Oregon Lien Frequently Asked Questions

What is a Mechanics’ Lien Claim?

In the state of Oregon, liens filed on private property are known as Mechanics’ Liens. On public projects, Oregon law does not authorize construction liens. Rather, contractors are protected by payment bond claims. When a lien is filed with regard to work performed on privately owned property, it attaches to and encumbers the fee simple ownership of property in the state of Oregon.

Who can file a Mechanics’ Lien Claim?

On private projects, Oregon law permits contractors, subcontractors, material and equipment suppliers, architects and engineers and others to file liens.

Are pre-notices for a Mechanics’ Lien Claim required?

Yes, various pre-notices are required. To maintain a lien claim, contractors providing labor, materials or rental equipment must file various pre-lien notice requirements.

In the case of residential construction, all original contractors (a contractor with a direct contract with an owner) must provide an “information notice to owner”. Failure to provide such “information notice to owner” will prevent an original contractor from enforcing a claim of construction lien.

Similarly, subcontractors, material and equipment suppliers who do not have direct contracts with an owner, are required to provide a “pre-lien notice” to protect their lien rights on residential construction projects. Such “notice of right to a lien” must be filed upon the owner within eight days after beginning work or services or first supplying materials or equipment in order to preserve their lien rights under Oregon law.

For commercial projects, an original contractor and all subcontractors and suppliers do not need to provide a “notice of right to a lien” or any other pre-lien notice in order to preserve their lien rights. However, “notice of right to a lien” must be filed by material suppliers who do not have a direct contract with an owner.
 

When should a Mechanics’ Lien Claim be filed?

In the state of Oregon, a lien must be filed within 75 days after the last day of performing labor or providing materials or within 75 days after the completion of construction. Under Oregon law, “completion of construction” is determined when the project is substantially completed, when a notice of completion is posted and recorded as required by Oregon law, or when the project is abandoned as defined by statute.

How much does it cost to file a Mechanics’ Lien Claim?

LienItNow.com prepares, files and serves Oregon Mechanics’ Liens for a fee of $250.00.

Do I need a written contract?

No. Oral contracts are sufficient.

How does filing a Mechanics’ Lien Claim help me get my money?

On a private project, the mechanics’ lien places an encumbrance on the property that makes it difficult to resell or re-finance the property without first removing the lien.

What is a Stop Notice and why should it be filed?

LienItNow.com prepares and serves Oregon Stop Notices for a fee of $100.00.  A Stop Notice is a notification that has the ability to enhance the effectiveness of a mechanic’s lien.  A Stop Notice, or a notice to withhold funds, is sent to the company that is financing or funding the construction funds for a project.  Once that company receives the Stop Notice, that company has notice that it should withhold sufficient money to satisfy the stop notice claim.  The purpose of the Stop Notice is to provide the lender, financiers or funders of the construction project notice that there is money owed to a contractor, subcontractor or supplier so that an inquiry can be made as to why that money is not being paid.

What is an Amendment to a Mechanics’ Lien Claim?

LienItNow.com prepares, files and serves Oregon Amendments to Mechanics’ Lien Claims for a fee of $225.00.  Amendments to a mechanics’ lien claim are often needed when something about the lien claim changes.  Common changes to a lien claim are increases or reductions in the amount due to the lienor, or a change to the last date of work.

When should a Discharge of Mechanics’ Lien claim be filed?

LienItNow.com prepares, files and serves Oregon Discharges of Mechanics’ Lien Claims for a fee of $75.00.  Once the lienor has been paid the amount contained in its lien claim, or has come to an agreement that requires the lien claim to be removed from the property records, a Discharge of Mechanics’ Lien Claim should be filed.

How much does it cost to file an Extension of a Mechanics’ Lien Claim?

LienItNow.com prepares, files and serves extensions of Mechanics’ Lien Claims for a fee of $75.00.  All lien claims expire after a certain period of time, and filing an extension of the mechanics’ lien claim prolongs the expiration date.  Oregon law, however, does not permit an extension of mechanics’ lien claims.

Can I file a Bond Claim on the Project?

LienItNow.com prepares, files and serves Oregon Bond Claims for a fee of $250.00.  Bond claims can only be filed on a project where the owner, contractor or subcontractor has obtained a payment bond to ensure that every contractor receives payment for the work performed on the Project.  The payment bonds issued by sureties for construction projects have specific timing requirements, but most require claimants to submit claims against the bond within sixty to ninety days from the claimants’ last date of work.  Bond claims are more effective than a lien claim because the payment bond acts as a guarantee that payment will be made for work properly completed.

Do I need to file a Pre-Notice to make a claim against a payment bond?

LienItNow.com prepares, files and serves Oregon Pre-Notices for bond claims for a fee of $50.00.  Depending on the terms of the payment bond, pre-notices may or may not be required.  LienItNow.com recommends that, prior to or immediately after starting work or delivering materials to a project, subcontractors and suppliers, file a pre-notice that it is a potential beneficiary of the construction project’s bond.