion of the educational requirement waived as
provided in ORS 670.010 shall be filed with such state
board or commission not later than four calendar
months from the first day of the month following the
month in which the examination is taken. State boards
and commissions shall withhold official certification of
the successful completion of the examination until such
evidence is furnished. The affidavit of the registrar or
administrative head of the school, college or university
shall be deemed satisfactory evidence.
(2) If any candidate admitted to an examination as
provided in ORS 670.010 shall fail or neglect within
said period to complete the educational requirement for
such examination, then the completion of the
examination by such candidate shall be null and void,
and of no effect. The state board or commission which
examined the candidate, however, shall retain any
examination fee paid by the candidate. [1953 c.103 §2;
1975 c.429 §6; 1981 c.89 §19]
LICENSING ADMINISTRATION
(Generally)
670.275 Policy statement. In enacting chapter
753, Oregon Laws 1971, it is the intention of the
Legislative Assembly to provide for the more effective
coordination of the administrative functions of boards
charged with responsibility for protecting the public
through the licensing and regulating of certain
professions practiced in this state. Further, it is the
intention of the Legislative Assembly to retain
responsibility for decisions on qualifications, standards
of practice, licensing, discipline and other discretionary
functions relating to professional activities in the
professional licensing boards, members of which are
2013 Annotated 1-10-14

Page 105

670.280 Denial, suspension or revocation of
license based on criminal conviction; denial of
license or imposition of discipline for conduct
substantially related to fitness and ability of
applicant or licensee. (1) As used in this section:
(a) “License” includes a registration, certification
or permit.
(b) “Licensee” includes a registrant or a holder of a
certification or permit.
(2) Except as provided in ORS 342.143 (3) or
342.175 (3), a licensing board, commission or agency
may not deny, suspend or revoke an occupational or
professional license solely for the reason that the
applicant or licensee has been convicted of a crime, but
it may consider the relationship of the facts which
support the conviction and all intervening
circumstances to the specific occupational or
professional standards in determining the fitness of the
person to receive or hold the license.
(3) Except as provided in ORS 342.143 (3) and
342.175 (3), a licensing board, commission or agency
may deny an occupational or professional license or
impose discipline on a licensee based on conduct that is
not undertaken directly in the course of the licensed
activity, but that is substantially related to the fitness
and ability of the applicant or licensee to engage in the
activity for which the license is required. In
determining whether the conduct is substantially
related to the fitness and ability of the applicant or
licensee to engage in the activity for which the license
is required, the licensing board, commission or agency
shall consider the relationship of the facts with respect
to the conduct and all intervening circumstances to the
specific occupational or professional standards. [1973
c.359 §1; 1991 c.662 §6a; 2003 c.749 §13; 2009 c.386
§5]
670.283 Power of state agency to suspend
license includes power to reinstate. If a state agency,
board or commission has the power to issue any
license, certification or registration necessary to
practice any profession or engage in any trade or
calling, any statute granting the state agency, board or
commission the power to suspend the license,
certification or registration includes the power to
reinstate:
(1) At a time certain; or
(2) When the person subject to suspension fulfills
conditions for reinstatement set by the agency, board or

OCCUPATIONS AND PROFESSIONS
commission. [1979 c.201 §1]
670.285 [1975 c.759 §10; renumbered 183.435]
670.290 Prohibited uses of juvenile records in
employment, licensing or admission. It shall be
unlawful for any state agency or licensing board,
including the Oregon State Bar, to:
(1) Require that an applicant for employment,
licensing or admission answer any questions regarding
the existence or contents of a juvenile record that has
been expunged pursuant to ORS 419A.260 and
419A.262;
(2) Bar or discharge from employment or refuse to
hire or employ such individual because of the existence
or contents of a juvenile record that has been expunged
pursuant to ORS 419A.260 and 419A.262; or
(3) Deny, revoke or suspend a license because of
the existence or contents of a juvenile record that has
been expunged pursuant to ORS 419A.260 and
419A.262. [1977 c.801 §2; 1983 c.820 §16; 1993 c.33
§360]
670.300 Licensing and advisory board officers;
quorum and meeting requirements; compensation
and expenses of members. (1) Except as otherwise
provided by law, each professional licensing and
advisory board shall select annually one of its members
as chairperson and another as vice chairperson, with
such powers and duties necessary for the performance
of the functions of such offices as the board shall
determine.
(2) The majority of the members of the board
constitutes a quorum for the transaction of business.
(3) The board shall meet at least once a year, not
later than July 1, at a place, day and hour determined
by the board. The board shall also meet at such other
times and places as are specified by the call of the
chairperson or a majority of the members of the board.
(4) Members of the board are entitled to
compensation and expenses as provided in ORS
292.495. [1971 c.753 §8; 1987 c.414 §95]
670.304 Application of ORS 670.300 to 670.380.
Except as otherwise specifically provided, ORS
670.300 to 670.380 apply to the following professional
licensing and advisory boards:
(1) Professional licensing and advisory boards
established in the Office of the Secretary of State.
(2) The Oregon Board of Maritime Pilots.
(3) The Board of Cosmetology, in the Oregon
Health Licensing Office.
(4) The State Board of Architect Examiners.
(5) The State Landscape Contractors Board.
(6) The State Board of Examiners for Engineering
and Land Surveying.
(7) The State Landscape Architect Board.
(8) The State Board of Geologist Examiners.
(9) The State Board of Tax Practitioners.
(10) The Oregon Board of Accountancy.
2013 Annotated 1-10-14

