OAR 812-002-0325
Good Cause


“Good cause” as used in ORS 279C.585 (Authority to substitute undisclosed first-tier subcontractor) exists if the prime contractor that substituted an undisclosed first-tier subcontractor can show that a reasonable person with the knowledge possessed by the prime contractor when the substitution was made would have concluded that:

(1)

The substitution was consistent with, and did not violate, public policy expressed in ORS 279C.305 (Least-cost policy for public improvements), that public agencies shall make every effort to construct public improvements at the least cost to the public; and

(2)

One or more of the following facts was true:

(a)

The subcontractor was financially unstable.

(b)

The subcontractor had an unacceptable performance history on past contracts.

(c)

The subcontractor had an unacceptable history of untimely performance.

(d)

The subcontractor had an unacceptable history of filing excessive claims and lawsuits on past contracts.

(e)

The subcontractor had an unacceptable work safety record.

(f)

The subcontractor did not have sufficient human resources to do the work required under contracts entered into by the subcontractor.

(g)

The subcontractor failed or refused to meet insurance requirements of the prime.

(h)

The subcontractor failed or refused to meet requirements of ORS 279C.505 (Conditions concerning payment, contributions, liens, withholding, drug testing)(2).

(i)

The subcontractor’s ability to successfully perform the project and protect the guarantees placed by the prime contractor was substantially jeopardized.
812‑002‑0001
Applicant
812‑002‑0002
Application of Definitions
812‑002‑0011
Administrative Law Judge
812‑002‑0020
Agency
812‑002‑0035
Appeal Committee
812‑002‑0040
Appurtenance
812‑002‑0060
Bid
812‑002‑0080
Board
812‑002‑0120
Casual, Minor or Inconsequential
812‑002‑0140
Complaint
812‑002‑0143
Complainant
812‑002‑0160
Construction Management
812‑002‑0170
Contractor
812‑002‑0180
Contractor Became Aware of the Requirement
812‑002‑0190
Court, Arbitrator or Other Entity
812‑002‑0200
Date the Contractor Becomes Aware of a Lapse in License
812‑002‑0220
Date Contractor Incurred Indebtedness
812‑002‑0230
Days
812‑002‑0250
Direct Contractual Relationship
812‑002‑0260
Dishonest or Fraudulent Conduct
812‑002‑0262
Engaged in the Commercial Harvest of Forest Products
812‑002‑0265
Exercises Management or Supervisory Authority Over the Construction Activities of the Business
812‑002‑0275
Family Members
812‑002‑0280
For Compensation or With the Intent to Sell
812‑002‑0300
Gardener
812‑002‑0320
General Contractor
812‑002‑0325
Good Cause
812‑002‑0345
Hours of Training
812‑002‑0350
Individual
812‑002‑0360
Inspect
812‑002‑0380
Insurance
812‑002‑0390
Key Employee
812‑002‑0400
Labor
812‑002‑0420
Lapse in License
812‑002‑0430
Large Commercial Structure
812‑002‑0440
Last-Known Address of Record
812‑002‑0443
Legal Capacity to Enter into Contracts
812‑002‑0450
Licensee
812‑002‑0460
Monetary Damages
812‑002‑0480
Nature or Complexity
812‑002‑0500
Nurseryman
812‑002‑0520
Occupancy
812‑002‑0530
Office of Administrative Hearings
812‑002‑0533
Officer
812‑002‑0537
Owner
812‑002‑0540
Owner of a Structure
812‑002‑0580
Person
812‑002‑0600
Primary Contractor
812‑002‑0620
Registrant
812‑002‑0630
Reinstate
812‑002‑0635
Reissue
812‑002‑0640
Renewal
812‑002‑0660
Residential Structure
812‑002‑0670
Respondent
812‑002‑0673
Signed by Respondent
812‑002‑0675
Small Commercial Structure
812‑002‑0677
Specialty Contractor
812‑002‑0680
Speculative
812‑002‑0700
Structure
812‑002‑0720
Subcontractor
812‑002‑0740
Substantial Completion
812‑002‑0760
Work as a Contractor Includes
812‑002‑0780
Work as a Contractor Does Not Include
812‑002‑0800
Work Period
Last Updated

Jun. 8, 2021

Rule 812-002-0325’s source at or​.us