Montana · Construction claims reference

Construction Claim Rules in Montana

Every figure below is the researched rule for Montana, with its citation and a direct link to the official source so you can confirm it yourself. Covers statutory interest and when it starts accruing, how Actual Cash Value is determined and whether labor can be depreciated, whether a “no damages for delay” clause is enforceable and how long you have to file, the state-specific inputs behind a fully burdened labor rate, and who can be held liable for a construction-site injury.

Statutory Interest & Accrual in Montana

The rate itself, and the date interest starts running, which differs by claim type in most states.

Statutory interest rate

Floating, Fed prime loan rate + 3% (both pre- and post-judgment, simple only)

Damages capable of being made certain by calculation (e.g., an unpaid construction invoice) accrue prejudgment interest at the Federal Reserve's prime loan rate (per its H.15 release) plus 3 percentage points, fixed as of January 1 of the relevant year and held for that calendar year. Postjudgment interest uses the same formula. If the contract specifies its own rate, that rate controls instead.

Compounding: Simple only; the postjudgment statute expressly states interest 'may not be compounded.'

Citation: Mont. Code Ann. § 27-1-211 (right to interest); Mont. Code Ann. § 25-9-205 (rate mechanism, incorporated via § 27-1-213)

Source: https://mca.legmt.gov/bills/mca/title_0250/chapter_0090/part_0020/section_0050/0250-0090-0020-0050.html

Last checked: 2026-08-25

Cross-checked the Fed prime loan rate + 3% against the Federal Reserve's official H.15 release (federalreserve.gov/releases/h15/), dated August 25, 2026: current computed rate is approximately 9.75%. This confirms the formula and current inputs; it is not a substitute for each state's own officially certified/published figure where one exists.

Accrual: breach of contract claim

From the particular day the right to recover vested, generally the breach/due date

Montana's general right-to-interest statute allows a party whose right to recover damages vests on a particular day to also recover interest from that day, applicable to damages capable of being made certain by calculation, such as an unpaid construction invoice. In practice this is the date payment was due or the date of breach.

Citation: Mont. Code Ann. § 27-1-211

Source: https://mca.legmt.gov/bills/mca/title_0270/chapter_0010/part_0020/section_0110/0270-0010-0020-0110.html

Accrual: property damage / tort claim

Not date of loss: from 30 days after a written, itemized demand was presented to the defendant

Montana's separate tort-interest statute limits itself to damages capable of being made certain by calculation and starts interest 30 days after the claimant presented a written statement to the defendant or their agent, stating the claim and how the specific sum was calculated. This is a demand-based trigger, not an automatic date-of-loss right; it also excludes damages like pain and suffering or future losses not yet incurred.

Citation: Mont. Code Ann. § 27-1-210

Source: https://law.justia.com/codes/montana/title-27/chapter-1/part-2/section-27-1-210/

Sending a proper written, itemized demand promptly is what starts this 30-day clock; without one, interest doesn't begin to accrue under this provision at all.

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Actual Cash Value & Property Loss in Montana

How ACV is determined, whether labor cost can be depreciated, and the rules on releasing withheld recoverable depreciation.

Actual Cash Value rule

Broad evidence rule for partial losses; face policy value for total losses

For a partial loss, Montana courts may consider any evidence logically tending toward a correct estimate of value at the time of loss: the broad evidence rule. For a total loss of insured real-property improvements with no fault by the insured, Montana's separate valued-policy law instead makes the face amount of the policy conclusive proof of value, displacing the broad-evidence approach for that scenario only.

Citation: CQI, Inc. v. Mountain West Farm Bureau Mut. Ins. Co., 2010 WL 2943143 (D. Mont. 2010); McIntosh v. Hartford Fire Ins. Co., 106 Mont. 434, 78 P.2d 82 (1938); Mont. Code Ann. § 33-24-102 (total-loss valued policy law)

Source: https://mca.legmt.gov/bills/mca/title_0330/chapter_0240/part_0010/section_0020/0330-0240-0010-0020.html

CQI is a federal district court decision (Erie prediction of Montana law), not a Montana Supreme Court opinion, though consistent with older state Supreme Court cases on the same point.

ACV statute or regulation

No Montana statute or regulation specifically restricts or bans depreciation of labor when calculating ACV. Montana has a general insurance-code indemnity statute, but it does not address labor versus materials depreciation.

Mont. Code Ann. 33-24-101 (originally enacted 1959) provides that for fire insurance, the measure of indemnity is the expense of replacing the property in the condition it was in immediately before the loss, unless the policy specifies a more favorable basis to the insured, and it allows the insurer to rescind for a fraudulent valuation. This is a general replacement-cost indemnity measure for fire policies and predates the labor-depreciation dispute. It does not define ACV as a materials/labor split and does not mention depreciation of labor at all. No bulletin, rule, or advisory memorandum from the Montana Commissioner of Securities and Insurance addressing labor depreciation specifically could be located on the agency's site.

