Chapter 701

 

NOTES OF DECISIONS

 

      This is a remedial statute made for the protection of the building business and of people dealing with builders who might be irresponsible; it should be read as a whole and liberally construed to accomplish its purpose. Robinson v. Builders Bd., 20 Or App 340, 531 P2d 752 (1975)

 

ATTY. GEN. OPINIONS: Lack of authority for director to appoint executive secretary for board, (1971) Vol 35, p 930; inapplicability of this chapter to business of construction or installation of fences, sidewalks, septic tanks, wells and underground sprinkling systems, (1972) Vol 35, p 1278; mobile home as personal or real property under this chapter, (1972) Vol 36, p 41; application of Homebuilders Law to mobile homes, (1978) Vol 38, p 693

 

      701.005

 

NOTES OF DECISIONS

 

      Neither “structure” nor “residence” is vague. Thoren v. Builders Bd., 21 Or App 148, 533 P2d 1388 (1975)

 

      Property owner developing property with intent to sell qualifies under definition of “contractor” as person constructing building “for another.” Tandem Properties, LLC v. Construction Contractors Board, 184 Or App 28, 55 P3d 541 (2002), Sup Ct review denied

 

ATTY. GEN. OPINIONS: Mobile home as personal or real property under this chapter, (1972) Vol 36, p 41; local registration requirements of a “specialty builder,” (1976) Vol 38, p 100; construing “appurtenance,” (1976) Vol 38, p 264

 

      701.010

 

NOTES OF DECISIONS

 

      Exemption of builders whose work on structures is of less than threshold value is not an arbitrary classification. Thoren v. Builders Bd., 21 Or App 148, 533 P2d 1388 (1975)

 

      Property owner developing structure with intent to sell, not for occupancy by owner, is person acting in independent business for compensation. Tandem Properties, LLC v. Construction Contractors Board, 184 Or App 28, 55 P3d 541 (2002), Sup Ct review denied

 

ATTY. GEN. OPINIONS: Mobile home as personal or real property under this chapter, (1972) Vol 36, p 41

 

      701.015

 

NOTES OF DECISIONS

 

      “Business license tax” includes any scheme that imposes assessment based on business net income. Proctor v. City of Portland, 245 Or App 378, 263 P3d 1099 (2011), Sup Ct review denied

 

      701.035

 

NOTES OF DECISIONS

 

      To be employee, person must both engage to furnish services for remuneration and be under direction and control of employer. Independent Contractors v. Construction Contractors Bd., 135 Or App 556, 899 P2d 1216 (1995)

 

      Work is of nature described in [former] ORS 701.055 and ORS 701.060 if work requires license from Construction Contractors Board. Randall v. Ocean View Construction Co., 196 Or App 153, 100 P3d 1088 (2004)

 

      701.065

 

      See annotations under ORS 701.131.

 

      701.068

 

(formerly 701.085)

 

NOTES OF DECISIONS

 

      A claim against the bond was valid for the full amount of a judgment, including attorney fees and costs, against the builder for breach of a contract that included installation of appliances and landscaping. Robinson v. Builders Bd., 20 Or App 340, 531 P2d 752 (1975)

 

ATTY. GEN. OPINIONS: Registration requirements for persons not engaged in construction of items not physically attached to the residential structure, (1975) Vol 37, p 676

 

      701.080

 

      See annotations under ORS 701.117.

 

      701.085

 

      See annotations under ORS 701.068.

 

      701.117

 

(formerly 701.080)

 

NOTES OF DECISIONS

 

      Where petitioner’s registration with Builders Board had expired he no longer had duty to notify board of address change and notice of hearing provided pursuant to this section which did not reach petitioner was not “reasonable” under ORS 183.415. Marsh v. Builders Board, 54 Or App 242, 634 P2d 803 (1981)

 

      701.131

 

(formerly 701.065)

 

NOTES OF DECISIONS

 

      Since this section uses word “maintain” in reference to action for compensation, it applied to bar action by unregistered builder who entered into building contract, performed work and filed his complaint prior to date this section became effective. Kolodejchuk v. Lucier, 52 Or App 981, 630 P2d 889 (1981)

