The $18,000 Handyman and the Missing CCB Number
Marisol owns a 1968 ranch house in Salem, Oregon. She hires Randy, who advertises as 'Randy's Fix-It,' to convert her attached garage into a bedroom and build a 10-by-16-foot deck. They agree on $18,000, and Randy takes $9,000 in cash before any work starts. He says a CCB license is unnecessary because 'the job is under $20,000.' No written contract is signed, no CCB number appears on his truck or estimate, and no permits are pulled. Three weeks later, the framing is incomplete, the deck ledger is nailed through the siding, and Randy has personally installed several electrical outlets and a bathroom exhaust fan. Marisol asks for his license and insurance; he refuses and demands another $4,000 to continue. She has photos, the cash receipt, and text messages. She wants to know whether she must pay him and how to recover.
1. Was Randy required to hold a CCB license for this job, and does his '$20,000' explanation have any legal basis? Explain the licensing rule and any additional trade license issue.
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Randy needed a CCB license. ORS 701.021 prohibits a person from engaging in the business of contracting without a CCB license, and ORS 701.010 defines 'contractor' broadly to include someone who undertakes to construct, alter, repair, or improve real property for compensation. There is no under-$20,000 exception; the dollar figure is a myth. The garage conversion and deck are residential construction. Separately, installing outlets and a bathroom exhaust fan is electrical work requiring an electrical license from the Oregon Building Codes Division; a CCB general contractor license does not authorize electrical work unless the person also holds the trade license. Randy's failure to pull permits is also a red flag and may be a CCB rule violation. Because he is unlicensed, he is exposed to CCB civil penalties and may be barred from enforcing the contract.
2. Identify the contract and disclosure requirements that a licensed residential contractor should have met for this $18,000 job.
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For residential work over $2,000, ORS 701.305 requires a written contract. It should identify the contractor's legal name, business address, CCB license number, and phone; describe the work and materials; state the price and payment schedule; and include the required consumer notice about the CCB and the homeowner's right to file a complaint. The contract should also address change orders, permits, warranties, and lien notices. Randy gave none of this. A cash receipt and texts are not a substitute. The absence of a written contract makes the payment schedule and scope disputed and weakens any claim by Randy. Marisol should preserve the receipt, texts, photos, and any estimate. She should also request the permit history from the city and a written statement of what electrical work was done, because unpermitted electrical work may need to be removed and inspected.
3. What remedies and risks should Marisol be advised about if she files a CCB complaint and Randy sues or liens for the unpaid balance?
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Marisol should file a CCB complaint and a bond claim. The CCB can investigate, order restitution, and impose civil penalties; the general contractor bond is a source of recovery, though it is limited. She should not pay the additional $4,000 without a written settlement that addresses correction, permits, and release. If Randy sues for the unpaid balance, ORS 701.065 bars an unlicensed contractor from bringing an action to enforce the contract or recover compensation for the work. That does not automatically give Marisol a windfall, but it changes the leverage. A lien claim by an unlicensed contractor is also vulnerable. She should document the defective ledger and electrical work and get estimates to correct. If she needs the work finished, she should hire a licensed contractor and keep receipts to offset any claim. She should avoid signing a release until the bond and CCB remedies are evaluated.