On Oregon public works projects, subcontractors and suppliers who go unpaid can make a claim against the contractor's payment bond under ORS 279C.380. Oregon law requires that any public works contractor with a contract exceeding $100,000 furnish a payment bond equal to 100% of the contract price. Before you can sue on that bond, you must give written notice to the contractor within 180 days after you last furnished labor or materials. Miss that notice window and you lose your bond claim rights entirely. Mechanics liens are not available against public property, so the payment bond is your primary — and often only — collection remedy on a public works job. First-tier subcontractors and suppliers with a direct contract with the prime contractor, and lower-tier claimants who properly notify the prime, are both eligible under ORS 279C.380.
Who Has the Right to Make an Oregon Public Works Payment Bond Claim?
Oregon's public works payment bond statute, ORS 279C.380, covers subcontractors, suppliers, and laborers who furnish labor, equipment, or materials on a public improvement project subject to the public contracting code. First-tier claimants — those with a direct contract with the prime contractor — are protected. Lower-tier claimants — sub-subcontractors and suppliers to subcontractors — can also claim on the bond, provided they comply with the notice requirements described below.
The bond is posted by the prime (general) contractor, not the owner. The public body — a state agency, city, county, school district, or other public entity — is not directly liable on the bond. Your claim runs against the bonding company and, effectively, the prime contractor. If you are a laborer or a small materials supplier who furnished work or goods to the job, you qualify. There is no minimum dollar threshold for claimants.
What Is the Notice Deadline for an Oregon Public Works Bond Claim?
Written notice to the prime contractor is required within 180 days after you last furnished labor or materials to the project, under ORS 279C.380(3). This is not a soft suggestion — it is a hard deadline. Without it, you cannot maintain a legal action against the payment bond.
For first-tier claimants (direct contract with the prime), no preliminary pre-work notice is required before furnishing labor or materials. You just need to deliver the written notice within 180 days of your last day on the job. For lower-tier claimants, the same 180-day window applies, but you should confirm your specific situation with a licensed Oregon attorney because the statute contains layered provisions that can affect claimant eligibility based on your position in the contracting chain. Never assume you have more time than the statute allows.
Note: The 180-day clock runs from your last date of furnishing, not from the date payment was due or the date a dispute arose. If you did punch-list work or delivered final materials on October 1, your 180-day window runs from October 1.
What Does the Written Notice Have to Say?
The written notice to the prime contractor under ORS 279C.380 must state that you have a claim against the bond, identify the amount claimed, and identify the claimant and the project. While Oregon's statute does not prescribe a rigid word-for-word format for the bond claim notice itself, the notice must be written and must be served on the prime contractor.
Practical minimum content to include:
- Your company name and contact information
- The project name, location, and public body that owns it
- The prime contractor's name
- A clear statement that you are making a claim against the payment bond
- The amount owed and a general description of the work or materials furnished
- Your last date of furnishing
Keep a copy. Send it in a way that creates a paper trail — USPS Certified Mail with a Certificate of Mailing is the standard professional practice.
How Do You File a Lawsuit on the Bond if the Claim Is Not Paid?
After you serve your written notice on the prime contractor, Oregon law requires you to file suit within a specific timeframe. Under ORS 279C.380(4), an action on the payment bond must be commenced within two years after the date you last furnished labor or materials. The written notice is a prerequisite to filing suit, but it does not toll or extend the two-year period.
Do not confuse the notice deadline with the lawsuit deadline:
| Step | Deadline | Clock Starts |
|---|---|---|
| Written notice to prime contractor | 180 days | Last date of furnishing |
| File lawsuit on bond | 2 years | Last date of furnishing |
Both clocks run from the same starting point. You need to hit the 180-day notice window first, then pursue legal action within two years if the prime or bonding company does not pay.
What Documents Do You Need to Make a Bond Claim on an Oregon Public Project?
