CONSTRUCTION CONTRACTORS BOARD

Transcription

1 CONSTRUCTION CONTRACTORS BOARD Annual Performance Progress Report (APPR) for Fiscal Year ( ) Original Submission Date: 2015 Finalize Date: 12/10/2015

2 KPM # Approved Key Performance Measures (KPMs) Tested Contractors: Reduce the percent of CCB-tested contractors that have a final order for damages that remain unpaid after 60 days, or that are discharged in bankruptcy. 2 Homeowner Awareness: Percent of homeowners who are aware of their rights and responsibilities and the services of CCB. 3 Unlicensed Recidivism Rate: Percent of offenders who perform work without a within three years of first offense. 4 Contractors Who Fail to Pay Damages: Percent of licensed contractors operating in Oregon that fail to pay in full final dispute resolution complaints for damages. 5 Enforcement Investigations: Average days to close an enforcement investigation. 6 Dispute Resolution Final Orders: Average days to issue a dispute resolution (claims) final order. 7 Fair and Impartial Dispute Resolution Process: Percent of parties to claims who perceive claims process to be fair and impartial. 8 License and Renewal Processing: Percent of contractors satisfied with the agency s processing of license and renewal information. 9 Customer Service: Percent of customers rating their satisfaction with the agency s customer service as good or excellent. Ratings cover timeliness, accuracy, helpfulness, expertise, availability of information and overall performance. 10 Best Practices: Percent of best practices met by the Board.

3 New Delete Proposed Key Performance Measures (KPMs) for Biennium Title: Rationale:

4 CONSTRUCTION CONTRACTORS BOARD I. EXECUTIVE SUMMARY Agency Mission: The Construction Contractors Board protects the public s interest relating to improvements to real property. The Board regulates construction contractors and promotes a competitive business environment through education, contractor licensing, dispute resolution, and law enforcement. Contact: James Denno, Administrator Contact Phone: Alternate: Kimberlee Ayers, Administrative Services Manager Alternate Phone: Performance Summary Yellow Green Yellow 90.0% 0.0% 10.0% Total: 100.0% Green Green Yellow Red Exception = Target to -5% = Target -6% to -15% = Target >-15% Cannot calculate status (zero entered for either Actual or Target) 1. SCOPE OF REPORT All agency programs are covered by key performance measures. The Oregon Construction Contractors Board (CCB), the state agency that regulates construction contractors, protects consumers through its four major programs: Consumer Education and Contractor Education and Testing (KPM #1 and 2). Licensing and Customer Service (KPM #8 & 9). Enforcement (allegations of license law violations) (KPM #3 and 5). Dispute Resolution (complaints involving contract disputes) (KPM #4, 6, and 7) Page 4 of 27

5 2. THE OREGON CONTEXT CCB regulation affects Oregon s economy and the financial security of most Oregon citizens largest investment - their home. Oregon s regulatory structure is a model for other states. The State of Rhode Island patterned its contractor licensing program after Oregon s. Oregon has been singled out by leaders in the insurance and bonding industries as a model for other states (NASCLA 2011). Oregon s unique dispute resolution program also has been studied by other states. A report several years ago to Washington state legislators highlighted Oregon as having both: Annual performance reports addressing critical performance metrics. Formal complaint resolution with enforcement powers. Oregon contractors must understand and comply with many laws that protect the public. The CCB oversees compliance in areas including: basic business competency training and testing, Oregon tax, workers compensation and employment tax, building codes and permits, contract law, environmental law, liability insurance, and bonding. Current law mandates that agency programs protect consumers and ensure safe structures in Oregon. Legislative mandates established as a result of the 2005 Taskforce on Construction Claims that became effective in 2007 include mandatory continuing education and increased bond and insurance requirements. Links to Oregon Benchmarks: None. CCB programs do not directly link to Oregon Benchmarks. With help from the Oregon Progress Board, the agency developed a high level outcome (HLO) to measure the agency s contribution to moving Oregon forward. HLO1. Percent of all licensed contractors that discharge CCB complaint final orders in bankruptcy, which significantly damage other Oregonians. 3. PERFORMANCE SUMMARY 1. KPMs making progress at or trending toward target achievement: (Green). KPM 1: Tested Contractors, KPM 3: Unlicensed Recidivism Rate. KPM 4: Contractors Who Fail to Pay Damages, KPM 5: Enforcement Investigations. KPM 6: Dispute Resolution Final Orders, KPM 7: Fair and Impartial Dispute Resolution Process, KPM 8: License and Renewal Processing, KPM 9: Customer Satisfaction, and KPM 10: Best Practices. 2. KPMs with progress unclear: (Yellow): KPM 2: Homeowner Awareness. Page 5 of 27

6 3. KPMs not making progress and not trending toward target achievement: (Red). None. Total Number of Key Performance Measures (KPMs): CHALLENGES The agency faces the challenges of improving compliance with Oregon s contractor licensing laws, and providing consistently high quality services in the aftermath of the recession which saw a large decrease in the number of licensees and in agency revenues. The agency continues to seek ways to streamline services and increase the effectiveness of enforcement activities with a reduced staff. The agency is exploring opportunities to coordinate and share resources with other agencies, particularly the Building Codes Division. 5. RESOURCES USED AND EFFICIENCY The agency s budget for the biennium was $15,944,713. These monies are spread among the agency s four major programs: Contractor/Consumer Education Licensing Enforcement Dispute Resolution Services Two of the agency s KPMs measure efficiency (KPM 5 and 6). Page 6 of 27

7 CONSTRUCTION CONTRACTORS BOARD II. KEY MEASURE ANALYSIS KPM #1 Tested Contractors: Reduce the percent of CCB tested contractors that have a final order for damages that remain unpaid after 60 days, or that are discharged in bankruptcy. Goal Goal 1: To protect Oregon consumers of construction related services. Objective 1b: Contractor Education: To ensure that all licensed contractors have an adequate level of business competency. Oregon Context HLO1 Percent of all licensed contractors that discharge CCB claims final orders in bankruptcy, which significantly damages other Oregonians. Data source CCB Licensing Program Quarterly Report and Dispute Resolution Quarterly Report Owner Cheryl Martinis, Education Manager (503) & Stan Jessup, Dispute Resolution Services Manager (503) Percent Tested Contractors with Unpaid Final Orders Bar is actual, line is target 1.20% 1.00% 0.80% 0.60% 1.18% 0.95% 1.05% 0.40% 0.69% 0.50% 0.20% 0.37% 0.40% 0.41% 0.31% 0.24% 0.26% 0.36% 0.00% Actual 0.95% 0.50% 0.37% 0.40% 1.18% 1.05% 0.41% 0.69% 0.31% 0.24% 0.26% 0.36% Target 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% Data is represented by percent 1. OUR STRATEGY During the 2007 Legislative Session, the Legislature directed the agency to revise this performance measure. With the help of legislative staff, the agency developed a new KPM based upon unpaid final orders that result from the CCB s dispute resolution services. The new performance measure tracks the number of tested contractors that have a final order for damages that remain unpaid after 60 days, or that is discharged in bankruptcy. However, economic conditions or family issues such as divorce also cause financial problems so this KPM may not accurately measure agency education performance. The agency uses its pre-licensure training and testing requirements to train and provide a measurable level of business competency for new contractors obtaining a new, or first-time license. Responsible managing individuals (RMIs) must demonstrate completion of agency-approved training. Testing is conducted by an agency-approved vendor selected through a competitive bidding process. Page 7 of 27

8 CONSTRUCTION CONTRACTORS BOARD II. KEY MEASURE ANALYSIS Based upon the above, the agency measures the level of success of its business competency requirement (test) by measuring the rate of failures to timely paying agency Dispute Resolution Services complaint resolutions in two classes of current licensees: Tested contractors 18,814 July 1, 2015 Untested contractors 16,422 July 1, 2015 The rationale is that tested contractors will have the business competency to avoid poor business practices and decisions that lead to business failure, bankruptcy, and unrecoverable damages to consumers. Simple bankruptcies were determined to be an unreliable method of determining business failure due to lack of business competency. Although still an indicator, bankruptcies were determined to be the result of many other factors, and therefore, this measure was measuring business training and testing success was replaced with the current KPM. 2. ABOUT THE TARGETS The target for this measure is 1 percent. 3. HOW WE ARE DOING The agency exceeded its target in The performance measure was actually achieved on a year to year comparison, 0.36% (2015) v.25% (2014). 4. HOW WE COMPARE No comparative information exists. 5. FACTORS AFFECTING RESULTS Numerous factors lead to contractors not paying their debts, including poor economic conditions, family changes such as divorce, and emergency expenditures. Two programs may influence this KPM, the mediation service and the enforcement license suspension/revocation authority. The mediation service offers parties alternative ways to resolve disputes, sometimes involving no, or minimal cost to licensees. By doing so, contractors who may not be able to pay a large debt, have the opportunity to take care of the dispute in a way that preserves their license. On the other hand, the enforcement license suspension/revocation penalizes contractors who fail to pay their debts. 6. WHAT NEEDS TO BE DONE This KPM should be re-evaluated because it may not measure the effectiveness of the pre-licensure or continuing education. Additionally, the measurement may not be statistically significant. 7. ABOUT THE DATA This data is calculated per quarter by the agency s Dispute Resolution Services and Information Technology Sections. The reported data represents fiscal years ending June 30 of the reported year. For example, data reported for the year 2015 represents data gathered from July 1, 2014 through June 30, Page 8 of 27

9 CONSTRUCTION CONTRACTORS BOARD II. KEY MEASURE ANALYSIS KPM #2 Homeowner Awareness: Percent of homeowners who are aware of their rights and responsibilities and the services of CCB. Goal Goal 1: To protect Oregon consumers of construction services. Objective 1c: Consumer Education: To educate consumers about their rights and responsibilities and the services and authority of the CCB Oregon Context HLO2 Percent of homeowners who understand and highly rate the value of hiring a properly licensed contractor. Data source CCB-sponsored scientific random sample survey among Oregon homeowners. Owner Cheryl Martinis, Education Manager (503) Percent of Homeowners Aware of Rights Bar is actual, line is target 70% 60% 50% 40% 30% 41% 43% 43% 44% 45% 50% 46% 20% 40% 45% 32% 36% 29% 10% 0% Actual 32% 29% 41% 43% 43% 44% 45% 50% 40% 36% 46% 45% Target 50% 60% 60% 60% 62% 64% 50% 50% 50% 50% 50% 50% Data is represented by percent 1. OUR STRATEGY Each year, the CCB commissions a statewide survey to measure homeowner awareness of CCB services and homeowner use of licensed contractors. This plan helps form the agency s consumer outreach. The survey results note that while 45 percent of all those sampled are aware of the CCB, 51 percent of those who actually completed a remodeling or home improvement project in the past five years are aware of the agency. This reinforces the agency s strategy to focus outreach on attendance at home/remodeling shows to reach consumers most interested in building or making home improvements. We continue to partner informally with state agencies and consumer/construction industry groups interested in consumer protection. In mid-2014, the agency launched a statewide radio campaign reminding homeowners to use licensed contractors for their home projects. The CCB works closely with the Environmental Protection Agency to get the word out to contractors and homeowners about the requirements for handling lead-based paint on pre homes. Page 9 of 27

