CONSTRUCTION CONTRACT
THIS CONSTRUCTION CONTRACT (“Contract”), effective as of the date of the last party to sign
below, is between , having an address at
("Contractor") and , having an address
at ("Owner").
For valuable consideration the parties hereby agree as follows:
1. LIST OF DOCUMENTS TO BE INCORPORATED INTO THIS CONTRACT:
1. Oregon Construction Contractors Board Recommended Contract Addendum to Satisfy Contract Terms
Requirement- OAR 812-012-0110
2. Consumer Protection Notice
3. Notice of Right to a Lien
4. Information Notice to Owner About Construction Liens
5. Maintenance Information and Schedule
6. Notice of Procedure
7. Notice of Compliance with the Homebuyer Protection Act (HPA)
The above-mentioned documents are hereby incorporated in and made part of this Contract.
2. SCOPE OF WORK: Contractor, who is licensed by the Oregon Construction Contractors Board,
shall provide all labor and materials, and perform all work necessary for the completion of the
residence, structure, or improvements as described in the drawings and specifications signed by both
Owner and Contractor (“Project”) and more particularly described as
Such drawings and specifications are hereby made a part of this Contract. Drawings and specifications
shall contain a scale drawing showing the shape, size, and dimensions of the construction and
equipment together with a description of the work to be done, materials to be used, and the equipment
to be used or installed.
3. WORK SITE: The Project shall be constructed on the property of Owner located at
and more
particularly described as (hereafter "the
Work Site"). Owner hereby authorizes Contractor to commence and complete the usual and customary
excavation and grading on the Work Site as may be required in the judgment of the Contractor to complete
the Project. Unless called for in the drawings or specifications, no landscaping, finish grading, filling or
excavation is to be performed at the Work Site by the Contractor.
4. TIME OF COMPLETION: Contractor shall commence the work to be performed under this Contract
on or before and shall substantially complete the work on or before . Contractor
shall not be liable for any delay due to circumstances beyond its control including strikes, casualty, acts of
God, illness, injury, or general unavailability of materials.
5. PERMITS: Contractor shall apply for and obtain such permits and regulatory approvals as may be
required by the local municipal/county government, the cost thereof shall be included as part of the Project
price.
6. SOIL CONDITIONS: Contractor shall have no responsibility for the condition of the soils at the Work
Site. Any excavation, filling or other work required by the Owner other than the usual and customary
excavation and grading shall be agreed to in a Change Order for an amount in addition to the Contract
Price. Contractor shall not be responsible for any damages suffered by Owner as a result of the soil
conditions at the Work Site.
7. INSURANCE: Contractor shall maintain general liability, workers compensation and builder's risk
insurance.
8. SURVEY AND TITLE: If the Project is near the Owner’s property boundary, Owner will point out
property lines to the Contractor. If the Owner or Contractor has any doubt about the location of the
property lines, Owner shall provide Contractor with boundary stakes through a licensed surveyor. In
addition, Owner shall provide Contractor documentation that Owner has title to the Work Site and shall
provide Contractor copies of any covenants, conditions, or restrictions that affect the Work Site.
9. CHANGES TO SCOPE OF WORK: Owner may make changes to the scope of the work, including
changes to the drawings and specifications, from time to time during the construction of the Project.
However, any such change or modification shall only be made by written "Change Order" signed by both
parties. Such Change Orders shall become part of this Contract. Owner agrees to pay any increase in the
cost of the Project as a result of a Change Order. In the event the cost of a Change Order is not known at
the time a Change Order is executed, the Contractor shall estimate the cost thereof and Owner shall pay the
actual cost whether or not it is in excess of the estimated cost.
10. CONTRACT PRICE:
{COST PLUS}
Owner agrees to pay Contractor the actual cost to Contractor of materials plus the sum of
$ for performing the services set forth in the scope of the work. Contractor shall be
paid as follows:
.
OR
{FIXED FEE}
Owner agrees to pay Contractor the sum of $ for performing the services set forth in the
scope of the work. Contractor shall be paid as follows:
.
Contractor shall furnish Owner appropriate releases or waivers of lien for all work performed or materials
provided at the time the next periodic payment shall be due.
