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PUBLIC WORKS BONDS <br />EVERY CONTRACTOR AND SUBCONTRACTOR who works on public works projects subject to the prevailing <br />wage rate (PWR) law is required to file a $30,000 "PUBLIC WORKS BOND" with the Construction Contractor's <br />Board (CCB). (ORS 279C.836) This includes flagging and landscaping companies, temporary employment <br />agencies, and sometimes sole proprietors. <br />■ This bond is to be USED EXCLUSIVELY FOR UNPAID WAGES determined to be due by the Bureau of <br />Labor and Industries (BOLT). <br />■ The bond MUST be filed BEFORE STARTING WORK on a prevailing wage rate project. <br />■ The bond is in effect CONTINUOUSLY (do not have to have one per project). <br />■ BEFORE PERMITTING A SUBCONTRACTOR TO START WORK on a public works project, <br />CONTRACTORS MUST VERIFY their subcontractors have either filed the bond, or have elected not to <br />file a public works bond due to a bona fide exemption. <br />■ A public works bond is in addition to any other required bond the contractor or subcontractor is required to <br />obtain. <br />Exemptions: <br />■ Allowed for contractors that are certified disadvantaged, minority, women or emerging small business <br />enterprises, for the first FOUR years of certification; <br />• Exempt contractor must still file written verification of certification with the CCB, and give the CCB <br />written notice that they elect not to file a bond. <br />■ For projects with a total project cost of $100,000 or less, a public works bond is not required; (Note this is <br />the total project cost, not an individual contract amount.) <br />■ Emergency projects, as defined in ORS 279A.010(f). <br />ORS 279C.830(3) and (4) require: <br />That the specifications for every contract for public works shall contain a provision stating that the contractor and <br />every subcontractor must have a public works bond filed with the CCB before starting work on the project, unless <br />otherwise exempt. <br />Every contract awarded by a contracting agency shall contain a provision requiring the contractor: <br />■ To have a public works bond filed with the CCB before starting work on the project, unless otherwise <br />exempt; <br />■ To include in every subcontract a provision requiring the subcontractor to have a public works bond filed <br />with the CCB before starting work on the project unless otherwise exempt. <br />APRIL 1, 2010 PAGE 2 <br />