New Search
and the reason for the substitution in writing to the city. A contractor may <br />substitute a first-tier subcontractor under this section in the following <br />circumstances: <br />(a) When the subcontractor disclosed under ORS 279C.370 fails or refuses to <br />execute a written contract after having had a reasonable opportunity to do <br />so after the written contract, which must be reasonably based upon the <br />general terms, conditions, plans and Specifications for the Public <br />Improvement project or the terms of the subcontractor’s written Bid, is <br />presented to the subcontractor by the contractor. <br />(b) When the disclosed subcontractor becomes bankrupt or insolvent. <br />(c) When the disclosed subcontractor fails or refuses to perform the subcontract. <br />(d) When the disclosed subcontractor fails or refuses to meet the bond <br />requirements of the contractor that had been identified prior to the Bid <br />submittal. <br />(e) When the contractor demonstrates to the city that the subcontractor was <br />disclosed as the result of an inadvertent clerical error. <br />(f) When the disclosed subcontractor does not hold a license from, or has a <br />license that is not properly endorsed by, the Construction Contractors <br />Board and is required to be licensed by the board. <br />(g) When the contractor determines that the work performed by the disclosed <br />subcontractor is substantially unsatisfactory and not in substantial <br />accordance with the plans and Specifications or that the subcontractor is <br />substantially delaying or disrupting the progress of the work. <br />(h) When the disclosed subcontractor is ineligible to work on a Public <br />Improvement contract under applicable statutory provisions. <br />(i) When the substitution is for good cause. The Construction Contractors <br />Board shall define “good cause” by rule. “Good cause” includes but is not <br />limited to the financial instability of a subcontractor. The definition of <br />“good cause” must reflect the least-cost policy for Public Improvements <br />established in ORS 279C.305. <br />(j) When the substitution is reasonably based on the contract alternates <br />chosen by the city. <br />16.7 .1 .2 Effect of Violation. <br /> The city may refuse to allow a substitution of a first-tier <br />subcontractor in violation of the law described in subsection 16.7.1.1, and may <br />treat the unlawful substitution of a subcontractor as a breach of contract, however, <br />the city has no responsibility for enforcement of the law. <br />16.7 .1 .3 Effect on Contract Requirements. <br /> The conditions concerning substitution of <br />subcontractors in subsection 16.7.1.1 are state law minimums and do not <br />prevent the city from contractually requiring the contractor to use specified key <br />personnel or specified key subcontractors for the work. <br />16.7 .2 PPP. <br /> It is the policy of the State of Oregon that all payments <br />ROMPTAYMENT OLICY <br />due on a Public Improvement contract and owed by a contracting agency shall be paid <br />Article 16 Contract Administration Page 83 <br />Exhibit A to Administrative Order No. 44-08-06-F <br /> <br />