Before you send your notice and certainly before you file suit, gather these documents:
Identify the bond. Public works contracts covered by ORS 279C.380 must file the payment bond with the contracting public body. You can request a copy of the bond from the public agency that awarded the contract. The bond will identify the bonding company (surety) and the bond number — both of which you need if you escalate to a lawsuit.
Compile your project records:
- Signed contract or purchase order
- Invoices submitted and dates of submission
- Delivery receipts, lien waivers signed, or schedules showing your work dates
- Any written communications about the disputed payment (emails, letters, text messages)
- Proof of your last date of furnishing (delivery receipt, timesheets, daily logs)
Proof of notice delivery. When you send your written bond claim notice, retain the USPS Certified Mail tracking record and the Certificate of Mailing. If the contractor refuses delivery, that does not invalidate proper service — documented mailing is what counts.
According to Rabbet's 2024 Construction Payments Report, 82% of contractors face payment waits of over 30 days, up from 49% just two years earlier. On a public works job, where liens against the property are unavailable, having your bond claim documents organized from day one is the difference between collecting and writing off the job.
Can Lower-Tier Subcontractors Claim the Payment Bond on Oregon Public Works?
Yes. ORS 279C.380 extends bond claim protection to claimants who do not have a direct contract with the prime — including sub-subcontractors and suppliers to subcontractors. The statute is Oregon's equivalent of the federal Miller Act, sometimes called the "Little Miller Act," and it is intended to protect the entire downstream payment chain on public projects.
Lower-tier claimants are subject to the same 180-day written notice requirement, and that notice must go to the prime contractor. If you are a sub-tier claimant, you should also keep your own records showing that your work went into the public project and that you were not paid, since the prime contractor and surety may challenge whether your materials or labor were incorporated into the public work.
If you are a supplier to a supplier (third-tier or beyond), consult an Oregon construction attorney before assuming you have bond rights — coverage at that level is a legal question that the statute does not resolve with complete clarity.
Oregon Public Works Bond Claim vs. Lien: Which One Should You File?
On public works projects, you cannot file a mechanics lien. Oregon's mechanics lien statutes apply to private property. Because the government owns the project site, there is no private property interest to lien. The payment bond is your substitute remedy, and it is the right tool for the job.
On private construction projects in Oregon, you can file a mechanics lien — but that process has its own deadlines, and you must serve a Notice of Right to a Lien before starting work or very early in the project to protect your lien rights.
The comparison is simple:
| Project Type | Remedy |
|---|---|
| Public works (government owner) | Payment bond claim under ORS 279C.380 |
| Private project | Mechanics lien under ORS Chapter 87 |
Never try to file a mechanics lien against a public works project — the lien will not attach to public property and you will waste both filing fees and time you could be spending on the bond claim.
Use our deadline calculator to make sure your bond claim notice date is on your radar before the 180-day window closes.
How Much Is the Payment Bond on Oregon Public Works Projects?
Under ORS 279C.380(1), a prime contractor awarded a public works contract exceeding $100,000 must furnish a payment bond equal to 100% of the contract price. On a $2 million public works contract, the payment bond is $2 million. On a $500,000 contract, it is $500,000.
For contracts at or below $100,000, the requirement does not automatically apply, though some public bodies may require bonds on smaller contracts by contract specification. If you are working on a smaller public project and are not sure whether a bond exists, request confirmation from the contracting public body before you start work — not after you go unpaid.
According to Rabbet's 2024 Construction Payments Report, slow payments cost the U.S. construction industry an estimated $280 billion in 2024, adding roughly 14% to total construction spending. On a bonded public works project, the bond is there to make sure that cost does not fall on you.
What Happens If You Miss the 180-Day Notice Deadline?
You lose your right to make a payment bond claim. ORS 279C.380 conditions the right to sue on the bond on timely written notice to the prime contractor. Courts treat this as a substantive requirement, not a technicality that can be waived or cured after the fact.
