Or. Admin. Code § 812-002-0325 - Good Cause

"Good cause" as used in ORS 279C.585 exists if the prime contractor that substituted an undisclosed first-tier subcontractor can show that a reasonable person with the knowledge possessed by the prime contractor when the substitution was made would have concluded that:

(1) The substitution was consistent with, and did not violate, public policy expressed in ORS 279C.305, that public agencies shall make every effort to construct public improvements at the least cost to the public; and

(2) One or more of the following facts was true:

(a) The subcontractor was financially unstable.

(b) The subcontractor had an unacceptable performance history on past contracts.

(c) The subcontractor had an unacceptable history of untimely performance.

(d) The subcontractor had an unacceptable history of filing excessive claims and lawsuits on past contracts.

(e) The subcontractor had an unacceptable work safety record.

(f) The subcontractor did not have sufficient human resources to do the work required under contracts entered into by the subcontractor.

(g) The subcontractor failed or refused to meet insurance requirements of the prime.

(h) The subcontractor failed or refused to meet requirements of ORS 279C.505(2).

(i) The subcontractor's ability to successfully perform the project and protect the guarantees placed by the prime contractor was substantially jeopardized.

Notes

Or. Admin. Code § 812-002-0325

CCB 8-2001, f. 12-12-01, cert. ef. 1-1-02; CCB 2-2002, f. & cert. ef. 3-1-02; CCB 7-2005, f. 12-7-05, cert. ef. 1-1-06

Stat. Auth.: ORS 670.310 & 701.235

Stats. Implemented: ORS 279.322