Bill

Bill > HB3860


OR HB3860

Relating to construction contractors; prescribing an effective date.


summary

Introduced
02/27/2025
In Committee
03/04/2025
Crossed Over
Passed
Dead

Introduced Session

Potential new amendment
2025 Legislative Measures

Bill Summary

The statement includes a measure digest written in compliance with applicable readability standards. Digest: Tells a person that is a major house builder not to collect more than 50 percent of the contract price for a project until the project is finished if the project costs $40,000 or more. Lets the person collect more if the home owner adds scope to the project. Requires a person that installs a fireproofing system to get a certificate from a state board. Takes effect 91 days after the session ends. (Flesch Readability Score: 63.1). Prohibits a major residential contractor from collecting or retaining more than 50 percent of the original contract price before substantially completing a remodeling or repair of an owner-occupied one-family or two-family residential structure if the original contract price exceeds $40,000. Permits a major residential contractor to collect not more than 50 percent of the increase in the contract price if the property owner agrees in writing to changes that increase the contract price by $20,000 or more. Permits a major residential contractor to require a property owner to make progress pay- ments solely to cover the costs of materials, supplies and payments to subcontractors. Specifies the required contents of a contract. Specifies exceptions to the requirements. Prohibits a business from installing, applying, repairing or maintaining spray-on fireproofing material or a spray-on fireproofing system in an essential facility in this state unless the business has a certification from the Construction Contractors Board. Specifies requirements for certification. Allows a building official to require as a condition of issuing a permit that a business has the nec- essary certification. Takes effect on the 91st day following adjournment sine die.

AI Summary

This bill introduces two key provisions for construction contractors in Oregon. First, for major residential contractors (defined as general contractors that offer publicly traded securities), the bill restricts how much money they can collect before completing a home remodeling or repair project. Specifically, for projects over $40,000 on owner-occupied one or two-family homes, contractors cannot collect more than 50% of the original contract price before substantial completion. The bill allows contractors to collect up to 50% of any contract price increase if the homeowner agrees in writing to changes that add $20,000 or more to the project cost. Second, the bill requires businesses installing spray-on fireproofing in essential facilities to obtain a certification from the Construction Contractors Board, which involves proving that at least one owner, manager, or employee has completed an approved training program that covers installation techniques, safety standards, and best practices. The bill provides detailed requirements for the certification process, including acceptable training programs, renewal procedures, and administrative guidelines. The provisions will take effect on January 1, 2026, for contract-related changes and July 1, 2026, for the fireproofing certification requirements, with the entire act becoming operative 91 days after the legislative session adjourns.

Committee Categories

Labor and Employment

Sponsors (1)

Last Action

House Labor and Workplace Standards Work Session (15:00:00 3/31/2025 HR D) (on 03/31/2025)

bill text


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