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Oregon Revised Statutes

Or. Rev. Stat. § 279C.390 (2026)

Exemption of contracts from bid security and bonds

✓ current as of May 2026
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      279C.390 Exemption of contracts from bid security and bonds. (1) Subject to the provisions of subsection (2) of this section, the Director of the Oregon Department of Administrative Services, a state contracting agency with procurement authority under ORS 279A.050, a local contract review board or, for contracts described in ORS 279A.050 (3)(b), the Director of Transportation may exempt certain contracts or classes of contracts from all or a portion of the requirement for bid security and from all or a portion of the requirement that good and sufficient bonds be furnished to ensure performance of the contract and payment of obligations incurred in the performance.

      (2) The contracting agency may require bid security and a good and sufficient performance bond, a good and sufficient payment bond, or any combination of such bonds, even though the public improvement contract is of a class exempted under subsection (1) of this section.

      (3) The Director of Transportation may:

      (a) Exempt contracts or classes of contracts financed from the proceeds of bonds issued under ORS 367.620 (3)(a) from the requirement for bid security and from the requirement that a good and sufficient bond be furnished to ensure performance of the contract; or

      (b) Reduce the amount of the required performance bond for contracts or classes of contracts financed from the proceeds of the bonds issued under ORS 367.620 (3)(a) to less than 100 percent of the contract price.

      (4) Any recoverable damages that exceed the amount of the performance bond required under subsection (3) of this section shall be the sole responsibility of the Department of Transportation. [2003 c.794 §120; 2003 c.794 §120a; 2007 c.764 §28]

Notes of Decisions
Cited in 4 cases (3 in the last 5 years), 2015–2025 · leading case: Oregon-Columbia Chapter AGC v. ODOT (S071452), 373 Or. 405 (Or. 2025).
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Oregon-Columbia Chapter AGC v. ODOT (S071452), 373 Or. 405 (Or. 2025). “Every single one of those statutes, except ORS 279C.390 (exemptions of contracts from bid secu- rity and bonds) and ORS 279C.”
State v. Ross Bros. & Co., 342 P.3d 1026 (Or. Ct. App. 2015). “380 provides, in part: “(1) Except as provided in ORS 279C.390, a successful bidder for a public improvement contract shall promptly execute and deliver to the contracting agency the following bonds: “(a) [A performance bond for the protection of the contracting agency.”
Oregon-Columbia Chapter AGC v. ODOT (S071452), 373 Or. 405 (Or. 2025). “Every single one of those statutes, except ORS 279C.390 (exemptions of contracts from bid secu- rity and bonds) and ORS 279C.”
Oregon-Columbia Chapter AGC v. ODOT (S071452), 373 Or. 405 (Or. 2025). “Every single one of those statutes, except ORS 279C.390 (exemptions of contracts from bid security and bonds) and ORS 279C.”
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