What must be in an Oregon residential construction contract?

Oregon law (ORS 701.305 and OAR 812-012-0110) requires residential construction contracts over $2,000 to include 8 elements: (1) contractor identification with CCB number, (2) property owner rights explanation, (3) consumer information, (4) job site address, (5) description of work, (6) price and payment terms, (7) arbitration or mediation clause disclosed conspicuously, and (8) warranty offer for new construction. All information must be legible and in dark ink.

When is a warranty required in an Oregon residential construction contract?

A written warranty offer is required only for new residential construction - not for remodels, repairs, or renovations. The contractor must offer a warranty against defects in materials and workmanship to the first purchaser or owner of the new structure. The homeowner may accept or reject the warranty offer, and the contract must document which choice was made. The contractor determines the warranty terms, including what is covered and for how long.

What is the Consumer Protection Notice requirement for Oregon contractors?

Oregon law (ORS 701.330) requires contractors to provide homeowners with a Consumer Protection Notice at the time of the written contract for work on a residential structure. This notice explains CCB licensing requirements, surety bond and insurance obligations, and steps consumers can take to protect themselves. Failure to provide this notice is a CCB violation. The notice must be signed by both the contractor and the homeowner.

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Oregon Residential Contract Requirements

Q: Does an Oregon residential contract need to disclose an arbitration clause?

Yes, and disclosure must be conspicuous - meaning the homeowner would reasonably notice it. Oregon law requires the contractor to explicitly check a box in the contract indicating whether an arbitration or mediation clause is present or absent. An arbitration clause may limit the homeowner's ability to access CCB dispute resolution or Oregon courts. Homeowners are not obligated to accept arbitration terms - they are negotiable.

The 8 elements legally required in every Oregon residential construction contract over $2,000. ORS 701.305 and OAR 812-012-0110 compliance checklist for CCB-licensed contractors.

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Why this matters for contractors

Oregon law requires written contracts for residential construction work over $2,000 - and those contracts must contain 8 specific elements defined by ORS 701.305 and OAR 812-012-0110. A contract that is missing any of these elements puts the contractor in violation of CCB rules, regardless of whether the homeowner notices or complains.

CCB inspectors and mediators review contracts when disputes arise. A non-compliant contract weakens your position in any CCB mediation and can result in civil penalties independent of the underlying dispute. Use this checklist before signing any residential construction contract.

The 8 required elements (ORS 701.305)

Identification information

The contract must include your full business name, business address, phone number, and CCB license number exactly as it appears on your CCB record. The business name on the contract must match the name on your CCB license precisely - not a DBA, not a shortened version, the exact licensed name.

Example: "Portland Premier Construction LLC, CCB #261234, 1234 Oak St., Portland OR 97201, (503) 555-0100"

Property owner rights explanation

The contract must include a written explanation of the homeowner's rights. Oregon law specifies three rights that must be stated:

The right to receive the products and services agreed to in the contract
The right to resolve disputes through the means outlined in the contract
The right to file a complaint with the CCB

This is a legally required disclosure - not optional contract language. Include it verbatim or in substantially equivalent form.

Consumer information

The homeowner's full name and address must appear in the contract. This identifies the party receiving the services and ensures the contract is specific to the individual, not generic.

Job site information

The address where the work will be performed must be stated. This may differ from the homeowner's mailing address - for example, if the homeowner is renovating a rental property or a second home. Always confirm the correct job site address before drafting the contract.

Description of the work

The scope of work must be described in sufficient detail. Vague descriptions like "kitchen remodel" are insufficient. The description should specify:

Each task to be performed
Materials to be used (brands, models, or minimum specifications)
What is explicitly excluded from scope
Start date and estimated completion date

The more detailed the scope, the fewer change order disputes. A detailed scope also protects you - it establishes exactly what you agreed to deliver. The contract may attach additional documents (floor plans, materials lists, drawings) which become legally part of the contract.

Price and payment information

The contract must state the total price and payment terms. Best practice is to tie payments to defined project milestones, not calendar dates. For projects with allowances (where the homeowner selects materials within a budget), list each allowance item with its budgeted amount explicitly.

Lien risk: Subcontractors and material suppliers you engage have independent mechanics lien rights against the homeowner's property if you fail to pay them - even if the homeowner has paid you in full. This risk is real and can damage your client relationship severely. Always pay subs and suppliers promptly.

Arbitration or mediation clause - conspicuous disclosure

If your contract contains an arbitration or mediation clause, Oregon law requires it to be stated conspicuously - in a way that a reasonable person would notice. The CCB requires contractors to explicitly check one of two boxes in the contract:

This contract contains an arbitration or mediation clause.

This contract does NOT contain an arbitration or mediation clause.

An arbitration clause may limit the homeowner's ability to use CCB mediation or Oregon courts. Homeowners are not obligated to accept arbitration terms - the CCB explicitly states these provisions are negotiable. Do not bury arbitration clauses in fine print - that is a CCB violation regardless of the underlying dispute.

Warranty offer (new construction only)

For new residential construction only, the contract must include an offer of warranty against defects in materials and workmanship to the first purchaser or owner. This requirement does not apply to remodels, repairs, or renovations.

