Construction projects are complex and often experience delays. The party responsible for the delay can find itself subject to potentially severe consequences. There are various ways project owners and contractors can cause project delays, and each party wants to “own” the project float to be able to apply the project’s extra schedule time toward its
The Essential Role of Notice Under Oregon’s Construction Lien Law
Because construction liens can affect other interests in real property, both public notice and actual notice to certain parties with recorded interests are essential to a fair lien system. In Oregon, timely recording a claim of lien with the county recorder provides the required public notice and is a prerequisite to a valid lien. Oregon’s…
Lien Law Ground Rules: Construction and Interpretation of Oregon’s Lien Statutes
In Oregon, the construction lien was created by the legislature and codified in statute. As such, construction lien rights were not recognized at common law or in equity. As statutes in derogation of the common law, Oregon’s rules of statutory construction dictate that lien statutes must be strictly construed. For example, Oregon courts will not extend lien…
Oregon’s “Direct” Construction Lien Law
Under Oregon law, construction lien claimants have a “direct” lien. Although the lien arises through the statutory agency of the contractor, for lien claimants other than the contractor, it is independent of the contractor and secures payment to the claimant regardless of whether the owner paid the contractor or whether the contractor waived or released…
Artificial Development: The Benefits and Risks of AI in Construction
Artificial intelligence is becoming part of everyday practice for contractors and design professionals, and the legal implications are evolving. Two issues have emerged as particularly important: who owns AI-assisted design work, and what happens when data is shared with AI tools.
Design documents have long been protected by copyright, and design and construction contracts have…
31st Annual Oregon Construction Law Seminar
Are you a construction industry professional looking to stay current on the legal landscape affecting your projects and operations? Join Sean Gay, Zachary Davis and Mario Nicholas who will be presenting at the Annual Oregon Construction Law Seminar, hosted by The Seminar Group, on Thursday, May 14, 2026. This event brings…
The Construction Lien’s Status as an Interest in Real Property in Oregon
A construction lien is a statutory interest in privately owned real property. It is granted to individuals and entities who provide labor, materials, or services that improve the property. Because the construction lien is an interest in real property, it has the potential to affect other competing interests in the same property. Oregon’s construction lien…
Building Fairness: The Public Policy Behind Oregon’s Lien Law
- They serve an economic function by encouraging economic activity – construction and development of real property – through a legal remedy that secures payment for those who furnish labor or materials to improve real property.
- Lien statutes reflect a policy of fairness in business
FinCEN’s Residential Real Estate Rule: What Commercial Real Estate Developers Need to Know
[3/20/26 Update] Since this alert was published, a federal district court in Texas struck down FinCEN’s Residential Real Estate Rule discussed below. We will continue to monitor developments, including any appeal or further guidance, and update this alert as appropriate.
The U.S. Department of Treasury’s Financial Crimes Enforcement Network (“FinCEN”) has implemented a nationwide reporting…
A Brief History of Oregon’s Construction Lien Law
Like many modern American legal principles, the concept of the lien originated in England, where those who performed physical labor—so-called “mechanics”—were given a “charge” on the items upon which they worked. Shortly after the American Revolution, states and territories in the United States began enacting statutes giving builders lien rights to secure payment for their…
Starting work before a contract is signed: risks, realities, strategies
Getting construction underway before a contract is signed can feel like a practical necessity in fast-paced projects. But what seems like progress can create unintended legal and operational risks. Modern construction agreements are detailed documents that define scope, risk allocation, insurance, compensation, and dispute resolution. When work begins without those terms firmly in place, parties…
Understanding Washington’s New Solicited Real Property Act
Effective January 1, 2026, Washington’s newly enacted RCW 61.40.010 (the “Solicited Real Property Act”) introduces a suite of statutory protections for property owners in transactions initiated through direct solicitation. While many prospective purchasers will be impacted, this provision will have meaningful implications for real estate purchasers who rely on off‑market acquisition strategies. On its face…