11. LATE PAYMENT/DEFAULT: A failure to make payment for a period in excess of ten (10) days from
the due date shall be deemed a material breach of this Contract. If payment is not made when due,
Contractor may suspend work on the job until such time as all payments due have been made without
breach of the Contract pending payment or resolution of any dispute. Owner agrees to pay a late charge of
1% of all payments that are more than ten (10) days late plus interest at the rate of 1% per month.
12. DESTRUCTION AND DAMAGE : If the Project is destroyed or damaged for any reason, except where
such destruction or damage was caused by the sole negligence of the Contractor or its subcontractors,
Owner shall pay Contractor for any additional work done by Contractor in rebuilding or restoring the
Project to its condition prior to such destruction or damage. If the estimated cost of replacing work already
accomplished by Contractor exceeds 20 percent of the Contract price, either the Contractor or Owner may
terminate this Contract. Upon termination by either party, Contractor shall be excused from further
performance under this Contract and Owner shall pay Contractor a percentage of the Contract price in
proportion to the amount of work accomplished prior to the destruction or damage.
13. ASSIGNMENT : Neither party may assign this Contract, or payments due under the Contract, without the
other party’s written consent. Any such assignment shall be void and of no effect.
14. INTERPRETATION:
(a) Interpretation of Documents. The Contract, drawings, and specifications are intended to
supplement one another. In the event of a conflict, the specifications shall control the drawings, and the
Contract shall control both. If work is displayed on the drawings but not called for in the specifications, or
if the work is called for in the specifications but not displayed on the drawings, Contractor shall be required
to perform the work as though it were called for and displayed in both documents.
(b) Entire Agreement. This Contract constitutes the entire agreement of the parties. No other
agreements, oral or written, pertaining to the work to be performed under this Contract exists between the
parties. This Contract may only be modified only by a written agreement signed by both parties.
(c) Governing Law. This Contract shall be interpreted and governed in accordance with the laws of
the State of Oregon.
15. ATTORNEYS’ FEES AND COSTS: If any party to this Contract brings a cause of action against the
other party arising from or relating to this Contract, the prevailing party in such proceeding shall be entitled
to recover reasonable attorney fees and court costs.
16. PERFORMANCE:
(a) Contractor may, at its discretion, engage licensed subcontractors to perform work pursuant this
Contract provided Contractor shall remain fully responsible for the proper completion of the Project.
(b) All work shall be completed in a workman-like manner and in compliance with all building codes
and applicable laws. To the extent required by law, all work shall be performed by individuals duly
licensed and authorized by law to perform said work.
(c) Contractor agrees to remove all debris and leave the premises in broom clean condition.
17. WARRANTY: Contractor's warranty shall be limited to defects in materials and workmanship within the
scope of work performed by Contractor and which arise and become known within one (1) year from the
date hereof. All said defects arising after one (1) year are not warranted by Contractor. Contractor hereby
assigns to Owner all warranties on materials as provided by the manufacturer of such materials.
AGREED:
CONTRACTOR:
OWNER:
Signature
Print Name & Title
Date
CCB License Number
Name of License Holder
Address of License Holder
Phone Number of License Holder Signature
Print Name
Address
Date
NOTICES TO OWNER:
CCB Recommended Contract Addendum to Satisfy Contract Terms Requirement
OA R 8 1 2 -01 2 - 0 110
1. List of Re q uired Construction C o ntractor B o ard (CCB) Consumer Notices
Oregon law requires construction contr a ctors to give ho m eowne r s certain notices before and during a
construction project. The following is a list of the forms. It is i m portant to read and understand these
form s .
a. Consumer P rotection Notice .
b . Information Notice to Owner About Construction Liens
c. Notice of P r ocedure
2. Explanation of Property O w ner’s Rights
a. Consumers have the right t o receive the p r oducts and services agreed to in t h e
contract. b. Consumers have the right t o resolve disputes through means outlined in
the cont r act.
c. Consumers have the right to file a co m pl aint with the CCB. Any arbitration or m ediation clauses in the
contract may
prevent the CCB fr o m processing.
