2013 701 1 10 14x 46 Ors

User Manual: 46-701

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(CCB Annotated 1/10/14)
(Not a legislatively approved version)
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 Short title
701.005 Definitions
701.010 Exemptions from licensure; rules
701.013 Intent relating to certain business license
requirements
701.015 Business license requirements in cities and
metropolitan service districts; fees; distribution of
fees
701.020 Certain cities exempt from application of ORS
701.015
LICENSING (Pages 9-23)
701.021 License requirement; endorsements
701.026 Subcontractor licensing; landscaping
701.031 Evidence of doing business as contractor
701.035 Applicant required to be independent contractor to
be eligible for license; classes of licenses
701.038 Residential limited contractors
701.042 Residential or commercial developers
701.046 License application
701.050 Commercial contractor key employees
701.056 Licensing application fee; rules
701.060 Licensing in another category; fee
701.063 Term of license; fee; renewal; inactive status;
license identification card
701.068 Bonding requirements; action against surety; rules
701.073 Insurance required of licensed contractors
701.081 Residential contractors; bond; insurance;
responsible managing individual
701.082 Residential contractor continuing education
requirements; exemptions
701.083 Residential contractor specialized education
programs
701.084 Commercial contractors; bond; insurance;
responsible managing individual; key employees
701.086 Key employee continuing education
701.088 Contractor rehabilitating illegal drug
manufacturing site; substitution for bond; fee; rules
701.091 Responsible managing individual
701.094 Definition for ORS 701.098 and 701.102; rules
701.098 Grounds for discipline; rules; suspension or refusal
of license without prior hearing; hearing; civil
penalty; injunctions; cease and desist orders;
restoration or reissuance of license
701.102 Sanction for past unresolved activity; probation
701.106 Sanction for violation or failure to comply with
certain laws
701.107 Sanction for assisting evasion of obligations
701.108 Failure to comply with prevailing wage rate or
other wage and hour standards for energy
efficiency and sustainable technology projects
701.109 Reporting of final judgments
701.112 Continuation of board authority when change
occurs in license status
701.114 Change in responsible managing individual or
persons exercising control of contractor
701.117 Contractor to notify board of address change; effect
of mail to last-known address
701.119 Certification to participate in small scale local
energy project program
701.120 Specialized education programs; standards;
specialized education notation in credentials;
removal of notation; rules for use of credentials
701.122 Training requirements for individuals and
businesses; testing of business license applicant;
exception; rules
701.128 Suit for damages for misrepresentation
COMPLAINTS (Pages 23-33)
701.131 License required to perfect lien or obtain judicial
or administrative remedy; exception
701.133 Notice of intent to file complaint; fees; rules
701.139 Board authority over disputes; resolution
processes
701.140 Types of allowable complaints; restriction on
processing complaint for recoupment of lien
701.143 Requirement for timely filing of complaints;
timelines
701.144 Use of binding arbitration and contested case
hearings; rules
701.145 Resolution of complaints involving work on
residential structures or certain small commercial
structures
701.146 Resolution of complaints involving work on
large commercial structures or certain small
commercial structures
701.149 Status reports; alternative dispute resolution
701.150 Determination of amount to be paid from bond
701.153 Recording of order as lien; satisfaction of order
against residential contractor
701.157 Satisfaction of order against commercial
contractor
CONSTRUCTION CONTRACTORS BOARD
701.160 Nonlawyer may represent certain forms of
businesses before board; rules for additional
business forms
701.180 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 Requirement for written contract with residential
property owner; standard contractual terms; rules
701.310 Cancellation of contract
701.312 Additional grounds for placing contractor on
probation
701.315 Contents of contract for work on residential
structure
701.320 Offer of warranty; withdrawal of contract offer
701.325 Condition for obtaining building permit;
information notice; business licenses; local
regulation
701.330 Consumer notice form; notice of procedure form;
rules
701.335 Recommended maintenance schedule; rules
701.340 Commercial structure warranty
701.345 Subcontractor list
701.348 Sewer contractor requirements
HOME INSPECTORS (Page 40)
701.350 Home inspectors; certification; rules; fees;
exemption
701.355 Home inspector undertaking of repair work on
inspected structure
701.360 Home inspector services contractor license;
exemption from testing and continuing education
RETAINAGE (Pages 41-42)
701.410 Definitions
