Chapter 557 Oregon Laws 2005

AN ACT

HB 2077

Relating to public contracting; and declaring an emergency.

Be It Enacted by the People of the State of Oregon:

SECTION 1. Section 2 of this 2005 Act is added to and made a part of ORS chapter 279C.

SECTION 2. (1) As used in this section, “steel material” includes structural and reinforcing steel, steel studs, sheet piling, guardrail, ductile iron pipe and other steel products used for the construction, reconstruction or major renovation of a road or highway.

(2) When the Department of Transportation and a contractor have entered into a public improvement contract that includes a steel material, the department shall adjust the amount paid to the contractor under the contract if the contractor requests an adjustment and demonstrates that the market price of a steel material charged to the contractor on the date the steel material was delivered to the contractor was more than 10 percent above the market price of the steel material on the contractor’s original bid quote.

(3) A contractor that requests an adjustment under subsection (2) of this section has the burden of demonstrating the increased cost to the contractor resulting from the price increase for the steel material. To determine the increased cost to the contractor resulting from the increased price of the steel material, the contractor shall subtract the amount of the original bid quote from the amount on the invoice for the steel material. If the contractor demonstrates that the market price of the steel material has increased by more than 10 percent, the department shall adjust the amount owed to the contractor and shall pay the contractor for the amount of the contractor’s increased cost that exceeds a 10 percent price increase for the steel material on or after the date the price increase exceeded 10 percent.

(4) This section does not apply to local agency federally funded projects in the Statewide Transportation Improvement Program.

(5) The department shall adopt rules to carry out this section.

SECTION 3. Section 2 of this 2005 Act applies to a public improvement contract entered into by the Department of Transportation and a contractor on or after April 1, 2003, and before October 1, 2005, regardless of whether the contractor has finished performance under the contract, unless application of section 2 of this 2005 Act to the contract would impair the value of the contract to the contractor.

SECTION 4. Sections 1 to 3 of this 2005 Act are repealed on January 2, 2010.

SECTION 5. Section 6 of this 2005 Act is added to and made a part of ORS 279C.005 to 279C.670.

SECTION 6. The Department of Transportation shall adopt rules to require that public improvement contracts entered into by the department include a price escalation and de-escalation clause relating to steel material. As used in this section, “steel material” includes structural and reinforcing steel, steel studs, sheet piling, guardrail, ductile iron pipe and other steel products used for the construction, reconstruction or major renovation of a road or highway.

SECTION 7. This 2005 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2005 Act takes effect on its passage.

Approved by the Governor July 20, 2005

Filed in the office of Secretary of State July 20, 2005

Effective date July 20, 2005

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