Calculate the maximum lien amount a material supplier can claim under Oregon law for materials delivered to a residential construction project with a total contract value of $85,000, where the supplier provided $15,000 in materials.
Correct Answer
D) $15,000
Material suppliers can lien for the actual value of materials provided, which is $15,000 in this case.
Why This Is the Correct Answer
Under Oregon lien law (ORS 87), a material supplier's lien claim is limited to the actual value of materials provided — not a percentage of the contract value. The supplier delivered $15,000 in materials, so the maximum lien is $15,000. Lien rights are tied to the actual contribution, not the overall contract size.
Why the Other Options Are Wrong
Option A: $21,250
$21,250 appears to be 25% of the $85,000 contract value. Oregon lien law does not base supplier lien amounts on a percentage of the total contract — it is based on the actual value of materials furnished.
Option B: $17,000
$17,000 appears to be 20% of the $85,000 contract value. Again, Oregon lien law does not use a percentage-of-contract calculation for material suppliers. The actual value of materials provided controls.
Option C: $25,500
$25,500 appears to be 30% of the $85,000 contract. Same error — lien amounts for suppliers are not derived from contract percentages.
Memory Technique
Supplier lien = what you gave. You gave $15,000 in materials, you can lien for $15,000. The contract total is a red herring.
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