ORS 279C.560
Form of retainage

  • procedures for holding and payment

(1)

Unless a contracting agency that reserves an amount as retainage under ORS 279C.570 (Prompt payment policy) (7) finds in writing that accepting a bond or instrument described in paragraph (a) or (b) of this subsection poses an extraordinary risk that is not typically associated with the bond or instrument, the contracting agency in lieu of withholding moneys from payment shall accept from a contractor:

(a)

Bonds, securities or other instruments of a character described in subsection (6) of this section that are deposited as provided in subsection (4) of this section; or

(b)

A surety bond deposited as provided in subsection (7) of this section.

(2)

A contracting agency that holds moneys as retainage under ORS 279C.570 (Prompt payment policy) (7) shall:

(a)

Hold the moneys in a fund and pay the moneys to the contractor in accordance with ORS 279C.570 (Prompt payment policy); or

(b)

At the election of the contractor, pay the moneys to the contractor in accordance with subsection (4) or (5) of this section and in a manner authorized by the Director of the Oregon Department of Administrative Services.

(3)

If the contracting agency incurs additional costs as a result of the exercise of an option described in subsection (1) or (5) of this section, the contracting agency may recover the costs from the contractor by reducing the final payment. As work on the contract progresses, the contracting agency shall, upon demand, inform the contractor of all accrued costs.

(4)

The contractor may deposit bonds, securities or other instruments with the contracting agency or in a bank or trust company for the contracting agency to hold for the contracting agency’s benefit in lieu of moneys held as retainage. If the contracting agency accepts bonds, securities or other instruments deposited as provided in this subsection, the contracting agency shall reduce the moneys held as retainage in an amount equal to the value of the bonds, securities and other instruments and pay the amount of the reduction to the contractor in accordance with ORS 279C.570 (Prompt payment policy). Interest or earnings on the bonds, securities or other instruments shall accrue to the contractor.

(5)

If the contractor elects, the contracting agency shall deposit the retainage as accumulated in an interest-bearing account in a bank, savings bank, trust company or savings association for the benefit of the contracting agency. When the contracting agency is a state contracting agency, the account must be established through the State Treasurer. Earnings on the account accrue to the contractor.

(6)

Bonds, securities and other instruments deposited or acquired in lieu of retainage, as permitted by this section, must be of a character approved by the Director of the Oregon Department of Administrative Services, including but not limited to:

(a)

Bills, certificates, notes or bonds of the United States.

(b)

Other obligations of the United States or agencies of the United States.

(c)

Obligations of a corporation wholly owned by the federal government.

(d)

Indebtedness of the Federal National Mortgage Association.

(e)

General obligation bonds of the State of Oregon or a political subdivision of the State of Oregon.

(f)

Irrevocable letters of credit issued by an insured institution, as defined in ORS 706.008 (Additional definitions for Bank Act).

(7)

The contractor, with the approval of the contracting agency, may deposit a surety bond for all or any portion of the amount of funds retained, or to be retained, by the contracting agency in a form acceptable to the contracting agency. The bond and any proceeds of the bond must be made subject to all claims and liens and in the same manner and priority as set forth for retainage under ORS 279C.550 (“Retainage” defined) to 279C.570 (Prompt payment policy) and 279C.600 (Right of action on payment bond or public works bond of contractor or subcontractor) to 279C.625 (Joint liability when payment bond not executed). The contracting agency shall reduce the moneys the contracting agency holds as retainage in an amount equal to the value of the bond and pay the amount of the reduction to the contractor in accordance with ORS 279C.570 (Prompt payment policy). Whenever a contracting agency accepts a surety bond from a contractor in lieu of retainage, the contractor shall accept like bonds from a subcontractor or supplier from which the contractor has retainage. The contractor shall then reduce the moneys the contractor holds as retainage in an amount equal to the value of the bond and pay the amount of the reduction to the subcontractor or supplier. [2003 c.794 §148; 2009 c.568 §1]

Source: Section 279C.560 — Form of retainage; procedures for holding and payment, https://www.­oregonlegislature.­gov/bills_laws/ors/ors279C.­html.

