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How can I protect my lien rights as a total loss restoration contractor in Oregon?

If I receive supplement payments and the process of getting adjusters to approve the amount a project is worth is after my lien deadlines (so I dont have an exact amount due) how do I protect my lien rights? My attorney has advised against filing the lien with a round about number because "the courts don't like that and can throw out the case".

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Oct 16, 2019

Oregon mechanics liens must be filed within 75 days of last furnishing labor or materials to the job - or 75 days after the completion of the project. So, typically, a restoration contractor will have about two and a half months before they'd need to file a mechanics lien, if one became necessary. For most contractors, that should be enough time to determine what they're owed. Regarding the amount of the lien - I think the attorney advice you mentioned above is wise. Filing a mechanics lien based on an educated guess or conjecture of what will be owed is a dangerous proposition. So, pressing a customer or insurance company to approve the amount of the project sooner than that deadline might be helpful, if not necessary, in order to file a mechanics lien based on an approved project amount. Note, though, that mechanics liens secure payment for amounts that are owed but unpaid - and, a contractor will generally be entitled to lien a project based on the rates and cost of work set out under their agreement. So, even in a situation where final approval of the project price hasn't been given, it's possible a claimant may be able to file their lien claim on an amount based on what's billable under the contract. Plus, even if some lower price is ultimately agreed upon, a contractor would be able to accept that lesser amount in exchange for releasing their lien. For more on filing a lien where the price of the work is in dispute: Do I Still Have Lien Rights If There Is a Dispute as to What I Am Owed? Mechanics liens are the nuclear option Keep in mind that mechanics liens are usually a last resort. And, things like invoice reminders and even demand letters can be valuable in speeding up payment without the need for an actual lien filing. By showing recipients that nonpayment has become a problem, it may be easier to bring them to the table to talk payment. Taking things a step further with a document like a Notice of Intent to Lien can do the trick, too. A Notice of Intent to Lien acts like a shot over the bow - it informs recipients that, if the issue is not resolved, a mechanics lien will be filed. And, putting pressure on the highest tiers of the party can really help to grease the wheels during payment talks. More on that here: What Is a Notice of Intent to Lien and Should You Send One? For more information on Oregon mechanics lien rights, this is an excellent resource: Oregon Mechanics Lien Guide and FAQs.

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