A Contractor’s Guide for Developing Contracts in Oregon

Before embarking on an exciting new construction contract, it’s important to get all the details written down in a legal contract. Developing a contract can be intimidating for contractors — especially as contract requirements vary across states.

In Oregon, contractors are required to have a written contract when a project’s cost exceeds $2,000. However, the Oregon Construction Contractors Board recommends written contracts for all types of projects, as they help avoid disputes by establishing the scope of work and ensure all parties are on the same page. Read on to learn more about what contractors should include in an Oregon contract.

Required Notices

In Oregon, all written construction contracts must include three notices, which can be found on the Oregon Construction Contractors Board website. First is the “Consumer Protection Notice,” which details contractor licensing standards and bond and insurance requirements. This notice also outlines the steps for a successful construction project and what to do if issues arise.

The second notice that must be included is the “Notice of Procedure,” which details the steps a client must take before engaging in court action against a contractor. The final notice that must be included is the Information “Notice to Owner About Construction Liens,” which covers construction lien law and other information to protect homeowners.

Contact Information and the Scope of Work

In addition to these required notices, Oregon contractors must include basic information in their contracts, such as their name, address, phone number, and CCB license number. The contract must also include the client’s name, address, and the project address.

The contract also needs to include a “scope of work.” This means a description of the work to be done, the price of the project, and the payment terms. The scope of work is essential to ensure both parties are on the same page, so be sure to include plenty of detail.

Payment Information

Another critical aspect of a contract is payment terms — and this is a requirement for contracts in Oregon. When developing your contracts, be sure to include all estimates given during the bidding process, as well as final project costs. The contract should also note whether a down payment will be made at the start of the project and if payments will be made in multiple installments (if this is the case, the dates and payment amounts should be included as well).

Homeowner Rights Information

Finally, contractors must include information about homeowner rights in an Oregon contract. Both parties should negotiate to ensure their rights are protected. The property owner, for instance, should maintain the ability to file a complaint with the Oregon Construction Contractors Board.  Establishing these rights in the contract upfront ensures a fair mediation and arbitration process should any issues arise during the build or after the project’s completion.

 

 

Note: Consult a legal professional in connection with the drafting of any legal documents which include contracts.