- A person who performs labor, transports or furnishes materials to be used in, or rents equipment used in the construction of an improvement.
- A person who engages in or rents equipment for the preparation of land or improves or rents equipment for the improvement
Perfect First, Assign Later: Oregon’s Rules for Transferring Construction Liens
One consequence of Oregon’s policy of strictly limiting who may claim a construction lien is that a claimant may not assign a lien before it is perfected. Until a lien is perfected by public recording, it is considered a personal privilege. Any assignment before perfection will result in loss of the construction lien claim, because
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
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
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
Understanding the Nuances of Post-Closing Obligations in Oregon Real Estate Contracts: Lessons from Freeborn v. Dow
In the busy world of commercial real estate, buyers and sellers may be unable to complete all contractual obligations before closing. In those instances, parties often identify certain “post-closing” matters in the contract. Typically, if those provisions are not carefully drafted to “survive” the closing, then the terms may merge with the deed and be deemed satisfied at closing. However, in a 2022 Oregon case, Freeborn v. Dow, the Oregon Court of Appeals identified a nuance to that rule and explained that certain contractual matters may survive closing and not merge with the deed, regardless of the presence or lack of a survival clause.
The Importance of Third-party Beneficiary Clauses in Contracts
For anyone building a dream vacation home, renovating an existing commercial structure, or developing a multimillion-dollar, mixed-use project, construction contract terms are of utmost importance. One often overlooked clause covers the contractual “third-party beneficiary” (TBP)—a person or entity who, though not a party to the contract, stands to benefit from the contract’s performance. Interpretations of
OR-OSHA Publishes Model Infection Control Policy Required by New COVID- 19 Rules
On November 6, 2020, the Oregon Occupational Health and Safety Administration (“OR-OSHA”) published final temporary rules for workplace safety protections specific to COVID-19. Our alert about the new rules is available here.
Among other requirements, the new rules require employers to adopt a COVID-19 Infection Notification policy for notifying exposed and affected employees of
Recession Warnings Pile Up: Harbinger of Liens?
Some economic indicators point to a recession in the not-too-distant future, and parties involved in construction projects should take steps to avoid (or perfect) liens and protect their rights if there is a downturn. The complexities of Oregon’s lien laws are best negotiated with the assistance of experienced counsel. In my inaugural article for the