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CONSTRUCTION CONTRACTORS BOARD

 

DIVISION 12

CONTRACTOR DUTIES

812-012-0110

Terms of Written Contract

(1) If a contractor is required to have a written contract under ORS 701.305, the written contract or attached addendum to the written contract must contain the following:

(a) The contractor’s name, address, phone number and license number issued by the board as shown on board records.

(b) 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;

(c) An explanation of the property owner’s rights under the contract, including, but not limited to, the ability to file a complaint 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;

(d) Customer’s name and address;

(e) Address where the work is to be performed;

(f) A description of the work to be performed; and

(g) Price and payment terms.

(2) The information described in section (1) of this rule must be legible and in dark ink.

Stat. Auth.: ORS 670.310, 701.235, 701.305, 701.315, 701.320, 701.330 & 701.335
Stats. Implemented: ORS 701.305, 701.330 & 701.335
Hist.: CCB 7-2007, f. 12-13-07, cert. ef. 1-1-08; CCB 9-2008, f. 6-11-08, cert. ef. 7-1-08; CCB 8-2009, f. 12-28-09, cert. ef. 1-1-10; CCB 7-2010, f. & cert. ef. 4-28-10; CCB 6-2013, f. 12-19-13, cert. ef. 1-1-14

812-012-0120

Maintenance Schedules

(1) A contractor that constructs a new residential structure or zero-lot-line dwelling shall provide a maintenance schedule to the first purchaser or owner of the structure or dwelling. The maintenance schedule will recommend periodic steps that the purchaser or owner should take to prevent moisture intrusion or water damage to the structure or dwelling. The minimum information contained in the maintenance schedule will consist of the information listed below in section (4).

(2) “Moisture intrusion” and “water damage” are defined as follows:

(a) “Moisture intrusion” means water, whether liquid, frozen, condensed or vaporized, that penetrates into a structure or behind the outside cladding of a structure.

(b) “Water damage” means damage or harm caused by moisture intrusion that reduces the value or usefulness of a structure.

(3) Moisture intrusion and water damage may occur, for example, from the following:

(a) Missing or loose roofing materials or flashing;

(b) Window sills or door frames without adequate caulking or weather-stripping;

(c) Lack of caulking in siding, mortar in masonry or grout in exterior ceramic tile installations;

(d) Degraded paint on exterior siding or surfaces;

(e) Overflowing or clogged gutters;

(f) Gutter drains or downspouts that are not a sufficient distance from the structure;

(g) Improper drainage slope next to foundation;

(h) Plant materials too close to the structure or foundation;

(i) Sprinklers that overspray onto the structure or foundation;

(j) Non-working interior ventilation systems.

(4) The recommended maintenance schedule for new residential structures and dwellings, to prevent moisture intrusion and water damage, is as follows:

(a) At least once a year:

(A) Check roof for damaged, loose or missing shingles. Check flashing around roof stacks, vents, skylights, and chimneys and in roof valleys for missing or loose flashing. Repair or replace if necessary.

(B) Check for water stains in the roof of the attic and in the exterior overhangs or soffits. If water stains are present, locate and repair the cause of moisture intrusion.

(C) Check and repair missing mortar in exterior masonry.

(D) Check painted surfaces for cracking, peeling or fading. Repaint if necessary.

(E) Inspect gutters and downspouts for leaks. Repair if necessary. Check alignment of gutters, downspouts and splash blocks to ensure that water is properly diverted away from the structure and foundation. Repair if necessary.

(F) Inspect gutters for debris blockage. Remove debris (for example, tree needles and leaves) from downspouts and gutters.

(G) Check soil around foundation to make sure that it slopes in such a way that water can flow away from the foundation. Fill soil in any areas that have settled around the foundation.

(H) Trim back tree branches, shrubs and other plants to make sure they are not in contact with the structure.

(I) Check landscaping sprinklers to make sure that they are not set so that they will soak siding or form puddles near the foundation. Adjust if necessary.

(b) At least twice a year, check and repair missing, cracked or peeling caulking or weather-stripping around window sills, door frames and in siding gaps.

(c) At least once every two months, check to make sure that interior mechanical ventilation systems (such as bathroom, kitchen and utility room vent fans) are in good working order. Repair if necessary.

(5) Signs of water damage may include, but are not limited to, dampness, staining, mildewing (blackened surfaces with musty smell) and softness in wood members (possible sign of dry rot).

(6) If water damage is discovered, investigation should be made into the source of the water damage. Steps should be taken to repair or replace building components or materials that allowed moisture intrusion leading to the water damage. Additional steps may need to be taken depending on the extent of the water damage.

(7) The maintenance schedule in section (4) contains the minimum information that a contractor that constructs a new residential structure or zero-lot-line dwelling must provide. A contractor may offer a maintenance schedule with additional information, recognizing the uniqueness of each structure and its material components. A contractor may use any form or layout for its maintenance schedule, provided that it contains the information in section (4).

