Oregon's Construction Lien Law is codified at ORS 87.001 to 87.060 and 87.075 to 87.093.
Liens are instruments, recorded with the land records for the locality where the relevant real property is situated, that document the agreement between the owner/customer and the contractor. They generally include a description of the work requested, a tentative schedule, and an information about charges and payments.
As work continues on a construction project, and progress/partial payments are made at each milestone, the parties involved in the job might find it advantageous to serve or request lien waivers. When a licensed contractor or material supplier furnishes labor or materials on a construction job, the contractor has a lawful right to enforce a construction lien if he or she isn't paid (assuming the proper preliminary notice is served). If a property owner is reluctant to make a partial payment because a lien could still be placed on the land, a waiver can alleviate that concern.
Altogether, there are four separate lien waivers: partial conditional, partial unconditional, final conditional, and final unconditional. A conditional waiver offers more protection to the lien claimant, and depends on the payment clearing the bank, meaning that there are no bounced checks or other complications. An unconditional waiver offers more protection to the owner and is effective regardless of payment receipt.
Proper use of lien waivers can ensure a smooth relationship between the contractor and property owner and ease worries of skipped payments or hidden liens. Even so, take care when drafting a waiver, and ensure that an unconditional waiver goes out only after confirming a payment.
This article is provided for informational purposes only and should not be relied upon as a substitute for the advice of an attorney. Please contact an Oregon lawyer with any questions about waivers or other issues related to construction liens.
May 24, 2017, Deeds.com - Information deemed reliable but not guaranteed, you should always confirm this information with the proper agency prior to acting. The materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. These materials are intended, but not promised or guaranteed to be current, complete, or up-to-date.