ORS 701.131
License required to perfect lien or obtain judicial or administrative remedy

  • exception

(1)

Except as provided in subsection (2) of this section, a contractor may not perfect a construction lien, file a complaint with the Construction Contractors Board or commence an arbitration or a claim in a court of this state for compensation for the performance of any work or for the breach of any contract for work that is subject to this chapter, unless the contractor had a valid license issued by the board and properly endorsed for the work performed:

(a)

At the time the contractor bid or entered into the contract for performance of the work; and

(b)

Continuously while performing the work for which compensation is sought.

(2)

The board, arbitrator or court may not apply the provisions of subsection (1) of this section to a contractor if the board, arbitrator or court determines that:

(a)

The contractor either did not have a valid license with a proper endorsement at any time required under subsection (1) of this section, or had an initial issuance of a valid license, and:

(A)

The contractor was not aware of the requirement that the contractor be licensed or properly endorsed for the work performed, and the contractor submitted a completed application for a license within a number of days established by the board, but not more than 90 days, of the date the contractor became aware of the requirement;

(B)

At the time the contractor perfected a construction lien or commenced any claim subject to the provisions of subsection (1) of this section, the contractor was licensed by the board and properly endorsed for the work performed; and

(C)

Enforcement of the provisions of subsection (1) of this section would result in substantial injustice to the contractor;

(b)

The contractor was licensed by the board for some but not all of the times required under subsection (1) of this section and had a lapse in the license and:

(A)

The contractor was not aware of the lapse in the license for more than a number of days established by the board, but not to exceed 90 days, before submitting a completed application for license renewal with the board;

(B)

Except for perfection of a construction lien and a court action to foreclose the lien, at the time the contractor commenced any claim subject to the provisions of subsection (1) of this section the contractor’s license was renewed under ORS 701.063 (Term of license) to include the entire time period for which a license was required under subsection (1) of this section; and

(C)

For perfection of a construction lien and a court action to foreclose the lien, the contractor’s license was renewed under ORS 701.063 (Term of license) for the entire time period for which a license was required under subsection (1) of this section, but not later than 90 days following perfection of the lien; or

(c)

The proceeding:

(A)

Is directed against a person or entity that:
(i)
Is subject to this chapter or ORS chapter 671 or 672;
(ii)
Provides construction or design labor or services of any kind; or
(iii)
Manufactures, distributes, rents or otherwise provides materials, supplies, equipment, systems or products; and

(B)

Arises out of defects, deficiencies or inadequate performance in the construction, design, labor, services, materials, supplies, equipment, systems or products provided.

(3)

A contractor that falsely swears to information submitted to the board under ORS 701.046 (License application) or submitted in a registration of securities described in ORS 701.046 (License application) (2), or that knowingly violates the provisions of ORS 656.029 (Obligation of person awarding contract to provide coverage for workers under contract), 670.600 (Independent contractor defined) or 701.046 (License application), may not perfect a construction lien, file a complaint with the board or commence an arbitration or a claim in a court of this state for compensation for the performance of any work on a residential structure or for the breach of any contract for work on a residential structure that is subject to this chapter. [Formerly 701.065; 2009 c.226 §§8,9; 2013 c.251 §5]

Source: Section 701.131 — License required to perfect lien or obtain judicial or administrative remedy; exception, https://www.­oregonlegislature.­gov/bills_laws/ors/ors701.­html.

(formerly 701.065)

Notes of Decisions

Since this section uses word “maintain” in reference to action for compensation, it applied to bar action by unregistered builder who entered into building contract, performed work and filed his complaint prior to date this section became effective. Kolodejchuk v. Lucier, 52 Or App 981, 630 P2d 889 (1981)

A trust deed used as a purchase-money mortgage was not a contract subject to registration requirements of this section and action by plaintiffs to foreclose trust deed on home originally constructed by them with intent that it be their residence was not thereby barred. Wills v. Harris, 57 Or App 712, 646 P2d 39 (1982), Sup Ct review denied

Plaintiff, who was not registered with Builder’s Board is not barred from bringing action for breach of franchise agreement because that is not type of contract action legislature intended to bar by language of this section. MacLean & Associates v. American Guaranty Life, 85 Or App 284, 736 P2d 586 (1987), Sup Ct review denied

Failure of plaintiff to meet contractor registration requirement is not jurisdictional defect. Beckwith v. Frazey, 86 Or App 236, 738 P2d 1003 (1987), Sup Ct review denied; Mount Hood Community College v. Federal Insurance Co., 199 Or App 146, 111 P3d 752 (2005)

Registration in incorrect contracting specialty subcategory created by board rule does not disqualify contractor from maintaining suit. Edwards v. Perry, 130 Or App 165, 880 P2d 507 (1994)

For purposes of continuous registration requirement, “the work” refers to services performed by contractor during entire project, not just services performed during nonregistration period. Parthenon Construction and Design, Inc. v. Neuman, 166 Or App 172, 999 P2d 1169 (2000)

Continuous registration requirement does not incorporate principle of substantial compliance. Parthenon Construction and Design, Inc. v. Neuman, 166 Or App 172, 999 P2d 1169 (2000)

Where contractor relies on agency representation that license is unnecessary, denying remedy based on lack of license constitutes “substantial injustice.” Splinters, Inc. v. Andersen/Weitz, 192 Or App 632, 87 P3d 689 (2004), Sup Ct review denied

Section applies to construction-defect proceedings and, consequently, to claims involving services whose inadequacy contributed to defects subject to those proceedings. Pincetich v. Nolan, 252 Or App 42, 285 P3d 759 (2012)

