(1) An original contractor may suspend performance under a construction contract, or terminate a construction contract if performance is suspended for longer than 30 days, for failure by the owner to make timely payment of the amount certified under ORS 701.625. An original contractor shall provide written notice to an owner at least seven days before the original contractor suspends performance or terminates the contract, unless a shorter notice period is prescribed in the contract. An original contractor 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.
(2) A subcontractor may suspend performance under a construction contract, or terminate a construction contract if performance is suspended for longer than 30 days, for failure by the owner to make timely payment of amounts certified under ORS 701.625 or the subcontractor fails to receive payment for the certified work under ORS 701.630 (2). A subcontractor shall provide written notice to the original contractor and owner at least three days before the subcontractor suspends performance or terminates the contract, unless a shorter notice period is prescribed in the contract. A subcontractor may not be deemed in breach of a construction contract for suspending performance or terminating a contract pursuant to this subsection. A construction contract may not extend the notice period under this subsection.
(3) A subcontractor may suspend performance under a construction contract, or terminate a construction contract if performance is suspended for longer than 30 days, if the owner makes timely payment of amounts certified under ORS 701.625 for the subcontractor’s 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 contract, unless a shorter notice period is prescribed in the contract. A subcontractor may not be deemed in breach of a construction contract for suspending performance or terminating a 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 terminate a construction contract if performance is suspended for longer than 30 days, if the owner fails to approve portions of the contractor’s billing or estimate under ORS 701.625 for that subcontractor’s work but the reasons for that failure are not the fault of or directly related to the subcontractor’s 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 contract, unless a shorter notice period is prescribed in the contract. A subcontractor may not be deemed in breach of a construction contract for suspending performance or terminating a 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 is not required to furnish further labor, materials, products or services until the original contractor or subcontractor is paid the amount that was certified under ORS 701.625, together with 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 reasonable costs and 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]
Note: See note under 701.620.
Section: Previous 701.580 701.585 701.590 701.595 701.600 701.605 701.620 701.625 701.630 701.635 701.640 701.645 701.900 701.990 701.992 NextLast modified: August 7, 2008