Business Practices, Contracts, and Consumer Protection
Residential contract requirements
Oregon’s residential contract statute (ORS 701.305) requires a written, signed contract for residential construction work of $2,000 or more. The contract must identify the contractor and CCB license number, describe the work and materials, state the total price and payment schedule, and give start and completion dates. Changes should be documented in a signed change order before work proceeds. A clear payment schedule tied to progress-not a large front-end deposit-reduces disputes.
Cancellation and notices
A home-solicitation sale (contract signed at the buyer’s home) gives the buyer three business days to cancel, unless the buyer waives the right for an emergency repair. The contractor should not begin work or deliver materials before the cancellation period ends. Residential contracts must also give the consumer information about the CCB and the complaint process. Contractors must provide lien notices required by Oregon’s construction lien law; missing a notice can destroy lien rights.
Complaints and records
The CCB investigates licensed-contractor complaints and can require corrective action, refer disputes to mediation, or discipline the license. Keep signed contracts, change orders, invoices, inspection records, and warranty documents for the statutory period.
Worked example
A contractor meets a homeowner at her house and signs a $15,000 siding contract. The next morning the crew starts. The homeowner cancels on day two. Because this is a home-solicitation sale, the cancellation is timely; starting work early weakens the contractor’s position and may create liability for restoration. The contractor should have waited three business days or obtained a proper waiver.
Traps that cost marks
Oral change orders, missing CCB numbers, and “allowance” language that hides extra charges are common exam traps. A low bid that omits permits or lien notices is not a complete contract.