A contractor performs $8,500 worth of work on a residential property in Oregon. The homeowner fails to pay. Calculate the maximum lien amount the contractor can claim under ORS 87 if no other liens exist.
Correct Answer
C) $8,500
Under ORS 87, a contractor can lien for the full amount of unpaid work performed, which is $8,500 in this case.
Why This Is the Correct Answer
Under ORS 87, a contractor is entitled to lien for the full amount of unpaid labor and materials furnished to the project. Since the contractor performed $8,500 in work and has not been paid, the full $8,500 is lienable. There is no statutory cap or reduction percentage applied when a contractor files a lien for services rendered.
Why the Other Options Are Wrong
Option A: $6,800
$6,800 is incorrect. This figure represents an 80% reduction of $8,500 (80% × $8,500 = $6,800). No such percentage reduction applies to contractor liens under ORS 87. The contractor is entitled to the full unpaid amount.
Option B: $8,075
$8,075 is incorrect. This figure represents a 5% reduction ($8,500 × 0.95 = $8,075). There is no statutory 5% withholding or reduction mechanism for contractor lien amounts under Oregon law.
Option D: $7,650
$7,650 is incorrect. This represents a 10% reduction ($8,500 × 0.90 = $7,650). While retention of 10% is sometimes used in construction contracts, it does not reduce the lienable amount. The contractor can still lien for 100% of unpaid work.
Memory Technique
The lien equals the debt. If you did $8,500 of work and got paid $0, you can lien for $8,500. Think of the lien as a mirror of the unpaid invoice—no markup, no markdown.
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