3. Arbitratio n / Mediation Clause
a. An “arbitration or m ediati o n clause” is a written porti o n of a contract designed to settle how the
parties will solve disput e s that m ay arise during, or after the con s truction project. Arbitration clauses
a r e very i m portant. They m ay l i mit a cons u mer’s abili t y to have their dispu t e resolved by the Oregon
court s y stem or the Oregon Construction Contractors Board.
b. The followi n g b o x shou l d be checked by the contracto r :
This contract contains an arbitration or mediation clause.
This contract DOES NOT con t ain an arbitration or mediation clause.
c. The Oregon Construction Contractors Board urges con s umers to read and u n derstand the enti r e
contract – including any arbitration clause before s i gning a const r uction contr a ct. Consu m e r s are not
obligated to acc e pt contract te r ms proposed by the contractor, including a rbitration p r ovisions. The s e
m ay be negotiated to the satisfaction o f both parties.
4. Offer of Written Warranty (New Residenti a l S tructure Only)
Purchaser ac k nowledges the contractor has offered w a rranty against defects in m a terials and workmanship to the
purchaser. Buyer has accepted or rejected the offer of warranty. (see appendix in contract.)
_______________________ purchaser ____________________ date
Signature
Consu m er Signature Date
Consu m er Signature Date
List of Required Consumer Notices
Oregon law requires construction contractors to give homeowners certain notices before and during a construction
project. The following is a list of the required notices. It is important to read and understand these forms.
1. Consumer Protection Notice
2. Information Notice to Owner About Construction Liens
3. Notice of Procedure
These forms are attached to and made a part of this contract.
Explanation of HOMEOWNERS’ Rights
1. Consumers have the right to receive the products and services agreed to in the contract.
2. Consumers have the right to resolve disputes through means outlined in the contract.
3. Consumers have the right to file a complaint with the CCB. Any arbitration or mediation clauses in the contract
may need to be complied with during the resolution of the CCB complaint.
Explanation of Mediation or Arbitration Clause
An “arbitration or mediation clause” is a written portion of a contract designed to settle how the parties will solve
disputes that may arise during, or after the construction project. Arbitration clauses are very important. They may
limit a consumer’s ability to have their dispute resolved by the Oregon court system or the Oregon Construction
Contractors Board.
This contract contains an arbitration or mediation clause.
This contract DOES NOT contain an arbitration or mediation clause.
The Oregon Construction Contractors Board urges consumers to read and understand the entire contract –
including any arbitration clause before signing a construction contract. Consumers are not obligated to accept
contract terms proposed by the contractor, including arbitration provisions. These may be negotiated to the
satisfaction of both parties.
_________________________ _____________________
Homeowner Date
_________________________ _____________________
Contractor Date
Consumer Protection Notice
Actions to help make your project successful
(ORS 701.330 (1))
Oregon law requires contractors to provide the homeowner with this notice at the time of written contract, for
work on a residential structure. This notice explains licensing, bond and insurance requirements, and steps that
consumers can take to help protect their interests.
START OUT YOUR PROJECT RIGHT
1. Make sure your contractor is properly licensed before you sign a contract. Visit www.oregon.gov/ccb, and click
on the link, Check on a Contractor’s License, or call our offices at 503-378-4621. To be licensed in Oregon,
contractors must take training and pass a test on business practices and law. Licensing is not a guarantee of the
contractor’s work.
• A license requires the contractor to maintain a surety bond and liability insurance The CCB surety bond provides
a limited amount of financial security if the contractor is ordered to pay damages in contract disputes. It is not
intended to be a safety net for consumer damages. Consumers with large projects may wish to look into
performance bonds. Liability insurance coverage provides for property damage and bodily injury caused by the
contractor. It does not cover contract disputes, including poor workmanship.
• If your contractor is not licensed - the CCB bond and dispute resolution services will not be available to you.
2. What you should know about bids, contracts, and change orders:
• Bids - Do not automatically accept the lowest bid - A low bid may make it necessary for the contractor to use
lower quality materials and to cut corners in workmanship.
• Contracts and Change Orders - Always get it in writing. Your contractor is required to provide a written contract
if the contract price is more than $2000. The CCB recommends that all contracts be in writing.
• Contracts should be as detailed as possible -Some items to include are materials and costs, permits, estimated
start and completion dates, debris removal, and arbitration clauses. Make sure the contractor’s name, CCB
number, and contact information is included in the contract.
