Construction Liens: The Perils Of Procrastination

In a perfect world, every property owner would promptly pay their contractor's bill. Of course, we do not live in a perfect world. For that reason, contractors are able to record construction liens to secure their payment rights. But just because a contractor has the right to record a lien does not mean it is advisable for the contractor to contact their lawyer and record a lien when a payment is a day late. At the same time, contacting the lawyer on the last day to record the lien is an even worse plan. How should contractors navigate the situation?

Under Oregon law, construction liens must be recorded within 75 days after the earlier of: (1) the last day the contractor provided labor or materials or (2) the date construction was completed.¹ That gives contractors a window of time to attempt to work out any payment issues with the property owner before recording the lien. Generally, contractors should take advantage of that window. Recording liens costs money. If