Information Notice to Owner
- when notice must be delivered
- effect of failure to deliver notice
(1)The Construction Contractors Board shall adopt by rule a form entitled “Information Notice to Owner” which shall describe, in nontechnical language and in a clear and coherent manner using words in their common and everyday meanings, the pertinent provisions of the Construction Lien Law of this state and the rights and responsibilities of an owner of property and an original contractor under that law. The “Information Notice to Owner” shall include signature lines for the contractor and the property owner. The rights and responsibilities described in the form shall include, but not be limited to:
(a)Methods by which an owner may avoid multiple payments for the same materials and labor;
(b)The right to file a complaint against a licensed contractor with the board and, if appropriate, to be reimbursed from the contractor’s bond filed under ORS chapter 701; and
(c)The right to receive, upon written request therefor, a statement of the reasonable value of materials, equipment, services or labor provided from the persons providing the materials, equipment, services or labor at the request of an original contractor and who have also provided notices of right to a lien.
(2)Each original contractor shall deliver a copy of the “Information Notice to Owner” adopted by the board under this section to:
(a)The first purchaser of residential property constructed by the contractor and sold before or within the 75-day period immediately following the completion of construction; and
(b)The owner or an agent of the owner, other than an original contractor, at the time of signing a residential construction or improvement contract with the owner.
(3)The contractor shall deliver the “Information Notice to Owner” personally, by registered or certified mail or by first class mail with certificate of mailing.
(4)This section applies only to a residential construction or improvement contract for which the aggregate contract price exceeds $2,000. If the price of a residential construction or improvement contract was initially less than $2,000, but during the course of the performance of the contract exceeds that amount, the original contractor shall mail or otherwise deliver the “Information Notice to Owner” not later than five days after the contractor knows or should reasonably know that the contract price will exceed $2,000.
(5)Notwithstanding subsections (2) and (4) of this section, the original contractor need not send the owner an “Information Notice to Owner” if the owner is a contractor licensed with the board under ORS chapter 701.
(6)Notwithstanding ORS 87.010 (Construction liens) and 87.030 (Effect of owner’s knowledge of improvement), if an original contractor does not deliver an owner or agent with an “Information Notice to Owner” as required under subsections (2) to (4) of this section, the original contractor may not claim any lien created under ORS 87.010 (Construction liens) upon any improvement, lot or parcel of land of the owner for labor, services or materials supplied under the residential construction or improvement contract for which the original contractor failed to deliver the required “Information Notice to Owner”.
(7)If an original contractor does not deliver an “Information Notice to Owner” to an owner or agent as required under subsection (2) of this section, the board may suspend the license of the original contractor for any period of time that the board considers appropriate or impose a civil penalty of not more than $5,000 upon the original contractor as provided in ORS 701.992 (Civil penalties and other sanctions).
(8)As used in this section:
(a)“Residential construction or improvement” means the original construction of residential property and the repair, replacement, remodeling, alteration or improvement of residential property.
(b)“Residential construction or improvement contract” means a written agreement between an original contractor and an owner for the performance of a residential construction or improvement and all labor, services and materials furnished and performed under the agreement.
(c)“Residential property” includes, but is not limited to, a residential dwelling and the driveways, swimming pools, terraces, patios, fences, porches, garages, basements, other structures and land that are adjacent or appurtenant to a residential dwelling. [1981 c.757 §9; 1983 c.757 §3; 1985 c.596 §3; 1987 c.662 §18; 1991 c.67 §14; 1995 c.771 §7; 1999 c.402 §1; 2007 c.648 §16; 2007 c.793 §3; 2009 c.408 §1]
Notes of Decisions
Location of structure on residential lot does not control whether contract is for residential construction or improvement. Calapooia Pole Structures, Inc. v. Moulder, 128 Or App 190, 875 P2d 495 (1994)