701.420 Partial payment; retainage; effect; interest; notice
of completion; payment by contractor and owner
701.430 Performance bond; terms
701.435 Deposits in lieu of cash retainage
701.440 Applicability to federal projects
LOCKSMITHS (Pages 44)
701.475 Definitions for ORS 701.475 to 701.490
701.480 Certification; licensing; holding out as locksmith
or locksmithing business
701.485 Standards of practice and professional conduct;
determination of competency; sanctions; rules;
fees
701.490 Exemptions from certification, licensure and
other requirements
701.495 Residential locksmith services contractor license;
exemption from testing and continuing education
LEAD POISONING AND HAZARD REDUCTION
(Pages 44-45)
701.505 Definitions for ORS 701.505 to 701.515
701.510 License required to engage in lead-based paint
activity
701.515 Licensing system; fees; rules
701.520 Construction Contractors Board Lead-Based
Paint Activities Fund
HOME ENERGY ASSESSMENT AND
PERFORMANCE SCORING (Page 45-46)
701.527 Definitions for ORS 701.527 to 701.536
701.529 Certification and licensing requirements; use of
title
701.532 Home energy assessor certification; training;
rules; fees
701.534 Home energy performance score contractors
701.536 Assessor and contractor exemption from testing
and continuing education
ACCESSIBILITY FEATURES (Page 46)
701.545 Provision of accessible features list to purchaser;
effect
701.547 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 Definitions for ORS 701.560 to 701.595 and
701.605
701.565 Notice of defect requirement; contents; mailing
701.570 Secondary notice of defect; inspection of
residence; response to notice or secondary notice
701.575 Availability of residence; scope of inspection;
report of inspection results
701.580 Offer by contractor, subcontractor or supplier;
effect of accepting offer; nonperformance;
compelling arbitration or commencing court
action; admissibility of response or reply
701.585 Effect of notice of defect on time for
commencing court action
701.595 Failure to follow notice of defect procedure
701.600 Nonapplicability of ORS 701.560 to 701.595 and
701.605
WARRANTIES (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 Definitions for ORS 701.620 to 701.640
701.625 Progress payments; notice requirements;
nonapproval of billing or estimate; withholding;
final payment
701.630 Payments to subcontractors and material
suppliers; failure to pay; omission of payment
701.635 Suspension of performance
701.640 Prohibition against contrary provisions,
covenants or clauses
701.645 Contracts and housing not subject to ORS
701.620 to 701.640
PENALTIES (Pages 54-55)
701.990 Criminal penalties
701.992 Civil penalties and other sanctions; enforcement
701.995 Civil penalties for violations related to lead-
based paint activities; reporting of penalties and
sanctions
Chapter 12: Procedure in Civil Proceedings (Part)
(Pages 56-58)
12.010 Time of commencing actions
12.020 When action deemed begun
12.040 Limitations of suits generally; land patent suits;
defense of possession by equitable title; suit on
new promise, fraud or mistake
12.050 Action to recover real property
12.060 Suit or action on land contracts; time when they
cease to affect the property
12.070 Action on judgment, decree or sealed instrument
12.080 Action on certain contracts or liabilities
12.115 Action for negligent injury to person or property
12.135 Action for damages from construction, alteration
or repair of improvement to real property;
“substantial completion” defined; application
12.230 Acknowledgment or promise taking contract
case out of statute; effect of payment
12.240 Effect of payment after obligation becomes due
12.250 Actions by state, county or public corporations
12.280 Action based on practice of land surveying
Chapter 36: Uniform Arbitration Act (part) (Pages 59-60)
36.600 Definitions
36.605 Notice
36.610 Effect of agreement to arbitrate; nonwaivable
provisions
36.615 Application for judicial relief; fees
36.620 Validity of agreement to arbitrate; form of
acknowledgment of agreement
36.625 Petition to compel or stay arbitration
36.630 Provisional remedies
36.635 Initiation of arbitration
36.640 Consolidation of separate arbitration proceedings
36.645 Appointment of arbitrator; service as neutral
arbitrator
36.650 Disclosure by arbitrator
36.655 Action by majority
36.660 Immunity of arbitrator; competency to testify;
attorney fees and costs
36.665 Arbitration process
36.670 Representation by a lawyer; representation of
legal or commercial entities
36.675 Witnesses; subpoenas; depositions; discovery
36.680 Judicial enforcement of preaward ruling by
arbitrator
36.685 Award
36.690 Change of award by arbitrator
36.695 Remedies; fees and expenses of arbitration
proceeding
36.700 Confirmation of award
36.705 Vacating award
36.710 Modification or correction of award
36.715 Judgment on award; attorney fees and litigation
expenses
36.720 Jurisdiction
36.725 Venue
36.730 Appeals
36.735 Uniformity of application and construction
36.740 Relationship to electronic signatures in Global
and National Commerce Act
Chapter 83: Retail Installment Contracts--
