Under ORS 87, how many days does a prime contractor have to provide a Notice to Owner after receiving a Notice of Right to Lien from a subcontractor?
Correct Answer
B) 10 days
ORS 87 requires prime contractors to provide Notice to Owner within 10 days of receiving a Notice of Right to Lien from subcontractors or suppliers.
Why This Is the Correct Answer
ORS 87.025 requires that when a prime contractor receives a Notice of Right to Lien from a subcontractor or material supplier, the prime contractor must deliver a Notice to Owner within 10 days. This protects the owner by making them aware of potential lien claimants on the project.
Why the Other Options Are Wrong
Option A: 30 days
30 days is far too long. Oregon law requires the prime contractor to act quickly — within 10 days — so the owner has timely notice and can make informed payment decisions.
Option C: 5 days
5 days is too short and is not the statutory requirement under ORS 87. While acting quickly is good, the law grants 10 days as the required window.
Option D: 15 days
15 days is close but incorrect. The ORS 87 requirement is specifically 10 days. Confusing 15 days with 10 days is a common exam trap.
Memory Technique
Remember: '10 days to tell the Owner.' The number 10 is easy — it's 1 followed by a zero, just like 'first step' in protecting the owner.
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A contractor performs $12,500 of work on a residential project in Oregon. The homeowner fails to pay after 45 days. Calculate the maximum lien amount the contractor can claim under ORS 87.
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