2017 ORS 279C.625¹
Joint liability when payment bond not executed

If the public improvement contract is one for which a payment bond as provided for in ORS 279C.380 (Performance bond) and 279C.400 (Competitive proposals) is required and the contractor fails to pay for labor or materials or to pay claims due the Industrial Accident Fund, the Unemployment Compensation Trust Fund or the Department of Revenue and the officers of the public body that authorized the contract fail or neglect to require the person entering into the contract to execute the payment bond:

(1) The State of Oregon and the officers authorizing the contract shall be jointly liable for the labor and materials used in the performance of any work under the contract, and for claims due the Industrial Accident Fund, the Unemployment Compensation Trust Fund and the Department of Revenue, if the contract was entered into with the State of Oregon.

(2) The public body and the officers authorizing the contract shall be jointly liable for the labor and materials used in the performance of any work under the contract and for claims due the Industrial Accident Fund, the Unemployment Compensation Trust Fund and the Department of Revenue, if the contract was entered into on behalf of a public body other than the state. [2003 c.794 §159; 2005 c.103 §35]

Notes of Decisions

Under Former Similar Statute (Ors 279.542)

Liability is imposed on state when bond is re­quired under [former] ORS 279.029 and state fails to require bond. State ex rel Oregon Waste Systems, Inc. v. United Pacific Insurance Co., 172 Or App 435, 18 P3d 491 (2001), Sup Ct review denied

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.