Citation: Mont. Code Ann. 33-24-101

Source: https://mca.legmt.gov/bills/mca/title_0330/chapter_0240/part_0010/section_0010/0330-0240-0010-0010.html

Some secondary legal sources (law-firm blog surveys) cite section 33-24-101 as a labor-depreciation restriction. Reading the actual statutory text, it is a general fire-insurance indemnity measure and does not mention labor or materials depreciation, so that characterization is not supported by the statute's text and is not repeated here.

Recoverable depreciation holdback

No Montana statute sets a holdback release deadline. On the related labor-depreciation question, Montana bars depreciating labor per Insurance Commissioner guidance.

No Montana statute specifically governing the timing or process for paying withheld recoverable depreciation was found. On the related scope question, the Montana Commissioner of Securities and Insurance issued an Advisory Memorandum stating labor may not be depreciated in property claims, consistent with Mont. Code Ann. Section33-24-101's fire-loss indemnity measure (the expense of replacing the lost or injured property).

Citation: Mont. Code Ann. Section33-24-101; Montana Commissioner of Securities and Insurance Advisory Memorandum (labor depreciation).

Source: https://www.hkr.law/survey-of-state-law-regarding-depreciation-of-labor-costs-in-determination-of-actual-cash-value/

RESEARCHED from scratch. No holdback-timing statute found; the labor-depreciation material is from a comprehensive, dated (Aug. 2025) 50-state survey, not independently re-verified against the primary sources in this pass.

Delay Claims in Montana

Whether a no-damages-for-delay clause will be enforced against you, and the deadline for bringing a construction contract claim.

“No damages for delay” clause enforceability

No Montana state or federal court has considered the validity of no-damages-for-delay clauses.

A comprehensive 50-state matrix confirms no Montana authority addresses this question.

Source: https://www.woodsaitken.com/sites/default/files/Survey_50-State-Matrix_Pay-If-Paid_No-Damage-for-Delay.pdf

RESEARCHED via a comprehensive 50-state matrix (Woods Aitken LLP) specifically on no-damage-for-delay clause enforceability, covering all 50 states with primary citations. Independently confirms the genuine absence of Montana authority on this question.

Construction contract filing deadline

8 years for a written contract, covenant, obligation, or liability

Montana's limitations period for an action on a contract, covenant, obligation, or liability founded on an instrument in writing is 8 years from accrual, one of the longer general written-contract periods in this research project, covering an ordinary written construction-contract claim.

Citation: Mont. Code Ann. § 27-2-202

Source: https://law.justia.com/codes/montana/title-27/chapter-2/part-2/section-27-2-202/

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Labor Burden Inputs in Montana

The state-specific rates and requirements that sit underneath a fully burdened hourly labor cost.

State unemployment insurance (SUTA)

New-employer rate 1.00% to 2.00% by industry (plus 0.18% admin fee); experience-rated range 0.00% to 6.12%; 2026 taxable wage base $47,300.

Montana assigns new-employer unemployment insurance rates by industry classification rather than a single flat rate: construction and unclassified employers pay 2.00%, agriculture/forestry pay 1.30%, services pay 1.10% and agriculture, mining, manufacturing, utilities, wholesale and retail trade pay 1.00%. All new employers additionally pay a 0.18% administrative fund tax on top of the industry rate. Established employers with positive reserve accounts range from 0.00% to 3.42%; employers with deficit (negative) reserve accounts range from 2.72% to 6.12%. The 2026 taxable wage base is $47,300 per employee, set at 80% of the 2024 average annual wage in Montana ($59,106.64), rounded to the nearest $100.

Citation: Montana Unemployment Insurance Division, Schedule of Contribution Rates and Rate Explanation (2026)

Source: https://uid.dli.mt.gov/employers/schedule-of-contribution-rates

Last checked: 2026-08-26

Montana's UI rate schedule and wage base are set annually and the state's UI trust fund reforms (HB 210, 2025 session) are actively lowering rates for 2026; reconfirm both the rate schedule and the wage base against the live Montana DLI page before each policy year. Wage base confirmed exactly against an official 2026-specific DLI PDF (uid.dli.mt.gov). One source frames the new-employer range as 1.3%-2.1% INCLUSIVE of the 0.18% Administrative Fund Tax, versus this entry's framing of 1.00%-2.00% plus the AFT separately (implying 1.18%-2.18%) -- close but not identical; flagged for a future pass to resolve which framing is exactly correct.