Page 106

(11) The Construction Contractors Board. [1987
c.414 §94; 1991 c.67 §176; 1993 c.744 §241; 1997 c.3
§2; 1997 c.21 §1; 1999 c.425 §28; 1999 c.885 §19;
2001 c.160 §1; 2005 c.648 §49; 2007 c.71 §219; 2007
c.768 §66; 2013 c.568 §10]
Note: The amendments to 670.304 by section 10,
chapter 568, Oregon Laws 2013, become operative July 1,
2014. See section 142, chapter 568, Oregon Laws 2013, as
amended by section 146, chapter 568, Oregon Laws 2013.
The text that is operative until July 1, 2014, is set forth for
the user’s convenience.
670.304 Application of ORS 670.300 to 670.380.
Except as otherwise specifically provided, ORS 670.300 to
670.380 apply to the following professional licensing and
advisory boards:
(1) Professional licensing and advisory boards
established in the Office of the Secretary of State.
(2) The Oregon Board of Maritime Pilots.
(3) The Board of Cosmetology, in the Oregon Health
Licensing Agency.
(4) The State Board of Architect Examiners.
(5) The State Landscape Contractors Board.
(6) The State Board of Examiners for Engineering and
Land Surveying.
(7) The State Landscape Architect Board.
(8) The State Board of Geologist Examiners.
(9) The State Board of Tax Practitioners.
(10) The Oregon Board of Accountancy.
(11) The Construction Contractors Board.

670.305 [1971 c.753 §9; repealed by 1973 c.659
§1 (670.306 enacted in lieu of 670.305)]
670.306 Administrative officers for boards;
other employees. (1) Subsections (2) and (3) of this
section shall apply only to the following professional
licensing boards:
(a) State Board of Architect Examiners.
(b) Construction Contractors Board.
(c) State Board of Examiners for Engineering and
Land Surveying.
(d) State Landscape Architect Board.
(e) State Landscape Contractors Board.
(f) Oregon Board of Accountancy.
(g) State Board of Tax Practitioners.
(2) A board shall fix the qualifications of and
appoint an administrative officer. The determination of
qualifications and appointment of an administrative
officer shall be made after consultation with the
Governor.
(3) An administrative officer of a board shall not
be a member of that board.
(4) Subject to the applicable rules of the State
Personnel Relations Law, the board shall fix the
compensation of its administrator, who shall be in the
unclassified service.
(5) Subject to applicable rules of the State
Personnel Relations Law, the administrative officer
shall appoint all subordinate employees, prescribe their
duties and fix their compensation. [1973 c.659 §2
(enacted in lieu of 670.305); 1975 c.429 §7; 1975 c.464

