75th OREGON LEGISLATIVE ASSEMBLY--2009 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 337
A-Engrossed
Senate Bill 205
Ordered by the House May 21
Including House Amendments dated May 21
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (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.
Expands consumer notice requirement to include original
purchaser of residential structure or zero-lot-line dwelling.
Makes standard contractual term requirement regarding notice
summary applicable to zero-lot-line dwelling contracts.
Specifies time for contractor to provide recommended
maintenance schedule to property owner or original purchaser.
Eliminates requirement that provision of maintenance schedule be
acknowledged in contract. Eliminates requirement that
Construction Contractors Board make minimum information required
for recommended maintenance schedule available to construction
contractors without charge.
Makes warranty offer requirement applicable to newly
constructed residential structure or zero-lot-line dwelling sold
by contractor.
Identifies types of work subject to requirement for written
contract. Revises terminology.
A BILL FOR AN ACT
Relating to construction contractors; creating new provisions;
and amending ORS 701.305, 701.310, 701.320, 701.330 and
701.335.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 701.305 is amended to read:
701.305. (1) A contractor may not perform work { - subject to
this section for an owner of - } { + 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, use words of common understanding and shall include but
need not be limited to:
(a) A statement that the contractor is licensed by the board;
(b) The name, license number, address and telephone number of
the contractor as shown on board records on the date the contract
is entered into;
(c) An acknowledgment of a written offer of a warranty, if an
offer is required by ORS 701.320, and indication of the
acceptance or rejection of the offered warranty;
(d) { - For a residential structure contract, - } A summary
of the notices required under ORS 87.093 or under rules adopted
under ORS 701.330 and 701.335 (2) on the contractor's bid
proposal; { + and + }
{ - (e) Acknowledgment of the receipt of the maintenance
information required by the board under ORS 701.335; and - }
{ - (f) - } { + (e) + } 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.
SECTION 2. ORS 701.310 is amended to read:
701.310. (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 anytime 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.
SECTION 3. ORS 701.320 is amended to read:
701.320. (1) A { - licensee - } { + 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 { - first
purchaser or owner - } { + 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 { - first purchaser or owner - } { + 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.
SECTION 4. ORS 701.330 is amended to read:
701.330. (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 { - to a property owner - } .
(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.
SECTION 5. ORS 701.335 is amended to read:
701.335. (1) A contractor that { - constructs - }
{ + enters into a contract to construct + } a new residential
structure or zero-lot-line dwelling shall provide a recommended
maintenance schedule to the
{ - first purchaser or owner - } { + 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
{ - specifying - } { + describing + } the minimum information
that a contractor shall provide to a { - first purchaser or
owner - } { + 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.
{ - (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 6. { + The amendments to ORS 701.305, 701.320 and
701.335 by sections 1, 3 and 5 of this 2009 Act apply to written
contracts that a contractor enters into on or after the effective
date of this 2009 Act. + }
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