Duty to Defend
Duty to Defend
Update: January 1, 2025
Oregon’s statute ORS 30.140 has been updated following the passage of SB 1575 during the 2024 legislative session. The bill makes several important changes that affect design professionals, contractors, and public agencies.
What SB 1575 Changes
SB 1575 revises the statute in a few key ways:
- Clear definitions. The law now defines architectural and engineering (A/E) services and aligns that definition with the one used in ORS 279C.100 (the Qualifications Based Selection statute). It also clarifies that a “construction contract” includes A/E services.
- Updated duty to defend rules. Each party is now responsible for paying its own defense costs until negligence has been determined. If a design professional is found negligent, they are only responsible for reimbursing the client in proportion to their share of the negligence, not for the entire defense.
- Invalidating conflicting contract terms. Any provision in a public contract that violates this statute is now considered void and unenforceable.
Why This Matters
These updates bring the statute in line with what professional liability insurance actually covers. In the past, some contract provisions created insurance gaps or discouraged firms from pursuing public work. The revised statute removes much of that uncertainty.
What Comes Next
ACEC Oregon will continue working on two remaining issues:
- Expanding the statute beyond public contracts so it applies to all contracts in Oregon.
- Removing the 2034 sunset clause, which would otherwise cause the statute to expire.
Your support will be important as these next steps move forward.