OCCUPATIONS AND PROFESSIONS
§1; 1981 c.821 §2; 1987 c.414 §96; 1993 c.744 §242;
1995 c.79 §338; 1997 c.3 §3; 1997 c.21 §2; 1999 c.59
§199; 1999 c.322 §41; 2007 c.768 §67]
670.310 Rulemaking authority; board seal. (1)
Except as otherwise provided by law and in accordance
with any applicable provisions of ORS chapter 183,
each professional licensing board and advisory board
may make such rules as are necessary or proper for the
administration of the laws such board is charged with
administering.
(2) Each professional licensing board and advisory
board may adopt a seal. [1971 c.753 §10; 1987 c.414
§97]
670.315 Administration of oaths; obtaining and
taking evidence at board proceedings; effect of
failure to obey board subpoena. (1) Except as
otherwise provided by law, each professional licensing
board or advisory board, acting through its chairperson
or vice chairperson or an administrative law judge, may
administer oaths, take depositions and issue subpoenas
to compel the attendance of witnesses and the
production of books, papers, records, memoranda or
other information necessary to the carrying out of the
laws the board is charged with administering.
(2) If any person fails to comply with a subpoena
issued under this section or refuses to testify on any
matters on which the person may be lawfully
interrogated, the procedure provided in ORS 183.440
shall be followed to compel obedience. [1971 c.753
§11; 1987 c.414 §98; 2003 c.75 §107]
670.320 [1971 c.753 §12; repealed by 1987 c.414
§172]
670.325 Proceedings on denial of license;
restraining violations; authority of administrative
law judge; record of proceedings. (1) All proceedings
for the refusal to issue, or the suspension or revocation
of any license, certificate of registration or other
evidence of authority required to practice any
profession subject to the authority of a professional
licensing or advisory board shall be conducted pursuant
to the procedure for contested cases required or
authorized by ORS chapter 183.
(2) If a professional licensing or advisory board
decides that any person has or is about to engage in any
activity that is or will be a violation of law the board is
charged with enforcing, the board may institute a
proceeding in an appropriate circuit court to restrain
the activity or proposed activity. An injunction may be
issued without proof of actual damages, but does not
relieve the defendant of any criminal liability.
(3) Any administrative law judge conducting a
hearing for a professional licensing board is vested
with full authority of the board to schedule and conduct
hearings on behalf and in the name of the board on all
matters referred to the administrative law judge for
hearing by the board, including proceedings for placing
2013 Annotated 1-10-14

Page 107

persons registered or licensed by the board on
probation and for suspension and revocation of
registration or licenses, and shall cause to be prepared
and furnished to the board, for decision thereon by the
board, a complete written transcript of the record of the
hearing. The transcript shall contain all evidence
introduced at the hearing and all pleas, motions and
objections and all rulings of the administrative law
judge. Each administrative law judge may administer
oaths and issue summonses, notices and subpoenas, but
may not place any registrant or licensee on probation or
issue, refuse, suspend or revoke a registration or
license. [1971 c.753 §13; 1987 c.414 §99; 1999 c.849
§155; 2003 c.75 §108]
670.330 [1971 c.753 §14; renumbered 456.757 in
1987]
670.335 Disposition of fees received by boards;
procedure for payment of board expenses. Except as
otherwise provided by law, all fees or other funds
received by a professional licensing or advisory board
shall be paid into the State Treasury monthly. Such
payments shall be credited to separate accounts in the
General Fund for each board, and any such payments
shall constitute a continuous appropriation of such
amounts from the General Fund for the purpose of
carrying out the functions of the board making the
payment. All necessary expenses of each board shall be
paid from the amounts paid by such board in the same
manner as other claims against the state are paid, after
approval thereof by the chairperson or administrator of
the board. [1971 c.753 §15; 1987 c.414 §101; 1993
c.744 §242a]
670.340 [1971 c.753 §16; renumbered 456.762 in
1987]
670.345 Procedure for filling vacancies on
board. At least 60 days before a vacancy is to occur on
a professional licensing or advisory board, the
professional organizations representing persons subject
to licensing or other regulation by the board may
nominate at least three qualified persons for each
vacancy, and shall certify its nominees to the
appointing officer or body who shall consider these
nominees in selecting successors to retiring board
members. This section does not apply to appointment
of public members. [1971 c.753 §17; 1987 c.414 §103]
670.350
Administration
of
professional
qualification examinations. Each professional
licensing and advisory board that is authorized or
required by law to administer an examination as part of
its determination of professional qualifications shall
administer such examinations at least once each year at
such time and place as the board shall designate. [1971
c.753 §18; 1987 c.414 §104]
(Reciprocal Agreements)

