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Need to know Find your county recorder BackOregon requires that subcontractors and material suppliers on residential construction or improvement projects send a Notice of Right to Lien to the property owner (and the construction lender, if one exists). This notice must be sent within 8 days after first providing labor or materials. Parties that contract directly with the property owner are not required to send a Notice of Right to Lien. For commercial projects, this notice is only required of material suppliers (including specially fabricated materials) who do not install the materials and do not contract with the property owner.
Sending a Notice of Right to Lien in Oregon is a relatively common practice. This notice is required by law to be sent by subcontractors and suppliers on most residential projects to secure the right to file a lien; if and when a payment problem that arises on the project.
I agree that seeing the term "lien" on any legal document can be unsettling. But keep in mind that a preliminary notice is not any indication of any payment issues or perceived financial problems. Consider it a proactive means to ensure that the company is going to get paid on the project. Some companies generate them for every project, others send them only on projects over a predetermined dollar amount, and some don't send them at all. But as a property owner, there is no cause for concern when a preliminary notice is received.
In fact, besides securing the ability to file a lien if unpaid, it also offers valuable information and points of contact to property owners and general contractors about who is involved on the project, and what they are providing. That way both the owner and GC can ensure that they are getting paid, and requesting a lien waiver when they're paid to ensure that no claims are filed against the property.
Here are some other resources that may help:
Assuming this is a residential project, contractors hired directly by the property owner will need to provide an Information Notice to Owner if the project exceeds $2,000. That notice is given at the time the contract is signed. If the notice is not given, mechanics lien rights won't be available. For commercial jobs, contractors hired directly by the owner won't need to send preliminary notices in order to preserve the right to file a mechanics lien. You can learn the finer details of these notice requirements here: Oregon Preliminary Notice FAQs.
Still, even if mechanics lien rights aren't on the table, other options could lead to payment - like sending invoice reminders or demand letters. Further actions can be useful, too - like the ones discussed here: Can’t File a Lien? Here Are Some Other Options For Recovery.
Answered by Matt Viator | Levelset Admin https://www.levelset.com/payment-help/question/preliminary-notice-timeline-on-emergency-services/It sounds like you might be referring to either Oregon's Information Notice to Owner or the Notice of Right to Lien. Though, it's worth clarifying the timeline for sending those notices. If these weren't the notices you were referring to, feel free to contact one of these Oregon construction lawyers for additional clarity: Find a Oregon Construction Lawyer. Or, you can post additional information below. For the basics on Oregon's preliminary notice requirements: Oregon Preliminary Notice Guide and FAQs.
If you're hired directly by the property owner, an Information Notice to Owner will be required on owner-occupied residential projects exceeding $2,000. The notice should generally either be included right in the contract itself, or sent within 10 days of signing the contract. If the project was originally supposed to be less than $2,000, but then exceeds that threshold - notice must be given within 5 days. But, to avoid that issue, it's better to simply provide the notice on all owner-occupied residential jobs.
A Notice of Right to Lien is required for parties hired by someone other than the owner on an owner-occupied residential project. The notice is also required for suppliers & specialty material manufacturers on commercial jobs. This notice must be sent within 8 days of beginning work.
First, note that neither notice is required days before the project begins. Still, the timelines are tight. For the Information Notice to Owner, it might be wise to either make that a part of the form contract being used, or to carry blank copies of the notice to execute along with the contract, separately. Still, even if that's not done, there are a few days to get that sent. For the Notice of Right to Lien, there's a little more flexibility since it isn't sent until after work begins. Still, having the notice ready to go right when work begins could avoid potential pitfalls. In any event, here are free, downloadable templates for both notices which might come in handy: - Oregon Information Notice to Owner Form - Oregon Notice of Right to Lien Form
