Statutory Liens

ORS 87.021
Notice to owners

  • notice from owner to original contractor
  • effect of failure to give notice


(1)

Except when material, equipment, services or labor described in ORS 87.010 (Construction liens) (1) to (3), (5) and (6) is furnished at the request of the owner, a person furnishing any materials, equipment, services or labor described in ORS 87.010 (Construction liens) (1) to (3), (5) and (6) for which a lien may be perfected under ORS 87.035 (Perfecting lien) shall give a notice of right to a lien to the owner of the site. The notice of right to a lien may be given at any time during the progress of the improvement, but the notice only protects the right to perfect a lien for materials, equipment and labor or services provided after a date which is eight days, not including Saturdays, Sundays and other holidays as defined in ORS 187.010 (Legal holidays), before the notice is delivered or mailed. However, no lien is created under ORS 87.010 (Construction liens) (5) or (6) for any services provided for an owner-occupied residence at the request of an agent of the owner.

(2)

The notice required by subsection (1) of this section shall be substantially in the form set forth in ORS 87.023 (Notice of right to lien).

(3)

(a) Except as provided in paragraph (b) of this subsection, a lien created under ORS 87.010 (Construction liens) (1) to (3), (5) or (6) may be perfected under ORS 87.035 (Perfecting lien) only to the extent that the notice required by subsection (1) of this section is given.

(b)

A person who performs labor upon a commercial improvement or provides labor and material for a commercial improvement or who rents equipment used in the construction of a commercial improvement need not give the notice required by subsection (1) of this section in order to perfect a lien created under ORS 87.010 (Construction liens). As used in this paragraph:

(A)

“Commercial improvement” means any structure or building not used or intended to be used as a residential building, or other improvements to a site on which such a structure or building is to be located.

(B)

“Residential building” means a building or structure that is or will be occupied by the owner as a residence and that contains not more than four units capable of being used as residences or homes.

(4)

Unless otherwise agreed or the lien claimant who is required to give the notice under subsection (1) of this section is in privity with the original contractor, when a provision in an agreement for the construction of a commercial improvement requires the original contractor to hold an owner harmless or to indemnify an owner for a lien created under ORS 87.010 (Construction liens) and perfected under ORS 87.035 (Perfecting lien), that provision is not enforceable as to any lien which requires that a notice under this section be given to the owner unless a copy of the notice is delivered pursuant to ORS 87.018 (Delivery of notices) to the original contractor not later than 10 days after its receipt by the owner. [1975 c.466 §7 (enacted in lieu of 87.020); 1981 c.757 §3; 1983 c.674 §1; 1983 c.757 §1; 1987 c.662 §1; 2001 c.311 §1; 2002 s.s.1 c.6 §§1,4; 2003 c.778 §10]

See also annotations under ORS 87.020 in permanent edition.

Notes of Decisions

Pre-1983 version of this statute, providing that those who furnish material or supplies must give delivery notice to owner of construction site as prerequisite to enforceability of liens, does not apply to those who provide rental equipment. Star Rentals, Inc. v. Seeberg Construction Co., 66 Or App 822, 677 P2d 708 (1984), Sup Ct review denied

To qualify as "labor upon an improvement," the work of a subcontractor need not be specified amount and such work may be primarily that of correcting errors. Northwest Ironworks v. Rippling River, 71 Or App 144, 691 P2d 111 (1984), Sup Ct review denied

This section requires that notice of right to lien be given during progress of improvement. Sun Solutions, Inc. v. Brandt, 300 Or 317, 709 P2d 1079 (1985)

Where person performs labor upon commercial improvement or provides labor and material for commercial improvement, notice of right to lien is not required if person labors at site of commercial improvement. Teeny v. Haertl Constructors, Inc., 314 Or 688, 842 P2d 788 (1992)

Where subcontractor took measurements at commercial improvement site as incident to supplying material, such contacts with job site are not labor on site within notice requirement exception. Teeny v. Haertl Constructors, Inc., 314 Or 688, 842 P2d 788 (1992)

Atty. Gen. Opinions

Enforcement by subcontractor of lien rights against owner of residence where prime contractor has failed to give proper notice or has been paid in full but failed to pay subcontractor, (1981) Vol. 42, p 149

§§ 87.001 to 87.060

Notes of Decisions

In absence of express waiver by contractor of right to file construction lien, agreement to arbitrate disputes did not prevent filing of lien and thereafter foreclosing to recover unpaid amounts and costs and attorney fees incurred in preparation, filing and foreclosure of lien claim. Harris v. Dyer, 50 Or App 223, 623 P2d 662 (1981), as modified by 292 Or 233, 637 P2d 918 (1981)


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Last accessed
Jun. 26, 2021