OCCUPATIONS AND PROFESSIONS
670.380 When reciprocal licensing or
registration agreements authorized; termination. (1)
If the administrator determines that the standards,
qualifications and examinations for licensing or
registration of building trades and mechanical and
specialty skills of another state are substantially similar
to the standards, qualifications and examinations
required under applicable Oregon statutes and rules
administered by the agency as specified in ORS
455.100, the administrator with approval of the
designated examining or advisory board may, when it
is in the best interest of the economy of the State of
Oregon, enter into a reciprocal agreement with such
other state to issue without examination licenses or
certificate of registration upon proof of licensing or
registration in such other state and upon payment of
appropriate fees.
(2) Reciprocal agreements may be terminated by
the administrator with approval of the designated
examining or advisory board, upon a determination that
the other party is not maintaining and enforcing
standards, qualifications and examinations substantially
similar to those of Oregon. [1974 c.47 §§1,2; 1987
c.414 §105; 2003 c.14 §411]
670.410 [1977 c.873 §27; 1979 c.107 §1; 1981
c.821 §3; 1987 c.414 §106; repealed by 2005 c.76 §3]
INDEPENDENT CONTRACTORS
670.600 Independent contractor defined. (1) As
used in this section:
(a) “Individual” means a natural person.
(b) “Person” has the meaning given that term in
ORS 174.100.
(c) “Services” means labor or services.
(2) As used in ORS chapters 316, 656, 657, 671
and 701, “independent contractor” means a person who
provides services for remuneration and who, in the
provision of the services:
(a) Is free from direction and control over the
means and manner of providing the services, subject
only to the right of the person for whom the services
are provided to specify the desired results;
(b) Except as provided in subsection (4) of this
section, is customarily engaged in an independently
established business;
(c) Is licensed under ORS chapter 671 or 701 if the
person provides services for which a license is required
under ORS chapter 671 or 701; and
(d) Is responsible for obtaining other licenses or
certificates necessary to provide the services.
(3) For purposes of subsection (2)(b) of this
section, a person is considered to be customarily
engaged in an independently established business if
any three of the following requirements are met:
(a) The person maintains a business location:
(A) That is separate from the business or work
location of the person for whom the services are
2013 Annotated 1-10-14

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provided; or
(B) That is in a portion of the person’s residence
and that portion is used primarily for the business.
(b) The person bears the risk of loss related to the
business or the provision of services as shown by
factors such as:
(A) The person enters into fixed-price contracts;
(B) The person is required to correct defective
work;
(C) The person warrants the services provided; or
(D) The person negotiates indemnification
agreements or purchases liability insurance,
performance bonds or errors and omissions insurance.
(c) The person provides contracted services for
two or more different persons within a 12-month
period, or the person routinely engages in business
advertising, solicitation or other marketing efforts
reasonably calculated to obtain new contracts to
provide similar services.
(d) The person makes a significant investment in
the business, through means such as:
(A) Purchasing tools or equipment necessary to
provide the services;
(B) Paying for the premises or facilities where the
services are provided; or
(C) Paying for licenses, certificates or specialized
training required to provide the services.
(e) The person has the authority to hire other
persons to provide or to assist in providing the services
and has the authority to fire those persons.
(4) Subsection (2)(b) of this section does not apply
if the person files a Schedule F as part of an income tax
return and the person provides farm labor or farm
services that are reportable on Schedule C of an income
tax return.
(5) For purposes of determining whether an
individual provides services as an independent
contractor:
(a) The creation or use of a business entity, such as
a corporation or a limited liability company, by an
individual for the purpose of providing services does
not, by itself, establish that the individual provides
services as an independent contractor.
(b) When the individual provides services through
a business entity, such as a corporation or a limited
liability company, the provisions in subsection (2), (3)
or (4) of this section may be satisfied by the individual
or the business entity. [Formerly 701.025; 1997 c.398
§2; 1999 c.402 §9; 2003 c.704 §5; 2005 c.533 §§1,2]
670.605 Rules for application of definition of
independent contractor. (1) In accordance with ORS
chapter 183, those agencies responsible for the
administration of ORS 671.510 to 671.760 and ORS
chapters 316, 656, 657 and 701 jointly shall adopt rules
to carry out the provisions of ORS 670.600.
(2) The agencies responsible for the administration
of ORS 671.510 to 671.760 and ORS chapters 316,

OCCUPATIONS AND PROFESSIONS
656, 657 and 701 shall cooperate as necessary in their
compliance and enforcement activities to ensure among
the agencies the consistent interpretation and
application of ORS 670.600. [Formerly 701.030; 2001
c.409 §4; 2005 c.94 §115; 2005 c.533 §3a]
670.610 Referees in recreational soccer matches
considered
independent
contractors.
Notwithstanding ORS 670.600, for purposes of ORS
chapter 653, a person serving as a referee or assistant
referee in a youth or adult recreational soccer match
shall be considered to be an independent contractor.
[2001 c.765 §3; 2005 c.94 §116]

2013 Annotated 1-10-14

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