September 09, 2010
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Penalties for using an illegal construction contract in Oregon:
  • Oregon Revised Statutes § 87.037 denies lien rights to any prime contractor who does work valued at over $2,000 without a written contract.
  • Lack of a written contract as prescribed by Oregon Administrative Rules § 812-012-0110 is a violation of Oregon Revised Statutes § 701.305 and is punishable by a fine of from $500 to $2,000.
  • Failure to provide the notices required by Oregon Revised Statutes §§ 701.310 (Notice of Right to Cancel), 701.320 (Offer of Warranty), 701.330 (Consumer Notice), 701.335 (Maintenance Schedule), 701.340 (Commercial Structure Warranty) or 701.348 (Building Sewer Notice), 87.093 (Construction Liens) makes the contractor liable for a fine of $500 to $1,000 for the first offense, up to $2,000 for the second offense and suspension of a contracting license for the third offense.
  • Oregon Revised Statutes § 30.140 voids any clause in a contract which would indemnify someone for their own negligence.
  • Failure to give the notices required by Oregon Revised Statutes §§ 701.620 to 701.645 impose statutory payment terms including the right to collect 1-1/2% interest per month plus attorney fees on late payments.
  • Failure to make federal truth in lending disclosures requires restitution of the overcharge and makes the creditor liable for the debtor's attorney fees.
  • Failure to include the disclosures required by 12 Code of Federal Regulations § 226.15 extends the right of rescission to three years (rather than three days).
  • Omitting insulation disclosures required by 16 Code of Federal Regulation § 460 can result in an $11,000 fine.
The contracts linked below will help Oregon contractors avoid these penalties by complying with state and federal law.
The contracts linked below also comply with current Oregon and federal court decisions.

Oregon Construction Contracts Available Now
Title Bias Contract Type Page Length
OR Commercial Construction I Light bias in favor of the contractor. Prime 37
OR Commercial Construction II Light bias in favor of the owner. Prime 16
OR Commercial Repair Neutral. Prime 21
OR Commercial Subcontract I Light bias in favor of the subcontractor. Subcontract 33
OR Commercial Subcontract II Light bias in favor of the contractor. Subcontract 17
OR Custom Home I Light bias in favor of the contractor. Prime 26
OR Custom Home II Light bias in favor of the owner. Prime 33
OR Home Improvement I Moderate bias in favor of the contractor. Prime 31
OR Home Improvement II Moderately favors the owner. Prime 35
OR Home Repair I Heavy bias in favor of the contractor. Prime 14
OR Home Repair II Heavy bias in favor of the owner. Prime 24
OR Pool Neutral. Prime 24
OR Public Works Subcontract Moderate bias in favor of the contractor. Subcontract 38
OR Residential Subcontract I Light bias in favor of the subcontractor. Subcontract 15
OR Residential Subcontract II Light bias in favor of the contractor. Subcontract 21
OR Tenant Improvement Neutral. Prime 16
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