New Construction Contract Requirements
Take Effect

On January 1, 2008, new requirements took effect for construction contracts in the State of Oregon. Specifically, the 2007 Oregon State Legislature passed House Bill 2654, directing the Oregon Construction Contractors Board (CCB) to adopt new rules requiring contractors to use the following standard terms in construction contracts:

• A statement the contractor is licensed

• The contractor’s name, CCB license number, address and telephone number

• For residential structure contracts, a summary of the notices required to be given

• For new residential structure contracts, a written offer of a warranty (first required on July 1, 2008)

• An acknowledgement of the owner’s receipt of a written offer of a warranty, if an offer is required; if the owner refuses the warranty, the contractor can cancel the contract

• For new residential structure contracts, a maintenance schedule (first required on July 1, 2008)

• An acknowledgement of the owner’s receipt of the maintenance schedule, if one is required

• An explanation of the property owner’s rights under the contract, including the right to file a claim with the CCB and the existence of mediation or arbitration provisions in the contract

The Construction and Design Team at Dunn Carney can assist you in making sure your contract forms are up to date.

• Written Contract Required. House Bill 2654 also prohibits a contractor from claiming a lien when the contractor fails to provide a written contract for a project where the total contract price exceeds $2,000. This prohibition applies even if the initial contract prices is below $2,000 but the contract price increases during the course of the project to an amount over $2,000.

Construction & Design Team

The Construction and Design Team at Dunn Carney represents owners, developers, design professionals, general contractors, subcontractors, suppliers and sureties in all phases of private and public construction projects. Combining their legal knowledge with specialized knowledge about the construction industry, attorneys practicing in this area provide sound legal and practical advice to clients to help them achieve their business goals.

Team members include:
Laura Althouse

Ken Antell

Jon Bennett

David Buono

Brian Cable
John Chambers

Jay Chock

Susan Glen

Heather Guthrie

Damon Henrie

Tim Hering

Jim Hillas
Bill Joseph
Erik Kekel

Gil Parker
David Zehntbauer

May 2008