Oregon task force aims to improve construction

Oregon’s Construction Claims Task Force has released a report noting 11 recommendations to help protect homeowners from construction defects and ensure affordable liability insurance for contractors.

Highlights of the recommendations include:

• Changing building code requirements to prevent moisture intrusion;
• Strengthening the state Construction Contractors Board’s enforcement to address defective construction;
• Establishing a limited consumer assistance fund to provide relief to consumers;
• Streamlining rate filing requirements for contractor group general liability insurance policies; and
• Encouraging construction insurance carriers to provide discounts for contractors who adopt the task force’s recommendations and who perform other best practices.

“Input from the public contributed greatly to the task force’s work,” said Cory Streisinger, director of the Department of Consumer and Business Services. “The task force heard from consumers who have experienced problems with home construction and from industry experts, which was key in developing the 11 recommendations.”

While the Professional Insurance Agents of Oregon (PIA)said it did not agree with all 11 points in the final report, it believed that with proper implementation, “many of the task force’s suggestions will help improve the cost of doing business for contractors,” as well as improve the insurance marketplace for contractors.

“The better education and building code requirements that could come as a result of this report and the task force’s efforts will help to decrease claims in the future and thus costs to contractors and consumers. … That translates to homes that are better built and safer for consumers,” the association said.

CCTF Chair Eric Grasberger, a Portland attorney representing consumers, indicated he is satisfied with the recommended solutions, especially the recommendation that would require competency training and certification for those who work on a building’s exterior envelope, such as siding, windows, doors and roofs.

“A large number of consumer complaints stem from unskilled and unsupervised workmanship on the envelope,” he said. “Increased education and training requirements — with companies subject to licensing sanctions for noncompliance — should reduce the number of problems consumers face.”

He said the limited recovery fund also would be good for consumers, alleviating “some of the sting” from construction defects caused by contractors who may not have the ability to pay for their mistakes.

“I’m very proud of the work performed by the task force members and staff who worked many hours,” said Craig Smith, administrator of the state’s Construction Contractors Board. “CCB is excited about these task force recommendations, which, in total, will provide enhanced protections for consumers and improvements to tools used by the agency to hold contractors accountable for their business practices.”

CCTF, composed of nine members who represent the public, the insurance and construction industries, and the Oregon Department of Energy, studied issues relating to home construction defects and construction insurance. Two state agencies, the Construction Contractors Board and the Department of Consumer and Business Services, Building Codes Division and Insurance Division coordinated task force activities, and provided data and expertise. The task force was created by the 2005 Legislature.

PIA said it has monitored the activities of the Construction Claims Task Force from its first meeting until the release of the report.

The entire CCTF report, with an executive summary, recommendations plus data and analysis, is available at the Building Codes Division’s Web site at http://egov.oregon.gov/DCBS/CCTF/. Click on “Final Legislative Report.