Oregon Subcontractor Agreement Template | Statutory Compliant
Generate a construction subcontract tailored to Oregon law — with statutory prompt payment deadlines, retainage caps, lien waiver rules, and anti-indemnification protections built in.
Contract Parties
Subcontractor
Project & Schedule
Payment Terms
Total subcontract price for your scope of work.
Oregon rules: Oregon does not cap retainage by statute on private construction; retainage is negotiable.
Days after GC receives owner payment.
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Download a clean, print-ready PDF with all Oregon statutory clauses included — prompt payment, retainage, lien waiver, and indemnification.
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Subcontractor Agreement
Construction Subcontract — State of Oregon
This Subcontractor Agreement (the “Agreement”) is made and entered into as of October 5, 2026 by and between [General Contractor Name] (“General Contractor”) and [Subcontractor Name] (“Subcontractor”), governed by Oregon Revised Statutes Chapter 87 and the laws of the State of Oregon.
General Contractor
[General Contractor Name]
Subcontractor
[Subcontractor Name]
Project Owner
—
Project Address
—
Contract Price
[Contract Price]
License #
—
1. Scope of Work
Subcontractor shall furnish all labor, tools, equipment, and materials necessary to complete the agreed scope of work in a good and workmanlike manner, in compliance with all applicable building codes.
2. Payment
GC shall pay Subcontractor within 10 days after receiving payment from the Project Owner. Under ORS 279C.515 (public), the general contractor must pay subcontractors within 15 days after receiving payment from the owner. On private jobs, ORS 87.035 governs when lien rights are created, and payment terms are by contract, though Oregon courts have held pay-if-paid clauses unenforceable as against public policy.
3. Retainage
GC may withhold 10% retainage from each progress payment. Oregon does not cap retainage by statute on private construction; retainage is negotiable. On public works under ORS 279C.550, retention cannot exceed 5% after 50% completion.
4. Lien Waivers
Oregon does not require statutory lien waiver forms; waivers are enforceable if they clearly identify the property, amount, and date. Under ORS 87.035(4), a waiver of lien rights is effective only to the extent of payment actually received.
5. Mechanics Lien Rights Preserved
Oregon requires recording a lien within 75 days after the last work or materials were furnished, followed by foreclosure within 1 year of recording. Oregon requires subcontractors to send a Notice of Right to Lien to the owner within 8 business days after first furnishing labor or materials, or before any payment is made, to preserve full lien rights.
6. Indemnification
Oregon under ORS 30.140 voids provisions in construction contracts requiring a subcontractor to indemnify another party for that party’s sole negligence or willful misconduct.
7. Governing Law
This Agreement is governed by the laws of the State of Oregon, including Oregon Revised Statutes Chapter 87 (Oregon Lien Law) and Prompt Pay at ORS 279C.515 (public) and ORS 87.035 (private, implied).
[General Contractor Name] — General Contractor
Print Name / Title
[Subcontractor Name] — Subcontractor
Print Name / Title
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Oregon Payment & Retainage Rules
Under ORS 279C.515 (public), the general contractor must pay subcontractors within 15 days after receiving payment from the owner. On private jobs, ORS 87.035 governs when lien rights are created, and payment terms are by contract, though Oregon courts have held pay-if-paid clauses unenforceable as against public policy.
Retainage Cap
Oregon does not cap retainage by statute on private construction; retainage is negotiable. On public works under ORS 279C.550, retention cannot exceed 5% after 50% completion.
Pay-When-Paid
Your agreement states that owner payment is a timing mechanism, not an absolute condition precedent — preserving your right to payment and statutory remedies under Oregon Revised Statutes Chapter 87.
Lien Waivers
Oregon does not require statutory lien waiver forms; waivers are enforceable if they clearly identify the property, amount, and date. Under ORS 87.035(4), a waiver of lien rights is effective only to the extent of payment actually received.
Your Mechanics Lien Rights in Oregon
This agreement expressly preserves your right to record a mechanics lien and serve statutory preliminary notices — no pay-if-paid, pay-when-paid, or lien waiver clause in the document can waive your lien rights beyond payment actually received.
Oregon requires recording a lien within 75 days after the last work or materials were furnished, followed by foreclosure within 1 year of recording.
Oregon requires subcontractors to send a Notice of Right to Lien to the owner within 8 business days after first furnishing labor or materials, or before any payment is made, to preserve full lien rights.
Deadlines matter: missing a Oregon lien or notice deadline can permanently waive your security interest in the project. Calendar both dates the day you mobilize on site.
Indemnification Limits Under Oregon Law
Oregon under ORS 30.140 voids provisions in construction contracts requiring a subcontractor to indemnify another party for that party’s sole negligence or willful misconduct.
Oregon Subcontractor Agreement FAQs
When must a general contractor pay me under Oregon prompt payment law?
Under ORS 279C.515 (public), the general contractor must pay subcontractors within 15 days after receiving payment from the owner. On private jobs, ORS 87.035 governs when lien rights are created, and payment terms are by contract, though Oregon courts have held pay-if-paid clauses unenforceable as against public policy. Your subcontract should mirror these statutory deadlines so that late payments automatically trigger the statutory interest and remedies without negotiation.
How much retainage can a GC legally withhold in Oregon?
Oregon does not cap retainage by statute on private construction; retainage is negotiable. On public works under ORS 279C.550, retention cannot exceed 5% after 50% completion. Your agreement should specify the exact retainage percentage, the release schedule (typically at substantial completion and final completion), and payment of statutory interest on withheld retainage.
Are pay-if-paid clauses enforceable in Oregon subcontracts?
Your state restricts pay-if-paid clauses as described above.
What lien waiver rules apply in Oregon?
Oregon does not require statutory lien waiver forms; waivers are enforceable if they clearly identify the property, amount, and date. Under ORS 87.035(4), a waiver of lien rights is effective only to the extent of payment actually received. Never sign an unconditional waiver until payment has actually cleared your bank account, and make sure your waiver identifies the specific billing period and amounts to avoid losing lien rights on future work.
Can a Oregon subcontract require me to indemnify the GC for the GC’s own negligence?
Oregon under ORS 30.140 voids provisions in construction contracts requiring a subcontractor to indemnify another party for that party’s sole negligence or willful misconduct. Always read the indemnification clause carefully — even in states with anti-indemnity statutes, "broad form" indemnity for joint negligence is typically still enforceable.
How do I preserve my mechanics lien rights in Oregon?
Oregon requires recording a lien within 75 days after the last work or materials were furnished, followed by foreclosure within 1 year of recording. Oregon requires subcontractors to send a Notice of Right to Lien to the owner within 8 business days after first furnishing labor or materials, or before any payment is made, to preserve full lien rights. Send statutory notices by certified mail or another trackable method, keep copies of everything, and calendar the deadlines immediately upon each project’s completion.