Home Solicitation Sales (Part)
(Page 67-69)
83.710 Definitions for ORS 83.710 to 83.750;
application of ORS 83.710 to 83.750
83.715 Telephone solicitation sale; contract; contents
83.720 Cancellation of home solicitation sale; notice;
exception
83.730 Written agreement or offer to purchase; contents;
notice of buyer’s right to cancel; form
CONSTRUCTION CONTRACTORS BOARD
83.740 Duties of seller upon cancellation of sale or
revocation of offer to purchase
83.750 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 Short title
87.005 Definitions for ORS 87.001 to 87.060 and
87.075 to 87.093
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
87.010 Construction liens; who is entitled to lien
87.015 Land and interests therein subject to lien;
leaseholds
87.018 Delivery of notices
87.021 Notice to owners; notice from owner to original
contractor; effect of failure to give notice
87.023 Notice of right to lien; form of notice
87.025 Priority of perfected liens; right to sell
improvements separately from land; notice to
mortgagee; list of materials or supplies
87.027 Right of owner to demand list of services,
materials, equipment and labor; penalty for
failure to provide list
87.030 Effect of owner knowledge of improvement;
notice of nonresponsibility
87.035 Perfecting lien; filing claim of lien; contents of
claim
87.036 Subcontractor’s perfection of claim of lien; fee;
rules
87.037 Prohibition against claim of lien
87.039 Notice of filing claim of lien; effect of failure to
give notice
87.045 Completion date of improvement; notice of
completion, abandonment or nonabandonment;
contents of notice
87.050 Recording
87.055 Duration of lien; when suit to enforce lien
commences
87.057 Notice of intent to foreclose; list of materials
furnished and statement of prices; effect of
failure to give notice
87.059 Stay in proceedings to enforce lien;
requirements; procedure; dissolution of stay
87.060 Foreclosure; right to jury trial; distribution of
proceeds of foreclosure sale
87.070 Amount of recovery by contractor; respective
rights of contractor and owner
87.075 Exemption of building materials from
attachment by third persons
87.076 Bond or deposit of money; amount; demand for
release of lien; effect
87.078 Notice of filing bond or depositing money;
contents of notice; effect of failure to give notice
87.081 Filing affidavit with county officer
87.083 Foreclosure after filing of bond or deposit of
money; effect of filing or deposit; disposition of
bond or money
87.086 Determination of adequacy of bond
87.088 Release of lien or return of money
87.091 Limitations on actions
87.093 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)
General Provisions
279C.005 Definitions
279C.010 Applicability
279C.365 Requirements for solicitation documents and
bids and proposals
279C.370 First-tier subcontractor disclosure
279C.375 Award and execution of contract; determination
of responsibility of bidder; bonds; impermissible
exclusions
(Subcontractors)
279C.580 Contractor’s relations with subcontractors
279C.585 Authority to substitute undisclosed first-tier
subcontractor; circumstances; rules
279C.590 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
Prevailing Wage Rate
279C.800 Definitions for ORS 279C.800 to 279C.870
279C.805 Policy
279C.807 Workforce diversity for public works projects
279C.808 Rules
279C.810 Exemptions; rules
279C.815 Determination of prevailing wage; sources of
information; comparison of state and federal
prevailing wage; other powers of commissioner
279C.817 Determination of applicability of prevailing
wage rate; time limitation; hearing; rules
279C.820 Advisory committee to assist commissioner
279C.825 Fees; rules
279C.827 Division of public works project; applicability of
prevailing wage rate to divided projects
279C.829 Agreement with other state to pay less than
prevailing rate of wage
279C.830 Provisions concerning prevailing rate of wage in
specifications, contracts and subcontracts;
applicability of prevailing wage; bond
279C.835 Notifying commissioner of public works contract
subject to prevailing wage; payment of fee
279C.836 Public works bond; rules
CONSTRUCTION CONTRACTORS BOARD
279C.838 Applicability of state and federal rates of wage;
determination of site of project; determination of
applicability of wage to transportation workers;
waiver
279C.840 Payment of prevailing rate of wage; posting of
rates and fringe benefit plan provisions
279C.845 Certified statements regarding payment of
prevailing rates of wage; retainage
279C.850 Inspection to determine whether prevailing rate
of wage being paid; civil action for failure to pay
prevailing rate of wage or overtime
279C.855 Liability for violations
279C.860 Ineligibility for public works contracts for failure
to pay or post notice of prevailing rates of wage;
certified payroll reports to commissioner
279C.865 Civil penalties
279C.870 Civil action to enforce payment of prevailing
rates of wage
Chapter 469: Public Health and Safety (Page 100)
469.703 Home energy performance score system; home
energy assessors; reports; database; rules.