The warranty terms - what is covered, how long, and any associated cost - are set by you as the contractor. The homeowner may accept or reject the warranty offer. The contract must document which choice was made, signed by the purchaser with a date. The CCB provides a recommended contract addendum for warranty documentation.

General format requirements

Beyond the 8 required elements, Oregon law specifies that all information in a residential construction contract must be:

Legible - no fine print designed to obscure important terms
Printed or written in dark ink - pencil and light-colored ink do not meet the standard

The 3 mandatory notices for residential construction contracts

Separate from the 8 contract elements, Oregon law requires contractors to provide three distinct notices to homeowners for any residential construction contract over $2,000. These are not contract clauses - they are standalone documents that must be delivered on or before the contract date. Failure to provide any of them can result in a civil penalty of up to $5,000 (ORS 701.992) and may affect your lien rights.

Consumer Protection Notice ORS 701.330 · OAR 812-001-0200 · OAR 812-012-0130

Explains CCB licensing requirements, what the surety bond and insurance cover, steps consumers can take for a successful project, and what to do if problems occur. Must be signed by both contractor and homeowner.

When: On or before the contract date (or within 5 working days by mail if price exceeds $2,000 after the contract starts).

Proof of delivery required: Signed copy, contract phrase initialed by owner, or contract containing the full notice. Keep proof for 2 years.

Penalty for non-delivery: Civil penalty up to $5,000.

Notice of Procedure ORS 701.330 · OAR 812-001-0200 · OAR 812-012-0130

Explains what the homeowner must do before beginning arbitration or a court action against a contractor. This notice is critical for homeowners to understand their procedural obligations - including the 30-day Pre-Complaint Notice requirement - before escalating a dispute.

When: On or before the contract date.

Proof of delivery required: Same requirements as Consumer Protection Notice. Keep for 2 years.

Penalty for non-delivery: Civil penalty up to $5,000.

Information Notice to Owner About Construction Liens ORS 87.093 · OAR 812-001-0200 · OAR 812-012-0130

Explains Oregon construction lien law - including how subcontractors and suppliers can file liens against the homeowner's property even if the homeowner has already paid the general contractor in full. Includes steps homeowners can take to protect their property and avoid "paying twice."

When: On or before the contract date.

Proof of delivery required: Same requirements. Keep for 2 years.

Penalty for non-delivery: Civil penalty up to $5,000 and the contractor can lose lien rights and the license may be suspended.

This is the most consequential of the three. Failing to deliver the lien notice can cost you your lien rights - meaning you lose a primary legal tool for collecting payment if the homeowner refuses to pay. Deliver it every time, without exception.

All three notices are available from the Oregon CCB Forms page. They can be incorporated directly into the contract body or provided as separate signed documents. Whichever format you choose, proof of delivery must be retained for two years.

Source: Oregon CCB Required Notices for Residential Construction Projects (PDF)

Change orders

Any change to the agreed scope, materials, timeline, or price after the original contract is signed must be documented in a written change order signed by both parties before the changed work proceeds. The CCB recommends this practice for all projects, regardless of size.

Verbal change orders are the leading cause of CCB complaints and mediation disputes. A homeowner who agreed verbally to an upgrade but disputes the cost later has no obligation to pay if there is no written change order. Document every change, every time, before doing the work.

Frequently Asked Questions

Oregon law requires 8 elements: contractor identification with CCB number, property owner rights explanation, consumer name and address, job site address, description of work, price and payment terms, arbitration clause disclosed conspicuously, and warranty offer for new construction. All text must be legible and in dark ink.

Oregon law requires written contracts for work over $2,000. The CCB recommends written contracts for all work regardless of amount. Performing work over $2,000 without a written contract is a CCB violation that can result in civil penalties independent of any dispute about the work itself.

Yes, and the disclosure must be conspicuous. Oregon law requires contractors to check a box in the contract explicitly stating whether an arbitration or mediation clause is present or absent. Burying an arbitration clause in fine print is a CCB violation. Homeowners are not obligated to accept arbitration terms - they are negotiable.

Only for new residential construction - not remodels, repairs, or renovations. The contractor must offer a written warranty to the first purchaser. The homeowner may accept or reject the offer. The contract must document the choice, signed by the homeowner with a date.

Oregon law (ORS 701.330) requires contractors to provide homeowners with a Consumer Protection Notice at the time of the written contract. This is a separate CCB document - not a contract clause. Both parties must sign it. The official notice form is available at oregon.gov/ccb/forms. Failure to provide it is a CCB violation.

Last updated: April 2026. Information sourced from the Oregon CCB Residential Construction Contract Checklist (ORS 701.305, OAR 812-012-0110) and the Consumer Protection Notice (ORS 701.330).

Contract Compliance Checklist

CCB number listed (exact match)
Business name matches CCB record
Owner rights explanation included
Homeowner name and address
Job site address specified
Detailed scope of work
Total price and payment schedule
Arbitration clause box checked
Warranty offer (new construction)
Consumer Protection Notice signed
All text legible, dark ink

Legal References

Written contract requirement ORS 701.305
Minimum contract terms ORS 701.305 + OAR 812-012-0110
Consumer Protection Notice ORS 701.330
Cancellation rights ORS 701.310 + ORS 83.720

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