What does Oregon’s prompt payment law require on private construction?

In Oregon, an owner must make progress payments to the original contractor no later than 14 days after receiving the billing and final payment no later than seven days after approving all the work, a contractor must pay a subcontractor no later than seven days after being paid for that work, and late payments bear interest at one and one-half percent a month. Progress payments are required when the work is expected to take 60 or more days, and a billing is deemed certified 10 days after the owner receives it unless the owner issues a written statement of the items not approved. An owner may set longer payment or certification periods only by stating them clearly and conspicuously, with the statutory notice on each page of the drawings and specifications. The law does not apply to a building subject to the Low-Rise Residential Dwelling Code, to public contracts, or to housing with units reserved for renters earning 80 percent or less of area median income. An original contractor that is not paid on time may suspend work after at least seven days’ written notice, and in an action to collect the interest the prevailing party is awarded costs and reasonable attorney fees. A written contract can set its own payment terms where the statute allows. This is ORS 701.620, 701.625, 701.630, 701.635, 701.645.

WhatOregon
Payment deadlineOwner pays in 14 days; subs in 7 days; 1.5% a month
Who this coversPrivate construction, not only public works

What the statute says

“Make progress payments no later than 14 days after the date the billing is received; and (B) Make final payment of all remaining amounts no later than seven days after the date that the owner approves the work …”

Quoted word for word from the section’s text.

Source

ORS 701.620, 701.625, 701.630, 701.635, 701.645

Read the statute in the Oregon Revised Statutes (Oregon State Legislature): oregonlegislature.gov.

Checked against the statute on November 15, 2026.

This is a summary of a published statute, not legal advice. Rules change, local ordinances can add to them, and the terms of a specific lease may differ. Check the citation and speak to a lawyer before acting.

How Seayora uses this rule

A contractor on Seayora keeps every job’s dates, its estimate, its invoices and its payments in one record, so the date work was last performed, the date each invoice went out and the amount still owed are on file when a lien or payment deadline is counted.

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