Oregon Revised Statutes Chapter 701 § 701.625 — for the subcontractors work but the original contractor fails to pay
Oregon Revised Statutes Chapter 701 ·
Oregon Code § 701.625·Enacted ·Last updated March 01, 2026
Statute Text
for the subcontractors work but the original contractor fails to pay
the subcontractor for the certified work. A subcontractor shall provide written
notice to the original contractor and owner at least seven days before the
subcontractor suspends performance or terminates the construction contract,
unless a shorter notice period is prescribed in the construction contract. A
subcontractor may not be deemed in breach of a construction contract for
suspending performance or terminating a construction contract pursuant to this subsection.
A construction contract may not extend the notice period under this subsection.
(4) A
subcontractor may suspend performance under a construction contract, or if
performance is suspended for longer than one month may terminate a construction
contract, if the owner declines or fails to approve portions of the contractors
billing or estimate under ORS 701.625 for that subcontractors work and the
reasons for nonapproval are not the fault of or directly related to the
subcontractors work. A subcontractor shall provide written notice to the
original contractor and the owner at least seven days before the subcontractor
suspends performance or terminates the construction contract, unless a shorter
notice period is prescribed in the construction contract. A subcontractor may
not be deemed in breach of a construction contract for suspending performance
or terminating a construction contract pursuant to this subsection. A
construction contract may not extend the notice period under this subsection.
(5) A contractor
or subcontractor may not submit a notice of suspension under this section until
the lawful period for payment to the contractor or subcontractor has expired.
(6) An original
contractor or subcontractor that suspends performance as provided in this
section may condition the supplying of further labor, equipment, services,
materials or products upon the owner or original contractor paying, in addition
to any amounts certified under ORS 701.625, any documented, substantial and
reasonably incurred costs for mobilization resulting from the shutdown or
start-up of a project.
(7) In any
action, claim or arbitration brought pursuant to this section, the prevailing
party shall be awarded costs and reasonable attorney fees.
(8) Written
notice required under this section is deemed to have been provided if the
notice:
(a) Is delivered
in person to the owner, original contractor, subcontractor or a person
designated by the owner, original contractor or subcontractor to receive
notice; or
(b) Is delivered
by certified mail, return receipt requested, or other means that provides
written, third party verification of delivery to the last business address of
the owner, original contractor or subcontractor known to the party giving
notice. [2003 c.675 §57; 2011 c.553 §4]
Note:
See note under 701.620.
Plain English Explanation
This Oregon statute addresses for the subcontractors work but the original contractor fails to pay
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Key Points
01Part of Oregon statutory law
02Referenced as Oregon Code § 701.625
03Subject to legislative amendments
04Consult a licensed attorney for application to specific cases
Frequently Asked Questions
This section of Oregon law addresses for the subcontractors work but the original contractor fails to pay
. Read the full statute text above for details.
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The formal citation is Oregon Code § 701.625. Use this format in legal documents and court filings.
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