• Read and understand your contract before signing it - Don’t be pressured into signing your contract without
taking the time needed to go through it. Make sure it includes enough details to avoid misunderstandings and to
protect you and your property.
3. Additional contract information you should know:
• A Payment Schedule - should be included in the contract. Stick to the schedule and never pay in full for a project
before the work is complete.
• Special Note on Liens - Subcontractors and material suppliers that work on your project are often paid by the
general contractor. If a general contractor fails to pay, the subcontractor may file a lien on your property. For
information on construction liens, visit the CCB’s Consumer Help Page at www.oregon.gov/ccb, or contact an
attorney.
• Warranty on new residential construction - Contractors must make an offer of a warranty when constructing a
new residential structure. Consumers may accept or refuse the warranty.
4. If you should have a problem with your contractor - You can file a complaint with the CCB against a licensed
contractor within one year of the substantial completion of work on your project. Contact the CCB office at 503-
378-4621 for help.
Visit the CCB website at for more information on having a successful project. www.oregon.gov/ccb
___________________________ ____________________________
Signature Date
CONTRACTOR:
CCB#: ___________________
___________________________ ____________________________
Signature Date
PROPERTY OWNER:
___________________________ ____________________________
Signature Date
NOTICE OF RIGHT TO A LIEN.
WARNING : READ THIS NOTICE. PROTECT YOURSELF FROM PAYING ANY CONTRACTOR OR
SUPPLIER TWICE FOR THE SAME SERVICE.
To: ______________________ Date of mailing: ______________________
Owner
______________________
Owner's address
______________________
This is to inform you that ______________________ has begun to provide ______________________
(description of materials, equipment, labor or services) ordered by ______________________ for
improvements to property you own. The property is located at ______________________ .
A lien may be claimed for all materials, equipment, labor and services furnished after a date that is eight
days, not including Saturdays, Sundays and other holidays, as defined in ORS 187.010, before this notice
was mailed to you.
Even if you or your mortgage lender have made full payment to the contractor who ordered these
materials or services, your property may still be subject to a lien unless the supplier providing this notice is
paid.
THIS IS NOT A LIEN. It is a notice sent to you for your protection in compliance with the construction
lien laws of the State of Oregon.
This notice has been sent to you by:
NAME: ______________________
ADDRESS: ______________________
TELEPHONE: ______________________
IF YOU HAVE ANY QUESTIONS ABOUT THIS NOTICE, FEEL FREE TO CALL US.
IMPORTANT INFORMATION FOR YOUR PROTECTION
Under Oregon's laws, those who work on your property or provide labor, equipment, services or materials and are
not paid have a right to enforce their claim for payment against your property. This claim is known as a
construction lien. If your contractor fails to pay subcontractors, material suppliers, rental equipment suppliers,
service providers or laborers or neglects to make other legally required payments, the people who are owed money
can look to your property for payment, even if you have paid your contractor in full .
The law states that all people hired by a contractor to provide you with materials, equipment, labor or services
must give you a notice of right to a lien to let you know what they have provided.
WAYS TO PROTECT YOURSELF ARE:
— RECOGNIZE that this notice of right to a lien may result in a lien against your property unless all those
supplying a notice of right to a lien have been paid.
— LEARN more about the lien laws and the meaning of this notice by contacting the Construction Contractors
Board, an attorney or the firm sending this notice.
— ASK for a statement of the labor, equipment, services or materials provided to your property from each party
that sends you a notice of right to a lien.
— WHEN PAYING your contractor for materials, equipment, labor or services, you may make checks payable
jointly to the contractor and the firm furnishing materials, equipment, labor or services for which you have
received a notice of right to a lien.
— OR use one of the methods suggested by the "Information Notice to Owners." If you have not received such a
notice, contact the Construction Contractors Board.
— GET EVIDENCE that all firms from whom you have received a notice of right to a lien have been paid or
have waived the right to claim a lien against your property.
— CONSULT an attorney, a professional escrow company or your mortgage lender.
Informatio n Notic e T o Owne r About
Constructio n Liens
This is not a lien. Y our contractor is required by law to provide this notice to inform you about construction lien laws.
