Small Construction Contracts

I get this question all the time: I have a skill - I am a licensed contractor, and I want to offer my services in a more professional way but I am not a huge construction company. What do I need?

The answer is “a good contract”.

In Oregon, all contracts on a residential structure that exceed $2,000 must be written. If you do not have a written contract as required, you cannot claim a lien (ORS 87.037) This should be your first red flag when hiring a contractor or when you are a contractor and your job exceeds $2000.

At a minimum, If you work on residential properties, you should include the following information in your contract:

All of your information: Your name, address, phone number, and CCB license number

Who is your client: name and address where you will be working

What is the work to be performed?

How much and how this will be paid?

You need to give the client certain information so they know how to file a complaint with the Construction Contractors Board (this is formally known as notices).

A method to resolve conflicts: mediation, arbitration, etc.

This is general information, a contract for a roofing project is not the same as a contract for cabinetry or flooring projects, etc. Every type of business and service has its own rules. Your business is not like others and needs a contract that fits your needs and business model.

We will have a conversation on different areas of your business, for example, materials: who chooses them, who buys them, where will they be delivered, who is responsible for the delivery on time, what happens if delivery delays the work, what happens if the material you received is not the right one, etc. We want to set the rules before anything unexpected happens so we can foresee how to fix a problem before it presents itself.

If you are thinking about providing this kind of service, please contact me. We need to discuss the terms of your service and put it in writing. This will save you a lot of headaches and will make your business look more professional when presenting a contract to your clients.

Request a free 30 minute consultation and let’s take your business to the next level.

Ruled by Oregon Administrative Rules Chapter 812