(8) The contractor that constructs a new residential structure or zero-lot-line dwelling shall provide a copy of its maintenance schedule to the first purchaser or owner no later than 60 days after substantial completion of the structure or dwelling, or occupancy of the structure or dwelling, whichever occurs later.

(9) For purposes of this rule, a contractor that constructions a new residential structure or zero-lot-line dwelling refers to the prime or general contractor that contracts with the homeowner or sells to the first purchaser. Subcontractors that do not have a contractual relationship with the homeowner or first purchaser are not required to deliver a maintenance schedule.

Stat. Auth.: ORS 670.310 & 701.235
Stats. Implemented: ORS 701.335
Hist.: CCB 10-2008, f. 6-30-08, cert. ef. 7-1-08; Renumbered from 812-001-0240, CCB 16-2008, f. 9-26-08, cert. ef. 10-1-08

812-012-0130

Delivery and Proof of Delivery of Consumer Notice

(1) If a contractor is required to have a written contract under ORS 701.305, the consumer notices described in OAR 812-001-0200(1), (2) and (4) shall be delivered on or before the date the contract is entered into.

(2) The contractor shall maintain proof of delivery of the Consumer Protection Notice, Notice of Procedure, and the notice required under ORS 87.093, if required, for a period of two years after the contract was entered into. Proof of delivery of the notices shall include, but not be limited to:

(a) A signed copy of the notices;

(b) An unambiguous phrase in the written contract that acknowledges receipt of the notices and that is initialed by the owner; or

(c) Copies of the written contract, if the notices are fully contained in the written contract.

Stat. Auth.: ORS 670.310, 701.235, 701.305 & 701.330
Stats. Implemented: 701.305 & 701.330
Hist.: CCB 7-2007, f. 12-13-07, cert. ef. 1-1-08; CCB 4-2008(Temp), f. & cert. ef. 1-18-08 thru 7-15-08; CCB 7-2008, f. 4-28-08, cert. ef. 5-1-08

812-012-0140

Requirements for Notice of Compliance with Homebuyer Protection Act

(1) Under ORS 87.007(3), a seller of residential property must deliver a Notice of Compliance with Homebuyer Protection Act on or before the date the sale of the property closes to the purchaser of:

(a) A new single family residence, condominium or residential building; or

(b) An existing single-family residence, condominium or residential building where:

(A) The price for original construction, including but not limited to an addition to the single family residence, condominium or residential building, that is completed within three months prior to the date of the sale of the property is $50,000 or more; or

(B) The contract price for improvements to the single-family residence, condominium or residential building that are completed within three months prior to the date of the sale of the property is $50,000 or more.

(2) The seller must deliver the notice required under ORS 87.007(3) on or before the close of the sale of the property.

(3) The notice required under ORS 87.007(3) shall be on the form adopted under OAR 812-001-0200.

(4) Under ORS 87.007(3), a seller of residential property may specify on the Notice of Compliance with Homebuyer Protection Act that 87.007(2) does not apply to the sale of the property if the seller knows that no person may enforce a valid lien against the property because:

(a) The last day to perfect any lien on the property under ORS 87.035 was prior to the date of sale of the property; and

(b) No lien was perfected.

Stat. Auth.: ORS 87.007, 670.310, & 701.235
Stats. Implemented: ORS 87, 87.007, & ch. 701
Hist.: CCB 13-2003(Temp), f. 12-19-03, cert. ef. 1-1-04 thru 6-14-04; CCB 2-2004, f. 2-27-04, cert. ef. 3-1-04; CCB 4-2004, f. 5-28-04, cert. ef. 6-1-04; Renumbered from 812-001-0022, CCB 7-2005, f. 12-7-05, cert. ef. 1-1-06; Renumbered from 812-001-0300, CCB 16-2008, f. 9-26-08, cert. ef. 10-1-08

812-012-0145

Surety Bond Issued to Protect Purchasers of Residential Property from Lien Claims

A seller of residential property may provide a surety bond to satisfy the requirements of ORS 87.007(2)(c), provided that the bond complies with the following requirements.

(1) The bond must be issued by an insurer authorized or approved to do business in this state.

(2) The bond must be issued on or after the date of completion of the residential property. For purposes of this rule, the “date of completion” shall be determined in accordance with ORS 87.045.

(3) The bond must be issued in an amount of not less than 25 percent of the sales price of the residential property.

(4) The bond shall remain in effect:

(a) Not less than 75 days after the date of completion if no lien is perfected under ORS 87.035 against the residential property; or

(b) If one or more liens are perfected against the residential property within 75 days from the date of completion, until:

(A) All liens are released and the releases recorded;

(B) The seller files a bond or makes a deposit and the seller files the required affidavit under ORS 87.076 to 87.081;

(C) The surety files a bond or makes a deposit and the seller files the required affidavit under ORS 87.076 to 87.081; or

(D) The surety pays the buyer the amount of the lien or the penal sum of the bond, whichever is less.

