SB 1496 Summary

• Requires primary and general contractors in Oklahoma's construction industry to have written contracts with property owners before starting work on commercial and residential building projects, effective November 1, 2012.

• Written contracts must include specific provisions addressing rights and remedies for non-performance, failure to pay for materials/labor, defective work, and contract cancellation rights.

• Mandates all contractors, subcontractors, and independent contractors file either an insurance policy or surety bond with the Department of Labor for each job in an amount equal to at least three times the estimated project cost.

• Allows the Department of Labor to establish by rule a minimal annual insurance policy or bond amount as an alternative to filing separate coverage per job, and permits exemptions for certain licensed contractors with adequate existing coverage.

• Establishes administrative penalties of $100-$500 per violation, requires contractors to notify the Department of Labor upon job completion, and limits claims against insurance/bonds to one year from the date of completion notice.