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A contractor completes a $12,000 deck project but the homeowner claims defective work. Under ORS 87, how long does the contractor have to file a lien for unpaid amounts?

Correct Answer

A) 120 days from project completion

Under ORS 87, contractors have the same 120-day deadline as other lien claimants to file liens for unpaid work, even against homeowners.

Answer Options
A
120 days from project completion
B
Contractors cannot file liens against homeowners
C
90 days from project completion
D
75 days from project completion

Why This Is the Correct Answer

Under Oregon Revised Statutes (ORS) 87, contractors have 120 days from substantial completion of the work to file a construction lien claim. This applies to all construction projects, including residential work for homeowners. The 120-day deadline is a firm statutory requirement that protects both contractors' payment rights and provides homeowners with certainty about potential lien exposure. This timeframe allows contractors reasonable time to pursue payment through other means before filing a lien.

Why the Other Options Are Wrong

Option B: Contractors cannot file liens against homeowners

This is incorrect because contractors absolutely can file liens against homeowners under Oregon law. ORS 87 specifically provides lien rights for contractors, subcontractors, and material suppliers on all types of construction projects, including residential properties. The homeowner's property serves as security for unpaid construction costs, regardless of whether the property is residential or commercial.

Option C: 90 days from project completion

While 90 days is a common lien filing deadline in some jurisdictions and for certain types of claims, Oregon's construction lien statute specifically provides 120 days from substantial completion. Using the wrong timeframe could result in losing lien rights entirely, as courts strictly enforce these statutory deadlines without exceptions for good faith mistakes about the law.

Option D: 75 days from project completion

The 75-day timeframe is not the correct deadline under Oregon law for construction liens. This shorter period might apply to other types of claims or notices in construction law, but ORS 87 clearly establishes 120 days as the deadline for filing construction liens. Missing this deadline by using an incorrect shorter timeframe would forfeit the contractor's lien rights.

Memory Technique

Remember '120 Oregon Days' - Oregon gives contractors a full 4 months (120 days) to file liens, longer than many states that use 90 days.

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