Relating to construction contractors; prescribing an effective date.
If passed, HB 3385 would significantly alter the landscape of construction contracting in Oregon by introducing stricter limits on how much residential contractors can collect upfront—capping it at 50% of the contract price unless specific conditions are met. This measure aims to protect homeowners from potentially unfair practices and unexpected costs. The bill applies only to contracts entered into after January 1, 2024, ensuring that existing contracts remain unaffected by these new rules.
House Bill 3385 establishes new regulations for residential general contractors in Oregon, particularly those handling remodel or repair projects exceeding $20,000. The bill mandates that contractors must conduct a tour of the residential property with the owner to discuss the proposed work. They are also required to present the property owner with a detailed, itemized description of each aspect of the construction work before any contractual agreement can be finalized. This ensures that homeowners have a clear understanding of the work to be done and the associated costs before approval.
The sentiment regarding HB 3385 appears mixed. Proponents—primarily consumer advocacy groups—argue that the added regulations will protect homeowners from exploitation and ensure transparency in the contracting process. Conversely, opponents, including some contractors, express concerns that the bill imposes burdensome restrictions that could hinder business operations, increase costs, and potentially delay project timelines. The differing views highlight the ongoing debate between consumer protection and regulatory flexibility in the construction industry.
Notable points of contention stem from the restrictions on how and when contractors can collect payments. Critics argue that limiting upfront payments could slow down projects as contractors may struggle to cover initial costs, especially for larger jobs. Furthermore, the requirement for mediation through the Construction Contractors Board before pursuing legal action against a property owner accused of unreasonably withholding approval adds another layer of complexity that some believe may lead to lengthy disputes. This reflects a tension between safeguarding consumer rights and maintaining contractor interests.