A contractor completes $45,000 worth of work on a residential project in Oregon. The property owner fails to pay after 30 days. What is the maximum lien amount the contractor can claim under ORS 87?
Correct Answer
D) $45,000
Under ORS 87, a contractor can lien for the full amount of labor and materials provided, which in this case is $45,000.
Why This Is the Correct Answer
Under ORS 87, Oregon's mechanic's lien statute, a contractor is entitled to lien for the full value of labor and materials provided. Since the contractor performed $45,000 in work, the maximum lien amount equals that full $45,000. The statute does not impose a cap below the actual contract value for legitimate unpaid work.
Why the Other Options Are Wrong
Option A: $50,000
$50,000 exceeds the value of work performed. A mechanic's lien cannot exceed the actual amount owed for labor and materials — there is no punitive enhancement to the lien amount under ORS 87.
Option B: $40,500
$40,500 represents a 10% reduction from the actual work value. There is no automatic discount applied to Oregon mechanic's lien amounts; the contractor lien for the full unpaid amount.
Option C: $49,500
$49,500 is $45,000 plus $4,500, which does not correspond to any recognized calculation under ORS 87. The lien amount tracks the actual unpaid balance, not an inflated figure.
Memory Technique
Oregon liens follow the 'you get what you're owed' principle. No discounts, no bonuses — the lien equals the unpaid contract value. $45,000 work = $45,000 lien.
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Previous Question
A subcontractor completes electrical work worth $8,500 on March 15th. The general contractor fails to pay. Under ORS 87, what is the deadline to file a lien claim?
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A contractor begins work on Monday and the homeowner cancels the contract on Wednesday under Oregon's right to cancel law. What must the contractor do?