Workers' compensation rating

NCCI advisory rating state; workers' comp insurance is written by private carriers and the competitive (non-monopolistic) Montana State Fund, using NCCI class codes.

Montana is an NCCI (National Council on Compensation Insurance) advisory state. Montana State Fund, the state-created workers' compensation insurer, explicitly follows the Montana classification system published by NCCI for its class codes and rating. Montana State Fund competes with private insurance carriers in the open market rather than operating as the employer's exclusive, sole source of coverage, so Montana is not a monopolistic state.

Citation: Montana State Fund, Class Codes and Rates page; NCCI Proof of Coverage State Guide, Montana

Source: https://www.montanastatefund.com/web/home/work-comp/class-codes-and-rates.jsf

Prevailing wage law

Montana has its own Little Davis-Bacon law; it applies to state and local public works contracts of $25,000 or more.

Montana's Public Contracts / Prevailing Wage Law requires contractors and subcontractors on state, county, municipal, school district and other political-subdivision construction or nonconstruction service contracts to pay a set rate of compensation, including benefits, as established by the Department of Labor and Industry's Compliance and Investigations Bureau. It applies once the total contract cost reaches $25,000 or more, and it separately requires at least 50% of each contractor's workforce on the job to be bona fide Montana residents. Employees in engineering, management and office roles, and contracts limited to purchasing goods from commercial suppliers, are excluded.

Citation: Mont. Code Ann. Title 18, Chapter 2, Part 4 (Public Contracts, Prevailing Wage Law); Montana DLI, Public Contracts/Prevailing Wage Law page

Source: https://erd.dli.mt.gov/labor-standards/public-contracts-prevailing-wage-law/

Construction Site Injury & Third-Party Liability in Montana

OSHA enforcement structure, how much weight an OSHA violation carries in a negligence case, and whether an injured worker's own employer can be pulled back in.

OSHA plan

Federal OSHA (no state plan)

Montana has no OSHA-approved state plan; both public and private employers fall under federal OSHA jurisdiction.

Citation: 29 U.S.C. § 667 (State Plan roster)

Source: https://www.osha.gov/stateplans

Weight of an OSHA violation in a negligence case

Confirmed as one of the states leaning toward pure negligence per se: a direct Montana Supreme Court holding

The Montana Supreme Court held that, although the OSH Act does not create a private right of action, OSHA violations can serve as the basis for a negligence per se claim; placing Montana among a minority of states willing to treat an OSHA violation as establishing breach of duty as a matter of law, rather than merely as evidence for the jury to weigh.

Citation: Trankel v. Department of Military Affairs, 938 P.2d 614, 625 (Mont. 1997)

Source: https://storage.googleapis.com/jnl-bcls-j-bclr-files/journals/1/articles/232/63a30c0a100a2.pdf

Independently confirmed via the BC Law Review national survey as one of roughly nine states whose high court has endorsed pure negligence per se for OSHA violations.

Third-party contribution against the employer

Statutory-employer and co-employee issues are live in Montana, but the source doesn't detail the test.

Third-party claims otherwise turn on premises control, retained control, negligent undertaking, and product liability.

Citation: Mont. Code §§39-71-101 et seq.; Limberhand v. Big Ditch Co., 218 Mont. 132, 706 P.2d 491 (1985).

Source: https://www.leagle.com/decision/19851197706p2d49111189

Source: attorney research manual (Construction Injury Law national volumes), self-marked "Draft; verify current law and citator status." Case citations are representative authorities from that manual, not independently re-verified against a citator by ClaimDuke. Citation corrected (218 Mont. 132, not 107). Confirmed real -- this is Montana's foundational premises-liability case (a drowning, not construction), which abolished the invitee/licensee/trespasser distinctions and established that a landowner's duty of care is based on ordinary care in the circumstances, not the visitor's status. Genuinely the controlling general duty framework, still cited across all Montana premises cases including construction-site ones, similar to how Fazzolari functions in Oregon -- but the underlying facts are not construction-specific.

Injury-severity gate on contribution claims

Narrow specific-intent-to-injure exception; Montana has repeatedly declined to adopt the more lenient 'substantial certainty' doctrine used in many other states.

Great Western Sugar Co. v. District Court held that the exclusive remedy rule is not avoided unless the person injuring the employee specifically intended to do so -- allegations of negligence, however wanton, are not enough. The Montana Supreme Court reaffirmed this in a later case (Noonan), acknowledging a hazardous workplace but still declining to adopt the substantial-certainty doctrine used elsewhere.

Citation: Mont. Code Section39-71-101 et seq.; Great Western Sugar Co. v. District Court, 188 Mont. 1, 610 P.2d 717 (1980).

