| Legislators in Salem dropped a long list of new | | | | Moisture Intrusion and Water Damage |
| statutes on Oregon contractors in 2008. Like | | | | Maintenance Schedule and have that schedule |
| many other states, Oregon has jumped with both | | | | signed by both the contractor and the owner. |
| feet into writing residential construction contracts. | | | | If you haven't been counting, a total of seven |
| And, like other states, Oregon imposes stiff | | | | disclosures are required, each with many parts. |
| penalties on contractors who are not paying | | | | Obviously, it's easy for an Oregon contractor to |
| attention. Most of the new requirements are | | | | make a mistake. And more than a few have. In |
| simple disclosures designed to educate the buyer | | | | the last three months of 2008, nearly 600 |
| (home owner) before agreeing to anything. | | | | Oregon contractors were fined by Oregon's |
| If the value of a residential job exceeds $1,000, | | | | Construction Contractors Board. The average fine |
| you'll need to supply a notice about construction | | | | was about $1,000. Another 218 warnings were |
| liens. If the value exceeds $2,000, the contract | | | | issued. Licenses were pulled on 204 contractors. In |
| has to include both a Consumer Protection Notice | | | | all, more than 2% of all licensed contractors in |
| and a Notice of Procedure. All three of these | | | | Oregon were cited by the CCB. And that was in |
| notices have to be signed by both the contractor | | | | just three months! Many of these fines were the |
| and the owner. The contractor has to keep a file | | | | result of a simple mistake -- such as failure to |
| copy for two years. The fine for failure to | | | | attach a Consumer Protection Notice. |
| comply is up to $5,000. These three disclosure | | | | Oregon's seven disclosures add at least four |
| forms are available from the Oregon Construction | | | | pages to the shortest, simplest home |
| Contractors Board at the CCB site. Unfortunately, | | | | improvement contract you can imagine. I wonder |
| these disclosures are just the beginning. | | | | if disclosures aren't subject to the law of |
| Oregon Administrative Rules 812-012-0110 | | | | diminishing returns. Every additional disclosure form |
| requires that residential contracts explain property | | | | deflates the shock value of disclosures already |
| owner rights and terms of the contract. Most of | | | | made. If there's a practical limit to how much |
| what's required is strictly routine -- names and | | | | disclosure is too much, Oregon may be getting |
| numbers. But some of what has to be in the | | | | close. |
| contract is pretty much off the wall (the right to | | | | But don't get me wrong. I like disclosures. The |
| file a complaint). The same rule requires a | | | | more the buyer knows, the better informed the |
| checkbox in the contract disclosing whether | | | | decision. True, the new Oregon rules create a |
| arbitration is required to settle disputes. These | | | | mine field for Oregon residential contractors. You |
| disclosures are part of the contract. So no | | | | have to be careful. But with one exception, |
| separate signature is required. Finally, for | | | | Oregon has resisted the temptation to tip the |
| residential work, the owner has to receive notice | | | | fairness scale against contractors. That's what |
| of the right to cancel, using either the federal right | | | | Pennsylvania and Texas do -- flatly outlawing |
| of rescission form or an equivalent Oregon form. | | | | some contract clauses or demanding a written |
| More disclosures are required if the project is a | | | | warranty. Oregon doesn't do that. At least not |
| new residence (rather than home improvement). | | | | yet. |
| As of July 2008, the contractor has to offer a | | | | The one exception: Oregon Revised Statutes |
| written warranty against defects in material and | | | | Section 87.037 denies lien rights to prime |
| workmanship. The owner has to acknowledge | | | | contractors who do work valued at over $2,000 |
| receipt of that offer and indicate either | | | | without a written contract. Think about that. It's |
| acceptance or rejection. No separate signature is | | | | heavy stuff. If you expect to get paid, you need |
| required because this offer has to be part of the | | | | a written contract. |
| basic contract. Finally, you have to provide a | | | | |