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City of Portland



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17.16.070 Claims Against Contractors.

(Amended by Ordinance No. 173295, effective April 28, 1999.) Notwithstanding contractual provisions for payment of progress payment warrants, final payment warrants or payment of retainage, any person given a right by statute to institute an action on the contractor’s bond may file a claim with the City Auditor for the labor, material, or payment to State funds for which the contractor is liable in connection with the performance of the contract. In the event such claim is filed and the contractor has money due and owing from the City, the money due and owing shall not be paid to the contractor until 20 days after the filing of the claim. If, prior to the expiration of such 20-day period, the money due and owing to the contractor has been ordered withheld or paid into court by a court of competent jurisdiction, if the claimant withdraws his or her claim, or if the contractor orders all or a portion of the amount due and owing to be paid to the claimant, then the Auditor shall divide the payment or treat the same as required by such order or withdrawal. However, if the only money due and owing to the contractor is the final retainage, then the City shall have first call upon the retained amount for correction of defects in the contract.