A large part of our client base are construction companies. One of the main services we provide to our construction clients besides pre and post lien notices are the preparation of construction liens. In assisting our clients in analyzing the timing on preparing the construction lien and filing the construction lien are based in part of information provided by the Oregon CCB and the Oregon Revised Statutes, Section 87. The Oregon CCB provides information on the explanation on construction liens at https://www.oregon.gov/ccb/documents/pdf/constructionlienspamplet.pdf and the Oregon Revised Statutes explaining the legal process can be found at https://www.oregonlegislature.gov/bills_laws/ors/ors087.html
Since we are not attorneys, we cannot provide legal advice, however we can explain how our process works. When we have a construction client that is not being paid on a construction job, we often meet and discuss the pros and cons of preparing and filing the construction lien. There are many factors that go into that decision, such as the amount of money the client is seeking, the relationship with the debtor party, timing of the lien, potential future projects with the debtor and other potential conflicting parties, the status of the project and much more. Those are all very important factors in deciding the next steps and developing a strategy.
If the client chooses to move forward with the preparation of the lien, we will have the client provide us all necessary information, i.e. all the back-up documentation including but not limited to the contract, schedules, change orders, payments, credits, offsets, etc. Once that information is compiled, we work with our client to proceed forward with drafting the lien, obtaining ownership information, completing the lien and then filing the lien in the proper county’s official property records. We also assist the client in preparation of all post lien notices to be sent to all parties involved, including but not limited to owners, construction parties, parties in other foreclosure litigation and lenders. We typically work with the client to make sure that all of the above-referenced tasks and work is completed within 75 days of the date our client last performed contract work on the project or supplied labor and/or materials to the project. For us, that is a safety and precautionary timeframe.
In our profession, construction liens are an imperative tool for our clients to use to try and secure payments due to them for work they have completed. It is a very aggressive tool, but also a very important tool to learn and know about.
We are a full-service construction lien preparation paralegal firm and assist clients from pre-lien notices up to and including lien preparation, filing and post lien-notices. We work with some great title companies throughout Oregon, as well as the other states we perform construction lien work in. Additionally, we work with several local construction attorneys available to assist our clients with all types of lien foreclosure actions. We like to get the attorneys involved no later than the 90th day after the filing of the lien so that the foreclosure action can commence prior to the 120th day (Oregon) of filing of the construction lien.
Please call upon us for all your construction lien needs.
Sources: Oregon Construction Contractors Board; Oregon Revised Statutes; Experience