There is no "late notice" grace period built into the statute. If you realize the deadline has passed, your practical options narrow significantly: you may still have breach of contract claims directly against the party who hired you, and you may have claims against personal guarantors if any guarantees were signed. But the bond — the most reliable source of recovery on a public job — will be off the table.
The answer is to track your last-furnishing dates from day one and put the 180-day mark on your calendar the moment a payment dispute starts to develop. Do not wait until the prime stops returning calls.
Frequently Asked Questions
Do I need to file a preliminary notice before starting work on an Oregon public works project to preserve bond claim rights?
Oregon's public works payment bond statute under ORS 279C.380 does not require a pre-work preliminary notice for first-tier claimants. The critical requirement is the written notice to the prime contractor within 180 days after your last date of furnishing. However, lower-tier claimants should review their position carefully, and filing early written notice of involvement is always a defensible practice.
Who do I send the written bond claim notice to?
Send the written notice to the prime contractor — the company that signed the public works contract with the government agency. The public body itself is not the target of your notice. If you can also identify the bonding company (surety) from the bond on file with the public agency, sending a copy to the surety is prudent, though ORS 279C.380 specifies notice to the contractor.
Where can I get a copy of the payment bond for a public works project?
Request it from the public agency that awarded the contract. Oregon public bodies are required to keep the payment bond on file. Ask the agency's contracts or procurement office for the bond documentation. The bond will identify the surety and bond number you will need if you file suit.
Is the Oregon public works payment bond the same as a performance bond?
No. A performance bond protects the public owner if the prime contractor fails to complete the project. A payment bond protects subcontractors, suppliers, and laborers who go unpaid. Both bonds are commonly required on the same project, but they are separate instruments and serve different purposes. Your payment claim goes against the payment bond only.
Can a materials supplier — not just a subcontractor — make an Oregon public works bond claim?
Yes. ORS 279C.380 covers suppliers who furnish materials used in the public improvement, not just subcontractors who perform labor. Keep delivery receipts and purchase orders showing the materials were incorporated into the project, since the surety may challenge whether your materials actually went into the bonded work.
How long do I have to file a lawsuit if the bond claim notice does not result in payment?
Under ORS 279C.380(4), you must commence a legal action on the bond within two years after your last date of furnishing labor or materials. The written notice within 180 days is a prerequisite, but the lawsuit clock runs independently from the same start date. Missing the two-year window bars your lawsuit even if you served the notice timely.
What if the prime contractor is also the bonding company's principal and refuses to acknowledge my notice?
Refusal to acknowledge does not void a properly served notice. Send your notice by USPS Certified Mail and retain your tracking confirmation and Certificate of Mailing. Documented delivery — or documented attempted delivery — is your proof of compliance. If the prime refuses to pay after proper notice, your next step is litigation against the prime and surety. Consult a licensed Oregon construction attorney before filing suit.
Does Oregon's public works bond cover retainage that was withheld?
Withheld retainage is a payment owed to you, and a bond claim can include it. Document the retainage amount separately in your claim notice so the prime and surety understand what is being claimed and on what basis. If retainage was improperly withheld, Oregon's prompt payment statutes under ORS 279C.570 may also provide additional remedies — another reason to get an attorney involved if the dollar amount is significant.
Protect Your Bond Claim Rights Before the Clock Runs Out
Oregon's 180-day written notice deadline on public works bond claims does not care about the size of your invoice or how long you have been doing business with the prime contractor. Miss it and the bond — your primary recovery tool on any government job — is gone. Track your last-furnishing date on every public works project from the day you start, and put the 180-day mark on your calendar immediately when a payment dispute develops.
For Oregon private projects where mechanics lien rights apply, you also need to track your Notice of Right to a Lien deadlines. LienFlash handles that process — attorney-reviewed forms, USPS Certified Mail, and a Certificate of Mailing PDF — in about two minutes.
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