Oregon construction liens: a notice that reaches back eight business days, 75 days to file, 120 days to sue

Oregon's construction lien law, ORS chapter 87, protects people who work on or supply an improvement. Missing a notice can cost a claimant its lien or its attorney fees.

Who has a lien

Under ORS 87.010, anyone who performs labor on, transports or furnishes material for, or rents equipment used in the construction of an improvement has a lien on it, if the work was at the request of the owner or the owner's construction agent. People who prepare a lot or improve an adjoining street at the owner's request have a lien on the land. Rented equipment liens are limited to the reasonable rental value. Employee benefit plan trustees, and architects, landscape architects, surveyors and engineers who prepare plans or supervise construction for the owner, also have lien rights.

Notice of right to a lien

ORS 87.021 requires anyone furnishing materials, equipment, services or labor, unless at the owner's own request, to give the owner a notice of right to a lien. It can be sent any time during the work, but it protects only what was provided after a date eight days, not counting weekends and holidays, before the notice is delivered or mailed. The form is set out in ORS 87.023. The statute sets different rules for some labor, labor-and-material and equipment rental on commercial improvements.

Filing the claim

Under ORS 87.035, a claimant who provided labor, equipment or materials must file a claim of lien with the county recording officer within 75 days after it stopped providing them or 75 days after completion of construction, whichever is earlier. Other claimants have 75 days after completion. The claim must state the amount after credits, name the owner and the person who hired the claimant, describe the property, and be verified under oath.

Within 20 days after filing, the claimant must mail notice of the filing, with a copy of the claim, to the owner and the mortgagee (ORS 87.039). Failing to do so forfeits costs and attorney fees.

Enforcing it

A lien does not bind the improvement for more than 120 days after the claim is filed unless suit is brought in that time, or 120 days after an extended payment period stated in the claim, but never more than two years (ORS 87.055). At least 10 days before suing, the claimant must give the owner and mortgagee written notice of intent to foreclose, and on demand must provide within five days a list of the materials and charges (ORS 87.057). Suits are brought in circuit court (ORS 87.060), where evidence of actual costs creates a rebuttable presumption of reasonable value.

Public projects

On public improvement contracts, the successful bidder must deliver a performance bond and a payment bond for the full contract price unless an exception applies (ORS 279C.380). A person who supplied labor or materials and has not been paid can sue on the payment bond only after giving written notice of claim to the contractor and the contracting agency (ORS 279C.600). The notice must be sent by registered or certified mail or hand-delivered within 180 days after the claimant last provided labor or materials; for employee benefit plan contributions, the limit is 200 days (ORS 279C.605). The suit itself must be filed within two years after the claimant last provided labor or materials (ORS 279C.610).

What to do

Send the notice of right to a lien at the start of every job where you do not contract with the owner. Calendar 75 days from your last work and from substantial completion, whichever comes first. On public jobs, calendar 180 days for the bond notice. This is a summary, not legal advice; see our Oregon lien guide.