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Oregon Prompt Payment Laws

Our Portland law firm has made it its duty to ensure that contractors working out of the Beaver State are rightly paid for work performed and materials provided. Fortunately, Oregon lawmakers have sided with contractors when it comes to payments. Below, a Portland construction attorney with Cotney Construction Law discusses Oregon’s prompt payment laws. Keeping provisions such as these top of mind can ensure that you receive your payments in a timely manner and know how best to proceed with a mechanic’s lien when an owner refuses payment. 

For General Contractors

Under Oregon law, owners must make progress payments no later than 14 days after the date billing is received, and they have only 7 days to make the final payment after work is approved. However, these deadlines only apply to private projects. 

As ORS 279C.570 states, “It is the policy of the State of Oregon that all payments due on a public improvement contract and owed by a contracting agency shall be paid promptly.” General contractors working on public projects are entitled to progress payments from owners no later than “30 days after receipt of the invoice from the contractor or 15 days after the payment is approved by the contracting agency, whichever is the earlier date.” Furthermore, the final payment is due 30 days after work has been completed. 

Related: Oregon Lien Deadlines

For Subcontractors 

Subcontractors and material providers are entitled to payment a little sooner than general contractors. On private projects, once a general contractor has received payment, they will have 7 days to turn around and pay their subcontractor. On public projects, general contractors will have 10 days to turn around and pay subcontractors once they’ve received payment from the owner. Subcontractors will then have 7 days (private projects) or 10 days (public projects) to turn around and pay material providers and sub-subcontractors. 

Related: How to File a Mechanic’s Lien in Oregon 

For All Contractors 

Of course, the above deadlines in no way guarantee that an owner will pay for work completed or materials provided. Furthermore, there are possible exceptions that could make procuring payment difficult, if not impossible, for contractors and suppliers alike. For an industry advocate who can file a mechanic’s lien on your behalf and fight for what you are rightfully owed, partner with a Portland construction attorney from Cotney Construction Law. 

If you would like to speak with a Portland construction lawyer, please contact us today.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.