10 CONSTRUCTION CONTRACTORS BOARD II. KEY MEASURE ANALYSIS 2. ABOUT THE TARGETS A higher number shows greater awareness of the CCB. Over the past several years, the agency set awareness targets ranging from 60 percent in 2006 to 64 percent in Due to the loss of funding in consumer education outreach, the Legislature lowered the target to 50 percent beginning in This lowered target seems appropriate for reasons unrelated to funding. Roughly half (49 percent) of Oregon homeowners built a new home or completed a home improvement project in the past five years, and this is our target audience. 3. HOW WE ARE DOING The agency awareness level among all Oregonians remained approximately the same as in recent years, and did not reach the target of 50 percent during FY We believe that the agency does a solid job of reaching consumers at home building and improvement shows, but needs to broaden its outreach within the limits of staffing. Additionally, we need to fine-tune our message to remind homeowners not just to use licensed contractors but to actually verify the license with the CCB. The survey showed that while 80 percent of homeowners agree that it is important to use a licensed contractor, only 43 percent of homeowners who built homes or completed a major project actually verified that their contractor was licensed. 4. HOW WE COMPARE Comparative data is not available. 5. FACTORS AFFECTING RESULTS CCB outreach varies, depending on budgets. 6. WHAT NEEDS TO BE DONE The agency will work with industry partners and the National Association of State Contractors Licensing Agencies to develop and implement new strategies and review best practices. Most importantly, CCB will attempt to enlist the help of contractors in educating homeowners about the need to use contractors who are licensed and legal. Meanwhile, the CCB website reflects the new state template for all agencies and the agency is improving its consumer and contractor content. The agency needs to make information more understandable for consumers who come to its website to look up a contractor s complaint record, and this will happen with anticipated new technology systems. 7. ABOUT THE DATA This data is collected each calendar year by a research company. The question used in the survey for this KPM is awareness of the CCB. Page 10 of 27

11 CONSTRUCTION CONTRACTORS BOARD II. KEY MEASURE ANALYSIS KPM #3 Unlicensed Recidivism Rate: Percent of offenders who perform work without a within three years of first offense. Goal Goal 1: To protect Oregon consumers of construction related services. Objective 1d: Enforcement: To provide timely and effective investigations of unlawful acts and sanction appropriately. Oregon Context HLO1 Percent of all licensed contractors that discharge CCB complaints final orders in bankruptcy, which significantly damages other Oregonians. Data source CCB Enforcement Program Quarterly Report Owner Stan Jessup, Enforcement Manager (503) Enforcement: Unlicensed Recidivism Rate 20% Bar is actual, line is target 16% 12% 8% 14.59% 14.20% 4% 8.43% 10.65% 10.14% 8.02% 7.69% 8.56% 8.31% 6.88% 9.46% 1.48% 0% Actual 8.43% 10.65% 14.59% 8.02% 10.14% 7.69% 8.56% 8.31% 6.88% 1.48% 14.20% 9.46% Target 7% 6% 5% 5% 20% 18% 18% 18% 18% 18% 15% 15% Data is represented by percent 1. OUR STRATEGY The agency s disciplinary program is structured to deter construction businesses from operating without a proper. The likelihood of detection and the potential for penalties drive the effectiveness of the agency s efforts to deter illegal activity. A low rate of the recidivism indicates that the agency s disciplinary program deters unlawful conduct. 2. ABOUT THE TARGETS The lower the number the better. The agency target is a recidivism rate of 15 percent, or lower. The agency seeks to have the lowest possible rate of recidivism. Page 11 of 27

12 CONSTRUCTION CONTRACTORS BOARD II. KEY MEASURE ANALYSIS 3. HOW WE ARE DOING The agency is doing well and exceeds the target on this KPM. 4. HOW WE COMPARE The agency is unaware of any other administrative enforcement agency that provides recidivism data. 5. FACTORS AFFECTING RESULTS The agency met the target on this KPM. The recovering from the recession has brought a flood of unlicensed contractors to the industry. CCB has redefined work areas throughout the state to meet the challenge and the results are beginning to show. While the recidivism total numbers for 2014 were lower, the percentage for 2014 was high and 2015 is showing improvements due to the strategic improvements CCB has made to the program. 6. WHAT NEEDS TO BE DONE The agency must maintain an effective and robust enforcement program to deter unlicensed activity. 7. ABOUT THE DATA This data is gathered quarterly by the CCB enforcement section and represents cumulative data for the fiscal year ending June 30 of each year. Additional data may be obtained by requesting copies of agency program quarterly reports. For purposes of this measure, a repeat offender is a construction business that has an owner or officer in it, or a previous construction business, that was found to have worked without a within the three years preceding the beginning of the subject fiscal year reporting period. Page 12 of 27

13 CONSTRUCTION CONTRACTORS BOARD II. KEY MEASURE ANALYSIS KPM #4 Contractors Who Fail to Pay Damages: Percent of licensed contractors operating in Oregon that fail to pay in full final Dispute Resolution complaints for damages. Goal Goal 1: To protect Oregon consumers of construction related services. Objective 1e: Dispute Resolution: To hold contractors financially accountable for their business practices Oregon HLO1 Percent of all licensed contractors that discharge CCB complaints final orders in bankruptcy, which significantly Context damages other Oregonians. Data source CCB Dispute Resolution Quarterly Report statistics. By measuring the number of contractors per year that fail to pay, in full, Dispute Resolution (complaint) final orders for damages divided by the number of es per year at the end of the fiscal year. Owner Stan Jessup, Dispute Resolution Services Manager (503) Percent of Contractors Who Fail to Pay Final Orders Bar is actual, line is target 2.00% 1.60% 1.20% 0.80% 1.84% 0.40% 0.00% 0.74% 0.83% 0.86% 0.58% 0.39% 0.37% 0.45% 0.21% 0.40% 0.33% 0.35% Actual 0.58% 0.39% 0.74% 0.83% 0.37% 1.84% 0.86% 0.45% 0.21% 0.40% 0.33% 0.35% Target 0.54% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% Data is represented by percent 1. OUR STRATEGY The agency s programs hold individuals and construction businesses accountable for their business practices. The licensing section identifies owners and officers of licensed construction businesses. The Dispute Resolution Services (DRS) section determines construction debts. The enforcement section suspends the licenses of those businesses that have owners or officers with current or past unresolved construction debts. This performance measure tracks the number of current licensees responsible for unpaid debt compared to the total number of licensed contractors. The Oregon court system is an important partner in holding contractors accountable for construction debt. This KPM measures a negative indicator of this goal, that being whether the agency is working well to make contractors pay their debts by putting pressure on the owners of these companies. Page 13 of 27

14 CONSTRUCTION CONTRACTORS BOARD II. KEY MEASURE ANALYSIS During times of economic stress, this measure will likely spike, despite agency programs. 2. ABOUT THE TARGETS The target for 2015 has been constant over the last five years. The target for this KPM is percent. 3. HOW WE ARE DOING The agency exceeded the target. For 2015 the agency achieved.35 percent. 4. HOW WE COMPARE No comparison data is available. 5. FACTORS AFFECTING RESULTS Numerous factors lead to contractors not paying their debts, including poor economic conditions, emergency expenditures, and family changes such as divorce. Two programs affect this KPM. The agency s mediation service offers parties alternative ways to resolve disputes involving minimal cost to licensees. By doing so, contractors who may not be able to pay a large debt have the opportunity to take care of the dispute in a way that preserves their license. On the other hand, the agency s ability to suspend or revoke licenses penalizes contractors who fail to pay their debts. This takes away a contractors ability to perform work legally until the debt has been paid or settled. 6. WHAT NEEDS TO BE DONE We recommend determination of more meaningful ways to measure the agency s ability to hold contractors accountable for the business practices. The agency will continue its efforts to identify and discipline contractors and businesses that are owned by individuals responsible for unpaid construction debts. 7. ABOUT THE DATA This data is determined once a year in July based upon reports run for the fiscal year ending June 30. The data is based upon the number of Dispute Resolution Services closed files where there is any amount left unpaid by the contractors. Page 14 of 27

15 CONSTRUCTION CONTRACTORS BOARD II. KEY MEASURE ANALYSIS KPM #5 Enforcement Investigations: Average days to close an enforcement investigation. Enforcement Investigations Average days to close an enforcement investigation Goal Goal 2. Provide excellent customer service to all who wish to use our services. Objective 1d: Enforcement: To provide timely and effective investigations of unlawful acts and sanction appropriately. Oregon Context HLO1 Percent of all licensed contractors that discharge CCB complaints final orders in bankruptcy, which significantly damages other Oregonians. Data source CCB Enforcement Quarterly Reports Owner Stan Jessup, Enforcement Manager (503) Enforcement Program - Average Days to Closure 200 Bar is actual, line is target Days Actual Target Data is represented by percent 1. OUR STRATEGY To effectively deter unlicensed and other illegal activity in the construction industry, the agency must process enforcement (disciplinary) complaints promptly. Enforcement investigations often lead to disciplinary actions, which deter illegal activity when properly administered. This KPM is an efficiency-based performance measure, and is designed to measure the timeliness of the CCB enforcement process. 2. ABOUT THE TARGETS The lower the number, the better. Targets have been set to reflect rapid processing of citizen complaints alleging illegal activity. The 2015 target was an average of 60 days to process, from beginning of investigation to closing the file, excluding collection process. Given the time allowed for initial investigation, hearings, and appeals, this is an ambitious target. Page 15 of 27

16 CONSTRUCTION CONTRACTORS BOARD II. KEY MEASURE ANALYSIS 3. HOW WE ARE DOING In 2015, we exceeded the target. 4. HOW WE COMPARE No comparative data is currently available. 5. FACTORS AFFECTING RESULTS During a full agency reorganization and management change that started at the beginning of 2014, a significant number of case files were located that were never closed. Some of these cases were four and five years old. Closing these cases caused the data to indicate a large spike in the time it takes to close cases. There was also a significant backlog of unresolved cases, which has also been resolved, but this added to the data spike as well. We believe all of these old cases have been dealt with and this is a one-time occurrence. 6. WHAT NEEDS TO BE DONE No adjustment needs to be made. The 60-day target remains a good target given the potential for hearings and appeals that are part of any disciplinary proceeding. 7. ABOUT THE DATA This data is gathered quarterly and reported by the agency s enforcement section. Additional information may be obtained by requesting the reports. Data for this report represents fiscal year totals, with the fiscal year ending June 30 of the subject year. Page 16 of 27

17 CONSTRUCTION CONTRACTORS BOARD II. KEY MEASURE ANALYSIS KPM #6 Dispute Resolution Final Orders: Average days to issue a dispute resolution (claims) final order Goal Goal 2. Provide excellent customer service to all who wish to use our services. Objective 2a: Dispute Resolution: To efficiently process complaints. Oregon Context HLO1 Percent of all licensed contractors that discharge CCB complaints final orders in bankruptcy, which significantly damages other Oregonians. Data source CCB Dispute Resolution Section Quarterly Reports Owner Stan Jessup, Dispute Resolution Services Manager (503) DRS Complaints - Average Days to Final Order Bar is actual, line is target Days Actual Target Data is represented by number 1. OUR STRATEGY To hold contractors accountable for their business practices, the agency offers construction contract Dispute Resolution Services (DRS) for contractors and their customers. Consumers, other contractors, employees, and material suppliers may file construction complaints with the agency. The agency seeks to mediate disputes as efficiently as possible to hold contractors accountable for their business practices and to improve customer satisfaction with the service. 2. ABOUT THE TARGETS The target for 2015 was 155 days. Targets were developed based upon obtainable goals in The 2007 Legislature adjusted the targets downward from 160 days in 2008 to 155 days. 3. HOW WE ARE DOING The agency exceeded its target for The agency improved the measure by 16 percent versus Page 17 of 27

