Bill > HB4010

This bill mandates that government agencies, contractors, and owners promptly address changes to the scope of work in construction contracts by issuing change orders, and imposes penalties for delays. Specifically, government agencies that require additional work beyond the original contract for public projects must issue a change order within 30 days of accepting the completed work or pay interest on the unpaid amount, calculated at a rate three times the discount rate of 90-day commercial paper in Oregon, up to 30 percent. Contractors must then issue corresponding change orders to their subcontractors within 10 days of receiving one from the agency, and pay them interest at a rate of one percent per month if they fail to do so. In private construction contracts, owners are subject to similar requirements for issuing change orders and paying interest to contractors, and contractors must pass these requirements down to their subcontractors. The bill also clarifies that if a subcontractor requests a change order within 30 days of completing accepted additional work, and the contractor or first-tier subcontractor then requests it from the agency or owner, the contractor or subcontractor is not liable for interest if the agency or owner fails to issue the change order. These provisions are intended to ensure timely payments and fair treatment for all parties involved in construction projects, particularly when the scope of work changes.

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https://olis.oregonlegislature.gov/liz/2026R1/Measures/Overview/HB4010