2007 ORS 701.150¹
Satisfaction of unpaid order from bond

(1) A Construction Contractors Board final order that is not paid by the contractor and that:

(a) Arises out of a complaint filed under ORS 701.145 (Resolution of complaints involving work on residential structures or certain small commercial structures) must be satisfied from a bond required for a residential contractor.

(b) Arises out of a complaint filed under ORS 701.146 (Resolution of complaints involving work on large commercial structures or certain small commercial structures) must be satisfied from a bond required for a commercial contractor.

(2) If a board final order is not paid by the contractor, the board shall notify the surety on the bond. The surety may not pay on a complaint until the surety receives notice from the board that the complaint is ready for payment.

(3) Notwithstanding ORS 701.153 (Recording of order as lien) and 701.157 (Satisfaction of order against commercial contractor), a bond is not subject to payment for a complaint that is filed more than 14 months after the earlier of:

(a) The expiration or cancellation date of the license that was in force when the work that is the subject of the complaint was completed or abandoned; or

(b) The date that the surety canceled the bond. [1971 c.740 §17; 1973 c.832 §60; 1981 c.618 §7; 1983 c.616 §15; 1987 c.414 §40c; 1989 c.928 §18; 1991 c.181 §11; 1997 c.387 §7; 1999 c.59 §208; 1999 c.402 §32; 2001 c.197 §16; 2001 c.427 §1a; 2007 c.793 §19; 2007 c.836 §69]

Note: The amendments to 701.150 (Satisfaction of unpaid order from bond) by section 69, chapter 836, Oregon Laws 2007, become operative July 1, 2008, and apply to complaints filed against persons whose contractor licenses are issued or renewed on or after July 1, 2008. See section 70, chapter 836, Oregon Laws 2007. The text that is operative until July 1, 2008, including amendments by section 19, chapter 793, Oregon Laws 2007, is set forth for the user’s convenience.

701.150 (Satisfaction of unpaid order from bond). (1) If a Construction Contractors Board final order is not paid by the contractor, the board shall notify the surety on the bond. The surety may not pay on a complaint until the surety receives notice from the board that the complaint is ready for payment.

(2) If an order of the board that determines a complaint under ORS 701.145 (Resolution of complaints involving work on residential structures or certain small commercial structures) becomes final by operation of law or on appeal and remains unpaid 10 days after the date the order becomes final, the complainant may file the order with the county clerk in any county of this state.

(3) Upon receipt, the clerk shall record the order in the County Clerk Lien Record. In addition to any other remedy provided by law, recording an order in the County Clerk Lien Record pursuant to the provisions of this section has the effect provided for in ORS 205.125 (County Clerk Lien Record) and 205.126 (Enforcement of order or warrant recorded in County Clerk Lien Record), and the order may be enforced as provided in ORS 205.125 (County Clerk Lien Record) and 205.126 (Enforcement of order or warrant recorded in County Clerk Lien Record).

(4) Payments from the surety bond of a contractor pursuant to board order and notice are satisfied in the following priority in any 90-day period. A 90-day period begins on the date the first complaint is filed with the board. Subsequent 90-day periods begin on the date the first complaint is filed with the board after the close of the preceding 90-day period. Within a 90-day period:

(a) Board orders as a result of complaints against a contractor by the owner of a residential or small commercial structure have payment priority to the full extent of the bond over all other types of complaints.

(b) If the complaints described in paragraph (a) of this subsection do not exhaust the bond, then amounts due as a result of all other types of residential or small commercial structure complaints filed within that 90-day period may be satisfied from the bond, except that the total amount paid from any one bond to nonowner complainants may not exceed $3,000.

(c) If payments involving residential and small commercial structures do not exhaust the bond, board orders and notice involving large commercial structure complaints are satisfied in the following priority, except that the total amount paid from any one bond to nonowner complainants may not exceed $3,000:

(A) Labor, including employee benefits.

(B) All other complaints involving large commercial structures except costs, interest and attorney fees.

(C) Any costs, interest and attorney fees the plaintiff may be entitled to recover.

(d) If the total complaints filed with the board against a contractor within 90 days after the board receives notice of the first complaint against the contractor exceed the amount of the bond available for those complaints, the bond shall be apportioned as the board determines, subject to the priorities established under this section.

(e) If the total amounts due as a result of complaints filed with the board within 90 days after the first complaint is filed do not exceed the amount of the bond available for those complaints, all amounts due as a result of complaints filed within the 90-day period shall have priority over all complaints subsequently filed until the amount of the bond available for the payment of complaints is exhausted.

(5) Notwithstanding subsection (4) of this section, a bond is not subject to payment for a complaint that is filed more than 14 months after the earlier of:

(a) The expiration or cancellation date of the license that was in force when the work that is the subject of the complaint was completed or abandoned; or

(b) The date that the surety canceled the bond.

(6) The total amount paid from any one bond for costs, interest and attorney fees may not exceed $3,000.

Law Review Cita­tions

39 WLR 779 (2003)

Chapter 701

Notes of Decisions

This is a remedial statute made for the protec­tion of the building business and of people dealing with builders who might be irresponsible; it should be read as a whole and liberally construed to accomplish its purpose. Robinson v. Builders Bd., 20 Or App 340, 531 P2d 752 (1975)

Atty. Gen. Opinions

Lack of authority for director to appoint executive secretary for board, (1971) Vol 35, p 930; inap­pli­ca­bil­i­ty of this chapter to business of construc­tion or installa­tion of fences, sidewalks, septic tanks, wells and underground sprinkling systems, (1972) Vol 35, p 1278; mobile home as per­sonal or real prop­erty under this chapter, (1972) Vol 36, p 41; applica­tion of Homebuilders Law to mobile homes, (1978) Vol 38, p 693

1 Legislative Counsel Committee, CHAPTER 701—Construction Contractors and Contracts, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­701.­html (2007) (last ac­cessed Feb. 12, 2009).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2007, Chapter 701, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­701ano.­htm (2007) (last ac­cessed Feb. 12, 2009).
 
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent.