For contractors and material suppliers, a construction lien can be one of the most effective ways to secure payment on a project. In many cases, it is the leverage that gets an invoice paid.
But it is also a tool that comes with real risk. Oregon’s lien laws are technical, strictly enforced, and unforgiving when misapplied. Small mistakes, whether in timing, notice, or the amount claimed, can jeopardize enforceability or create additional legal exposure.
Understanding where liens are effective and where they go wrong is critical.
What a Construction Lien Accomplishes
At its core, a construction lien is a legal claim against real property that secures payment of a debt. Once recorded, the lien encumbers the property, which can make it difficult or impossible for the owner to sell or refinance until the lien is resolved.
If the lien remains unpaid, the claimant can file a foreclosure action, asking the court to force the sale of the property and use the proceeds to satisfy the debt.
That practical impact is what makes liens so effective. They create direct leverage to resolve payment disputes.
Strict Requirements Leave No Room for Error
Construction liens in Oregon are governed by Chapter 87 of the Oregon Revised Statutes. While the statute provides a clear framework, it also imposes strict compliance requirements.
To enforce a lien, a contractor or supplier must properly perfect it—meaning every required step is completed correctly and on time. The most common issues arise around timing and notice, where even small missteps can eliminate lien rights entirely.
Key requirements include:
- Recording the lien within the required timeframe. Depending on the claimant’s role, this is typically within 75 days after last furnishing labor, equipment, or materials, or within 75 days after project completion—whichever occurs first.
- Filing a foreclosure action within 120 days of recording the lien. If no lawsuit is filed within that window, the lien expires.
- Providing a notice of right to lien when required. In many situations involving parties without a direct contract with the owner, this notice must be properly given to preserve lien rights.
These requirements are strictly applied. If they are not followed precisely, lien rights may be lost—regardless of whether the underlying claim for payment is valid.
Only Certain Costs Are Properly Lienable
One of the most common and costly mistakes is including amounts in a lien that are not legally recoverable.
Examples of items that may raise lienability issues depending on the facts and statutory requirements include:
- Materials that were never delivered to or used on the project
- Costs associated with equipment or services that do not qualify under Oregon’s lien statutes
- Certain preconstruction, administrative, or preparatory activities that may fall outside the scope of lienable work
Because Oregon law requires a true and accurate statement of the amount claimed, overstating the amount in a lien can create enforceability issues and potential additional liability.
Filing an invalid or unsupported lien may, in some circumstances, expose the claimant to claims for damages or attorney fees under applicable law. In some cases, property owners may assert additional claims, such as slander of title, depending on the facts and intent involved.
Preserving Leverage While Controlling Risk
When handled correctly, construction liens remain one of the most effective tools available to contractors, subcontractors, and material suppliers to compel payment. But they require careful attention to timing, documentation, and the scope of what is claimed.
For that reason, lien strategy is often best considered early, before payment issues escalate, so rights are preserved and risk is controlled.
Our Approach
At Chenoweth Law Group LLC, we regularly advise contractors, suppliers, and property owners on construction lien rights and disputes. This includes both preserving lien rights during a project and enforcing or challenging liens when conflicts arise.
The difference is often in the details. And in lien law, the details matter.