18 CONSTRUCTION CONTRACTORS BOARD II. KEY MEASURE ANALYSIS 4. HOW WE COMPARE There is no comparative data. 5. FACTORS AFFECTING RESULTS As the result of legislation, the Dispute Resolution Services program changed significantly. As of July 1, 2011 the program stopped providing contested case hearing/arbitrations for parties to a complaint. The current program offers mediation to the parties in an attempt to reconcile the dispute. If the parties cannot come to an agreement, the complaining party must file a complaint in court. If a judgment is awarded, the complaining party may file the judgment with the agency seeking payment from the contractor s bond. One factor that contributes to the timeliness of our services is the time it takes for a court, or arbitration to issue a ruling for parties that chose to file actions outside the agency. 6. WHAT NEEDS TO BE DONE The agency needs to reexamine this KPM given changes made to the dispute resolution program. A measurement of mediation outcomes may be appropriate. 7. ABOUT THE DATA The data is based upon fiscal year results for years ending June 30. Additional data is available from the agency s Dispute Resolution Services quarterly reports. Page 18 of 27

19 CONSTRUCTION CONTRACTORS BOARD II. KEY MEASURE ANALYSIS KPM #7 Fair and Impartial Dispute Resolution Process: Percent of parties to claims who perceive claims process to be fair and impartial Goal Goal 2. Provide excellent customer service to all who wish to use our services. Objective 2b: Dispute Resolution: To maximize participant s perception of fairness given the requirements of due process under the law. Oregon Context HLO1 Percent of all licensed contractors that discharge CCB complaint final orders in bankruptcy, which significantly damages other Oregonians. Data source CCB Dispute Resolution Section (DRS) Customer Satisfaction Survey reported in DRS Quarterly Reports. Owner Stan Jessup, Dispute Resolution Services Manager (503) DRS Program Customer Satisfaction 100% Bar is actual, line is target 80% 60% 40% 80% 85% 87% 87% 91% 89% 93% 86% 88% 84% 94% 95% 20% 0% Actual 80% 85% 87% 87% 91% 89% 93% 86% 88% 84% 94% 95% Target 75% 85% 85% 85% 87% 90% 90% 90% 90% 90% 90% 90% Data is represented by percent 1. OUR STRATEGY It is imperative that the public perceive the agency s dispute resolution program as trustworthy and fair to both consumers and contractors. The agency strives to satisfy all parties. This is difficult since mediation often ends up with a winner and a loser. Here, the agency measures its performance by whether parties perceive the Dispute Resolution Services process to be fair and impartial. 2. ABOUT THE TARGETS The higher the number, the better; the target is 90 percent. Page 19 of 27

20 CONSTRUCTION CONTRACTORS BOARD II. KEY MEASURE ANALYSIS 3. HOW WE ARE DOING The agency exceeded its target for HOW WE COMPARE There is no comparative data. 5. FACTORS AFFECTING RESULTS The agency will continue to evaluate ways to increase the survey results. This includes increasing the number of responses returned. The most efficient way to increase responses would be to allow customers to enter their survey responses online. 6. WHAT NEEDS TO BE DONE Since the Dispute Resolution Services process change in 2011, the results have shown improvement. We believe this is due to the simplified resolution process and shorter time required to resolve complaints. 7. ABOUT THE DATA The data sample should be increased, if possible. The higher the survey s rate of response, the greater the reliability of the data. The data is from Question 7 on the survey. Page 20 of 27

21 CONSTRUCTION CONTRACTORS BOARD II. KEY MEASURE ANALYSIS KPM #8 License and Renewal Processing: Percent of contractors satisfied with the agency s processing of license and renewal information Goal Goal 3. To regulate in a manner that supports a fair, honest, and competitive business climate in the construction industry. Objective 3a.: Licensing: To efficiently license and renew all construction businesses required by law in a business friendly manner. Oregon Context HLO1 Percent of all licensed contractors that discharge CCB complaints final orders in bankruptcy, which significantly damages other Oregonians. Data source CCB Licensing Quarterly Reports and survey conducted by CCB during license renewals. Owner Laurie Hall, Licensing Manager (503) % 80% 60% 40% 20% Licensing Customer Satisfaction Bar is actual, line is target 96% 98% 97% 94% 96% 96% 96% 95% 94% 95% 0% Actual 96% 98% 97% 94% 96% 96% 96% 95% 94% 95% Target 95% 95% 95% 95% 95% 95% 95% 95% 96% 96% Data is represented by percent 1. OUR STRATEGY Provide superior service in a timely manner. The agency strives to make licensing and renewals an efficient and trouble-free experience for construction contractors. Contractors that supply all the necessary renewal information with their renewal application receive their license very quickly. The strategy of the agency is to clearly explain what a contractor needs to obtain a license and process applications within hours, or days, of receiving them. Licenses are renewed every two years. Today the agency serves over 35,000 licensed contractors. 2. ABOUT THE TARGETS The higher the number, the better. The target was increased by 1 percent in 2013 to 96 percent. While the agency strives to satisfy 100 percent of its customers, it set an ambitious goal of 96 percent for this performance measure. Page 21 of 27

22 CONSTRUCTION CONTRACTORS BOARD II. KEY MEASURE ANALYSIS 3. HOW WE ARE DOING The agency s performance was 95 percent overall customer satisfaction in 2015, which is slightly higher than the 94 percent for the previous year. The agency consistently enjoys a high level of satisfaction with customers. The agency has met or exceeded its target every year since 2002 every year except three. 4. HOW WE COMPARE There is no comparative data available at this time. 5. FACTORS AFFECTING RESULTS Over the past few years, the licensing and education staff members have worked hard to ensure that contractors understand the numerous changes regarding licensure. The agency continued to improve its website, revised forms and instructions based on customer survey comments, updated Customer Service Unit questions and answers, and provided ongoing staff training about legislative changes, with a strong focus on continuing education. The licensing staff also continued to work with bonding and insurance agents to help educate them on their requirements. 6. WHAT NEEDS TO BE DONE The agency continuously looks for ways to improve its services to customers despite reduced staffing. One of the focuses over the next year will be exploring the possibility of upgrading the database to increase efficiencies and create more online options for customers. 7. ABOUT THE DATA The data reflects quarterly information for fiscal years ending June 30. This data is limited to the first three quarters of the years because this section surveyed contractors for the statewide customer results during the fourth quarter of fiscal year. The data is from Question 7 on the agency s licensing satisfaction survey. Page 22 of 27

23 CONSTRUCTION CONTRACTORS BOARD II. KEY MEASURE ANALYSIS KPM #9 Goal Oregon Context Data source Customer Service: Percent of customers rating the agency s customer service as good or excellent. Ratings cover timeliness, accuracy, helpfulness, expertise, availability of information and overall performance. Agency Overall Satisfaction Percent of customers rating their overall satisfaction with the agency above average or excellent and Customer Satisfaction Percent of customers rating satisfaction with agency services above average or excellent for: A: Timeliness; B: Accuracy; C; Helpfulness; D: Expertise; E: Information Availability. CCB has no primary links to the Oregon Benchmarks Customer Service Surveys completed and returned April 1 through June 30 of each year and reported in the Licensing Quarterly Report. Owner Laurie Hall, Licensing Manager (503) Percent Rating Service Good or Excellent 100% Bar is actual, line is target 80% 60% 40% 93.4% 89.0% 95.3% 93.7% 91.9% 93.2% 94.9% 93.1% 97.1% 94.2% 94.7% 95.8% 89.4% 86.4% 92.4% 93.9% 91.2% 95.7% 20% 0% Timeliness Accuracy Helpfulness Expertise Availability of Information FY % 93.7% 94.9% 94.2% 89.4% 93.9% FY % 91.9% 93.1% 94.7% 86.4% 91.2% FY % 93.2% 97.1% 95.8% 92.4% 95.7% FY % 95.1% 97.0% 96.2% 94.1% 96.5% Target 95.0% 95.0% 95.0% 95.0% 90.0% 95.0% Overall 1. OUR STRATEGY The agency strives to provide prompt, courteous service that is responsive to our customers needs and public protection. 2. ABOUT THE TARGETS The higher the number, the better. Current targets were developed based upon 2006 data and represents incremental improvements sought by the agency over 2006 results. Page 23 of 27

24 CONSTRUCTION CONTRACTORS BOARD II. KEY MEASURE ANALYSIS 3. HOW WE ARE DOING The agency s performance in fiscal year 2015 has increased satisfaction in four of the six categories. The agency is proud of its performance considering the change in licensing and continuing education requirements, and is continuously committed to finding ways to improve its service levels and customer satisfaction levels. 4. HOW WE COMPARE There is no comparative data available at this time. 5. FACTORS AFFECTING RESULTS As CCB continues to implement legislative changes, we also have to continue to more effectively communicate information regarding new regulations. 6. WHAT NEEDS TO BE DONE The agency continues to look for ways to improve customer service and communication, especially helping contractors understand education and other requirements to maintain their license. 7. ABOUT OUR CUSTOMER SERVICE SURVEY The following is information on the CCB survey: a. Survey Name: Customer Service. b. Surveyor: Staff of the Construction Contractors Board. c. Date Conducted: April, May, and June d. Population: Active and inactive licensed contractors. e. Sampling Frame: Contractors who received a license card during the three-month period of April, May, and June f. Sampling Procedure: The survey form was sent to each contractor who received a license card during the three-month period of April, May, and June g. Sample Characteristics: Data from each survey received was entered by CCB staff. Responses to each question are available individually as well as cumulatively. h. Weighting: No weighting was applied. Page 24 of 27

25 CONSTRUCTION CONTRACTORS BOARD II. KEY MEASURE ANALYSIS KPM #10 Best Practices: Percent of best practices met by the Board Goal Oregon Context Data source Best Practices Percent of best practices met by the Board. CCB has no primary links to the Oregon Benchmarks During Board meeting(s), Board Members individually voted on each of the 15 Best Practices as they perceived them for the fiscal year. Data is contained in Board meeting minutes. Owner Administrator James Denno (503) Percent of Yes Responses 100% Bar is actual, line is target 80% 60% 40% 93% 100% 100% 100% 100% 67% 100% 100% 20% 0% Data is respresnted by percent 1. OUR STRATEGY To develop and implement recommended statewide Best Practices for boards and commissions to improve governance. This statewide measure for boards and commissions was instituted by the Construction Contractors Board in fiscal year The agency administrator reviewed the measure s 15 Best Practices with Board members throughout the year, and discussed each of them individually. 2. ABOUT THE TARGETS The target for 2015 was 100 percent. Page 25 of 27

26 CONSTRUCTION CONTRACTORS BOARD II. KEY MEASURE ANALYSIS 3. HOW WE ARE DOING The agency met its target. 4. HOW WE COMPARE We shall look at comparables for the FY 2015 report when they become available. 5. FACTORS AFFECTING RESULTS Agency transition issues impacted some of these results. 6. WHAT NEEDS TO BE DONE Maintain 100 percent performance. 7. ABOUT THE DATA In 2015, Board members met collectively discussed and scored each of the 15 best practices criteria. The Construction Contractors Board strives to perform its internal functions according to DAS policies and procedures and other appropriate guidelines. At the November 3, 2015, board meeting, board members discussed and voted on the 15 best practices for fiscal year Page 26 of 27