This notice explains the construction lien la w , and gives ste p s you can t ake to protect your property from a valid lien. As
an owne r , you should read this information notice carefull y . This information notice is required to be given if you
contract for residential construction or remodeling, if you are buying a new home, or at any time the contract price
exceeds $2,000.
• Under Oregon la w , your contractor and others who provide labo r , materials, equipment, or services to your
project may be able to claim p ayment from your property if they have not been p aid. That claim is called a
Construction Lien.
• If your contractor does not p ay subcontractors, employees, ren t al equipment dealers , materials suppliers, or does
not make other legally required p aymen t s, those who are owed money may place a lien against your property for
p ayment. It is in your best interest to verify that all bills related to your contract are p aid, even if you have
p aid your contractor in full.
• If you occupy or will occupy your home, persons who supply materials, labo r , equipment, or services ordered by
your contractor are permitted by law to file a lien against your property only if they have sent you a timely Notice of
Right to Lien (which is di f ferent from this Information Notice), before or during construction. If you enter into a contract
to buy a newly- built, p artially-built, or newly-remodeled home, a lien may be claimed even though you have not
received a Notice of Right to a Lien. If you do not occupy the building, a Notice of Right to Lien is not required prior to
filing a lien.
This notice is not intended to be a complete analysis of the la w . Y ou should consult an attorney for more
information.
Commo n Question s an d Answer s Abou t Constructio n Liens
Can someone record a construction lien even if I p ay my contractor? Y es. Anyone who has not been p aid for labo r ,
material, equipment, or services on your project and has provided you with a valid Notice of Right to Lien has the right to
record a construction lien.
What is a Notice of Right to Lien? A Notice of a Right to Lien is sent to you by persons who have provided labo r ,
materials, or equipment to your construction project. It protec t s their construction lien righ t s against your propert y .
What should I do when I receive a Notice of Right to Lien? Don’t ignore it. Find out what arrangemen t s
your contractor has made to p ay the sender of the Notice of Right to Lien.
When do construction liens need to be recorded? In Oregon, construction liens generally need to be recorded within 75 days
from the date the project was subs t antially completed, or 75 days from the date that the lien claimant stopped providing labo r ,
material, equipment, or services, whichever happened first. T o enforce a lien, the lien holder must file a lawsuit in a proper court
within 120 days of the date the lien was filed.
Not e t o Contractor : Thi s notic e mus t b e delivere d personall y , o r maile d b y registere d mail , certifie d mail , o r b y first-class
mai l wit h a certificat e o f mailing . As k th e signin g p artie s t o provid e yo u wit h a n origina l o r cop y t o re t ai n i n you r files . Y o u
shoul d re t ai n proo f o f deliver y o f thi s notic e fo r a t leas t tw o years.
S te p s Tha t Consumer s Ca n T ak e t o Protec t Themselv e s
• Contact the Construction Contractors Board (CCB) and confirm that your contractor is licensed. The law requires
all construction contractors to be licensed with the CCB. Check a contracto r ’ s license online at the CCB consumer website:
ww w .oregon.gov/cc b , or you can call 503-378-4621.
• Review the Consumer Protection Notice (ORS 701.330(1)) , which your contractor must provide to you at the time of
contract on a residential structure.
• Consider using the services of an escrow agent to protect your interes t s. Consult your attorney to find out whether your
escrow agent will protect you against liens when making p aymen t s.
• Con t act a title com p any about ob t aining a title policy that will protect you from construction lien claims.
• Find out what precautions, if an y , will be t aken by your contracto r , lending institution, and architect to protect your
project from construction liens.
• Ask the contractor to get lien waivers or lien releases from every subcontracto r , materials provide r , equipment
provide r , and anyone else the contractor is responsible for p aying. Do this before you give your contractor a progress
p ayment.
• Have a written contract with your contracto r . A written contract is required for projec t s greater than $2,000. An original
contractor that fails to provide a written contract as required by la w , may not place a construction lien against the owne r ’ s
propert y .
• If you receive a Notice of Right to Lien, ask for a s t atement of the reasonable value of the materials, labo r , equipment,
or services provided to your project from everyone who sends you a Notice of Right to Lien. If the information is not
provided in a timely manne r , the sender of the Notice of Right to Lien may still be able to file a construction lien, but will not
be entitled to attorney fees.