Chapter 656: Workers’ Compensation (part)
(Pages 101-104)
656.021 Person performing work under ORS chapter 701
as subject employer
656.023 Who are subject employers
656.025 Individuals engaged in commuter ridesharing not
subject workers; conditions
656.027 Who are subject workers
656.029 Obligation of person awarding contract to
provide coverage for workers under contract;
exceptions; effect of failure to provide coverage
656.128 Sole proprietors, limited liability company
members, partners, independent contractors may
elect coverage by insurer; cancellation.
Chapter 670: Occupations and Professions (Page 105-109)
Educational Requirements
670.010 Waiver of educational requirement for admission
to examination for license or certificate to
practice profession, trade or calling.
670.020 Filing evidence of complete educational
requirement after taking examination.
Licensing Administration
(Generally)
670.275 Policy statement
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
670.283 Power of state agency to suspend license
includes power to reinstate
670.290 Prohibited uses of juvenile records in
employment, licensing or admission
670.300 Licensing and advisory board officers; quorum
and meeting requirements; compensation and
expenses of members
670.304 Application of ORS 670.300 to 670.380
670.306 Administrative officers for boards; other
employees
670.310 Rulemaking authority; board seal
670.315 Administration of oaths; obtaining and taking
evidence at board proceedings; effect of failure
to obey board subpoena
670.325 Proceedings on denial of license; restraining
violations; authority of administrative law judge;
record of proceedings
670.335 Disposition of fees received by boards;
procedure for payment of board expenses
670.345 Procedure for filling vacancies on board
670.350 Administration of professional qualification
examinations
(Reciprocal Agreements)
670.380 When reciprocal licensing or registration
agreements authorized; termination
Independent Contractors
670.600 Independent contractor defined
670.605 Rules for application of definition of
independent contractor
670.610 Referees in recreational soccer matches
considered independent contractors
CONSTRUCTION CONTRACTORS AND CONTRACTS
2013 Annotated 1-10-14 Page 1
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.
(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
2013 Annotated 1-10-14 Page 2
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;
(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 single-
family dwelling unit constructed in a group of attached
units in which:
CONSTRUCTION CONTRACTORS AND CONTRACTS
2013 Annotated 1-10-14 Page 3
(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.
(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
2013 Annotated 1-10-14 Page 4
(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;
(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
2013 Annotated 1-10-14 Page 5
(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;
(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
2013 Annotated 1-10-14 Page 6
(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
(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
2013 Annotated 1-10-14 Page 7
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
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
2013 Annotated 1-10-14 Page 8
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
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
2013 Annotated 1-10-14 Page 9
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
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
2013 Annotated 1-10-14 Page 10
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
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
2013 Annotated 1-10-14 Page 11
(A) Each partner, if the applicant is a partnership,
limited liability partnership or foreign limited liability
partnership.
(B) The general partner, if the applicant is a
limited partnership.
(C) Each joint venturer, if the applicant is a joint
venture.
(D) The owner, if the applicant is a sole
proprietorship.
(E) The officers, if the applicant is a corporation.
(F) The manager and each member, if the
applicant is a manager-managed limited liability
company.
(G) Each member, if the applicant is a member-
managed limited liability company.
(H) The responsible managing individual
designated by the applicant.
(I) Each trustee, if the applicant is a trust.
(i) The name and address of the following if the
applicant is a partnership, limited liability partnership,
foreign limited liability partnership, joint venture,
manager-managed limited liability company or
member-managed limited liability company:
(A) Each partner in a partnership, limited liability
partnership or foreign limited liability partnership that
is a partner, joint venturer or member of the applicant.
(B) Each general partner in a limited partnership
that is a partner, joint venturer or member of the
applicant.
(C) Each joint venturer in a joint venture that is a
partner, joint venturer or member of the applicant.
(D) The manager and each member of a manager-
managed limited liability company that is a partner,
joint venturer or member of the applicant.
(E) Each member of a member-managed limited
liability company that is a partner, joint venturer or
member of the applicant.
(F) Each officer of a corporation that is a partner,
joint venturer or member of the applicant.
(G) 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.
(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
2013 Annotated 1-10-14 Page 12
(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
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
2013 Annotated 1-10-14 Page 13
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
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
2013 Annotated 1-10-14 Page 14
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
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
2013 Annotated 1-10-14 Page 15
(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:
(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
2013 Annotated 1-10-14 Page 16
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
(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
2013 Annotated 1-10-14 Page 17
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 contractor-
provided in-house training programs. Continuing
education topics may include, but need not be limited
to, construction means, methods and business practices.