27 CONSTRUCTION CONTRACTORS BOARD III. USING PERFORMANCE DATA Agency Mission: The Construction Contractors Board protects the public s interest relating to improvements to real property. The Board regulates construction contractors and promotes a competitive business environment through education, contractor licensing, dispute resolution, and law enforcement. Contact: James Denno, Administrator Contact Phone: Alternate: Kimberlee Ayers, Administrative Services Manager Alternate Phone: The following questions indicate how performance measures and data are used for management and accountability purposes. 1 INCLUSIVITY * Staff: Several methods were used to obtain input by staff, including discussions during monthly management and program unit meetings. The agency management team worked with the Oregon Progress Board to examine the agency s mission, goals and performance measures. * Elected Officials: Legislators reviewed the agency s performance measures during the 75th Legislative Assembly and recommended changes for the next biennium. * Stakeholders: The agency management team worked with stakeholders and Board members to review and discuss the agency s performance measures. * Citizens: The agency s performance measures are available on the agency s website for citizen review and comment. Citizens are encouraged to provide public comment at monthly agency public meetings. 2 MANAGING FOR RESULTS The agency uses its performance measures to gauge agency progress, effectiveness, efficiencies, and levels of customer satisfaction. Program managers review individual section performance and customer satisfaction survey results to fine tune programs. Board members receive annual performance measure results. They are used to develop agency efficiencies and evaluate policy issues. The agency s management team continues to analyze performance measures in an effort to ensure the measures represent meaningful management tools. 3 STAFF TRAINING Agency staff participated in training offered by DAS. This training was instrumental in the agency s efforts to develop, monitor, and report its performance measures. Agency managers have reviewed measures with program staff who, in turn, have offered suggestions on fine tuning and perfecting reliable methods of collection and interpretation of data. 4 COMMUNICATING RESULTS * Staff: Results are reported during public Board meetings and at staff meetings. * Elected Officials: Results are reported at legislative committee meetings. * Stakeholders: Stakeholder meetings are held and performance measure results are reported. * Citizens: Agency web address: Each agency program s quarterly report reflects statistical data relating to its program. Statistics are reviewed to determine if the measure indicates cost effectiveness. The reports are located in the Board packet materials on the agency s website and are discussed quarterly at Board meetings. Page 27 of 27

28 Proposed Reforms: Residential Continuing Education The Issue Since first requiring continuing education (CE) for construction contractors in 2010, Oregon has struggled to find the right set of requirements for residential contractors. After several attempts to correct problems, the current version of CE took effect Jan. 1, The Construction Contractors Board (CCB) surveyed contractors in 2015 and found that most favor significant changes to make the program relevant. Based on the survey results and input from stakeholder groups, the CCB has approved a strategy to improve the program through law and rule changes. The Current Requirements Residential contractors must complete eight hours of CE (16 hours for new contractors) Includes three hours of CCB courses at a cost of $45 to the contractor Requires five hours of approved business practices courses (Series A) New contractors may take up to eight hours of trade-specific courses (Series B) All CE providers and courses are approved by CCB and fees are charged The Problems The Plan Restrictions on types of courses (Series A/B) prevent contractors from taking the courses they feel are most relevant to their businesses Contractors complain about $45 add-on CCB fee Fees and processes discourage CE providers from offering courses Inadequate exemptions from CE for contractors holding multiple licenses Eliminate the Series A/B distinction, allowing licensees to choose their course subjects Eliminate additional charges for CCB-required CE courses Eliminate the CE provider and course approval process and fees, listing approved provider categories in statute Expand exemptions for multiple license holders Conduct audits of license renewals to assure compliance Seek a license fee increase of approximately $50 ($25 per year) to replace lost revenue. This will not increase agency revenue. Note: More than 85 percent of licensees will see the increase offset by the $45 they will no longer pay CCB for CE. These changes will be implemented through a combination of rule changes in the short term, and a legislative concept in the 2017 legislative session.

29 Frequently Asked Questions: Continuing Education Reforms January 2016 Why are you changing residential continuing education? To expand contractors choices of classes and education providers. Contractors tell us repeatedly that the existing program lacks relevancy and quality, and costs too much. Existing fees and rules about the types of classes that contractors may take limit the number and types of education providers willing or able to participate. They also increase contractors costs and frustration. Today, a veteran contractor who wants to learn how to install a new product can t get credit because he or she is limited to mostly business-type classes What are you proposing? We propose to allow contractors to select the classes they feel are most relevant to their businesses (eliminating the Series A/B distinction), offer the CCB required classes at no additional charge (part of license fee), and do away with specific approval of individual providers and courses. This sets up a value-based system where a contractor selects a class based on the value of the class to the contractor s business. Would the required hours change? No. The requirement for residential contractors would still be eight hours every two years for those licensed six or more years, and 16 hours for those licensed less than six years. Three of the required hours would still come from CCB classes. Contractors would be free to decide which classes to take for the remaining five hours, or 13 hours, as the case may be. Requirements for commercial contractors would remain unchanged. Won t the quality suffer if the CCB no longer approves education providers? Meaningful quality control of continuing education for an industry as broad as construction is extremely difficult. Even with the current process, contractors complain about quality. We hear from many veteran contractors that they are well able to judge who is competent to teach. The existing continuing education requirements for commercial contractors do not include provider or course approval, and we hear far fewer complaints. If the CCB no longer approves education providers, how will I know where to get continuing education? First, you will be able to take courses from an array of organizations that you are familiar with, including contractor associations, product manufacturers, government agencies, private businesses, and schools and colleges. To help you connect, the CCB will publish a directory of education providers on the website. We will continuously update this directory as we learn of education providers. Continued

30 How will I know when continuing education is going to change so I don t take the wrong courses? CCB will provide information on its website, by mail, and our newsletter. Regardless, any courses that qualify for credit under the current requirements will qualify under the new requirements. How will you verify that licensees comply with the new requirements? The CCB will audit licensees during renewals to verify compliance. Licensees will need to maintain proof that they have completed the required hours. Typically, this will be a course completion certificate or transcript from the provider. Some providers, such as contractor associations, offer a transcript service and will track your hours for you. If I m audited, how will I prove I completed continuing education? We will know, from our own records that you completed the three hours of required CCB classes. For the other hours, you will submit a course completion certificate, transcript, or other document issued by the provider to show proof. If you are a large commercial contractor and offer in-house training, official company records of training subjects, dates, and attendees will be accepted. With no fees for continuing education, how will you deal with the lost revenue? We propose a license fee increase of $50 to replace the lost revenue from the fees that will be eliminated. Continuing education will no longer be an add-on fee. It will simply be part of your license fee. This is more transparent because it reflects the true cost of your licensing. More than 85 percent of licensees will see the fee increase offset by the $45 they will no longer pay CCB for classes. What does the license fee increase mean to me? For more than 85 percent of contractors, the license fee increase will be offset by the $45 they now pay for CCB classes. Increased competition and the elimination of education provider fees may result in lower costs for courses offered by private businesses. Fees you normally pay to participate in trade association workshops may also include education that counts for credit. Why should commercial contractors absorb the fee increase? The revenues are needed to support CCB live and online classes, which are available to commercial contractors, as well as education and outreach to property owners about the requirements to use licensed, bonded and insured contractors. The revenues will also support auditing of license renewals for compliance with the continuing education requirements. How much have license fees gone up over the years? Since 2004, license fees have increased less than 2 percent per year. Contractors paid $295 for a twoyear license in The current fee is $325. If approved, the fee would be $375 starting in What are the next steps? To accomplish these changes, the CCB will introduce legislation in the 2017 legislative session. Our goal is to have the new requirements take effect Jan. 1, 2018.

31 Construction Contractors Board Our Mission The Construction Contractors Board (CCB) protects Oregonians by preventing and resolving construction contracting problems. We: License contractors and develop licensing standards Enforce construction contractor laws Educate the public about licensing requirements Mediate disputes between homeowners and licensed contractors The nine-member board was established in 1971 to regulate residential homebuilders. Initially called the Builders Board, the agency became the Construction Contractors Board in 1990 with regulatory authority expanded to include commercial contractors. Our People Management Team James Denno, Administrator: or Stan Jessup, Enforcement Manager: or Laurie Hall, Licensing Manager: or Cheryl Martinis, Communications & Education Manager: or Kimberlee Ayers, Administrative Services Manager: or Customer Service Licensing questions: or Report unlicensed contractors: Continuing education questions: or Mediation (dispute resolution) questions: Lead-based paint regulation: or Rule status: or Our Funding Licensing fees: 78 percent Education: 11 percent Civil penalties: 9 percent (80% goes to state General Fund) Our Challenge Fulfilling an expanding our mission with fewer resources Licensees 47,000 43,000 39,000 35,000 35,000 Budget $15.4 million $15.1 million $15.1 million 15.9 million $14.5 million Employees

32 Our Challenge Enforcement: Unlicensed contractors, paying employees under the table to avoid employment and workers compensation requirements, and illegal advertising continue to plague the construction industry. Licensing: In addition to residential and commercial contractors, CCB now issues licenses to home inspectors, locksmiths, energy assessors, home services contractors, restoration contractors and road flaggers. Education: The CCB needs to devote increasing resources to creating and maintaining meaningful pre-licensure and continuing education classes for contractors, and to public outreach about the requirements and benefits of using licensed contractors. Online services: In today s world, it is essential for contractors and the public to be able to conduct business online. Our existing databases and online systems need updating to make them efficient and user-friendly. Our Strategy Back to basics: Focus on our core mission of licensing contractors, enforcing construction contracting laws and educating the public. Streamline license application and renewal process. Move to national license testing standards where appropriate. Improve strategic enforcement efforts across the state to root out unlicensed contractors and those paying workers under the table. Partner with other agencies to share information and improve enforcement coordination. Revise continuing education to increase the variety and quality of available courses. Increase public awareness of the requirements and benefits of using licensed contractors. Excellent customer service across all programs. Make it easier to conduct business online: Upgrade our Information Technology services to expand and improve online services. Create user friendly system for license applications, renewals, and meeting continuing education requirements. Improve web-based license search tools to provide better information to the public. Create mobile app to search license database and report unlicensed contractors. Live within our means: Achieve efficiencies that let us improve operations with existing staff. Remove unnecessary or redundant administrative rules and procedures. Collaborate with state and local government agencies to share information. Increase collaboration with the Building Codes Division to share information and coordinate resources. Innovate: Work creatively to do more with less. Simplify internal processes. New models for pre-licensure training and continuing education. Leverage membership in National Association of State Contractors Licensing Agencies.