• When you p ay your contracto r , write checks made jointly p ayable to the contracto r , subcontractors, materials,
equipment, or services providers. The checks name both the contractor and the subcontracto r , materials or equipment
provide r . The checks can only be cashed if both the contractor and the subcontracto r , materials or equipment provider
endorses it. This ensures that the subcontractor and other providers will be p aid by your contracto r , and can eliminate the
risk of a lien on your propert y .
• Should you have a dispute with your contracto r ,
you may be able to file a complaint with the CCB and be reimbursed in whole or in
part from the contractor’s bond. For more details about help available through the agency, write to the CCB at PO Box 14140, Salem,
OR 97309-5052 or call 503-378-4621.
• Consult an attorne y .
If you do not have an attorney, consider contacting the Oregon State Bar Referral Service at 503-684-3763 or 1-
800-452-7636.
Signing this Information Notice verifies only that you have received it. Y our signature does not give your contractor or those who
provide material, labo r , equipment, or services, any additional righ t s to place a lien on your propert y .
Job Site Address:
CONTRAC T OR: CCB# : PROPE R T Y OWNER:
Print Name (as it appears on contract) Print Name (as it appears on contract)
Signature Date Signature Date
Moisture Intrusio n & W ate r Damage
Informatio n Fo r Hom e Owners
Effective July 1, 2008, contractors that build new homes must provide special information to homebuyers about
moisture intrusion and water damage, and provide a home maintenance schedule in accordance with ORS 701.335.
The following information was prepared by the Oregon Construction Contractors Board (CCB) to help contractors
comply with this requirement.
What is moisture intrusion and water damage? “Moisture intrusion” means water – whether liquid, frozen,
condensed or vaporized – that penetrates into your home. “ W ater damage” means damage or harm caused by
moisture intrusion that reduces the value or usefulness of your home.
How does moisture intrusion and water damage occur? Some causes of moisture intrusion and water damage
are:
• Missing or loose roofing materials or flashing
• Window sills or door frames without adequate caulking or weather-stripping
• Lack of caulking in siding, mor t ar in masonr y , or grout in exterior ceramic tile installations
• Degraded paint on exterior siding or surfaces
• Overflowing or clogged gutters
• Gutter drains or downspouts that are not a sufficient distance from the structure
• Improper drainage slope next to foundation
• Plant materials too close to the structure or foundation
• S prinklers that overspray onto the structure or foundation
• Non-workin g interio r ventilatio n systems
How can you tell if your home has water damage? Signs of water damage may include dampness, staining,
mildew (blackened surfaces with a musty smell), or softness in wood (a possible sign of dry rot).
What to do if you see signs of water damage: If water damage is discovered, you should investigate i t s
source. T ake ste p s to re p air or replace any building p ar t s or materials that allowed the moisture intrusion. Y ou
may need to t ake additional ste p s, depending on the extent of the water damage.
If you have specific questions about main t aining your new home, ask your contracto r . If you need professional
assistance in conducting a maintenance inspection, you may wish to contact your contractor or a licensed home
inspection business.
Page 1
Page 2RECOMMENDE D MAINTENANC E SCHEDUL E FO R HOMEOWNER S
(OR S 701.335 ) (OA R 812-001-0240)
Maintenance
Item Descriptio n o f
Maintenance H o w
O f te n Date
Date Date Date
Caulking/
Weather-
Stripping Check and repair missing, cracked, or
peeling caulking or weather- stripping
around window sills, door frames, and
in siding gaps. T wice yearly
Debris
Removal Inspect gutters for debris blockage.
Remove debris (for example, tree
needles and leaves) from downspouts
and gutters. Y early
Foundation
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. Y early
Gutters &
Downspou t s Inspec t gutter s an d downspou t s fo r leaks .
