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Oregon Revised Statutes

Or. Rev. Stat. § 701.410 (2026)

Definitions

✓ current as of May 2026
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      701.410 Definitions. (1) As used in ORS 279C.555, 279C.570, 701.410, 701.420, 701.430, 701.435 and 701.440:

      (a) “Construction” means:

      (A) Excavating, landscaping, demolishing and detaching existing structures, leveling, filling in and otherwise preparing land for the making and placement of a building, structure or superstructure;

      (B) Creating or making a building, structure or superstructure; and

      (C) Altering, partially constructing and doing repairs in and upon a building, structure or superstructure.

      (b) “Contractor” means a person that contracts with an owner on predetermined terms to be responsible for performing all or part of a job of construction in accordance with established specifications or plans, and that retains control of the means, method and manner of accomplishing the desired result.

      (c) “Owner” means a person that is or claims to be the owner in fee or a lesser estate of the land, building, structure or superstructure on which construction is performed and that enters into an agreement with a contractor for the construction.

      (d) “Subcontractor” means a person that contracts with a contractor or another subcontractor on predetermined terms to be responsible for performing all or part of a job of construction in accordance with established specifications or plans.

      (2) As used in ORS 701.410, 701.420, 701.430, 701.435 and 701.440, “retainage” means the difference between the amount a contractor or subcontractor earns under a construction contract and the amount the owner pays on the contract to the contractor, the amount the contractor pays on the contract to the subcontractor or the amount the subcontractor pays on the contract to another subcontractor. [1975 c.772 §1; 1987 c.158 §148; 1999 c.59 §209; 2003 c.794 §319; 2005 c.22 §§480,481; 2010 c.77 §7]

 

      Note: 701.410 to 701.440 were enacted into law by the Legislative Assembly but were not added to or made a part of ORS chapter 701 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

Notes of Decisions
Cited in 2 cases, 1990–1998 · leading case: A-C Constr., Inc. v. Bakke Corp., 956 P.2d 219 (Or. Ct. App. 1998).
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A-C Constr., Inc. v. Bakke Corp., 956 P.2d 219 (Or. Ct. App. 1998). “” “Retain-age” is defined as “the difference between the amount earned * * * under a construction contract and the amount paid on the contract * * ORS 701.410(4). Plaintiff appears to argue that defendants treated the entire contract price as retainage when they delayed payment…”
P & C Constr. Co. v. Am. Diversified/Wells Park II, 789 P.2d 688 (Or. Ct. App. 1990). · cites it 2× “Defendants claim that, because they are not in privity of contract with plaintiff, they should not be bound to the contractual interest rate.”
— Or. Rev. Stat. § 701.410(3) — 1 case
P & C Constr. Co. v. Am. Diversified/Wells Park II, 789 P.2d 688 (Or. Ct. App. 1990). “Defendants claim that, because they are not in privity of contract with plaintiff, they should not be bound to the contractual interest rate.”
— Or. Rev. Stat. § 701.410(4) — 1 case
A-C Constr., Inc. v. Bakke Corp., 956 P.2d 219 (Or. Ct. App. 1998). “” “Retain-age” is defined as “the difference between the amount earned * * * under a construction contract and the amount paid on the contract * * ORS 701.410(4). Plaintiff appears to argue that defendants treated the entire contract price as retainage when they delayed payment…”
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