As we’ve recently highlighted, the Construction Contractors Board and Oregon OSHA seem to be ramping up enforcement of their respective authorities under Oregon law. Where rules contain mostly black-and-white requirements for owners and contractors, as well as harsh enforcement options, the CCB has found the perfect place to flex its authoritative muscles. One such area is the CCB’s enforcement of Oregon’s Prompt Pay Act.
If it’s been a while since you reviewed your policies regarding contractor payment, you should do so with a construction contract attorney to ensure you are compliant with Oregon law and can avoid potential CCB penalties.
Prompt Payment statutes are designed to provide recourse to contractors and subcontractors who do not receive timely payment from owners and contractors per their agreements. For example, if an owner hires a contractor to complete a job, with payment to come at different periods during the project, any failure to meet those payment deadlines can result in a number of penalties for the delinquent owner. Though many states have adopted Prompt Pay statutes, Oregon’s is known for it’s broad application and harsh penalties.
Unlike Washington and a number of other states, Oregon’s Prompt Payment Statute applies to both public and private construction contracts. Additionally, a delinquent owner or contractor in Oregon is subject not only to civil sanctions and penalties, but also to the CCB’s authority to terminate a contractor’s license after repeat offenses.
In an effort to maintain economic stability in the construction industry, the CCB is taking its enforcement authority extremely seriously. Whether you think a payment deadline may be missed, or you want to review your contract payment policies, you should contact a local construction dispute attorney.