33 Construction Contractors Board NEWSLETTER More than 400 homes later Bob Lawrence retires shares tips Bob Lawrence started building homes in 1973, just two years after Oregon formed the Construction Contractors Board (CCB) to regulate the industry. He retired recently and closed his Tigard-based business, Pacific Homes. It s been a good run with over 400 homes built, and no CCB complaints, he said in a note to the CCB. So we tracked him down by phone in Hawaii for a few more tidbits. He noted that the economics of homebuilding have changed dramatically in the last 35 years. In 1973, he built an entire 1,417-square foot single-level home in Southwest Portland, including the $5,000 lot, for a total $25,000. He sold it for $32,000. On the last house he built in Tigard more than 35 years later, building permits and sewer/water connections alone cost about $25,000. The lot was valued at about $200,000, and the home at nearly $600,000. It takes a substantial amount of capital to operate as a home builder today, he said. Back when he was starting out, he and his original partner, Bob Glover, saved $13,000 each, bought a lot from Tualatin Development Company and built their first house out of pocket. On their first trip to the Benjamin Franklin Savings & Loan, just to introduce themselves and get information, they walked away with a loan application. The relationship with Benjamin Franklin continued for many years. Lawrence supported regulation and the CCB from the start. The agency helps keep things on the up and up, he said. The insurance, bonding and education requirements benefit both the public and the industry, he said. What tips might he pass on to newer contractors? Winter 2016 Construction Contractors Board PO Box Salem, OR Phone: Fax: Inside: Tips on contracting 3 History lesson 3 Numbers to know 6 Oregon sick time 6 Temporary asbestosz rules 7 CCB live classes 8 Enforcement actions 12 Check in with our first-year painting contractor

34 Join the local Home Builders Association: The contacts he made from designers and architects to bankers, suppliers, contractors, and real estate brokers helped build a team. Being a member of a trade association and being licensed properly also gives the new people some legitimacy. Carry the and workers compensation insurance if you have employees: You re not on par with a real experienced contractor but you re a leg up on the itinerant, unlicensed types. Deal with issues up front and openly: Bare the issues that homeowners and builders may not be comfortable bringing up. Change orders are a good example. He usually collects the additional cost of routine change orders up front. For example, if the customer changes the kitchen the absolute lowest prices, he said. In fact, they took pride in making sure the subcontractors could make money. How did they put together a good building team? A lot of it is networking, he said. That means spending time at the lumber yard finding out who pays their bills, and who is out on the jobs. It means asking the electricians about good plumbers and plumbers about good electricians. Pretty soon you get a group, the group all knows each other, he said. Of course, being a builder who is organized and lines up jobs on time is important. Subs want to work with builders they trust that will pay their bills, he said. Run your business like a business: Maintain good records, job cost controls, current accounting, and pay bills on time. cabinets, incurring an additional $5,000 worth of costs, he would typically write up an order and collect the money so there was no misunderstanding about the cost. Changes and change orders are probably the biggest headache and one of the biggest sources of lawsuits in the construction industry. Develop a detailed contract: Lawrence has a business degree from OSU. His contract mixed boiler plate with attorney advice. He suggests a contract you re comfortable with that s easy for a customer to understand. The agreement should be backed up with complete building plans and again with easy-to- understand, detailed specifications. It kept us out of trouble, he said. Treat your subcontractors decently: We were never a builder that went out to try to beat the subs down to get In building a home, if you do a good job, you have the rare opportunity to physically create something that will positively impact the lives of people far into the future - people you may never meet, Lawrence said. It was a good career. 2

35 ENFORCEMENT Tips on contracts Enforcement Manager Stan Jessup We all know the law requires a written contract for work exceeding $2,000, but what are some tips to help avoid problems or disputes with your customers? Key contacts Licensing questions: Report unlicensed activity: Dispute resolution (mediation) questions: Education questions: STAFF Administrator James Denno james.s.denno@state.or.us Licensing Manager Laurie Hall laurie.hall@state.or.us Enforcement Manager Stan Jessup stan.m.jessup@state.or.us Communications/Education Manager Cheryl Martinis Newsletter editor cheryl.martinis@state.or.us Administrative Services Manager Kimberlee Ayers kimberlee.ayers@state.or.us BOARD MEMBERS Kimberly Wood, Chair, Salem James Patrick, Vice Chair, Newport Kurt Bolser, Grants Pass Jerry Jones, Beaverton Jim Kitchin, Portland Mariana Lindsay, Portland Susan Steward, Portland Sandi Warren, Portland First, write a contract for ANY amount. It is easier to write up the contract than it is to try and get paid for your work when there is a dispute over a verbal agreement. Aside from the required dollar limits, you also need to provide several notices. These are the Information Notice to Property Owners About Construction Responsibilities, Information Notice to Owner About Construction Liens and the Consumer Protection Notice. Contractors must retain proof of delivery of these notices. A simple way to do this is to place an acknowledgement for each in your contract with a place for the customer to initial by each notice that they have received and acknowledge being supplied the notices. This reduces the number of pieces of paper that you need to track and it will satisfy your proof of delivery. Consumers often don t recall receiving the notices, so cover your bases and keep the proof of delivery. Detail what work you are going to perform, the type or brand of material to be used, any deposit required and when payments are due to you. ALWAYS write a change order before deviating from the contract. You are inviting a dispute if you wait until the final payment to hand the customer a bill for items they changed but didn t already sign off on through a change order. I see contracts all the time that are only signed by one of the parties. Finish the paperwork and fully execute the contract. You also need some important details such as who you are (use your name and address as it appears on your license), customer/homeowner and address need to be listed as well. Your license and phone number needs to be on all bid forms, contracts and change orders. Be transparent and clear when detailing the scope of work and stick to it. A high percentage of disputes arise from poor paperwork and you are putting yourself at risk when the property owner is unhappy and your contract isn t clear and concise. You can also find a sample contract on our web site which gives you an idea of what the minimum contract requirements are. Here is a link to the sample to get you started: 3

36 History lesson: Contractor regulation in Oregon Licensing Manager Laurie Hall 1971: The Builders Board is established within the Department of Commerce to regulate residential home builders. The license fee: $20 per year. 1992: Sixteen hours of education required for all licensees who register on or after July 1, : The Builders Board moves to the Veterans Affairs Building on the Capitol Mall in Salem. 1996: Lead-paint regulations come into play. 2000: Registration changed to license. Also: All new license applicants must pass exam based on the 16-hour pre-license course CCB forms a Special Investigations Unit to pursue constructionrelated crimes (raising the possibility of jail or prison time vs. just civil penalties) : The Builders Board becomes an independent agency with responsibility for the Landscape Contractors Board. 1989: The Oregon Legislature creates the Construction Contractors Board (CCB), expands regulation to include commercial contractors. Builders become contractors. 1995: The maximum CCB penalty for violating contractor law increases from $1,000 to $5, : Legislation requires the CCB to certify residential home inspectors. 1999: Public can see contractor registration information on CCB website. 4 4

37 2001: All businesses licensed after July 1, 2000, must have an owner or employee who has completed the pre-license class and exam. 2007: Licensees who let their license lapse for 24 months or longer must apply for a new license. 2004: s developers. 2010: Contractors renovating homes or child-occupied facilities built prior to 1978 must obtain a leadbased paint renovator s license from the CCB. Also: Commercial contractors now subject to continuing education requirements. Locksmiths must be certified with CCB. Application/renewal (two-year) fees increased from $260 to the present $ : Residential contractors must complete 16 hours of continuing education; required to take building exterior shell, building codes, CCB-developed regulatory courses, and electives. 2013: Online license renewals available for most licensees. Today, 60 percent of licensees renew online. 2015: CCB moves to a new location in downtown Salem, 201 High St. SE : All businesses that have changed their entity type must obtain a new license. Also: The Landscape Contractors Board becomes a separate, semi-independent agency. Contractors can convert to inactive status and won t have to carry a bond or insurance. 2005: The Legislature defines Responsible Managing Individual (RMI) as an owner or an employee of the business with controlling interest in a business. 2008: CCB adopts the endorsement system for identifying contractor license types. Also: Personal election workers compensation coverage is required for all exempt commercial contractors. Chimney cleaning or servicing businesses must be licensed with the CCB. 2014: Residential continuing education requirements reduced to eight hours for contractors licensed six years or more. The CCB must approve all education providers and courses. Also: CCB adds four new restricted residential license endorsements: Residential Locksmith Services Contractor; Home Inspector Services Contractor; Home Services Contractor; Home Energy Performance Score Contractor. Contractors using leased workers are now nonexempt, and must provide the leasing agency s workers compensation information to CCB. Handyman exemption from licensure raised from $500 to $1,000. 5

38 RESOURCES Career Fair: The Department of Consumer and Business Services is hosting a career fair from 11 a.m. to 3 p.m. Jan. 13 at the Labor and Industries Building in Salem. Learn more at dir/careerfair/index.html. IRS Small Business and Self-Employed Tax Center: One of the best ways to get tax information is to visit Businesses-&-Self-Employed/Small-Business-and-Self- Employed-Tax-Center-1. A tax tip: The IRS has simplified the paperwork and recordkeeping requirements for small businesses by raising from $500 to $2,500 the safe harbor threshold for deducting certain capital items. Learn more at For-Small-Businesses-IRS-Raises-Tangible-Property- Expensing-Threshold-to-$2,500-Simplifies-Filing-and- Recordkeeping. CCB NUMBERS TO KNOW Average per month 6,894: Phone calls 1,270: Renewals processed 9,261: Documents mailed 3,816: Insurance documents processed 1,213: Bond documents processed Least busy day? Friday Oregon Sick Time What is Oregon Sick Time? Beginning Janury 1, 2016, all employers with 10 or more employees in Oregon (six in Portland) must provide up to 40 hours of paid leave per year. Employers with less than 10 employees (less than six in Portland) must provide 40 hours of unpaid protected sick time. How does Oregon Sick Time accrue? Employees accrue 1 hour of sick time for every 30 hours worked or 1-1/3 hours for every 40 hours worked. When are employees eligible to take Oregon Sick Time? Employees are eligible for Oregon Sick Time on their 91st day of employment. What if I have 11 employees but only for a short period of time as seasonal employees? For counting purposes, all employees (full-time, parttime, and temporary) will be looked at for determining the number of employees. The number of employees is calculated based on the number of employees an employer has per day during each of 20 workweeks in the calendar or fiscal year immediately preceding the year in which an employee s sick time is to be taken. What is meant by a year? How is it measured? Year includes any consecutive 12-month period, such as a calendar year, a tax year, a fiscal year, a contract year or the 12-month period beginning on the anniversary of the date of employment. How much is an employee paid for Oregon Sick Time? Their regular rate of pay. If an employee is paid on a commission or piece-rate, the employee needs to be paid at least Oregon minimum wage. Does an employer have to pay sick time out when an employee leaves employment? No. The statute is specific. An employer does not have to pay out for accrued unused sick time. What if an employer has an existing sick time or PTO? If this plan is, substantially equivalent or more generous to the employee than the minimums of the law, this policy shall be deemed, in compliance. From the Oregon Bureau of Labor website. Learn more at aspx 6

39 Temporary asbestos rules From the Department of Environmental Quality (DEQ) DEQ has adopted temporary rules that require an asbestos survey be completed prior to demolition of residential properties. Here is information about the temporary rules: A survey must be conducted before demolishing any residence that was constructed before Jan. 1, A copy of the survey must be kept on site and provided to DEQ upon request. A survey is not required if all of the material will be handled and disposed of as asbestos- containing material. DEQ can grant a waiver of the survey requirement if requested in writing and documentation proves to our satisfaction that there is no asbestos-containing material present. The temporary rules became effective Jan. 1, Public hearings for the permanent rules are being held on Jan. 19, 2016 at the HQ, Salem, Coos Bay, Medford, Bend and Pendleton Offices. The hearing notice is available on DEQ s website. Non-residential buildings have always required a survey and this requirement has not changed for non-residential structures. If you have questions, you can find information on DEQ s asbestos webpage asbestos/index.htm. You may also contact the DEQ office nearest you: Clackamas, Clatsop, Columbia, Multnomah, Tillamook and Washington counties, call the Northwest Region Portland Office to contact Susan Farland at or Benton, Lincoln, Linn, Marion, Polk and Yamhill counties, call the Western Region Salem Office to contact Dottie Boyd at or Jackson, Josephine and Eastern Douglas counties, call the Western Region Medford Office to contact Steven Croucher at or Coos, Curry and Western Douglas counties, call the Western Region Coos Bay Office to contact Martin Abts at , ext Crook, Deschutes, Harney, Hood River, Jefferson, Klamath, Lake, Sherman and Wasco counties, call the Eastern Region Bend Office to contact Frank Messina at or Baker, Gilliam, Grant, Malheur, Morrow, Umatilla, Union, Wallowa and Wheeler counties, call the Eastern Region Pendleton Office to contact Tom Hack at or Lane County, call the Lane Regional Air Protection Agency at Don t miss your chance to get health insurance You only have a few days left to sign up for health insurance through HealthCare.gov. The last day to sign up, renew, or change plans for 2016 is Jan. 31, If you don t get covered before the deadline, you could go a year without insurance. You could also pay a significant penalty when you file your 2016 taxes. The penalty for not having insurance in 2016 is the higher of these two numbers: 2.5 percent of your yearly household income or $695 for every adult in your family plus $ for every child under 18. If you already have health insurance, this is your last chance to change plans. You might be able to find a plan that better matches your needs and budget on HealthCare.gov. Last year, consumers who shopped and switched plans saved nearly $400. Financial help is available for many people if they enroll through HealthCare.gov. Depending on your income, you may qualify for tax credits to help pay your monthly premium and/or help with out-of-pocket costs such as deductibles and co-pays. 3 out of 4 Oregonians who used HealthCare.gov last year received tax credits averaging $199 per month. Oregon has a network of certified insurance agents and community organizations ready to help you enroll, free of charge. Click here to find someone in your area or call (toll-free). Oregon also has 24 drop-in enrollment centers where you can get free help in-person. The enrollment centers will be open through Jan. 31. Find one near you. To start shopping for plans, visit HealthCare.gov or call (toll-free) (TTY: ). 7

