a:\newslw.96 [4]Alan Lee MitchellStephen De'ak201999-10-06T23:21:00Z2006-07-01T22:26:00Z2006-07-01T22:26:00Z113767849 6518920711.8026 FURRER & SCOTT LLCConsider . . .VOL. 8, ISSUE 4 October, 1999Law OfficesFURRER & SCOTT LLC9185 SW BURNHAM ST. POST OFFICE BOX 23414TIGARD, OR 97223 TIGARD, OR 97281(503) 620-4540 -- (800) 334-8986 -- FAX: (503) 620-4315www.furrer-scott.comNEW LEGISLATION:Please take a moment to review the following legislative summary. Unless stated otherwise, the following new laws will go into effect on October 23, 1999.CONSUMER NOTIFICATION: ORS 701.055New legislation passed by the 1999 Oregon State Legislature will change the form of notice that must be given to consumers. The Summary: Oregon Construction Contractors Law will no longer be required; however contractors now must provide a copy of the new Consumer Notification.The new form must be given to all prospective clients who wish to enter into an agreement with a contractor for the construction of a residential project. The notice must be provided to the consumer at the time of bidding or when the contractor submits a proposal. The purpose of the form is to educate consumers about the importance of hiring a registered contractor.A Copy of the Consumer Notification is attached to this newsletter.BOLI “JOHN DOE” CLAIMS: ORS 279.526This new law permits the Bureau of Labor and Industries (BOLI) to make “Little” Miller Act bond claims on behalf of laborers on public works projects. BOLI’s right to make a claim “extends to workers on the project who are not identified when the written notice of claim is given, but for whom [BOLI] has received information indicating that the workers have not been paid in full.”BOLI must give written notice of its claim no later than 120 days after the workers listed in the notice last provided labor to the project. If the notice includes “John Doe” workers, the notice must state that the claim includes unidentified workers.SUBCONTRACTOR LISTING: ORS 279.027This legislation requires bidders on public works projects with a contract value of $75,000 or more to disclose within four working hours of bid opening the following information relative to the bidders’ first-tier subcontractors:The subcontractors’ names and addresses;The subcontractors’ CCB numbers, if any; andThe amount of each subcontract.Subcontractors are defined to include those who furnish labor or materials; however, not all subcontractors need to be listed. Only those subcontractors whose sub-bids are at least five percent of the total project bid or $15,000 (whichever is larger) need be listed. Yet, every subcontractor with a subcontract of $500,000 or more must be listed regardless of that subcontractor’s percentage of the total project bid.CONTRACTOR LICENSES: ORS CHAPTER 701Effective July 1, 2000, Oregon’s construction contractor’s laws will change from a “registration” format to a “licensure” format.Applicants for Oregon CCB licenses will need to take and pass a licensing examination. The examination requirement does not, however, apply to contractors registered before July 1, 2000. Also, the CCB will accept “registration or licensure in another state as a substitute for licensure in Oregon.”INCREASED BONDS & INSURANCE: ORS 701.085 & 701.105This legislation became law on June 23, 1999, and is effective now. The insurance and bonding requirements for CCB contractors are as follows:Category Bond InsuranceGeneral Contractor All structures $15,000 $500,000General Contractor Residential $15,000 $500,000Specialty Contractor All Structures $10,000 $500,000Specialty Contractor Residential $10,000 $500,000Limited $5,000 $100,000Consultant $10,000 $300,000The bill also addresses construction consultants. For CCB purposes, a “Consultant” is defined as: “[A] person registered as a contractor with the [CCB] who inspects or otherwise provides services to a property owner or other contractor, but who does not substantively add to or subtract from a structure.” Home inspectors and lead-based paint inspectors are included in this definition.CCB PROBATION: ORS 701.102Contractors that have three or more claims filed against them within a 12 month period may now be placed on probation by the CCB. The CCB cannot, however, place a contractor on probation unless it undertakes an investigation and determines “that it is likely the contractor has caused harm to the claimants.” The bill also permits the CCB, under certain situations, to require a CCB bond up to five times the normal amount. SLOW-PAY CONTRACTORS: ORS 701.135Under