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Does a notice of claim have to be sent to the GC in order to file a bond claim?

Oregon

I work at a collection agency and I've been guiding my client to file a bond claim on a State job where they were not paid. We're still waiting on the verdict from the bond company who asked me if my client filed a notice of claim. I've asked the agent if it's required but he seems to be limited on what all he can tell me and from what I've read a notice is not required. I really just want to know for sure so I don't get my client (or my) hopes up.

1 reply

Mar 31, 2021

Generally speaking, yes. Under Oregon's Little Miller Act governing bond claims on public projects, a party has a right of action against the payment bond only if a written notice of claim is provided in advance. 

Under Or. Rev. Stat. §279C.605, a Notice of Claim "must be sent by registered or certified mail or hand delivered no later than 180 days after the day the person last provided labor or furnished materials." This notice needs to be delivered to both the general contractor who posted the bond, the subcontractor who hired the party (if applicable), and the government entity that let the project. 

If this timeframe has passed, then legal avenues to recovery will be limited to contract claims against the client's contracting party; such as breach of contract and unjust enrichment

Important Note: These statutory notice requirements apply to public works projects over $10,000 or, if the project is a transportation project (roads, highways, bridges, etc.), valued at over $50,000. Additionally, there are certain government agencies that can choose to exempt the contract from these requirements. If this is the case, then you should look to the terms of the payment bond to ensure that your client has complied with any notice requirements contained therein.

Good luck!

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