 

      A trust deed used as a purchase-money mortgage was not a contract subject to registration requirements of this section and action by plaintiffs to foreclose trust deed on home originally constructed by them with intent that it be their residence was not thereby barred. Wills v. Harris, 57 Or App 712, 646 P2d 39 (1982), Sup Ct review denied

 

      Plaintiff, who was not registered with Builder’s Board is not barred from bringing action for breach of franchise agreement because that is not type of contract action legislature intended to bar by language of this section. MacLean & Associates v. American Guaranty Life, 85 Or App 284, 736 P2d 586 (1987), Sup Ct review denied

 

      Failure of plaintiff to meet contractor registration requirement is not jurisdictional defect. Beckwith v. Frazey, 86 Or App 236, 738 P2d 1003 (1987), Sup Ct review denied; Mount Hood Community College v. Federal Insurance Co., 199 Or App 146, 111 P3d 752 (2005)

 

      Registration in incorrect contracting specialty subcategory created by board rule does not disqualify contractor from maintaining suit. Edwards v. Perry, 130 Or App 165, 880 P2d 507 (1994)

 

      For purposes of continuous registration requirement, “the work” refers to services performed by contractor during entire project, not just services performed during nonregistration period. Parthenon Construction and Design, Inc. v. Neuman, 166 Or App 172, 999 P2d 1169 (2000)

 

      Continuous registration requirement does not incorporate principle of substantial compliance. Parthenon Construction and Design, Inc. v. Neuman, 166 Or App 172, 999 P2d 1169 (2000)

 

      Where contractor relies on agency representation that license is unnecessary, denying remedy based on lack of license constitutes “substantial injustice.” Splinters, Inc. v. Andersen/Weitz, 192 Or App 632, 87 P3d 689 (2004), Sup Ct review denied

 

      Section applies to construction-defect proceedings and, consequently, to claims involving services whose inadequacy contributed to defects subject to those proceedings. Pincetich v. Nolan, 252 Or App 42, 285 P3d 759 (2012)

 

      701.140

 

NOTES OF DECISIONS

 

      Claim for improper work means claim that work was not suited to circumstances under which work was performed and where sufficient evidence exists that work was performed properly, claim cannot stand. Hettle v. Construction Contractors Board, 260 Or App 135, 316 P3d 344 (2013), Sup Ct review denied

 

      “Negligent work” refers to common-law negligence and when only economic losses are claimed, complainant must demonstrate that special relationship creating heightened standard of care existed between complainant and respondent for claim to stand. Hettle v. Construction Contractors Board, 260 Or App 135, 316 P3d 344 (2013), Sup Ct review denied

 

      701.145

 

NOTES OF DECISIONS

 

      In sale of new houses by builder-vendors there exists an applied warranty that house is constructed in reasonably workmanlike manner and is fit for habitation. Yepsen v. Burgess, 269 Or 635, 525 P2d 1019 (1974)

 

      Discretion of Construction Contractors Board to continue processing claim while claim on same fact or issue is pending in court terminates once court has finally adjudicated claim. Fong v. Windwood Construction, Inc., 163 Or App 130, 986 P2d 1257 (1999)

 

      701.150

 

LAW REVIEW CITATIONS: 39 WLR 779 (2003)

 

      701.205

 

ATTY. GEN. OPINIONS: Lack of authority for director to appoint executive secretary for board, (1971) Vol 35, p 930

 

      701.235

 

ATTY. GEN. OPINIONS: Authority of the Builders Board to prohibit by regulation the advertisement by registered builders that they are bonded, insured, or certified, (1973) Vol 36, p 592

 

      701.410 to 701.440

 

ATTY. GEN. OPINIONS: Operative date of the Act concerning contracts and subcontracts, (1975) Vol 37, p 812; constitutionality of the provisions, (1976) Vol 38, p 472

 

      701.410

 

ATTY. GEN. OPINIONS: Constitutionality of the Act, (1976) Vol 37, p 1269