Oregon Code § 701.430·Enacted ·Last updated March 01, 2026
Statute Text
Performance bond; terms.
A contractor or subcontractor may execute and deliver to the owner, contractor
or subcontractor before the commencement of construction for which the
contractor or subcontractor will be responsible for performing a good and
sufficient bond in a sum equal to the contract price for the faithful
performance of the contract. The term of the bond obtained under this
subsection must extend to include the period during which claims of lien or
notices of other encumbrances based on the construction performed under the
contract may be filed under applicable law. The bond must be approved by the
owner, contractor or subcontractor entitled to withhold retainage. A faithful
performance bond delivered under this section must include, but not be limited
to, provisions to the effect that:
(1) The
obligations of the contract must be faithfully performed;
(2) Payment must
promptly be made to all persons supplying labor or materials to the contractor
or subcontractor for prosecution of the work provided in the contract;
(3) All
contributions due the Industrial Accident Fund and the Unemployment
Compensation Trust Fund from the contractor or subcontractor in connection with
the performance of the contract must be made promptly; and
(4) All sums
required to be deducted and retained from the wages of employees of the
contractor or subcontractor pursuant to the Personal Income Tax Act of 1969,
must be paid over to the Department of Revenue. [1975 c.772 §3; 2013 c.410 §3;
2024 c.2 §3]
Note:
See note under 701.410.