Defect Notices in Oregon – What Oregon Homeowners Need to Know

Construction Defect Notices in Oregon for Defective Work by Construction Contractors

A cartoon-style illustration of a sad homeowner standing outside a defective house. The homeowner has a disappointed expression, wearing casual clothes, and is holding a clipboard or defect notice. The house appears visibly damaged, with cracks in the walls, a sagging roof, and broken windows. The scene is lighthearted but emphasizes the homeowner's frustration and the house's poor condition.

Oregon law, specifically – ORS 701.565 – requires that notice of defect be given to promote fair resolution of disputes between contractors and homeowners to minimize unnecessary litigation. Under ORS 701.565, homeowners must notify contractors of alleged defects and give them the opportunity to inspect and remedy the issues before escalating to legal or administrative actions. This process fosters communication and gives contractors the chance to resolve problems, maintaining professional relationships and avoiding costly disputes. However, failure to adequately draft and serve the letter can lead to the forfeiture of your rights as a homeowner if the notice is insufficient. It is extremely important to follow the strict requirements of the law and the timing requirements, or you risk losing your rights. 

Ten Ways a Homeowner Can Screw Up Their Defect Notice Being Vague About the Defects. 

  1. Being Vague About the Defects:
    • Using phrases like “poor workmanship” without specifying the exact issues leaves the notice open to interpretation and likely invalid.
  2. Failing to Provide Evidence:
    • Not including photographs, videos, or other documentation to substantiate claims makes it harder to prove the existence of defects.
  3. Missing Deadlines:
    • Waiting too long to file the notice or failing to provide a reasonable timeline for the contractor to respond can render the notice ineffective.
  4. Improper Delivery:
    • Using unapproved methods like email or verbal communication instead of certified or registered mail can lead to disputes over whether the notice was received.
  5. Skipping the Opportunity to Cure:
    • Filing a claim or hiring another contractor without giving the original contractor a chance to fix the issues violates ORS 701.565.
  6. Including Irrelevant Complaints:
    • Adding unrelated grievances or personal attacks can detract from the validity and professionalism of the notice.
  7. Using Inflammatory Language:
    • Accusatory or hostile wording may escalate tensions and reduce the contractor’s willingness to cooperate.
  8. Omitting Key Information:
    • Failing to specify locations, materials, or the exact nature of the defects undermines the effectiveness of the notice.
  9. Overlooking Expert Opinions:
    • Neglecting to consult a construction expert to assess defects can weaken the notice, especially if the issues require technical explanation.
  10. Assuming the Contractor Will Respond in Good Faith:
  • Over-relying on verbal assurances or informal agreements without following the formal notice process jeopardizes legal recourse if the contractor fails to act.

Benefits of Having an Attorney Prepare a Notice of Defect for Oregon Homeowners

Oregon law, specifically – ORS 701.565 – requires that notice of defect be given to promote fair resolution of disputes between contractors and homeowners to minimize unnecessary litigation. Under ORS 701.565, homeowners must notify contractors of alleged defects and give them the opportunity to inspect and remedy the issues before escalating to legal or administrative actions. 

This process fosters communication and gives contractors the chance to resolve problems, maintaining professional relationships and avoiding costly disputes. However, failure to adequately draft and serve the letter can lead to the forfeiture of your rights as a homeowner if the notice is insufficient. 

Illustration: Problems of Preparing a Notice of Defect Without a Lawyer

Ten Ways a Homeowner Can Screw Up Their Defect Notice Being Vague About the Defects: 

  1. Using phrases like “poor workmanship” without specifying the exact issues leaves the notice open to interpretation and likely invalid.
  2. Failing to Provide Evidence: Not including photographs, videos, or other documentation to substantiate claims makes it harder to prove the existence of defects.
  3. Missing Deadlines: Waiting too long to file the notice or failing to provide a reasonable timeline for the contractor to respond can render the notice ineffective.
  4. Improper Delivery: Using unapproved methods like email or verbal communication instead of certified or registered mail can lead to disputes over whether the notice was received.
  5. Skipping the Opportunity to Cure: Filing a claim or hiring another contractor without giving the original contractor a chance to fix the issues violates ORS 701.565.
  6. Including Irrelevant Complaints: Adding unrelated grievances or personal attacks can detract from the validity and professionalism of the notice.
  7. Using Inflammatory Language: Accusatory or hostile wording may escalate tensions and reduce the contractor’s willingness to cooperate.
  8. Omitting Key Information: Failing to specify locations, materials, or the exact nature of the defects undermines the effectiveness of the notice.
  9. Overlooking Expert Opinions: Neglecting to consult a construction expert to assess defects can weaken the notice, especially if the issues require technical explanation.
  10. Assuming the Contractor Will Respond in Good Faith: Over-relying on verbal assurances or informal agreements without following the formal notice process jeopardizes legal recourse if the contractor fails to act.

Under ORS 701.565, James was required to notify the contractor in writing, specifying the defects and allowing the contractor an opportunity to inspect and remedy the problems. He quickly drafted a letter but failed to include sufficient detail about the defects or send the letter to the right persons. The contractor claimed they did not receive adequate notice and refused to address the issues.

When James escalated the matter, his incomplete documentation weakened his case. The contractor argued that James failed to meet the requirements of the statute, and the CCB sided with the contractor. James spent months trying to resolve the issue but ultimately had to pay for another contractor to fix the defects, losing both time and money.

Illustration: Drafting a Notice of Defect With a Lawyer

Sarah had recently completed a renovation of her family home. Unfortunately, within weeks of completion, she began noticing defects: cracks in the drywall, uneven flooring, and leaks around the new windows. Frustrated, Sarah reached out to the contractor but received no response. She decided to take action under ORS 701.565 and contacted a lawyer to assist.

Sarah’s attorney carefully reviewed her concerns and conducted an inspection with a construction expert. Together, they identified specific defects, photographed the issues, and prepared a comprehensive defect notice. The lawyer ensured that the notice detailed each problem, referenced the relevant areas of the contract, and included deadlines for the contractor’s response and opportunity to cure.

The notice was sent via certified mail, with proof of delivery provided. The contractor, recognizing the thoroughness of the notice and the seriousness of Sarah’s legal representation, quickly agreed to inspect the property. The attorney facilitated the inspection, ensuring that all communications remained professional and productive.

When the contractor proposed substandard remedies, Sarah’s lawyer negotiated improvements and timelines that better aligned with industry standards. Ultimately, the defects were resolved without the need for a hearing, saving Sarah both time and stress. The investment in legal counsel not only ensured her notice was legally sound but also safeguarded her rights throughout the process.

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