Source: https://archive.legmt.gov/content/publications/research/past_interim/wc-ex.pdf

RESEARCHED: the prior entry honestly flagged the exception mechanism as unknown, and its citation ('252 Mont. 23') was actually Francetich, a subrogation case unrelated to this exception. Replaced with Great Western Sugar Co., Montana's real controlling case on this doctrine.

Distinctive state doctrine

A GC that pays workers' comp for an uninsured sub's injured employee does NOT get statutory-employer immunity in exchange, a harsher combination than most states. The intentional-harm exception has a real, confirmed loosening-then-reversion history: Millers Mutual (1983) briefly loosened it, Noonan (1985) reverted to the strict rule, and it has been reaffirmed twice since.

Montana requires an employer who contracts with an independent contractor for work that is a regular or recurrent part of the employer's own business to pay workers' comp to the subcontractor's employees if the subcontractor lacked its own coverage, but that paying employer/GC is not thereby entitled to exclusive-remedy immunity; only the actual immediate employer who provided coverage gets that protection. On the intentional-harm exception: Great Western Sugar Co. v. District Court, 188 Mont. 1, 610 P.2d 717 (1980), held that allegations of negligence, no matter how wanton, are insufficient to avoid exclusivity, requiring harm 'maliciously and specifically directed at an employee.' Three years later, Millers Mutual Ins. Co. v. Strainer, 204 Mont. 162, 663 P.2d 338 (1983), held the intentional-injury statute (Mont. Code Ann. section 39-71-413) 'refers to an intentional act without regard to intending the results of the act,' a real loosening of the standard. In 1985, Noonan v. Spring Creek Forest Products, Inc., 216 Mont. 221, 700 P.2d 623 (1985), 'ignored its holding in Millers Mutual and returned to its holding in Great Western Sugar,' declining to adopt the minority 'substantial certainty' doctrine even on facts the Court itself found troubling (a hazardous workplace with an unusual number of injuries). Sitzman v. Schumaker, 221 Mont. 304, 718 P.2d 657 (1986), then applied the strict rule successfully on true assault-and-battery facts. Blythe v. Radiometer America, Inc., 262 Mont. 464, 866 P.2d 218 (1993), reaffirmed the same Great Western Sugar/Noonan line (not a departure from it), while a dissent argued Millers Mutual had been the better-reasoned decision. Schmidt v. State, 286 Mont. 98, 951 P.2d 23 (1997), reaffirmed the strict rule once more, holding that a supervisor ordering an employee to use an unsafe tractor, even in violation of the Montana Safety Act, was negligence, not the specific intent required to pierce exclusivity.

Citation: Great Western Sugar Co. v. District Court, 188 Mont. 1, 610 P.2d 717 (1980); Millers Mutual Ins. Co. v. Strainer, 204 Mont. 162, 663 P.2d 338 (1983); Noonan v. Spring Creek Forest Products, Inc., 216 Mont. 221, 700 P.2d 623 (1985); Sitzman v. Schumaker, 221 Mont. 304, 718 P.2d 657 (1986); Blythe v. Radiometer America, Inc., 262 Mont. 464, 866 P.2d 218 (1993); Schmidt v. State, 286 Mont. 98, 951 P.2d 23 (1997); Mont. Code Ann. section 39-71-413.

Source: https://archive.legmt.gov/content/publications/research/past_interim/wc-ex.pdf

CORRECTION TO THE PRIOR PASS'S CORRECTION: two rounds ago, this entry was flagged because a fragmented search-result snippet of this same Montana Legislature memo appeared not to corroborate the Millers Mutual/Noonan sequence. Fetching and reading the complete memo (not just a search snippet) confirms the original loosening-then-reversion narrative was correct all along, now with exact reporter citations for every case in the sequence pulled directly from the memo's own endnotes. The separate PEO/statutory-employer-payment-without-immunity finding (Mont. Code Ann. section 39-8-207(8)(b)(i)) is a different topic this memo doesn't address and still was not independently re-verified this pass; treat that specific point as unconfirmed.

Put these Montana rules to work on your own numbers

ClaimDuke's calculators compute delay and extended overhead (Eichleay), fully burdened labor rates, ACV/RCV property loss, litigation interest and construction-injury settlement ranges. Every calculation is free and live; a documented, citation-backed report is $19.

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This page is reference information for your own verification. It is not legal advice and is not a substitute for confirming the current rule with the official source linked above or with counsel. Several states' interest rates float and reset on a schedule (monthly, quarterly or annually), so always check the live source for the figure as of today rather than relying on what is shown here. Which rule actually applies to your specific claim is itself a legal question this page cannot answer for you.