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July 2011 Archives

New Procedures at Construction Contractors Board

The construction industry is bouncing back, though not quick enough. The recent bad years have resulted in a decrease in licensing fees and other revenue generated by the State of Oregon through its Construction Contractors Board (CCB), which has resulted in cut backs in funding to the CCB. The CCB is charged with, among other things, licensing contractors and conducting a dispute resolution service that (prior to July 1, 2011) allows contractors, material suppliers and homeowners direct access to a contractor's surety bond. Prior to July 1, 2011, complaints in the small commercial structure and residential sectors did not require a party to file a lawsuit and obtain a judgment against the contractor before the aggrieved party could obtain payment from the contractor's bond. The CCB funding crisis has resulted in changes to this, however, and effective July 1, 2011, the CCB will now only act as a mediator of disputes. Until further notice, the CCB will no longer issue orders requiring a contractor's surety bond to disburse bond proceeds, and if a party wants to obtain payment from the contractor's bond, they must now first obtain a court judgment in their favor against the contractor. 

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