OR HB3860

Major residential contractors (publicly traded general contractors) cannot collect more than 50% of the original contract price before substantially completing remodeling or repair work on owner-occupied one- or two-family homes when contracts exceed $40,000

If a homeowner agrees in writing to changes that increase the contract price by $20,000 or more, the contractor may collect up to 50% of that increase

Contractors may require progress payments exceeding 50% only to cover documented costs of materials, supplies, and subcontractor payments, with contracts itemizing these costs and linking payments to specific work milestones

Businesses must obtain certification from the Construction Contractors Board to install, repair, or maintain spray-on fireproofing systems in essential facilities, with certifications expiring after three years and fees capped at $500 for initial applications and $150 for renewals

Contractor payment restrictions apply to contracts entered on or after January 1, 2026; fireproofing certification requirements become operative July 1, 2026; the act takes effect 91 days after the 2025 legislative session adjourns