Oregon does not appear to have a strict limitation on how much a contractor can charge for their down payment. However, it's common for a relatively large downpayment in situations where the contractor will need to secure a significant amount of subcontractors, materials, equipment, and/or permits for the job.
At the same time, it's important to understand what, exactly, the downpayment will be used for. If the contractor can show why a sizeable downpayment is necessary and prices out how it will be used, then it'd be easier to be less concerned about the size of the downpayment.
In any event, when down payments climb past the 25 to 33% mark, it's fair to be a little more skeptical. Still, it may make sense depending on the job, and providing a contractor the opportunity to point out how it will be used can help to clear up confusion.
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