701.002
Short title
701.005
Definitions
701.010
Exemptions from licensure
701.013
Intent relating to certain business license requirements
701.015
Business license requirements in cities and metropolitan service districts
701.020
Certain cities exempt from application of ORS 701.015
701.021
License requirement
701.026
Subcontractor licensing
701.031
Evidence of doing business as contractor
701.035
Applicant required to be independent contractor to be eligible for license
701.038
Residential limited contractors
701.042
Residential or commercial developers
701.046
License application
701.050
Commercial contractor key employees
701.056
Licensing application fee
701.060
Licensing in another category
701.063
Term of license
701.068
Bonding requirements
701.073
Insurance required of licensed contractors
701.081
Residential contractors
701.082
Residential contractor continuing education requirements
701.083
Residential contractor specialized education programs
701.084
Commercial contractors
701.086
Key employee continuing education
701.088
Contractor rehabilitating illegal drug manufacturing site
701.091
Responsible managing individual
701.093
Change in responsible managing individual
701.094
Definition for ORS 701.098 and 701.102
701.098
Grounds for discipline
701.102
Sanction for past unresolved activity or outstanding matters
701.106
Sanction for violation or failure to comply with certain laws
701.107
Sanction for assisting evasion of obligations
701.108
Failure to comply with prevailing wage rate or other wage and hour standards for energy efficiency and sustainable technology projects
701.109
Reporting of final judgments
701.110
License suspension for unpaid determined wage claim
701.112
Continuation of board authority when change occurs in license status
701.114
Change in responsible managing individual or persons exercising control of contractor
701.117
Contractor to notify board of address change
701.119
Certification to participate in small scale local energy project program
701.120
Specialized education programs
701.122
Training requirements for individuals and businesses
701.128
Suit for damages for misrepresentation
701.131
License required to perfect lien or obtain judicial or administrative remedy
701.133
Notice of intent to file complaint
701.139
Complaint validity
701.140
Types of allowable complaints
701.143
Requirement for timely filing of complaints
701.145
Resolution of complaints involving work on residential structures or certain small commercial structures
701.146
Resolution of complaints involving work on large commercial structures or certain small commercial structures
701.149
Status reports
701.150
Determination of amount to be paid from bond
701.153
Recording of order as lien
701.157
Satisfaction of order against commercial contractor
701.160
Nonlawyer may represent certain forms of businesses before board
701.180
Alternative mediation or arbitration process
701.205
Construction Contractors Board
701.215
Officers
701.225
Investigatory powers of board
701.227
Disqualification from eligibility for certain public contracts
701.230
Board to provide names of unlicensed or improperly endorsed contractors to other state agencies
701.235
Rulemaking
701.238
Determination of licensing application fee
701.240
Provision of licensed contractors list to other state agencies
701.246
Confidentiality of information
701.250
Board to provide licensee’s status on request
701.255
Funds retained for collection of civil penalties
701.260
Appeal committee
701.265
Continuing education system for residential contractors
701.267
Agreements with continuing education providers
701.269
Residential general master builder certification program
701.272
Interagency agreements
701.295
Board duty to investigate and seek prosecution of illegal activity
701.305
Requirement for written contract with residential property owner
701.310
Cancellation of contract
701.312
Additional grounds for placing contractor on probation
701.315
Contents of contract for work on residential structure
701.320
Offer of warranty
701.325
Condition for obtaining building permit
701.330
Consumer notice form
701.335
Recommended maintenance schedule
701.340
Commercial structure warranty
701.345
Subcontractor list
701.348
Sewer contractor requirements
701.410
Definitions
701.420
Partial payment
701.430
Performance bond
701.435
Deposits in lieu of cash retainage
701.440
Applicability to federal projects
701.445
Home inspectors
701.450
Home inspector undertaking of repair work on inspected structure
701.455
Home inspector services contractor license
701.470
Licensing
701.475
Definitions for ORS 701.475 to 701.490
701.480
Certification
701.485
Standards of practice and professional conduct
701.490
Exemptions from certification, licensure and other requirements
701.495
Residential locksmith services contractor license
701.501
Home services contractor license
701.505
Definitions for ORS 701.505 to 701.515
701.510
License required to engage in lead-based paint activity
701.515
Licensing system
701.520
Construction Contractors Board Lead-Based Paint Activities Fund
701.527
Definitions for ORS 702.527 to 701.536
701.529
Certification and licensing requirements
701.532
Home energy assessor certification
701.534
Home energy performance score contractors
701.536
Assessor and contractor exemption from testing and continuing education
701.540
Licensing
701.545
Provision of accessible features list to purchaser
701.547
Model list of accessibility features
701.550
Notice of Department of Consumer and Business Services rules regarding thermostats containing mercury
701.555
Barrier-type exterior insulation and finish systems
701.560
Definitions for ORS 701.560 to 701.595 and 701.605
701.565
Notice of defect requirement
701.570
Secondary notice of defect
701.575
Availability of residence
701.580
Offer by contractor, subcontractor or supplier
701.585
Effect of notice of defect on time for commencing court action
701.595
Failure to follow notice of defect procedure
701.600
Nonapplicability of ORS 701.560 to 701.595 and 701.605
701.605
Recording of written warranty agreement
701.620
Definitions for ORS 701.620 to 701.640
701.625
Progress payments
701.630
Payments to subcontractors and material suppliers
701.635
Suspension of performance
701.640
Prohibition against contrary provisions, covenants or clauses
701.645
Contracts and housing not subject to ORS 701.620 to 701.640
701.990
Criminal penalties
701.992
Civil penalties and other sanctions
701.995
Civil penalties for violations related to lead-based paint activities
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