279C.005
Definitions
279C.010
Applicability
279C.100
Definitions for ORS 279C.100 to 279C.125
279C.105
Contracts for architectural, engineering, photogrammetric mapping, transportation planning or land surveying and related services
279C.107
Public disclosure of contents of proposals for architectural, engineering, photogrammetric mapping, transportation planning or land surveying services
279C.110
Selection procedures for consultants to provide services
279C.115
Direct contracts for services of consultants
279C.120
Selection procedure for related services
279C.125
Architectural, engineering, photogrammetric mapping, transportation planning and land surveying services selection process for local public improvements procured through state agency
279C.300
Policy on competition
279C.305
Least-cost policy for public improvements
279C.306
Administrative enforcement of least-cost policy for public improvements
279C.307
Limitations in procurement of personal services
279C.308
Community benefit contract
279C.310
Limitation on contracting agency constructing public improvement
279C.315
Waiver of damages for unreasonable delay by contracting agency against public policy
279C.320
Contracts for construction other than public improvements
279C.325
Limitation on contracting agency awarding contract to nonresident education service district
279C.330
“Findings” defined
279C.332
Definitions for ORS 279A.065, 279C.307, 279C.335, 279C.337 and 279C.380
279C.335
Competitive bidding requirement
279C.337
Procurement of constructions manager/general contractor services
279C.340
Contract negotiations
279C.345
Specifications for contracts
279C.350
Exemption procedure
279C.355
Evaluation of public improvement projects not contracted by competitive bidding
279C.360
Requirement for public improvement advertisements
279C.365
Requirements for solicitation documents and bids and proposals
279C.370
First-tier subcontractor disclosure
279C.375
Award and execution of contract
279C.380
Performance bond
279C.385
Return or retention of bid security
279C.390
Exemption of contracts from bid security and bonds
279C.395
Rejection of bids
279C.400
Competitive proposals
279C.405
Requests for information, interest or qualifications
279C.410
Receipt of proposals
279C.412
Competitive quotes for intermediate procurements
279C.414
Requirements for competitive quotes
279C.430
Prequalification of bidders
279C.435
Effect of prequalification by Department of Transportation or Oregon Department of Administrative Services
279C.440
Disqualification from consideration for award of contracts
279C.445
Appeal of disqualification
279C.450
Appeal procedure for decision to deny, revoke or revise prequalification
279C.460
Action by or on behalf of adversely affected bidder or proposer
279C.465
Action against successful bidder
279C.470
Compensation for contractor on contract declared void by court
279C.500
“Person” defined
279C.505
Conditions concerning payment, contributions, liens, withholding, drug testing
279C.510
Demolition contracts to require material salvage
279C.515
Conditions concerning payment of claims by public officers, payment to persons furnishing labor or materials and complaints
279C.520
Condition concerning hours of labor
279C.525
Provisions concerning environmental and natural resources laws
279C.527
Inclusion of amount for green energy technology or woody biomass energy technology in public improvement contract
279C.528
State Department of Energy requirements and specifications
279C.530
Condition concerning payment for medical care and providing workers’ compensation
279C.533
Condition concerning employment of apprentices to perform percentage of work hours that workers in apprenticeable occupations perform on public improvements
279C.534
Advisory committee for monitoring implementation of apprenticeship condition in public improvement contracts
279C.535
Condition concerning steel material
279C.537
Condition concerning use of diesel engines in motor vehicles used in performing certain public improvement contracts
279C.540
Maximum hours of labor on public contracts
279C.545
Time limitation on claim for overtime
279C.550
“Retainage” defined
279C.555
Withholding of retainage
279C.560
Form of retainage
279C.565
Limitation on retainage requirements
279C.570
Prompt payment policy
279C.580
Contractor’s relations with subcontractors
279C.585
Authority to substitute undisclosed first-tier subcontractor
279C.590
Complaint process for substitutions of subcontractors
279C.600
Right of action on payment bond or public works bond of contractor or subcontractor
279C.605
Notice of claim
279C.610
Action on contractor’s public works bond or payment bond
279C.615
Preference for labor and material liens
279C.620
Rights of person providing medical care to employees of contractor
279C.625
Joint liability when payment bond not executed
279C.650
“Labor dispute” defined
279C.655
Extension and compensation when work suspended
279C.660
Compensation when contract terminated due to public interest
279C.665
Contractual provisions for compensation when contract terminated due to public interest
279C.670
Application of ORS 279C.650 to 279C.670
279C.800
Definitions for ORS 279C.800 to 279C.870
279C.805
Policy
279C.807
Workforce diversity for public works projects
279C.808
Rules
279C.810
Exemptions
279C.815
Determination of prevailing wage
279C.817
Determination of applicability of prevailing wage rate
279C.820
Advisory committee to assist commissioner
279C.825
Fees
279C.827
Division of public works project
279C.829
Agreement with other state to pay less than prevailing rate of wage
279C.830
Provisions concerning prevailing rate of wage in specifications, contracts and subcontracts
279C.835
Notifying commissioner of public works contract subject to prevailing wage
279C.836
Public works bond
279C.838
Applicability of state and federal rates of wage
279C.840
Payment of prevailing rate of wage
279C.845
Certified statements regarding payment of prevailing rates of wage
279C.850
Inspection to determine whether prevailing rate of wage being paid
279C.855
Liability for violations
279C.860
Ineligibility for public works contracts for failure to pay or post notice of prevailing rates of wage
279C.865
Civil penalties
279C.870
Civil action to enforce payment of prevailing rates of wage
279C.875
Criminal liability for intentional failure to pay prevailing wage
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