40 EDUCATION & OUTREACH CCB Live Classes In 2016, the CCB will hold three-hour classes in Salem on Feb. 17, June 2, and Nov. 3. All Salem classes start at 9 a.m., will be held at CCB offices at 201 High St. SE, and require registration. You can register online by going to You will also see dates for the live CCB classes we will hold outside Salem in spring Recent news releases Patrick Scott Cartwright, 47, will spend five years in prison for stealing money from a Lane County homeowner who hired him through a church friend for a construction project. The CCB will also offer a three-hour class as part of the Home Builders Association (HBA) BuildRight conference April Register with the HBA. Online classes Most contractors take the CCB classes online. You must log into your account to take these classes. If you need to create an account, select the orange Register button. Stormwater management summit The Mid-Willamette Outreach Group sponsors this one-day training on Jan. 26 in Keizer on the topics of construction erosion prevention, stormwater facility design standards, and operation/maintenance of public stormwater facilities. Contractors can get six hours of Series B continuing education credit. Learn more at net/erosionsummit. James E. Gabriel, an unlicensed construction contractor doing business as Florence Hearth and Patio, must make nearly $18,000 in restitution to four clients and shut down his business for repeated violations of construction contracting law and court-approved agreements. The Construction Contractors Board (CCB) fined a Washington-based business $5,000 for working without a license while building a single-family tree house in a Sitka spruce in Neskowin. A con artist is now serving 2 ½ years in prison after pleading no contest to stealing a legitimate construction contractor s business name and license number. Gerald James Borton, 41, of Gresham, allegedly used the information to bilk unsuspecting customers out of thousands of dollars. CCB Enforcement Manager Stan Jessup explains structure types at one of the CCB three-hour classes covering laws, rules and business practices. Residential contractors must complete three CCB courses for continuing education. Catch a live presentation or take the three hours online. 8

41 Mentoring, marketing, managing money Our second visit with the contractor we re following through his first year Tylor (left) and business mentortravis (right) during interview with the CCB at a vendor s store. Three months after we first spoke with Tylor Stone, the painting contractor who is just starting his business, we meet again, this time in a Corvallis paint store. As it rains, Tylor and his mentor, Travis Wagar, contemplate the approach of winter. Winter, in fact, is a big reason Travis offers to help new painters make it on their own. The nature of painting is you have to lay off people in the wintertime even if you had a great summer, he said. So he encourages employees with an affinity for painting to be their own boss. Both he and Tylor say learning the painting trade is relatively straightforward. But knowing how to run a business is something else altogether. From the mentor perspective: Half of it, I think is figuring out whether that person has what s necessary to be a business owner, Travis said. Tylor already realizes that it isn t the craft that makes the business owner as much as the mindset of how you go about making money. In the first month, he called Travis multiple times a day. And half those calls was me telling him you re not an employee anymore, Travis says. Just think like a business owner. And then the answer came That was always the answer Tylor agrees. Bidding Early on, Tylor asked lots of questions about pricing. Once he panicked, and tossed out a number to a client only to hear from Travis Never give a price on the spot. In contrast to mathematical formulas (square feet times a number), Travis system is more home-brewed but strangely more accurate, Tylor said. You look at the room and think, this many gallons, Tylor said. While a little more empowering than math equations, this system comes with experience, he concluded. Of course, educating homeowners about the bid is as important as selecting paint. Travis and Tylor not only tell clients what s in the bid, they tell them what s not. So when a recent client said to Tylor, You re going to do the baseboards, too, right? he directed them to his written bid. It said This bid does not reflect any baseboards. That would have been days worth of additional of work. 9

42 When Tylor presents a bid, he explains to homeowners that it is based on two coats of paint. He describes the grade of his paint. And, he sticks to his guns about his pricing and the type of painter he wants to be. That s the case even when it s a Friday, he has no jobs lined up for Monday and a prospective client is pushing back on his hourly rate. Is it, like, $10 an hour? the man suggests. You can find that price, Travis notes, but I m more. You have to know who you are, he says. Problems with a job typically arise because of unreasonable timeframes or lack of information, Travis said. So, he puts plenty of time into a bid. If there is anything that s unclear, the benefit of the doubt goes to the homeowner, Travis says. Of course, it should. Clients often thank him for the detailed contract, and the fact that you called me back. Travis makes sure clients understand that when they get a bid (even though his software program says estimate ), it s a number they can count on. If I m short on product because of my bad bidding, that s on me. Tylor said that despite his fears he would need a law degree to generate a detailed bid and contract, he has found products online that work. Client Relations As word-of-mouth painters, client relations are key. So, if a client needs a change order, be reasonable, Travis says. He looks for a way to do something free for each of his clients, a tip he picked up years ago from another contractor. It might be 30 minutes of something he knows how to do but they don t fixing a cabinet door, for example. Reading people can be as important as sizing up a job for a bid. Tylor is also learning to say no, tactfully. Customers who insist they need you in two weeks or appear high maintenance may not be the best to take on, especially if you re already busy. It has to do with reading the market, Travis says. Several lower-maintenance jobs will generate the same amount of money, perhaps in less time. Every time my gut said no, I shouldn t do this and I did it, I paid for it, he added. Marketing Let s say your current job ends Friday, then there s a weekend, then nothing. It s basically like you have a job but you re going to be fired in four days, as Tylor puts it. So, what do you do? His goal to get jobs word of mouth, and that means no large advertising budget. First, you deal with anxiety, something Travis recalls vividly. It took me about four years to have that oh-no-what s-going-to-happen-nextfeeling go away. On the other hand, he told Tylor, It doesn t actually help at all to be anxious so don t do it It will actually mess with your motivation for that day. Instead, they plotted out how much Tylor has saved, and his personal and business expenses. From there, Travis could map out a worse-case scenario. Some other strategies: Stop for Tyvek: When Tylor sees Tyvek, the sign of a project under construction, he might turn his car around, shake someone s hand and leave his business card. Build relationships: He s already developing some repeat customers, including a property management company. That came about because my wife, unbeknownst to me, put my ad on Craigslist. She included his CCB number, which is required for any contractor who is advertising. As it turned out, the client called, in part, because Tylor holds a license. Work with your retailer. Tylor lives 50 minutes from Miller s Paint but he makes the drive to a particular store in Corvallis. Retailers not only give customers a list of painters they recommend but Travis encourages Tylor to learn everything he can about the paint to further his expertise. Talk to the people who actually know the chemistry, he says. Get to know your product. 10

43 Network with contractors: If you start referring your clients to other contractors for other types of work, they do the same back. And if you do a good job in the midst of that, then people are happy all around and then you create a mini community of networking, Tylor said. Managing money How do you handle the ebb and flow of money from occasional big check to gaps between checks? Manila envelopes. Tylor has one for each month. Inside each, are that month s bills for the household and the business. Everything from eating out to cell phone bill has an envelope. When he gets a chunk of money, wife Joelle pays bills envelope by envelope. At a glance, he can see when he must have the next job. Come summer, it s just possible he ll fill a year s worth of envelopes. The way my wife and I do finances now is way more awesome and way more oriented around managing freedom and time, he said. Recordkeeping Taxes are unfamiliar territory so Tylor will follow in Travis footsteps and pay an accountant an hourly rate to help him understand the Form 1040 (Schedule C) that he ll use to report income as a sole proprietor, and how to keep records. Travis typically talks to his accountant twice a year now once to prepare for getting tax information together and once when he drops off his information. He said an initial meeting to understand the form is well worth the money. Meanwhile, no more crumbling and tossing receipts. Tylor keeps everything together in one spot. And, it s easy to keep receipts these days when he can put business expenses on a credit card, Miller Paint keeps a digital copy of everything he buys and most retailers will receipts. Conclusion Tylor still marvels at having a mentor who genuinely wants to help him get a start in business and has willingly fielded questions ranging from the quality of tape to use on a trim job to the proper bid on a job. He s been super helpful, he says. Tylor update Nearly three months since we first met Tylor, what has changed on the business side? Tylor found a new insurance agent. He wanted someone local who would talk him through the confusing world of insurance. Changing insurance agents isn t very complicated, he said, and his new agent in Corvallis was happy to explain the ropes. Changed license endorsement. Tylor changed his license endorsement from a limited residential contractor, which limited the amount he could earn per year and per job. He is now a specialty contractor. This is a typical endorsement for many painters, roofers and other contractors who specialize in a trade as opposed to working as a builder or general contractor. Lesson: Tylor learned that to change his endorsement with the CCB, he needed to fill out a form and pay $20. Wife Joelle joins the business: She quit her job and now supports his business administratively at home fulltime. I couldn t do it without her, Tylor said. 11

44 Civil Penalties Issued Oct 1, Dec 31, 2015 The Oregon Construction Contractors Board (CCB) recently announced final orders assessing civil penalties issued to Oregon contractors for violation of the Construction Contractors Law (ORS 701). Oregon law requires all construction contractors to be licensed with the CCB before they advertise, bid on, or perform construction, remodeling, or repair work. The CCB issued 212 penalties between Oct 1, 2015 and Dec 31, Central Oregon CONTRACTOR / DOING BUSINESS AS / COUNTY WHERE VIOLATION OCCURRED PENALTY VIOLATION CODE BACKCOUNTRY BUILDERS LLC / / Deschutes CARROLL, BRIAN JAMES / / Deschutes DOUBLE F WELDING & FABRICATION LLC / / Crook G & K MASONRY INC / / Deschutes HEINEMANN, ERIC MICHAEL / BALANCE BUILDER / Deschutes HELMUTH, ALLEN R / / Deschutes INTERIOR WOOD PRODUCTS LLC / / Crook JACK PROPERTIES LLC / / Deschutes JACK PROPERTIES LLC / / Deschutes JPH ENTERPRISE LLC / / Deschutes LMM INC / / Deschutes LONE PINE CONTRACTING LLC / / Deschutes MCQ CONSTRUCTION LLC / / Deschutes OTTLINGER, JOSEPH RUSSELL / / Deschutes OTTLINGER, JOSEPH RUSSELL / JOSEPH OTTLINGER CUSTOM BUILDING / Deschutes OTTLINGER, JOSEPH RUSSELL / JOSEPH OTTLINGER CUSTOM BUILDING / Deschutes OTTLINGER, JOSEPH RUSSELL / JOSEPH OTTLINGER CUSTOM BUILDING / Deschutes OTTLINGER, JOSEPH RUSSELL / / Deschutes OTTLINGER, JOSEPH RUSSELL / / Deschutes PARAZOO PLUMBING LLC / / Deschutes ROBERT CAMEL CONTRACTING INC / / Deschutes ROMERO, DUANE EDWARD / DUANE E ROMERO CUSTOM BUILDERS / Deschutes SNYDER, DUANE ROBERT / HIGH DESERT PLUMBERS / Deschutes STILLS, JOSEPH / / Deschutes STRAIGHT EDGE LLC / / Crook $1,000 Performed work without being certified as a lead-based paint renovation contractor. $1,000 No large commercial endorsement $1,000 Failed to comply with Workers Compensation laws. $1,000 Performed work without being certified as a lead-based paint renovation contractor. $600 Advertising or bidding without a $1,000 Hired an unlicensed subcontractor $1,000 Having employees while in a status that does not allow them to have employees. $1,000 Having employees while in a status that does not allow them to have employees. $1,000 Having employees while in a status that does not allow them to have employees. $1,000 Having employees while in a status that does not allow them to have employees. $1,000 Failed to comply with standards and practices for lead based paint activities or renovation. $200 Failed to provide Information Notice to homeowner. $2,100 Advertising or bidding without a $1,000 Having employees while in a status that does not allow them to have employees. $500 Failed to meet minimum contract standards. $100 Failed to provide Consumer Protection Notice document. $100 Failed to provide Consumer Protection Notice. $1,000 Exempt licensee with employees. $1,000 Hired an unlicensed subcontractor $1,200 Advertising or bidding without a $600 Advertising or bidding without a 12

