Oregon Construction Law Guide

What Should Be in a Contractor Contract in Oregon

A well-written construction contract is your primary protection if something goes wrong. Here's what Oregon law requires, what you should always include, and your rights before and after signing.

Before signing any contract — verify the contractor holds an active CCB license, bond, and insurance.

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Why your contract matters more than the license

Verifying a CCB license confirms the contractor is bonded and insured. But it's the written contract that defines exactly what work will be done, at what price, on what timeline, and what happens if something goes wrong. Most CCB complaints originate from misunderstandings that a clear contract would have prevented.

Oregon law requires written contracts for construction work over $2,000. The CCB recommends written contracts for all work regardless of amount — including all changes made after signing.

What must be in an Oregon contractor contract

The Oregon CCB recommends including the following elements in every construction contract:

  • Full name and CCB license number of the general contractor, exactly as it appears in the CCB database.
  • Full name of the owner, the job address, and contact information for both parties.
  • Detailed description of the scope of work — vague descriptions like "kitchen remodel" create disputes. Be specific about what is included and excluded.
  • List of specific building materials to be used, including brands and models where relevant. "High-quality faucets" means something different to you and your contractor.
  • Start and completion dates. Realistic timelines with consequences for significant delays.
  • Total price, payment schedule, and allowance items. Tie payments to project milestones, not to calendar dates. List any allowance items (fixtures, appliances) with their budgeted amounts.
  • List of required permits and which party is responsible for obtaining them. Only licensed contractors can pull building permits in Oregon.
  • Change order clause. All changes to scope, materials, or price must be documented in writing and signed by both parties before work proceeds.

Understanding arbitration clauses

Many Oregon construction contracts include an arbitration clause — an agreement to resolve disputes outside of court. Before signing a contract with an arbitration clause, understand:

  • Who will arbitrate — which organization and which rules apply
  • What arbitration costs — fees can be significant
  • What you are giving up — typically the right to a jury trial and, in many cases, the right to appeal

Because a construction contract may represent the single largest purchase your family makes, the CCB recommends having a lawyer review the contract before signing — particularly for large projects. This is separate from filing a CCB complaint, which is an alternative dispute resolution path available only for licensed contractors.

Your right to cancel

One-day right to cancel

A property owner can cancel any initial contract for construction, improvement, or repair of a residential structure by giving the contractor written notice of cancellation before midnight of the next business day after signing. (ORS 701.310)

Three-day right to cancel

If the contract was solicited anywhere other than the contractor's permanent place of business — for example, at your home or a restaurant — you have a three-day right to cancel under Oregon's home solicitation law (ORS 83.720). The contractor must inform you of this right in writing.

Exceptions apply when work has already substantially begun. If you are unsure whether your cancellation right applies, contact the CCB at (503) 378-4621.

Before you sign: the verification step

A well-written contract protects you — but only if the contractor can actually be held accountable. Before signing any agreement:

  1. Verify the CCB license number listed on the contract matches the active license in the database.
  2. Confirm the bond and insurance are current — they have separate expiration dates from the license.
  3. Confirm the business name on the license matches the name on the contract.
  4. Check complaint history at search.ccb.state.or.us.

For a full step-by-step verification process, see our contractor verification guide.

Frequently Asked Questions

Oregon law requires written contracts for any construction work over $2,000. The CCB recommends written contracts for all agreements, regardless of amount, including all change orders.

Yes. Oregon gives homeowners a one-day right to cancel any residential construction contract before midnight of the next business day. If the contract was solicited away from the contractor's place of business, you have a three-day right to cancel under ORS 83.720.

A change order is a written amendment to the original contract documenting changes to scope, materials, timeline, or price. The CCB recommends all changes be in writing and signed by both parties. Verbal change orders are difficult to enforce and are a leading cause of CCB complaints.

For work over $2,000, the contractor has violated Oregon law. However, this does not necessarily prevent you from filing a CCB complaint — you can still document the agreement through invoices, emails, texts, and payment records. See our guide on filing a complaint against a contractor.

Last updated: February 2026. Information sourced from the Oregon CCB Consumer Tools page.

Before You Sign

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Contract Checklist
  • CCB license number listed
  • Owner and contractor full names
  • Detailed scope of work
  • Specific materials listed
  • Start and completion dates
  • Payment schedule tied to milestones
  • Permit responsibilities defined
  • Change order clause included
  • Arbitration clause reviewed
  • Cancellation rights noted
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