[OR] [OR] What should I do if my contractor never obtained the needed permits prior to finishing the project?
I live in Portland, Oregon. I hired a contractor to perform work, which was completed. After completion, it came to my attention that needed permits may not have been gathered ahead of the project, and in doing so the project was much more expensive than it would have been otherwise if the guidelines were followed. What recourse do I have in getting the contractor to bring the project into compliance with the relevant city codes?
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Short answer: You can sue for a breach of contract and require specific performance to get the property up to code or sue for financial damages incurred for you having to do it yourself.
Long answer: You do have a solid contractual argument since the contractor agreed in writing to handle permits. You can potentially demand they fix this by either bringing the work into compliance (which might mean removing or modifying the work) or reimbursing you for costs tied to these violations.
Since you've already paid, your claim would focus on breach of contract and possibly misrepresentation (if they intentionally avoided the permits). You didn’t mention any immediate fines or property damage yet, so your damages are basically the amount you paid for unpermitted work plus potential costs to fix it later.
Because your contract requires arbitration, you’ll need to file a claim with that specific arbitration company rather than going to court. This isn’t optional since most courts will force you to honor that clause.
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I live in Portland, Oregon. I hired a contractor to perform work, which was completed. After completion, it came to my attention that needed permits may not have been gathered ahead of the project, and in doing so the project was much more expensive than it would have been otherwise if the guidelines were followed. What recourse do I have in getting the contractor to bring the project into compliance with the relevant city codes?
Lexi, Chatbot
I understand how frustrating it can be to deal with contractor issues, especially regarding compliance and permits. Have you already discussed your concerns with the contractor about the missing permits?
I brought up my concerns with the contractor, but they have not responded.
Lexi, Chatbot
What specific work did the contractor perform that you believe required permits?
They poured a concrete walkway in a property easement and a parking spot in a space restricted. If this had been run by the city, the project would have been denied and we would’ve gone a different, and likely much less expensive, route.
Lexi, Chatbot
Is there anything else the lawyer should know before I connect you? Rest assured they’ll be able to help with permits.
Yes.
Michael M. Esq.
Hello! My name is Michael, and I'm an attorney ready to help! Your responses matter to me, so I only need a few minutes to review and respond to each of your posts. What is the status of the permitting issue now?
Hi – at present, I am trying to understand my rights if work was done that was not properly permitted. The contract states that the contractor is responsible for getting all needed permits, but it seems as if they tried to skirt some city codes without consulting with the city planner’s office. I was charged a large amount of money for the project and worry that I was charged a high premium for work which is ultimately not able to be permitted and which will cause issues down the road if/when a violation is reported and when I try to sell my home.
Michael M. Esq.
I'm so sorry about that! To clarify, did you suffer financial damages as a result?
I have already paid for the project, but no other damages have been suffered (yet).
Michael M. Esq.
Understood! So you're just wondering what your rights are here, correct?
Yes. The overall cost of the project also exceeds what is applicable in small claims court in my jurisdiction.
Michael M. Esq.
Ok! Did you need to tell me anything else? If not, I can start with answering your question.
The only other piece of information is that the contract requires me to go through a specific arbitration company if I decide to pursue something legally. Before doing so, I want to make sure I understand the different nuances of my (potential) case. If there’s any other information you need, I’d be happy to provide it — else that should be the relevant information that I can think of at the moment.
Michael M. Esq.
I'm so sorry about this situation! I want to address your situation with a detailed response, so if you have any questions, don’t hesitate to ask because this law stuff can get complicated.
Michael M. Esq.
Short answer: You can sue for a breach of contract and require specific performance to get the property up to code or sue for financial damages incurred for you having to do it yourself.
Long answer: You do have a solid contractual argument since the contractor agreed in writing to handle permits. You can potentially demand they fix this by either bringing the work into compliance (which might mean removing or modifying the work) or reimbursing you for costs tied to these violations.
Since you've already paid, your claim would focus on breach of contract and possibly misrepresentation (if they intentionally avoided the permits). You didn’t mention any immediate fines or property damage yet, so your damages are basically the amount you paid for unpermitted work plus potential costs to fix it later.
Because your contract requires arbitration, you’ll need to file a claim with that specific arbitration company rather than going to court. This isn’t optional since most courts will force you to honor that clause.
Michael M. Esq.
Does that help clarify things? I want to make sure I didn’t leave anything out.
Thank you! That is helpful – knowing that there is a possibility to recoup the cost of the work and to get the contractor to bring it into compliance is helpful, as the cost of both the project and potential remediation was a very tough pill to swallow for me.
Can you elaborate more on the misrepresentation aspect for avoiding permits? To me, this is the crux of my concern as I do feel as if avoiding the permitting/using creative wording to suggest that we didn’t need permits was akin to scamming me out of the cost of the project, as it wouldn’t have gone forward otherwise.
Michael M. Esq.
Absolutely! Misrepresentation means the contractor provided you with false or misleading information that you relied on when agreeing to the project.
If they indicated or implied that no permits were needed—especially if they knew that wasn’t true—it could be seen as either negligent or fraudulent misrepresentation. You could argue that had you known the actual permitting requirements, you would not have approved the project, meaning you were essentially misled into paying for something you wouldn’t have chosen.
I know it’s a lot, but does that help make sense of things a bit more? I want to make sure I didn’t leave anything out.
Yes that does make sense to me. Would the process be helped if an inspection confirmed it is not in compliance before starting my engagement with the mediation firm?
Michael M. Esq.
Sure thing! Yes, getting an inspection before starting arbitration would absolutely help strengthen your case. It gives you solid proof that the work isn’t in compliance instead of just relying on your word against the contractor’s.
With that official report, you’ll have way more leverage to show the mediator or arbitrator exactly what went wrong and why you deserve reimbursement or corrective work.
Great, thank you! I appreciate your sanity check and confirmation here. I have a meeting scheduled with the city planner to discuss the project. This will be in a "what if" context, and if/when they point out the issues with it I’ll be sure to send that along to the contractor to give them an opportunity to address.
If they don’t, I will include that information in my complaint to the contractor board and arbitration. Do you have any suggested modifications to this plan?
Michael M. Esq.
I hear you! Your plan sounds spot on and smart. Meeting with the city planner first is a great move because it gives you clear, official feedback before confronting the contractor.
Just make sure to document everything in writing (notes, emails, photos) so if the contractor still refuses to act, you’ll have a rock-solid record to back you up in arbitration and with the contractor board.
Fantastic – that is the plan. At this point I think my question should be addressed – thank you for your help!
Michael M. Esq.
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