45 Page 2 of 8 Central Oregon CONTRACTOR / DOING BUSINESS AS / COUNTY WHERE VIOLATION OCCURRED PENALTY VIOLATION CODE TUCKER, CARL / / Deschutes WESTERN PROTECTIVE COATINGS LLC / / Deschutes $1,000 Having employees while in a status that does not allow them to have employees. $1,000 No residential endorsement Eastern Oregon CONTRACTOR / DOING BUSINESS AS / COUNTY WHERE VIOLATION OCCURRED PENALTY VIOLATION CODE 1ST CHOICE RESTORATION OF WALLA WALLA LLC / / Umatilla 4CS BUILDERS LLC / / Union BEDROCK CONSTRUCTION LLC / / Malheur BLUE MOUNTAIN PAVING COMPANY LLC / / Umatilla BRASSFIELD, WILL DEMPSEY / B & B MASONRY / Malheur FRANK W GEHRING CONSTRUCTION INC / / Umatilla FRANK W GEHRING CONSTRUCTION INC / / Umatilla FRANK W GEHRING CONSTRUCTION INC / / Umatilla HACKETT, KENNETH / ROYAL FLUSH / Baker LAIZURE, PETER JAMES / / Umatilla MOREHEAD, PATRICK MICHAEL / MOREHEAD FLOORCOVERING / Wallowa PARDUE, KEVIN LAMAR / PURDUECONTRACTING SERVICES / Union PLENTY OF PAINT INC / / Wallowa POLAR COMPANY LLC / POLAR CONSTRUCTION / Umatilla RET CONSTRUCTION LLC / / Malheur RYWEST HOMES INC / / Malheur SAGEBRUSH CONCRETE SAWING & DRILLING INC / / Morrow SCOTT POWER CONTRACTING LLC / / Wallowa STICKNEY, DUANE RUFUS / / Union STICKNEY, DUANE RUFUS / DR STICKNEY CONSTRUCTION CO / Union STOUT BUILDING CONTRACTORS LLC / / Malheur USA SERVICES INC / / Malheur VALLEY WIDE COOPERATIVE INC / / Malheur $100 No license number on publications or advertisements. $1,000 Failed to comply with Workers Compensation laws. $1,000 No large commercial endorsement $200 Failed to provide Information Notice to homeowner. $100 Failed to provide Consumer Protection Notice. $100 Failed to provide Consumer Protection Notice document. $5,000 Working without a - $5,000 Working without a - $5,000 Working without a - $1,000 Performed work without being certified as a lead-based paint renovation contractor. $1,000 No large commercial endorsement $1,000 No large commercial endorsement $1,000 Hired an unlicensed subcontractor $1,000 Having employees while in a status that does not allow them to have employees. $1,000 Performed work without being certified as a lead-based paint renovation contractor. $1,000 Hired an unlicensed subcontractor North Central Oregon CONTRACTOR / DOING BUSINESS AS / COUNTY WHERE VIOLATION OCCURRED PENALTY VIOLATION CODE BISPING, MICHAEL BRIAN / MONTANA LOG HOMES SERVICES / Wasco Oregon Coast CONTRACTOR / DOING BUSINESS AS / COUNTY WHERE VIOLATION OCCURRED PENALTY VIOLATION CODE BOLER, ERIC / / Coos $5,000 Working without a - 13

46 Page 3 of 8 Oregon Coast CONTRACTOR / DOING BUSINESS AS / COUNTY WHERE VIOLATION OCCURRED PENALTY VIOLATION CODE DONALDSON, CRAIG JOHN / KIWI FAB / Tillamook FAIRCHILD JR, JAMES LEE / BIG RED CONSTRUCTION SERVICE / Lincoln HOWE JR, GERALD EARL / / Clatsop JMC QUALITY BUILDERS CORP / / Lincoln KAMNA, KYLE LEE / KAMCO / Lincoln L & L CARPET CARE LLC / L & L CARPET CARE / Lincoln LANDRY, MATTHEW LEE / / Lincoln LYBERIS, JAMES MOREY / JAMES LYBERIS REMODELING / Lincoln MALO, SARAH KAY / / Curry NELSON TREEHOUSE & SUPPLY LLC / / Lincoln STRUCTURED CONCEPTS INC / / Clatsop STRUCTURED CONCEPTS INC / / Clatsop USA SERVICES INC / / Lincoln WILKINSON FAMILY ENTERPRISES LLC / / Tillamook $1,000 No residential endorsement $1,000 Having employees while in a status that does not allow them to have employees. $1,000 Having employees while in a status that does not allow them to have employees. $600 Advertising or bidding without a $5,000 Working without a - complaint filed $1,000 Failed to comply with Workers Compensation laws. $5,000 Working without a - $1,000 No permit and complaint was filed with the CCB. $500 No written contract. complaint filed $1,000 Having employees while in a status that does not allow them to have employees. Portland Metropolitan Area CONTRACTOR / DOING BUSINESS AS / COUNTY WHERE VIOLATION OCCURRED PENALTY VIOLATION CODE 14 A 1 AMERICAN CONTRACTORS INC / / Multnomah AA REMODELING LLC / / Multnomah AH CONSTRUCTION LLC / / Columbia AISEA, MELEANA OFAKIMULI / TM CONCRETE / Multnomah AISEA, MELEANA OFAKIMULI / TM CONCRETE / Multnomah AISEA, MELEANA OFAKIMULI / TM CONCRETE / Multnomah AISEA, MELEANA OFAKIMULI / TM CONCRETE / Multnomah AKI PAINTING LLC / AK PAINTING / Multnomah AMES, HOMER R / / Washington ARELLANOS CONSTRUCTION LLC / / Clackamas ARELLANOS CONSTRUCTION LLC / / Clackamas BANKEL, RUSSELL JOHN / / Multnomah BURRIS, JOHN CALVIN / CREATIVE LIVING SPACES / Multnomah CANCHOLA, JAVIER CABRERA / / Clackamas CARSON, KEVIN MICHAEL / / Multnomah CHELSEA FLOORING LLC / / Washington CLOW ROOFING & SIDING COMPANY / / Clackamas $1,000 No large commercial endorsement $600 Advertising or bidding without a $5,000 Working without a - complaint filed $700 Advertising or bidding without a $700 Advertising or bidding without a $700 Advertising or bidding without a $700 Advertising or bidding without a $1,000 Performed work without being certified as a lead-based paint renovation contractor. $5,000 Working without a - complaint filed $1,000 No residential endorsement $1,000 No residential endorsement $1,000 No permit and complaint was filed with the CCB. $5,000 Working without a - $1,000 No permit and complaint was filed with the CCB.

47 Page 4 of 8 Portland Metropolitan Area CONTRACTOR / DOING BUSINESS AS / COUNTY WHERE VIOLATION OCCURRED PENALTY VIOLATION CODE COLIRON, TRAVIS / / Multnomah CRAFTS CONSTRUCTION COMPANY LLC / / Multnomah CRYSTAL SPRINGS CONSTRUCTION LLC / / Clackamas DIAZ ESTRADA, SALUD Y EFRAIN / / Multnomah DIRTYWORKS HOME SERVICES LLC / / Washington DUGI CONSTRUCTION LLC / / Multnomah DUNKLEY, GARY WAYNE / / Multnomah FLINCHBAUGH, RICHARD H / / Multnomah FOGLIO HOMES & DEVELOPMENT INC / / Clackamas GABINO TLELO PANECATL / / Multnomah GREEN, RYAN ERIK / / Washington GUZMAN-CAZAREZ, HUMBERTO / / Multnomah GUZMAN-CAZEREZ, HUMBERTO / / Multnomah HIGH PERFORMANCE HOMES INC / HIGH PERFORMANCE HOMES / Multnomah HUDSON CONSTRUCTION INC / / Multnomah JEFFREY S BRYAN & DAWN MARIE NELSON BRYAN / / Washington JEFFREY S BRYAN & DAWN MARIE NELSON BRYAN / / Washington JEFFREY S BRYAN & DAWN MARIE NELSON BRYAN / / Washington JEFFREY S BRYAN & DAWN MARIE NELSON BRYAN / / Washington JEFFREY S BRYAN & DAWN MARIE NELSON BRYAN / / Washington JRBCC CORP / / Clackamas KEYSTONE TILE & MARBLE LLC / / Clackamas KINGDOM BUILDERS INC / / Clackamas LEE, JOSEPH ROY / / Multnomah MCCORMICK, CLAUDIA ELIZABETH / / Washington MITCHELL, BLANCY JACOB / ALLOVER NORTHWEST PAVING / Multnomah MJK CONSTRUCTION LLC / / Multnomah MURPHYS MASONRY & CONSTRUCTION LLC / / Columbia NEAL, KENNETH DANIEL / / Multnomah NELSON JR, WILLIAM BOYD / JB SERVICES / JBS MAINTENANCE / Clackamas NELSON, BRYAN ALBERT / / Multnomah $600 Advertising or bidding without a $1,000 Having employees while in a status that does not allow them to have employees. $1,000 Having employees while in a status that does not allow them to have employees. $600 Advertising or bidding without a $600 Advertising or bidding without a $1,000 No residential endorsement $700 Advertising or bidding without a $600 Advertising or bidding without a $200 Failed to provide Information Notice to homeowner. $5,000 Working without a - $5,000 Working without a - $1,000 Engaged in dishonest or fraudulent conduct. $1,000 Hired an unlicensed subcontractor $200 Failed to provide Information Notice to homeowner. $1,000 Having employees while in a status that does not allow them to have employees. $500 No written contract. $100 Failed to provide Consumer Protection Notice document. $100 Failed to provide Consumer Protection Notice. $5,000 Working without a - complaint filed $1,000 Having employees while in a status that does not allow them to have employees. $1,000 Performed work without being certified as a lead-based paint renovation contractor. $600 Advertising or bidding without a $5,000 Advertising or bidding without a $5,000 Working without a - complaint filed $1,000 Performed work without being certified as a lead-based paint renovation contractor. $1,000 Having employees while in a status that does not allow them to have employees. $600 Advertising or bidding without a $5,000 Working without a - complaint filed $5,000 Working without a - complaint filed 15

