ORS 701.235¹
Rulemaking

(1) The Construction Contractors Board shall adopt rules to carry out the provisions of this chapter including, but not limited to, rules that:

(a) Establish language for surety bonds;

(b) Establish processing requirements for different types of complaints described in this chapter;

(c) Limit whether a complaint may be processed by the board if there is no direct contractual relationship between the complainant and the contractor;

(d) Subject to ORS 701.153 (Recording of order as lien) and 701.157 (Satisfaction of order against commercial contractor), exclude or limit recovery from the contractor’s bond required by ORS 701.068 (Bonding requirements) of amounts awarded by a court or arbitrator for interest, service charges, costs and attorney fees arising from commencing the arbitration or court action and proving damages; and

(e) Designate a form to be used by an owner of residential property under ORS 87.007 (Protection of purchasers of residential property from construction liens that may be perfected after sale of property completed) for the purpose of indicating the method the owner has selected to comply with the requirements of ORS 87.007 (Protection of purchasers of residential property from construction liens that may be perfected after sale of property completed) (2) or to indicate that ORS 87.007 (Protection of purchasers of residential property from construction liens that may be perfected after sale of property completed) (2) does not apply.

(2) The board may adopt rules prescribing terms and conditions under which a contractor may substitute a letter of credit from a bank authorized to do business in this state instead of the bond requirements prescribed in ORS 701.068 (Bonding requirements). [1971 c.740 §19; 1989 c.928 §28; 1991 c.181 §13; 2001 c.197 §19; 2003 c.778 §6; 2007 c.793 §23; 2007 c.836 §36]

Note: The amendments to 701.235 (Rulemaking) by section 36, chapter 836, Oregon Laws 2007, become operative July 1, 2008, and apply to complaints filed against persons whose contractor licenses are issued or renewed on or after July 1, 2008. See section 70, chapter 836, Oregon Laws 2007. The text that is operative until July 1, 2008, including amendments by section 23, chapter 793, Oregon Laws 2007, is set forth for the user’s convenience.

701.235 (Rulemaking). (1) The Construction Contractors Board shall adopt rules to carry out the provisions of this chapter including, but not limited to, rules that:

(a) Establish language for surety bonds;

(b) Establish processing requirements for different types of complaints described in this chapter;

(c) Limit whether a complaint may be processed by the board if there is no direct contractual relationship between the complainant and the contractor;

(d) Notwithstanding ORS 701.146 (Resolution of complaints involving work on large commercial structures or certain small commercial structures) (7) and 701.150 (Satisfaction of unpaid order from bond) (4) and subject to ORS 701.150 (Satisfaction of unpaid order from bond) (6), exclude or limit recovery from the contractor’s bond required by ORS 701.068 (Bonding requirements) of amounts awarded by a court or arbitrator for interest, service charges, costs and attorney fees arising from commencing the arbitration or court action and proving damages; and

(e) Designate a form to be used by an owner of residential property under ORS 87.007 (Protection of purchasers of residential property from construction liens that may be perfected after sale of property completed) for the purpose of indicating the method the owner has selected to comply with the requirements of ORS 87.007 (Protection of purchasers of residential property from construction liens that may be perfected after sale of property completed) (2) or to indicate that ORS 87.007 (Protection of purchasers of residential property from construction liens that may be perfected after sale of property completed) (2) does not apply.

(2) The board may adopt rules prescribing terms and conditions under which a contractor may substitute a letter of credit from a bank authorized to do business in this state instead of the bond requirements prescribed in ORS 701.068 (Bonding requirements).

Atty. Gen. Opinions

Authority of the Builders Board to prohibit by regula­tion the advertise­ment by registered builders that they are bonded, insured, or certified, (1973) Vol 36, p 592

Chapter 701

Notes of Decisions

This is a remedial statute made for the protec­tion of the building business and of people dealing with builders who might be irresponsible; it should be read as a whole and liberally construed to accomplish its purpose. Robinson v. Builders Bd., 20 Or App 340, 531 P2d 752 (1975)

Atty. Gen. Opinions

Lack of authority for director to appoint executive secretary for board, (1971) Vol 35, p 930; inap­pli­ca­bil­i­ty of this chapter to business of construc­tion or installa­tion of fences, sidewalks, septic tanks, wells and underground sprinkling systems, (1972) Vol 35, p 1278; mobile home as per­sonal or real prop­erty under this chapter, (1972) Vol 36, p 41; applica­tion of Homebuilders Law to mobile homes, (1978) Vol 38, p 693

1 Legislative Counsel Committee, CHAPTER 701—Construction Contractors and Contracts, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­701.­html (2007) (last ac­cessed Feb. 12, 2009).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2007, Chapter 701, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­701ano.­htm (2007) (last ac­cessed Feb. 12, 2009).
 
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent. Currency Information