(5) The bond shall include the following terms and conditions:

“NOW, THEREFORE, the conditions of the foregoing obligation are that if the principal shall not permit any construction lien to be placed upon the subject property; shall obtain the release of all construction liens upon the subject property and have the releases recorded; or shall file a bond or deposit in accordance with ORS 87.076 to 87.081; then this obligation shall be void; otherwise to remain in full force and effect.

“This bond is for the exclusive purpose of paying construction lien obligations encumbering (legal description or address of property) arising out of the sale by principal to (name(s) of purchaser(s)), in compliance with ORS 87.007(2)(c) and OAR 812-012-0145.

“The bond shall be one continuing obligation, and the liability of the surety for the aggregate of any and all claims, which may arise hereunder, shall in no event exceed the penalty on this bond.

“The bond shall remain in effect for not less than 75 days after the date of completion if no lien is perfected under ORS 87.035 against the property; or, if one or more liens are perfected against the property within 75 days from the date of completion, until (1) all liens are released and the releases recorded; (2) the principal files a bond or makes a deposit and the principal files the required affidavit under ORS 87.076 to 87.081; (3) the surety files a bond or makes a deposit and the surety files the required affidavit under 87.076 to 87.081; or (4) the surety pays the liens.”

Stat. Auth.: ORS 87.007, 670.310 & 701.235
Stats. Implemented: ORS 87.007
Hist.: CCB 8-2004, f. & cert. ef. 10-1-04; Renumbered from 812-001-0023, CCB 7-2005, f. 12-7-05, cert. ef. 1-1-06; Renumbered from 812-001-0305, CCB 16-2008, f. 9-26-08, cert. ef. 10-1-08

812-012-0150

Letter of Credit Issued to Protect Purchasers of Residential Property from Lien Claims

(1) As used in this rule, “letter of credit” means an irrevocable standby letter of credit.

(2) A seller of residential property may provide a letter of credit to satisfy the requirements of ORS 87.007(2)(c), provided that the letter of credit complies with the following requirements.

(a) The letter of credit must be issued by or confirmed by an Oregon state-chartered bank or a federally chartered bank that has an Oregon branch.

(b) The letter of credit must be issued on or after the date of completion of the residential property. For purposes of this rule, the “date of completion” shall be determined in accordance with ORS 87.045.

(c) The letter of credit must be issued in an amount of not less than 25 percent of the sales price of the residential property.

(d) The beneficiary of the letter of credit must be the purchaser of the property.

(e) The letter of credit shall remain in effect:

(A) Not less than 75 days after the date of completion if no lien is perfected under ORS 87.035 against the residential property; or

(B) If one or more liens are perfected against the residential property within 75 days from the date of completion, until:

(i) All liens are released and the releases recorded;

(ii) The seller files a bond or makes a deposit and the seller files the required affidavit under ORS 87.076 to 87.081; or

(iii) The issuing or confirming bank pays the purchaser of the property the amount of the lien or the amount of the letter of credit, whichever is less in accordance with the terms of the letter of credit.

(f) The letter of credit can be called by the purchaser of the property immediately if:

(A) The seller of the property permits any construction lien to be placed upon the property;

(B) The seller of the property fails to obtain the release of all construction liens upon the property and have the releases recorded; or

(C) The seller of the property fails to file a bond or deposit and record the required affidavit under ORS 87.076 to 87.081.

(g) The credit shall be available by presentation of the purchaser of the residential property at sight on the issuing, or confirming, bank when accompanied by a notice of lien filing together with the claim of lien, as provided by ORS 87.039. The credit shall be available within three business days of presentation.

Stat. Auth.: ORS 87.007, 670.310 & 701.235
Stats. Implemented: ORS 87.007
Hist.: CCB 8-2004, f. & cert. ef. 10-1-04; Renumbered from 812-001-0024, CCB 7-2005, f. 12-7-05, cert. ef. 1-1-06; Renumbered from 812-001-0310, CCB 16-2008, f. 9-26-08, cert. ef. 10-1-08

812-012-0170

Unpaid Court Judgments

(1) A contractor against whom a court enters a judgment or order awarding arbitration must report that judgment or order to the Construction Contractors Board, if:

(a) The judgment or order arises from:

(A) Breach of contract;

(B) Negligent work; or

(C) Improper work.

(b) The judgment or order relates to construction or proposed construction of a residential structure.

(2) The contractor will transmit a copy of the final judgment or order to the Construction Contractors Board within 45 days after the final judgment or order is recorded.

(3) The contractor will transmit the copy of the final judgment or order with a completed “Unpaid Court Judgment Filing” form described in OAR 812-001-0220.

(4) The contractor is not required to send the Board a copy of the judgment or order, if:

(a) The contractor paid the damages and other amounts payable under the judgment or order within 30 days from the date the judgment or order was recorded; or

(b) The contractor appealed the judgment or order and has filed an undertaking on appeal as required by ORS 19.300.

Stat. Auth.: ORS 670.310 & 701.235
Stats. Implemented: ORS 701.109
Hist.: CCB 4-2009, f. 5-6-09, cert. ef. 6-1-09

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