2017 ORS 279C.600¹
Right of action on payment bond or public works bond of contractor or subcontractor
  • notice of claim

(1) A person claiming to have supplied labor or materials for the performance of the work provided for in a public contract, including any person having a direct contractual relationship with the contractor furnishing the payment bond or a direct contractual relationship with any subcontractor, or an assignee of such person, or a person claiming moneys due the State Accident Insurance Fund Corporation, the Unemployment Compensation Trust Fund or the Department of Revenue in connection with the performance of the contract, has a right of action on the contractor’s payment bond as provided for in ORS 279C.380 (Performance bond) and 279C.400 (Competitive proposals) only if:

(a) The person or the assignee of the person has not been paid in full; and

(b) The person gives written notice of claim, as prescribed in ORS 279C.605 (Notice of claim), to the contractor and the contracting agency.

(2) When, upon investigation, the Commissioner of the Bureau of Labor and Industries has received information indicating that one or more workers providing labor on a public works have not been paid in full at the prevailing rate of wage or overtime wages, the commissioner has a right of action first on the contractor’s public works bond required under ORS 279C.836 (Public works bond) and then, for any amount of a claim not satisfied by the public works bond, on the contractor’s payment bond, as provided in ORS 279C.380 (Performance bond) and 279C.400 (Competitive proposals). When an investigation indicates that a subcontractor’s workers have not been paid in full at the prevailing rate of wage or overtime wages, the commissioner has a right of action first on the subcontractor’s public works bond and then, for any amount of a claim not satisfied by the subcontractor’s public works bond, on the contractor’s payment bond. The commissioner’s right of action exists without necessity of an assignment and extends to workers on the project who are not identified when the written notice of claim is given, but for whom the commissioner has received information indicating that the workers have provided labor on the public works and have not been paid in full. The commissioner shall give written notice of the claim, as prescribed in ORS 279C.605 (Notice of claim), to the contracting agency, the Construction Contractors Board, the contractor and, if applicable, the subcontractor. The commissioner may not make a claim for the same unpaid wages against more than one bond under this section. [2003 c.794 §154; 2005 c.360 §3]

Notes of Decisions

Under Former Similar Statute (Ors 279.526)

Penalty wages claimed under ORS chapter 652 are not pay­ment for labor that may be recovered from surety bond. North Marion School District #15 v. Acstar Insurance Co., 205 Or App 484, 136 P3d 42 (2006), aff’d 343 Or 305, 169 P3d 1224 (2007)

In General

When read with ORS 279C.380 (Performance bond), successful bidder in public improve­ment contract must secure pay­ment bond in amount equal to full contract price to protect potential claimant under this sec­tion and claimant under this sec­tion is not re­quired to incorporate its contract or quasi-contract claims into bond claims. State v. Ross Bros. & Co., Inc., 268 Or App 438, 342 P3d 1026 (2015), Sup Ct review denied

Where claimant that provided rock-hauling services pursuant to agree­ments with multiple parties in connec­tion with specific construc­tion project under public contract gave notice within 180 days of last date claimant provided labor or furnished ma­te­ri­als on project, but later than 180 days from last date claimant provided labor or ma­te­ri­als pursuant to contract with particular contractor alleged not to have paid, claimant timely provided notice of its claim. State v. Smith & Smith Excava­tion, 280 Or App 766, 386 P3d 112 (2016)

1 Legislative Counsel Committee, CHAPTER 279C—Public Improvements and Related Contracts, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors279C.­html (2017) (last ac­cessed Mar. 30, 2018).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2017, Chapter 279C, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano279C.­html (2017) (last ac­cessed Mar. 30, 2018).
 
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.