Oregon Statutes - Chapter 701 - Construction Contractors and Contracts - Section 701.640 - Prohibition against contrary provisions, covenants or clauses.

(1) A construction contract may not include any provision, covenant or clause that:

(a) Makes the contract subject to the laws of another state or that requires any litigation, arbitration or other dispute resolution proceeding arising from the contract to be conducted in another state; or

(b) States that a party to the contract cannot suspend performance under the contract or terminate the contract if another party to the contract fails to make prompt payments under the contract pursuant to ORS 701.620 to 701.640.

(2) Any provision, covenant or clause described in subsection (1) of this section is void and unenforceable. [2003 c.675 §58]

Note: See note under 701.620.

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Last modified: August 7, 2008