this legislation the CCB may refuse to register an applicant or re-register a contractor if the applicant failed to make timely payments under a public works contract.CCB CLAIM TIME EXTENSION: ORS 701.145Under prior law, general contractors were subject to claims by owners related to subcontractors’ work. Unfortunately, by the time the general contractor learned of the owner’s claim it was often too late to “pass” the claim on to the subcontractor. Registered contractors now have up to 14 months to file a CCB claim against another contractor.BONDING OFF LIENS: ORS 87.076This bill impacts the manner in which a construction lien can be bonded off. Under prior law, the owner was to be named as the principal on the lien release bond. Now, the general contractor or the owner can be named as the principal on the bond.STOP PAYMENT CHECKS: ORS 30.701 & 73.0112The legislature modified the law relating to bad checks. If a person stops payment on a check without good cause, that person is now subject to the same statutory damages as if the check had been a NSF check.A payee on a stop payment check is now entitled to $100 or triple the amount of the check, but not more than $500 more than the amount of amount of the check, in addition to the amount of the check. For example, on a $200 dishonored check, the payee could claim $600 (triple the amount of the check); and $200 (the amount of the check). While, on a $3,000 bad check, the payee could claim $3,500 ($500 more than the amount of the check, because triple the amount of the check is more than $500 above the amount of the check) and $3,000 (the amount of the check).The prevailing party in an action on a dishonored or stop payment check is also entitled to its attorney fees. To be entitled to statutory damages under this bill, the payee must make a demand for payment not less than 30 days prior to commencing the action. LIEN CERTIFICATES: ORS 46.488 & 18.350Most recently, a judgment did not become a lien on real property of a judgment debtor unless the judgment creditor filed a lien certificate required by ORS 18.350. This requirement was eliminated by the 1999 legislature.Yet, if the judgment creditor wants the judgment to act as a lien in other counties, a certified copy of the judgment or a lien record abstract must still be recorded in each county in which the judgment creditor wants the judgment to act as a lien.LANDSCAPE CONTRACTORS: ORS 671.520LCB contractors may construct fences, decks, arbors, walkways, retaining walls or driveways without a separate CCB registration, if the work is done in conjunction with landscaping work, or if the LCB contractor provides a $10,000 bond. If the $10,000 bond is in place, this work need not be done in conjunction with landscaping.CLAIMS AGAINST LCB BONDS: ORS 671.710This legislation creates a 90 day claim window for the processing of claims against an LCB bond. Claims within the first 90 day time period shall have priority over claims in later 90 day periods. As between claims within the same 90 day period, claims by owners are entitled to first priority.FIRM NEWS:MICHAEL J. SCOTT & DOUGLAS R. HOOKLAND presented a day long seminar on Oregon & Washington construction lien and bond claims for the Oregon chapter of the Nation Association of Credit Management. Alan L. Mitchell contributed to the seminar materials.DOUGLAS R. HOOKLAND will be presenting a seminar on Washington construction lien law and public works claims. The seminar will be hosted by Lorman Education Services, and it will be held at the Governor Hotel in Portland, Oregon on December 9, 1999. For more information contact this office.AARON L. BLANKENSHIP joined the firm as an attorney after clerking for the firm for the past two years. Aaron graduated from Linfield College and the Northwestern School of Law of Lewis & Clark College. Aaron brings with him practical knowledge of the construction trades. As a former heavy equipment operator and an employee of several excavation companies, Aaron has real hands on experience.This newsletter is published quarterly by the law firm of Furrer & Scott LLC for the benefit of its clients and friends and is intended to inform them about legal matters of interest. While this information is meant to be current, we do not promise or guarantee that the information is correct, complete or up-to-date. This information is not intended to be, and should not be considered to be, legal advice. No actions should be undertaken in reliance hereon without professional legal counsel. Alan L. Mitchell, Editor