Oregon's Prevailing Wage Fee Cap Just Jumped to $12,500: What That Means for Your Project

As of June 5, 2026, the maximum prevailing wage rate (PWR) fee in Oregon has increased from $7,500 to $12,500. That's a 67% jump, it's already in effect, and if you're a public agency or a general contractor (GC) working on high-value public works contracts in Oregon, it's worth understanding what changed and what didn't.

What Is the PWR Fee?

On every Oregon public works project, the contracting public agency owes BOLI a fee at the time the contract is awarded. That fee is calculated at one-tenth of one percent (0.1%) of the contract price, with a floor and a ceiling:

•      Minimum fee: $250 (unchanged)

•      Maximum fee: $12,500 (previously $7,500)

The fee is paid by the public agency, not the GC. But on design-build, CM/GC (Construction Manager/General Contractor), and other delivery methods where the GC is deeply involved in pre-construction contracting, it pays to know this number. It also signals where Oregon's PWR administration budget is going: BOLI uses these fees to fund wage surveys, compliance education, and enforcement. HB 4027 is part of a broader legislative effort to shore up BOLI's enforcement capacity. The same bill establishes a new BOLI Expenses Fund and directs a separate funding stream to BOLI staffing. Section 13 of the bill requires BOLI to report to the legislature on whether the fee cap raises enough revenue for its staffing needs. The direction of travel is more enforcement infrastructure, not less.

Who Feels This Change?

The math is simple. At 0.1%, the old $7,500 cap was hit at a contract price of $7.5 million. The new $12,500 cap is hit at $12.5 million. So:

1. Contracts under $7.5M: No change. Fee is still 0.1% of contract price.

   
   

2. Contracts between $7.5M and $12.5M: Higher fee than before — somewhere between $7,500 and $12,500.

   
   

3. Contracts above $12.5M: Still capped, now at $12,500.

   
   

If you're a public agency awarding a $10 million public works contract on or after June 5, 2026, you owe BOLI $10,000, where you used to owe $7,500. Budget accordingly.

One Wrinkle: The Fee Is Being Challenged in Court

Worth knowing before you treat the new cap as settled. In July 2026, three business groups (Oregon Business & Industry, the National Federation of Independent Business, and the Portland Metro Chamber) filed suit in Oregon Tax Court challenging how HB 4027 was passed. Their argument is procedural, not substantive: they say the bill raises revenue, which under the Oregon Constitution requires a three-fifths majority in both chambers, and the House passed it with 33 votes, short of the 36 that threshold requires. The groups have been clear that they don't oppose funding BOLI. They oppose the way the bill cleared the Legislature.

For a public agency or GC, the practical takeaway is narrow. The $12,500 cap is in effect now and you should budget for it, but the funding mechanism behind it is under a live constitutional challenge, so the number could move again depending on how the court rules. You can read Oregon Business & Industry's own account of the challenge here: [link: https://oregonbusinessindustry.com/hb4027challenge/].

The Bigger Picture for GCs

The PWR fee is a public agency obligation, but GCs on Oregon public works projects should understand the compliance ecosystem around it. When the fee isn't paid, or the Notice of Public Works isn't filed with BOLI on time, that's a signal the project's administrative machinery may not be running the way it should.

Understanding what the agency owes, and when, helps you gauge whether the project is being administered correctly from day one. That matters because the increase isn't happening in isolation. The fee revenue funds the same wage surveys, education, and enforcement activity that reaches your projects, and by BOLI's own fiscal estimate the higher cap is expected to bring in roughly $1.5 million more every two years to pay for it. A project administered loosely at the front end is one you want to catch early.

Frequently Asked Questions

Who is responsible for paying the Oregon PWR fee? The public agency that awards the contract. This is not a GC obligation, though GCs should be aware it exists. The agency files its Notice of Public Works (WH-81) with BOLI within 30 days of awarding the contract, and the fee is due at the same time the notice is filed.

Is the $12,500 cap effective immediately? Yes. HB 4027 made the new maximum effective for any public works contract a public agency awards on or after June 5, 2026.

Does the fee change affect the certified payroll or compliance requirements on the project? No. The fee is an administrative charge paid to BOLI; it doesn't alter any wage, fringe benefit, or reporting obligations for contractors and subcontractors.

What if the contract price changes after award? If change orders increase or decrease the original contract by $100,000 or more, the public agency must submit a Fee Adjustment form (WH-40) to BOLI within 30 days of the final progress payment. Additional fees may be owed if the adjustment increases the total contract price.

Where can I get help navigating Oregon prevailing wage requirements? Get in touch — we work with public agencies, GCs, and subs on Oregon public works projects and can help you understand what you owe and when.

[Disclaimer: This article is intended for general informational purposes only and does not constitute legal advice. HB 4027 is the subject of pending litigation, and the application of Oregon's prevailing wage requirements depends on the specific facts and circumstances of each project. Contractors and public agencies should consult qualified legal counsel regarding their obligations under Oregon law.]