8 questions

Oregon Contracting Law & Liens

A person does construction work in Oregon while not licensed with the CCB, then tries to enforce payment. Under ORS 701.131, what generally happens?

  • a.The person may sue and file a lien with no restriction
  • b.The person may file a lien but not sue
  • c.The person generally cannot file a construction lien, sue to collect, or file a CCB claim for the work
  • d.The owner must pay double the contract price

ORS 701.131 generally bars a contractor who was unlicensed when the work was done from filing a construction lien, suing to collect compensation, or filing a CCB claim. Being licensed before contracting is essential to preserving payment rights in Oregon.ORS 701.131

Oregon Contracting Law & Liens

What must a licensed Oregon contractor include in its advertising?

  • a.Its CCB license number, so consumers can verify registration
  • b.The homeowner's Social Security number
  • c.A notarized copy of its bond
  • d.Nothing beyond a phone number

Under ORS 701.305, a licensed Oregon contractor must include its CCB license number in advertising. This lets consumers confirm the contractor is registered and helps the CCB identify unlicensed operators who advertise without a number.ORS 701.305

Oregon Contracting Law & Liens

Under Oregon's construction lien law (ORS Chapter 87), within what time must a claimant generally file (perfect) the claim of lien?

  • a.Within 30 days after starting work
  • b.Within one year after completion
  • c.Within 10 days after the contract is signed
  • d.Within 75 days after the claimant ceases to provide labor or materials, or after completion, whichever is earlier

Oregon requires a lien claimant to file 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 (ORS Chapter 87). Missing this short window defeats the lien.ORS Ch. 87 (construction liens)

Oregon Contracting Law & Liens

After recording a construction lien in Oregon, within what time must the claimant begin a suit to foreclose the lien?

  • a.Within 30 days
  • b.Within 120 days
  • c.Within five years
  • d.There is no deadline

Oregon requires the claimant to begin a suit to foreclose the construction lien within 120 days after the lien is recorded (ORS 87.055). If no foreclosure suit is filed in time, the lien expires.ORS 87.055 (lien foreclosure)

Oregon Contracting Law & Liens

For residential work in Oregon, when is a written contract generally required?

  • a.When the contract price exceeds the statutory threshold (generally $2,000)
  • b.Never; oral agreements are always sufficient
  • c.Only for jobs over $500,000
  • d.Only when the homeowner requests one in writing

Oregon generally requires a written contract for residential construction work when the price exceeds the statutory threshold (generally $2,000). The contractor must also provide the CCB's consumer notices on qualifying jobs. These disclosures protect homeowners.ORS Ch. 701 (residential written contract)

Oregon Contracting Law & Liens

On many Oregon residential projects, what document must a contractor or supplier deliver to preserve construction-lien rights?

  • a.A federal tax lien waiver
  • b.A county competency card
  • c.A Notice of Right to a Lien
  • d.An OSHA safety plan

On many residential projects, Oregon requires delivery of a Notice of Right to a Lien to preserve lien rights, and owners must receive the CCB's Information Notice to Owner About Construction Liens on larger jobs. Failing to give required notices can defeat the lien.ORS Ch. 87 (Notice of Right to a Lien)

Oregon Contracting Law & Liens

What role does the Oregon CCB play when a homeowner and a licensed contractor have a payment or workmanship dispute?

  • a.None; disputes may only go to federal court
  • b.It issues building permits for the disputed work
  • c.It represents the contractor against the homeowner
  • d.It provides a dispute-resolution process for claims involving licensed contractors

The CCB offers a dispute-resolution process for construction complaints involving licensed contractors, backed by the contractor's bond. Being licensed is what allows a contractor to use — and be subject to — that process, another reason licensure matters.ORS Ch. 701 (CCB dispute resolution)

Oregon Contracting Law & Liens

Why does holding a current CCB license matter to an Oregon contractor's ability to be paid?

  • a.It has no effect on payment rights
  • b.Because an unlicensed contractor generally cannot lien, sue, or file a CCB claim, licensure is a precondition to enforcing payment
  • c.It only lowers the contractor's tax rate
  • d.It merely speeds permit approval

Because ORS 701.131 bars an unlicensed contractor from filing a lien, suing to collect, or filing a CCB claim, being licensed before contracting is a precondition to enforcing payment in Oregon. Licensure protects the contractor's collection tools.ORS 701.131 (effect of licensure on collection)

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