74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 765
A-Engrossed
House Bill 2112
Ordered by the House May 11
Including House Amendments dated May 11
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor Theodore R.
Kulongoski for Construction Contractors Board)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
{ - Requires construction contractor whose mandatory
insurance or alternative form of security ceases to be in effect
during term of license to provide board with evidence that
suitable replacement insurance or alternative form of security is
in effect. - }
{ - Requires that insurer or designee canceling construction
contractor insurance give Construction Contractors Board at least
30 days' notice before effective date of cancellation. Extends
coverage of policy that is canceled without adequate notice until
30 days after board receives notice. - }
{ + Requires contractor constructing new residential
structure or zero-lot-line dwelling to offer warranty and provide
recommended maintenance schedule for structure or dwelling.
Requires Construction Contractors Board to develop recommended
maintenance schedule information and to develop standard
contractual terms for use in required written construction
contracts. Gives property owner conditional right to cancel
written contract for construction, improvement or repair of
residential structure or zero-lot-line dwelling.
Applies to new residential structures and zero-lot-line
dwelling for which sale closes on or after July 1, 2008. + }
A BILL FOR AN ACT
Relating to construction contractors.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 to 5 of this 2007 Act are added to
and made a part of ORS chapter 701. + }
SECTION 2. { + As used in sections 3 to 5 of this 2007 Act, '
zero-lot-line dwelling' means a single-family dwelling unit
constructed in a group of attached units in which:
(1) Each attached unit extends from foundation to roof with
open space on two sides; and
(2) Each dwelling unit is separated by a property line. + }
SECTION 3. { + A contractor that constructs a new residential
structure or zero-lot-line dwelling shall offer to the property
owner a written warranty against defects in materials and
workmanship for the structure or dwelling. A property owner may
accept or refuse the offer of a warranty by the contractor. + }
SECTION 4. { + (1) A contractor that constructs a new
residential structure or zero-lot-line dwelling shall provide a
recommended maintenance schedule to the property owner.
(2) The Construction Contractors Board shall develop the
minimum information that a contractor shall provide to a property
owner 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) Advice on how to recognize the signs of water damage.
(d) Appropriate steps to take when water damage is discovered.
(3) The board shall make the information developed under this
section available without charge to contractors that construct
new residential structures or zero-lot-line dwellings. + }
SECTION 5. { + (1) The Construction Contractors Board shall
adopt rules that require a contractor to use standard contractual
terms in construction contracts for which ORS 701.055 requires a
written contract. The standard contractual terms shall be clear,
use words of common understanding and shall include, but need not
be limited to:
(a) An acknowledgement of a written warranty offer, if an offer
is required by section 3 of this 2007 Act, and indication of the
acceptance or rejection of the warranty offer;
(b) A summary on the contractor's bid proposal of the notices
required under ORS 87.093 or under rules adopted under 701.055
(13);
(c) Acknowledgement of the receipt of the information required
by the board under section 4 of this 2007 Act;
(d) An explanation of the property owner's rights under the
contract, including, but not limited to, the ability to file a
claim with the board and the existence of any mediation or
arbitration provision in the contract, set forth in a conspicuous
manner as defined by the board by rule; and
(e) Notice of the construction defect notice procedure under
ORS 701.560 to 701.595, set forth in a conspicuous manner as
defined by the board by rule.
(2) A property owner who enters into a written contract for the
construction, improvement or repair of a residential structure or
zero-lot-line dwelling may cancel the contract by delivery of a
written notice of cancellation anytime prior to 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, that sufficiently
states the intention of the property owner to cancel the
contract.
(3) Subsection (2) 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; or
(b) After a contractor substantially begins the construction,
improvement or repair. + }
SECTION 6. { + Sections 2 to 5 of this 2007 Act apply to new
residential structure or zero-lot-line dwelling sales that close
on or after July 1, 2008. + }
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