Re p ai r i f necessar y . Check alignment of
gutters, downspouts, and splash blocks to
ensure that water is properly diverted away
from the structure and foundation. Re p air if
necessar y . Y early
Landscaping
Sprinklers 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
necessar y . Y early
Mortar Check and re p air missing mor t ar in exterior
masonr y . Y early
Paint
Check painted surfaces
for cracking, peeling, or
fading. Re p aint if
necessar y . Y early
Roof
Check roof for damaged, loose, or missing
shingles. Check flashing aroun d roo f
stacks , vents , skylights , an d chimney s an d
i n roo f valleys for missing or loose
flashing. Re p air or replace if necessar y . Y early
T rees &
Shrubs T rim back tree branches, shrubs,
and other plan t s to make sure they
are not in contact with the structure. Y early
V entilation
Systems Check to make sure that interior
mechanical ventilation systems (such
as bathroom, kitchen, and utility room
vent fans) are in good working orde r .
Re p air if necessar y . Every two months
W ater S t ains
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. Y early
Notice of Procedure Regardin g
Residentia l Construction Arbitration s
an d Lawsui t s
Orego n la w contain s importan t requirement s tha t homeowner s mus t follo w before
s t artin g a n arbitratio n o r cour t actio n agains t an y contracto r , subcontracto r , o r
supplie r (material s o r equipment ) fo r constructio n defects.
Before you start an arbitration or court action, you must do the following:
1 . Delive r a writte n notic e o f an y condition s tha t yo u believ e ar e defectiv e t o the
contracto r , subcontracto r , o r supplie r tha t yo u believ e i s responsibl e fo r the
allege d defect.
2 . Allo w th e contracto r , subcontracto r , supplie r , o r i t s agent , t o visuall y inspec t the
possibl e defec t s an d als o allo w th e contracto r , subcontracto r , o r supplie r t o do
reasonabl e testing.
3 . Provid e th e contracto r , subcontracto r , supplie r , o r i t s agent , th e opportunit y to
mak e a n o f fe r t o re p ai r o r p a y fo r th e defec t s . Y o u ar e no t obligate d t o accept an y
offe r made.
Ther e ar e stric t procedure s an d deadline s tha t mus t b e followe d unde r Orego n la w . Failur e
t o follo w thos e procedure s o r mee t thos e deadline s wil l affec t you r righ t t o start a n
arbitratio n o r cour t action.
Y o u shoul d con t ac t a n attorne y fo r informatio n o n th e procedure s an d deadlines
require d unde r Orego n la w .
Y our contractor is supplying this notice to you as required by Oregon la w .
CONTRACTOR : CCB# : HOMEOWNER:
Print Contractor Name (as it appears on contract) Print Homeowner Name (as it appears on contract)
Signature of Authorized Represen t ative Dat e Signatur e Date
Notice of Compliance with
the
Homebu y e r Protection Act (HPA)
In compli a nce with Oreg o n law, the be l ow menti o n e d Seller has sel e cted to comply with the requ i re m e n ts of ORS
87.007.
1. ADDRESS or DE S CR I PTION OF PROPERTY
Address or Loca t ion Ci t y , State Zip Code
2. DATE OF P UR C HA S E (CHOOSE ONE)
A. … ORS 87.0 0 7 (wh i ch i n clud e s the provisi o ns list e d in p a rt B of this form) do e s not a pply to the s a le of the above
descr i bed P r opert y .
B. … ORS 87.0 0 7 appli e s to the sale of the a bove d e scri b ed Proper t y . Seller comp l ied with O RS 87.00 7 ( 2 ) by
(c h eck which one a p plies):
1. … Title Insura n ce as p rovid e d for in ORS 87.00 7 ( 2 )( a ).
2. … Retained in Escr o w not l ess than 25 p ercent of the sale p ri c e as provid e d for i n ORS 87.0 0 7( 2 )( b ).
3. … Bond or L e tter of C r edit as provided f or in O RS 87.007(2)(c).
4. … Wri t ten W ai v ers r e ceiv e d from every p e rs o n cla i ming a lien as pr ov ided for in O RS 87.00 7 ( 2 )(d).
5. … Completed Sale After the Deadline f o r perf e cting li e ns a s provi de d for in ORS 87.00 7 ( 2 )( e ).
