Oregon Contracting Law, Unlicensed Practice & Liens
Oregon law bars an unlicensed contractor from suing or filing a lien and sets short deadlines for construction liens. This chapter covers ORS 701.131, the license-number advertising rule, the written-contract requirement, and the ORS Chapter 87 lien timeline.
Unlicensed contractors cannot sue or file a lien (ORS 701.131)
Under ORS 701.131, a contractor who was not licensed with the CCB when the work was performed (and when the lawsuit or claim is brought) generally cannot file a construction lien, cannot sue to collect compensation, and cannot file a CCB claim. There is a narrow exception where the contractor was licensed at the time of the contract and other conditions are met, but the practical rule is clear: be licensed before you contract, or you lose the ability to enforce payment. This is Oregon's strongest civil deterrent to unlicensed work.
Advertising and the residential written-contract requirement
Oregon requires a licensed contractor to include its CCB license number in advertising (ORS 701.305), so consumers can verify registration. For residential work, Oregon requires a written contract when the price exceeds the statutory threshold (generally $2,000), and requires the contractor to give the homeowner the CCB's consumer notices — including the Information Notice to Owner About Construction Liens on larger jobs. These disclosures protect homeowners and are commonly tested.
Oregon construction liens (ORS Chapter 87)
Oregon's construction lien law is in ORS Chapter 87. A lien claimant generally must file (perfect) the claim of lien within 75 days after the claimant ceases to provide labor, rent, or materials, or within 75 days after completion of construction, whichever is earlier. After recording, the claimant must begin a suit to foreclose the lien within 120 days. On many residential projects a Notice of Right to a Lien must be delivered to preserve rights. Because these windows are short, contractors calendar the completion date closely.