My wife and I recently did what we told ourselves numerous times we would never do again: we hired an unlicensed contractor. While we knew the risks involved in hiring this guy, he was available, he talked a good game, and, best of all, he was cheap.
Well, we got burned again. Early in the job, certain indicators revealed that the guy was not the “experienced carpenter” he claimed to be. First, he couldn’t figure out the plans. Second, he neglected to take important measurements on several occasions. The final straw was when he ruined $1,500 worth of decking material; this led to him walking off the job mere seconds before being fired. This story supports the old adage “you get what you pay for.” Fortunately, we had not paid the idiot prior to his departure. But, we’re out the $1,500 with no real recourse other than filing a complaint in small claims court.
If our contractor were licensed with the Oregon Construction Contractors Board (CCB), the story would be different. When you hire a licensed contractor, there are several things that put your mind at ease. First, you can be confident that the individual has some minimal knowledge of construction practices. To be licensed, a contractor must take a 16-hour course and pass a test. Second, should things go bad, you have the ability to recover your losses from the contractor’s bond. All licensed contractors are required to be bonded, and this bond can be used to cover a breach of contract, damage, or other costs caused by a contractor’s poor performance. Last, the ability of a person to bring a CCB complaint against a contractor helps to serve as assurance that the contractor will do a decent job.
The CCB is a state agency created by statute to administer the licensing of people who work as contractors in Oregon. It serves three primary functions. First, it is the body through which contractors become licensed and receive a coveted “CCB Number.” Second, it serves as a forum for resolving disputes between licensees and those who hired them, as well as some disputes between contractors and subcontractors. Third, it serves as a clearinghouse for public information regarding construction liens and other laws designed to protect both individuals and contractors.
The CCB is comprised of nine members. Three of the nine board members must be licensed contractors who primarily work on residential structures; one of these must be engaged in the business of remodeling. Two of the members must be general contractors who primarily work on nonresidential structures. One must be a specialty contractor who primarily works on nonresidential structures or who is a limited contractor. Two must be public members (to represent consumers) and one must be an elected representative of a local government agency. The governor appoints all board members. Their terms of office are for four years, but a member can be re-appointed to a second term.
The CCB requires that in order to be licensed, a contractor must take 16 hours worth of classes and pass a test designed to demonstrate that the contractor understands both construction fundamentals and building codes. In addition, a contractor must obtain both insurance and a bond. The insurance covers damage caused by a contractor’s actions and the bond is available to cover damages due to the contractor’s negligence or failure to perform adequately. A contractor must maintain certain bonding and insurance requirements and renew his or her license periodically.
The CCB also helps to resolve disputes between those upset with a contractor’s performance (or lack thereof) and the contractor. A person who has a claim against a licensed contractor may submit a complaint form to the CCB, along with all supporting documents, such as a contract, work order, etc. The CCB will review the complaint, conduct a site visit, and determine the appropriate sanction. Filing a complaint with the CCB is also the first step to recovering from a contractor’s bond; a bond can be used to pay for uncompleted work or improper performance only after the CCB has ruled on the matter.
The third function of the CCB is to serve as an information source for property owners regarding contractors, licensing requirements, and construction liens. A wealth of information is available on the CCB website, www.ccb.state.or.us, including information about issues pending before the CCB, construction liens, licensing requirements, as well as complaint forms and forms for becoming a licensed contractor. For more information, contact the CCB in Salem, Oregon at (503) 378-4621.
If we had hired a licensed contractor, we would have been assured of a general level of competency and would have had the ability to recover some of our losses. Instead, our only recourse for a job gone terribly wrong is in small claims court to seek a judgment against someone who likely has no assets. For you, it is not too late: do yourself a favor and hire a licensed contractor. Although you may pay a little more and have to wait a little longer, you’ll thank yourself in the end.
Jonathan Norling is a partner in the Portland law firm of Nelson Lovinger Norling Kaufmann LLP, where he handles construction-related matters, including representing parties before the CCB. He can be reached at norling@nlnk.com.