3. SEL L ER INFORMA T ION
Com p any N a me (if appl i c a ble)
Agent of Co m pany or Indiv i dual Sell e r
Title of Com p any Agent (if appl i c abl e )
Signature Date
4. BU Y ER INFORMATION
Buyer Name
Agent of Co m pany or Indiv i dual Buyer
Title of Com p any Agent (if appl i c abl e )
Signature Date
Instructions
These ins t r u ctions are provided to a s s i st sell e rs of res i dential prop e rty with the Oregon Hom eb uyer
Prot e c tion Act (HPA), codif i ed in ORS 8 7 .007. The HPA protec t s resi d enti a l pr o perty buyers agai n s t
c o ns t ructi o n lie n s filed in c o unty records after the sale of t h e pro p erty w h ere such lie n s ar i s e out of new
co n s tr uc tion, additio n s or remo d el i ng within 9 0 days of the d ate of the sa l e.
Disclaimer
These ins t r u ctions do n ot constitute le ga l advice. For qu e stio n s , please c o ntact an attorney.
Who must complete this form?
A resi d ential pro p erty ow n er sell i ng –•
A new si n gle family resi de nce, con d om i nium unit or resi d ential bui l ding (conta i n i ng four o r
fewer dwelling unit s ), or
•
An existing s i ngle family r e sid e nce, co n domini u m un i t or res i denti a l building (c o ntaining fo u r
or few e r dwelli n g units) that had at least $ 5 0,000 worth of im p r ovements, a d ditions o r
re m odeli n g co mp leted within
90 days of t h e date of the sale.
Instru c tions for Se c tion A
If the proper t y fits the description a b ove, but the seller kn o w s that n o person m ay file a lien against the
pro p erty, the sell e r may c h eck the box in Section A o f the form.
Instru c tions for Se c tion B
If the seller knows that it is possible for som e one to file a lien aga i nst the prop e rty, the seller must c h e ck
S ection B of the form and at least one correspo n ding box that appl i es to the act i on the sel l er took, or will
take, to co m ply with the HPA.
Box 1 Title I nsura n ce – The sel l er ha s or will purc h ase o r p r ovi d e an owner ’ s extended co v era g e
title ins u ra n c e p o l icy or equiva l ent that does not except filed or unfil e d clai m s of lien. A standard
t itle insura n c e or a lend e r’s title ins u ra n c e p olicy may not be suffic i ent. See ORS 8 7 .007( 2 )(a).
Box 2 Retain in Escr o w – The sel l er will arr a nge to r e tain in escr o w an amount of not less th a n 25
percent of the sales pr i c e of the p r operty. The escrow will pay any clai m s of lien not paid by the
seller filed after the date of the sale. Any unus e d fun d s will be rele a s ed to t h e sell e r up o n fulfillment
of the follow i ng conditions:
•
Clai m s of lien have not be e n filed agai ns t the prop e rty and at least 90 days h ave passed si n c e
the date the co n s tr u c t i on w a s comp l eted.
•
One or m ore clai m s of lien were filed a g ainst t he pro p erty, at least 135 da y s ha v e pass e d si nc e
the date the liens were filed, and the liens were rele a s ed o r waived. See ORS 87.00 7 ( 2 )(b).
Box 3 Bond or Letter of Credit – The sell e r h a s or will maintain a bond o r letter of credit. A
Cons t r u c ti o n
Contract or s Board b ond, r e quir e d for lic e ns u re u n d e r ORS chapt e r 701, is not s u fficient. See ORS
87.00 7 ( 2 )(c).
Box 4 Writt e n Wai v ers – The sel l er has or will obta i n written waivers from every subcontrac t or or
su p plier who clai m s lie n s o f $5,000 or m ore. Provide c op i es of the waivers to the buyer no la t er than
the d ate of the sale. (The CCB r e comme n ds c o nsulti n g an a t torney for a s sista n ce with p rep a ri n g
forms f o r wa iv ers). See ORS 87 . 007(2)( d ).
Box 5 Completed Sale a fter the Deadl i ne – The sale will not be completed until at least 75
days after the comp l etion of all co n s tr u c tion. See ORS 87.007(2)( e ).
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Additio n al Instru c tions
The sel l er an d the buyer m ust si g n and date the form on or bef o re the cl o s ing d ate of the sa l e. Both
parti e s s h ould retain a copy of the form. Compliance w ith the H P A is the sole responsibili t y of the
seller.
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