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Whether you鈥檙e a general contractor (GC), subcontractor, or property owner, understanding Oregon lien waivers is crucial. These essential documents function as receipts acknowledging payment up to a specific amount, thereby waiving the party鈥檚 right to file a lien against the property for that amount. While the concept is straightforward, the practical application of lien waivers can be complex.
Several types of lien waivers exist, each requiring submission at specific times during a project. (For a deeper dive into lien waiver basics, refer to The Ultimate Guide to Construction Lien Waivers for Subcontractors.) Moreover, lien waiver requirements vary by state, with each jurisdiction setting its own rules regarding valid forms, contents, and enforcement.
Understanding these nuanced requirements is important for subcontractors to maintain compliance, prevent payment disputes, and protect their financial interests. So grab your hard hat, and let鈥檚 dive into the world of Oregon lien waivers!
(For more general information on lien waivers, check out this on-demand webinar: End the Whack-a-Mole: Lien Waiver Best Practice for Subs.)
Oregon is one of 38 states that do not regulate their lien waivers. This can add pressure to construction teams who are trying to do good business and get paid fairly for their work and their time. By understanding what makes Oregon lien waivers valid, how to protect yourself in job contracts, and how to handle potential disputes, you can get ahead of any potential complications from lien waivers in Oregon before they start.
The first thing to know鈥攊n Oregon, it鈥檚 legal to waive lien rights in the contract, even before work begins. Lien rights can also be waived prior to payment. If these types of clauses are missed during contract review, you risk giving up your leverage to secure payment. Instead, negotiate for fair payment terms.
Here are some other things you need to know when handling Oregon lien waivers:
- State law requires all parties鈥擥Cs, subs, and suppliers alike鈥攖o deliver a to the site owner, either in person or via mail. This document protects parties in case of non-payment. This can be delivered at any time during the project, but state law notes it only 鈥減rotects the right to perfect a lien for materials, equipment, and labor or services provided after a date which is eight days鈥efore the notice is delivered or mailed.鈥� This means GCs, subs, and suppliers must deliver this document within eight days of starting work or buying materials.
- requires suppliers to provide a lien waiver after receiving payment for materials or supplies. This waiver confirms that payment has been received, and the supplier waives their right to file a lien for those specific materials.
Oregon doesn鈥檛 mandate a specific or statutory lien waiver form.
Both conditional and unconditional Oregon lien waivers are accepted.
Notarization isn鈥檛 required for Oregon lien waivers. However, the client can expressly request it.
To be considered valid in Oregon, a lien waiver must:聽
- be in writing聽
- be signed by the waiving party
- clearly state the amount being waived and the property to which it applies
- be preceded by a
No contractual provisions forbid waiving lien rights in Oregon contracts.
In Oregon, it鈥檚 completely legal to waive lien rights prior to payment.
Completing Lien Waivers in Siteline
- Create, monitor, and track all your lien waivers in one place.
- Automatically fill out and send the right waiver at the right time.
- Request lower-tier lien waivers from all your sub-tier contractors, vendors, and suppliers鈥攊ndividually or in bulk.
- Securely collect e-signatures, with automatic reminders for any unsigned waivers.
- Package and submit signed waivers to your GCs directly within Siteline.
Oregon doesn鈥檛 provide a specific statutory lien waiver form. Parties can use their own form and add anything they want to it, so review everything carefully and add any project-specific information to the contract to ensure compliance.
Oregon state law offers very few statutes regarding lien waivers. Here鈥檚 your checklist for making sure lien waivers in Oregon are valid:
- They should clearly state the amount being waived and the property to which they apply,聽
- They must be preceded by a , and
- They must be signed by the party waiving their lien rights.
While Oregon law doesn鈥檛 specify when exactly to exchange lien waivers, it鈥檚 generally best to follow these timing rules:
- Conditional lien waivers, which are only effective once payment is received, are exchanged with progress payment applications.
- Unconditional lien waivers, which become binding upon signature, are typically submitted after payment is received.
(For a more detailed breakdown of waiver types and timing, check out our handy lien waiver guide.)
Be aware that in Oregon, owners may try to include clauses in the contract that work against other parties鈥� best interests, like requiring lien waivers before work begins, materials are furnished, or payment is granted. We recommend against this. Instead, determine mutually beneficial timing based on best practices for general construction.
In Oregon, it鈥檚 completely valid to waive lien rights in the contract. Pore over the contract meticulously to make sure you鈥檙e not signing away your leverage for fair payment. Then, request to remove any unsavory clauses.
If you鈥檙e an owner, GC, sub, or supplier, listen up鈥攖he Oregon Construction Contractors Board offers a that dives into sticky situations related to lien waivers and mechanic鈥檚 liens.
Beyond following standard procedures of claiming a lien in Oregon, if there is a dispute over a lien waiver involving missed payments or other complications, GCs can file a claim in Oregon鈥檚 small claims court if the amount owed is up to $7,500. If a larger sum is in play, take this claim to the state circuit court.
Before doing any of this, review the lien waiver and corresponding job contract, then try to mediate the situation directly. Consider consulting with a construction law attorney familiar with Oregon lien laws if the dispute escalates.
To be a front-runner in the Oregon construction industry, you must first understand the ramifications of lien waivers. This page is a great start. However, here are some other Oregon-specific legal resources and organizations to help you get the job done:
- (covers mechanic鈥檚 liens)
- (covers Notice of Right to a Lien)
- (form for Notice of Right to a Lien)
Automate the process with Siteline. Contractors use our lien waiver tool to digitize all of their lien waiver forms (primary and vendor), send waiver requests to lower-tier contractors and vendors, collect e-signatures, and submit completed waivers to their clients鈥攚ithout ever leaving the system. Siteline even provides centralized tracking to help contractors monitor vendor waiver statuses to see who鈥檚 received the form, who鈥檚 opened it, and who has (or hasn鈥檛) signed. This means contractors can collect waivers faster while eliminating payment delays caused by compliance holds.
Disclaimer: The information provided on this page is for general informational purposes only and does not constitute legal advice. We recommend you consult a qualified attorney for advice specific to your situation.