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Notice to Owner Oregon

OregonNotice of Intent to Lien

Contracted to supply vertical turbine pumps and start up services once pumps installed. Pumps supplied in November 2020. Pumps are supposed to be installed June 1 and startup services are to take place. They have paid progress payments but are holding last 10% . Is it too late to file a Notice to owner? This is for a City in Oregon. We also supplied pumps for a 2nd part of the project and that is not scheduled until 2022, but they have our equipment in storage. Timeframes are past contracted date and no amendments have been filed.

1 reply

May 18, 2021

You mentioned that the work is "for a City in Oregon." Note that, if this project is publicly owned (i.e. for an arm of the state, county, or municipal government there), then mechanics lien claims typically won't be available to anyone on the job. Public property is generally not subject to mechanics lien claims. Rather, as discussed in the following article, payment bond claims are often available to secure payment: The Difference Between Public and Private Projects.

Parties hired directly by the public entity must typically provide payment bonds to protect all suppliers, subcontractors, and others on the job. If you were hired by someone other than the public entity, then a payment bond claim could be on the table. But, if you were hired directly by the public entity, then a payment bond generally won't be an option since the public entity, itself, will likely not be involved with securing the bond. For more information on Oregon payment bond claims, like the deadline for pursuing a claim, and how to pursue these claims: Oregon Bond Claim Guide and FAQs. Note also that there are no preliminary notice rules for payment bond claims in Oregon - so, if a payment bond claim will be an option, then there's no preliminary notice deadline to worry about.

Unfortunately, parties hired directly by a public entity generally have pretty limited payment recovery options, as discussed here: A Public Entity Hired Me on a Construction Project – What Happens If I Don’t Get Paid? Still, sending the public entity a payment claim might be useful. Threatening to make lien or bond claims, to pursue a lawsuit, etc. could work when negotiating the partial or full release of retainage. Offering to submit a retainage bond could be a useful trading chip in that endeavor, too. Here's an article that might provide some value in alternative claims: Can’t File a Lien? Here Are Some Other Options For Recovery.

Finally, considering that this sounds like a pretty substantial project and sum, reaching out to an Oregon construction lawyer for additional guidance or help negotiating the release of retainage might be useful. You can find a directory of Oregon attorneys here: Top Oregon Construction Lawyers.

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