48 Page 5 of 8 Portland Metropolitan Area CONTRACTOR / DOING BUSINESS AS / COUNTY WHERE VIOLATION OCCURRED PENALTY VIOLATION CODE NELSON, BRYAN ALBERT / / Multnomah NORTHWEST ROOF TECH INC / / Multnomah OSHIRO, DEAN SHIGEO / / Multnomah PAUL STUART KUHNKE & MARKUS RAY GORDON / MONKEYMANS TREE SERVICE / Multnomah PERKINS, MICHAEL JOSEPH / MICHAEL J PERKINS / Multnomah PETERS, EDWARD LEE / SIERRA RIDGE CABINETS / Washington ROMAN A AND DANIEL A ONISHCHENKO / / Multnomah ROSE CITY ELECTRIC CO / / Multnomah ROSE CITY ELECTRIC CO / / Multnomah ROSE CITY ELECTRIC CO / / Multnomah ROSE CITY ELECTRIC CO / / Multnomah ROSS, DONALD / / Multnomah SIDECO CONSTRUCTION LLC / / Clackamas SIGNATURE HOMEBUILDERS LLC / / Washington SL GREEN CONSTRUCTION CO LLC / / Multnomah SOLID FORM CONSTRUCTION LLC / / Multnomah SOLTERRA SYSTEMS DESIGN BUILD INC / / Multnomah STONESIDE LLC / / Multnomah STRATANCE LLC / / Multnomah TELLEZ MARTINEZ, JOSE LUIS / / Washington TIDWELL, CHARLES EDWARD / / Clackamas TUIILEILA, VALITA MAAKE / / Multnomah TUIILEILA, VALITA MAAKE / / Multnomah TUIILEILA, VALITA MAAKE / / Multnomah TUIILEILA, VALITA MAAKE / / Multnomah TUIILEILA, VALITA MAAKE / / Multnomah VEAMATAHAU, VAIMELIE / ROSIE CONCRETE SOLUTIONS / Multnomah WESLEY, ALPHONSO ELZORA / / Multnomah WILD, ADRIAN MARSHALL / / Multnomah $2,000 No permit and complaint was filed with the CCB. $200 Failed to meet minimum contract standards. $600 Advertising or bidding without a $700 Advertising or bidding without a $5,000 Working without a - complaint filed $600 Advertising or bidding without a $200 Failed to provide Information Notice to homeowner. $500 No written contract. $100 Failed to provide Consumer Protection Notice document. $100 Failed to provide Consumer Protection Notice. $700 Advertising or bidding without a $1,000 Failed to provide Information Notice to homeowner. $500 No written contract. $1,000 A lien filed as a result of a licensee failing to pay person claiming the lien. $1,000 Having employees while in a status that does not allow them to have employees. $1,000 Hired an unlicensed subcontractor $5,000 Working without a - complaint filed $600 Advertising or bidding without a $600 Working without a - $200 Failed to provide Information Notice to homeowner. $50 No assumed business name on the license. $200 Failed to meet minimum contract standards. $100 Failed to provide Consumer Protection Notice document. $100 Failed to provide Consumer Protection Notice. $700 Advertising or bidding without a $5,000 Working without a - complaint filed $700 Advertising or bidding without a Southern Oregon CONTRACTOR / DOING BUSINESS AS / COUNTY WHERE VIOLATION OCCURRED PENALTY VIOLATION CODE 16 ALL CARE POOL & SPA / / Jackson CERTIFIED SALES AND SERVICE INC / / Douglas $600 Advertising or bidding without a

49 Page 6 of 8 Southern Oregon CONTRACTOR / DOING BUSINESS AS / COUNTY WHERE VIOLATION OCCURRED PENALTY VIOLATION CODE DECONTI, MICHAEL SCOTT / TIMBERLINE FENCE PRODUCTS / Douglas ESCOTO, FELIPE / / Jackson GUTTER RUDDER INC / / Jackson HERNANDEZ, JOHN PHILLIP / / Jackson JOHNSON, LARRY A / / Jackson KISER, JARED WILLIAM / ROUGE FORESTRY SERVICES / Josephine LAMPKIN GENERAL CONTRACTOR LLC, G / / Jackson LANGELLA, MATTHEW JOSEPH / ROGUE VALLEY HOME SERVICES / Josephine PELCHER II, ROBERT THOMAS / ROGUE RIVER CUSTOM CARPENTRY / Jackson PHILLIP WEST AND JULIE ANN OLIVIER / RED DEVILL / Klamath RODRIGUEZ, JESUS NUNEZ / / Jackson SCRIVNER, STEVEN ARTHUR / / Klamath SNYDER, DUANE ROBERT / HIGH DESERT PLUMBING AND REMODELING / Klamath STIRITZ, JAMES DAVID / DRAGONFLY CONSTRUCTION / Jackson TRACY MAY BRUNNER & ZACHARY MATHIAS BRUNNER / BRUNNER RENOVATIONS / Klamath TRACY MAY BRUNNER & ZACHARY MATHIAS BRUNNER / BRUNNER RENOVATIONS / Klamath TRACY MAY BRUNNER & ZACHARY MATHIAS BRUNNER / BRUNNER RENOVATIONS / Klamath TRACY MAY BRUNNER & ZACHARY MATHIAS BRUNNER / BRUNNER RENOVATIONS / Klamath VERSATILE COMPANY LLC / CHURCH ROOFING / JERRYS ROOFING / Jackson $500 No written contract. $600 Advertising or bidding without a $5,000 Working without a - complaint filed $5,000 Working without a - complaint filed $5,000 Working without a - complaint filed $1,000 Hired an unlicensed subcontractor $600 Advertising or bidding without a $1,000 Having employees while in a status that does not allow them to have employees. $600 Advertising or bidding without a $5,000 Working without a - $5,000 Working without a - $200 Failed to provide Information Notice to homeowner. $1,000 No permit and complaint was filed with the CCB. $100 Failed to provide Consumer Protection Notice document. $100 Failed to provide Consumer Protection Notice. $1,000 Failed to comply with Workers Compensation laws. Willamette Valley CONTRACTOR / DOING BUSINESS AS / COUNTY WHERE VIOLATION OCCURRED PENALTY VIOLATION CODE AXMAKER CONSTRUCTION SERVICES INC / / Marion BANKEL, RUSSELL JOHN / / Lane BOWLIN, JASON D / / Yamhill BRABLECZ, JEFF S / / Marion CANTERA, ANDRES GARCIA / / Yamhill CHW GROUP INC. / CHOICE HOME WARRANTY / Marion CUTTEN IV, KYLE LEWYN FRANK / / Polk CWPOR INC / COLLEGE WORKS PAINTING / Lane DODSWORTH, GEORGE / / Marion F & C CONSTRUCTION INC / / Yamhill GANT, CORY DION / / Lane GANT, CORY DION / GANT CONSTRUCTION / GANT CUSTOM HOMES / Lane $1,000 Having employees while in a status that does not allow them to have employees. $5,000 Working without a - $700 Advertising or bidding without a $700 Advertising or bidding without a $5,000 Working without a - complaint filed $400 No license number on publications or advertisements. $5,000 Working without a - $1,000 Failed to comply with Workers Compensation laws. $200 Failed to provide Information Notice to homeowner. $500 No written contract. 17

50 Page 7 of 8 Willamette Valley CONTRACTOR / DOING BUSINESS AS / COUNTY WHERE VIOLATION OCCURRED PENALTY VIOLATION CODE GLASS, GARY LEE / / Benton GLOBAL FACILITY MANAGEMENT & CONSTRUCTION INC / / Lane GONZALES, PAUL / / Benton HANSHEW, BRIAN PATRICK / / Marion HAYNOSKI, JOSEPH ALLEN / / Lane HOUCK INVESTMENT CORP / / Marion I & T CONSTRUCTION LLC / / Yamhill JB HOMES LLC / / Lane JORGE ALBERTO CERDA TORRES & MONSERRAT PACHECO BAUTISTA / CAPTAIN AMERICA PAINTIN LI, FEYNA JACKIE / / Linn MALDONADO VERGARA, ALBERTO / / Polk MARKS, AMANDA MARY / DRIVEWAY MASTER / Benton MIKE TAYLOR PAINTING INC / / Marion NEUHARTH, MICHAEL JOHN / MICHAEL NEUHARTH PAINTING / Polk OTTLINGER, JOSEPH RUSSELL / JOSEPH OTTLINGER CUSTOM BUILDING / Marion PICKETT JR, GILBERT CHARLES / GILBERT PICKETT CUSTOM CABINETS / Marion PICKETT JR, GILBERT CHARLES / / Marion PIERCE, JAMES THOMAS / J&C REMODELING / Marion PLANTINUM DREAMS CONSTRUCTION INC / / Marion RG CONSTRUCTION & ASSOCIATES LLC / / Linn ROSIER RENOVATIONS LLC / ELEMENT CONSTRUCTION SOLUTIONS / Lane RYAN VERLE BAARSTAD & JEREMY ROY BROWER / HOUSE RESCUE & REVIVAL / Lane SIGNATURE HOMEBUILDERS LLC / / Marion TALAVERA, NOAH / BLU LAUFER CONSTRUCTION / Lane TANN CORPORATION / / Linn TEJEDA JR, JOHN / DEL SOL CONSTRUCTION / Lane THOMPSON, KYLE ALEXANDER / CASTLESTONE TILE / KYLE THE TILE GUY / Linn TIMOTHY EDGAR FOLTZ & CORI MARIE FOLTZ / / Lane TIMOTHY EDGAR FOLTZ & CORI MARIE FOLTZ / / Lane TIMOTHY EDGAR FOLTZ & CORI MARIE FOLTZ / / Lane TIMOTHY EDGAR FOLTZ & CORI MARIE FOLTZ / / Lane $5,000 Working without a - complaint filed $600 Advertising or bidding without a $5,000 Working without a - complaint filed $600 Advertising or bidding without a $1,000 Having employees while in a status that does not allow them to have employees. $1,000 Failed to comply with Workers Compensation laws. $1,000 Having employees while in a status that does not allow them to have employees. $5,000 Working without a - complaint filed $1,000 Having employees while in a status that does not allow them to have employees. $600 Advertising or bidding without a $1,000 Performed work without being certified as a lead-based paint renovation contractor. $500 Failed to provide a list of subcontractors timely. $5,000 Working without a - complaint filed $5,000 Working without a - complaint filed $600 Advertising or bidding without a $500 No written contract. $500 No written contract. $1,000 Knowingly providing false information to the CCB. $5,000 Working without a - complaint filed $700 Advertising or bidding without a $1,000 Having employees while in a status that does not allow them to have employees. $200 Failed to provide Information Notice to homeowner. $100 No license number on publications or advertisements. $100 Failed to provide Consumer Protection Notice. $100 Failed to provide Consumer Protection Notice document. 18

51 Page 8 of 8 Willamette Valley CONTRACTOR / DOING BUSINESS AS / COUNTY WHERE VIOLATION OCCURRED PENALTY VIOLATION CODE TRICK CONSTRUCTION LLC / / Lane VALLEY FENCE INC / / Benton VERSATILE CONSTRUCTION LLC / / Marion VERSATILE CONSTRUCTION LLC / / Marion WILD HAVEN HANDYMAN SERVICES LLC / / Yamhill $1,000 No permit and complaint was filed with the CCB. $600 Advertising or bidding without a $1,000 Having employees while in a status that does not allow them to have employees. $1,000 Performed work without being certified as a lead-based paint renovation contractor. $1,000 Performed work without being certified as a lead-based paint renovation contractor. There were 2 Final Orders Withdrawn NAME JACK PROPERTIES LLC LONE PINE CONTRACTING LLC DESCRIPTION Final Order - Withdrawn Final Order - Withdrawn 19

52 High Street SE suite 600 Salem, OR

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