(5) A contractor applying for renewal shall certify
the number of continuing education hours completed
during the preceding licensing period.
(6) A contractor subject to this section shall
maintain records of the continuing education
completed by key employees.
(7) This section does not apply to a commercial
contractor:
(a) That is subject to regulation under ORS
479.510 to 479.945 or 480.510 to 480.670 or ORS
chapter 693; or
(b) As provided by rule by the Construction
Contractors Board. [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
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
2013 Annotated 1-10-14 Page 18
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
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
2013 Annotated 1-10-14 Page 19
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
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
2013 Annotated 1-10-14 Page 20
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 12-
month period against the contractor or a former
licensed construction contracting business in which the
contractor held at least a 10 percent ownership interest,
measured as determined by board rule. A contractor
may not be placed on probation unless the board
determines after investigation that it is likely that the
contractor has caused harm to the complainants. The
board may require a contractor that is placed on
probation to develop a corrective action plan, to attend
specific classes and to resolve outstanding complaints.
The board may require a contractor that is placed on
probation to take training and pass a test, both as
described in ORS 701.122. The board shall take action
to terminate the 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.
(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
2013 Annotated 1-10-14 Page 21
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).
(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 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.
[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
2013 Annotated 1-10-14 Page 22
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
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
2013 Annotated 1-10-14 Page 23
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;
(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
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.
(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:
(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
2013 Annotated 1-10-14 Page 25
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
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
2013 Annotated 1-10-14 Page 26
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
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
2013 Annotated 1-10-14 Page 27
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
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
2013 Annotated 1-10-14 Page 28
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.
(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
2013 Annotated 1-10-14 Page 29
(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
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
2013 Annotated 1-10-14 Page 30
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,
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
2013 Annotated 1-10-14 Page 31
(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,
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
2013 Annotated 1-10-14 Page 32
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
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
2013 Annotated 1-10-14 Page 33
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
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
2013 Annotated 1-10-14 Page 34
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
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
2013 Annotated 1-10-14 Page 35
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
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
2013 Annotated 1-10-14 Page 36
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]
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
2013 Annotated 1-10-14 Page 37
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]
701.270 [1989 c.928 §25; repealed by 1993 c.470
§5 and 1993 c.742 §11]
701.280 [1991 c.732 §§2,3,4; 1995 c.216 §5;
1997 c.814 §5; 1999 c.173 §1; 1999 c.402 §38; 2001
c.160 §7; repealed by 2005 c.432 §18]
701.285 [Formerly 456.752; repealed by 2001
c.160 §8]
701.290 [1995 c.560 §1; repealed by 2001 c.850
§8]
701.295 Board duty to investigate and seek
prosecution of illegal activity. The Construction
Contractors Board shall investigate allegations of
illegal activity in the construction industry and seek
civil or criminal prosecution of illegal activity that
warrants more than an administrative sanction. [2001
c.850 §4]
701.300 [1989 c.928 §11; repealed by 1991 c.181
§16]
CONSTRUCTION CONTRACTS AND NOTICES
701.305 Requirement for written contract 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]
701.310 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]
701.312 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:
OCCUPATIONS AND PROFESSIONS
2013 Annotated 1-10-14 Page 38
(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
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
2013 Annotated 1-10-14 Page 39
(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
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
2013 Annotated 1-10-14 Page 40
(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.
(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
2013 Annotated 1-10-14 Page 41
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.
(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
2013 Annotated 1-10-14 Page 42
(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
(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
2013 Annotated 1-10-14 Page 43
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.
(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
2013 Annotated 1-10-14 Page 44
(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]
701.510 License required to engage in lead-
based 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 lead-
based 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 lead-
based 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
2013 Annotated 1-10-14 Page 45
(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
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
2013 Annotated 1-10-14 Page 46
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
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, “barrier-
type exterior insulation and finish system” means a
foam insulation board inner layer, a polymer and
cement base coat middle layer reinforced with glass
fiber mesh and a textured finish coat exterior layer, in
which:
(a) The layers are bonded to the outside face of an
exterior wall;
(b) The middle or exterior layer, but not the inner
layer, provides a water resistant barrier for the exterior
of the building envelope;
(c) The layers do not provide a means of drainage
for water that accumulates behind the exterior surface;
and
(d) The layers insulate the building.
(2) A person licensed or required to be licensed
under this chapter may not install a barrier-type
exterior insulation and finish system on:
CONSTRUCTION CONTRACTORS AND CONTRACTS
2013 Annotated 1-10-14 Page 47
(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.
(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
2013 Annotated 1-10-14 Page 48
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
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
2013 Annotated 1-10-14 Page 49
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;
(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