§ 701.572 — Duties and rights of contractor, subcontractor or supplier following association’s notice of defect; requirements for offers to pay compensation; duties of owner upon receipt of offer to pay compensation; dispute resolution; satisfaction of claim

Oregon § 701.572

• Jurisdiction: Oregon
• Vol.: 17
• Title 52: Occupations and Professions
• Ch. 701: Construction Contractors and Contracts

Text

If a homeowners association or association of unit owners sends a notice of defect under ORS 701.565:
(1) The periods during which a contractor, subcontractor or supplier may send a written request to conduct a visual examination or request to inspect the residence under ORS 701.570 (2) or (3) are each extended from 14 days to 30 days.
(2) The contractor, subcontractor or supplier may have a technical or construction expert attend an inspection requested under ORS 701.570 (3).
(3) The contractor, subcontractor or supplier shall send the owner a written response, as required under ORS 701.570 (5), no later than:
(a) Fourteen days after conducting an inspection of the residence under ORS 701.575 (3); or
(b) If no inspection is conducted, 90 days after receiving a notice of defect or secondary notice.
(4) An offer to pay an amount under ORS 701.570 (5)(c)(B):
(a) Must be based on the amount equal to the cost of remediation.
(b) May allow the owner a choice between accepting the payment or allowing the contractor, subcontractor or supplier to perform remediation.
(5) And if the contractor, subcontractor or supplier does not send a response that is timely under subsection (3) of this section or that conforms to the requirements in subsection (4) of this section, the owner is excused from further compliance with this section.
(6) And if an offer is made under subsection (4)(a) of this section to pay an amount equal to the cost of remediation, the contractor, subcontractor or supplier has 30 days after sending the response to offer a firm payment amount. If the owner wishes to accept an offer of payment, but disputes the amount, the parties may select a mediator to attempt resolution. If the parties cannot agree on a mediator after 45 days, the parties may request that the administrator of the Construction Contractors Board inform a professional mediation association or service that the parties wish to have a mediator selected by the association or service.
(7) And if an owner accepts payment of an amount equal to the cost of remediation, the owner shall make a good faith effort to have a construction contractor complete remediation.
(8) And if the owner accepts an offer to perform remediation or to pay monetary compensation, completion of the remediation or payment satisfies the claims by the owner for those defects included in the offer for which remediation was performed or compensation paid, but not for any other defect.
(9) And if the owner accepts an offer by a contractor, subcontractor or supplier that received a secondary notice:
(a) Completion of the remediation or payment satisfies claims for those defects included in the offer for which remediation was performed or compensation paid, including claims by the owner and claims for contribution or indemnity against the contractor, subcontractor or supplier by the sender of the secondary notice, but not for any other defect.
(b) And the contractor, subcontractor or supplier fails to perform in accordance with the accepted offer, the sender of the secondary notice may perform the remediation or pay the monetary compensation offered by the nonperforming contractor, subcontractor or supplier.

Legislative History

2025 c.578 §12