1. (1) Performance and Payment Bonds

   1. (a) Public Improvement Contracts. Unless the required performance bond is waived in cases of emergency under OAR 736-147-0030, the contractor shall execute and deliver to the department a performance bond and a payment bond each in a sum equal to the contract price for all public improvement contracts. This requirement applies to public improvement contracts with a value, estimated by the department, of more than $100,000 or, in the case of contracts for highways, bridges and other transportation projects, more than $50,000.
   2. (b) Other Construction Contracts. The department may require performance security and payment bonds for other construction contracts that are not public improvement contracts. Such requirements shall be expressly set forth in the solicitation document.
2. (2) Requirement for Surety Bond. The department shall accept only a performance bond furnished by a surety company authorized to do business in Oregon unless otherwise specified in the solicitation document (i.e., the department may accept a cashier's check or certified check in lieu or all or a portion of the required performance bond if specified in the solicitation document). The payment bond must be furnished by a surety company authorized to do business in Oregon, and in an amount equal to the full contract price.
3. (3) Time for Submission. The apparent successful offeror must promptly furnish the required performance and payment security upon the department's request or as required in the solicitation document. If the offeror fails to furnish the performance and payment security as requested, the department may reject the offer and award the contract to the responsible bidder with the next lowest responsive bid, and, at the department's discretion, the offeror shall forfeit its bid security.

Statutory/Other Authority

ORS 279.025(3)(k)

Statutes/Other Implemented

ORS 279.025(3)(k)

History

PRD 2-2026, temporary adopt filed 04/23/2026, effective 04/24/2026 through 10/19/2026