Commercial Speed Bumps

• Oregon is a FULL PRICE lien state.
• Notice not required for laborers or those who supply construction rental equipment on commercial projects.
• A late notice will trap unpaid funds provided 8 business days prior to serving the notice.
• If extended payment terms are provided and the terms are stated in the claim of lien, then file suit 120 days after the expiration of such extended payment, but not beyond two years from the time the claim of lien is filed under ORS 87.035.
• Lender notice is an additional Non-Required Notification: A lien for material will have priority over prior recorded mortgages if the person furnishing the materials, not later than 8 days after the delivery of materials, delivers to the mortgages either a copy of the notice given to the owner or a notice that provides substantially the same information.  Per ORS 87.025(4), Lender after receiving notice may send a demand for a list of materials furnished.  Failure to supply material list via registered or certified mail within 15 days not including Saturdays, Sundays or holidays, shall waiver priority standing. 
• Super Priority even if you have noticed the mortgage will not apply to liens for alteration, modification or repair of an existing structure.  Liens for existing structures follows the NORMAL first-in-time rule. They will fall behind existing recorded liens in a foreclosure action.  Earlier in time and superior liens will have priority. This type of lien puts no pressure on the lender and/or owner to pay. Subcontractors and suppliers should not rely solely on a lien filing to get paid. 

Residential Speed Bumps

• Notification is required when selling directly to the owner on residential projects.
• The original contractor for a residential building or structure that is or will be occupied by the owner as a residence and that contains not more than four units capable of being used as residences or homes and includes the residential dwelling’s driveway, swimming pool, terrace, patio, fence, porch, garage, basement and other adjacent or appurtenant structure to the residential dwelling must provide the owner or the owner’s agent with an “Information Notice to Owner” for contracts exceeding $2,000,  ORS 87.093(4), at the time of signing a written contract or within 5 days after an oral contract is made.
• A written contract is required for all construction over $2,500. Pursuant to statute, the state Construction Contractors Board (CCB) has adopted a form of notice that must be used. This form may be obtained from the CCB. If an original residential contractor fails to provide the information notice, the contractor may not claim a lien and may be fined up to $15,000 or have his/her registration as a builder suspended. 
  
  • Where the contract value is initially below $2,000, but subsequently increases during the course of performance, the contractor must deliver this notice not later than five days after he / she knows or reasonably should know that the contract will exceed $2,000.

Public Speed Bumps

• Interest is generally available on bond claims from the date the charges become due.
• Remote contractors have bond claim rights in Oregon. (Suppliers to suppliers MAY have rights not completely apparent).
• The notice must be sent by registered or certified mail or hand delivered by the 180 day deadline,
  ORS 279C.605(1). It is unclear whether the notice which is mailed but not physically received by the contractor or public body within the 180 day period would be timely.