Contractor Guide

Oregon Residential Contract Requirements

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)

1

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"

2

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.

3

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.

4

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.

5

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.

6

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.

7

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.

8

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

Consumer Protection Notice (ORS 701.330)

Separate from the contract itself, 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 is a distinct CCB document - not a contract clause.

The notice explains:

  • CCB licensing requirements and how to verify a license
  • What the surety bond does and does not cover
  • What liability insurance covers
  • Guidance on bids, contracts, and change orders
  • The homeowner's right to file a CCB complaint within one year

Both the contractor and the homeowner must sign the notice. The CCB provides the official Consumer Protection Notice form at oregon.gov/ccb/forms. Failure to provide the notice is a CCB violation independent of any other contract issue.

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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