Oregon Preliminary Notice FAQs

It depends. There are two different types of preliminary notices that may be required to secure lien rights, depending on the type of project and the claimant’s role on the project; an Information Notice to Owner and a Notice of Right to Lien.

Information Notice

On owner-occupied, residential projects where the contract value is at least $2K (or becomes $2K), any party who contracted directly with the property owner must serve an Information Notice to Owner to secure lien rights.

Notice of Right to Lien

Residential projects

All claimants who didn’t have a direct contract with the property owner must serve a Notice of Right to Lien to secure lien rights.

Commercial projects

claimants who didn’t contract directly with the owner and supply only materials or specially fabricated materials and who did not also install the materials delivered.

Note, however, that a Notice of Right to Lien is not required to the extent that the lien claimant only wishes to seek a claim for his or her labor.  However, it is generally advisable for all potential lien claimants to file this Notice of Right to Lien in order to most fully protect their rights.

Information Notice to Owner

Information Notice to Owner must be delivered at the time of signing the construction contract with the owner. However, if the contract is for less than $2000 originally, and then exceeds the $2000 threshold, the notice must be delivered within 5 days of the date on which the contractor knows or reasonably should know that the contract will exceed $2000.

Notice of Right to Lien

Notice of Right to Lien (both residential and commercial) must be given during the improvement, but no later than 8 business days after the date of first furnishing labor and/or materials to the project.

Information Notice to Owner

Must be served on the property owner, unless the property is sold within 75 days of the completion of the construction. In that case, the notice should also be given to the purchaser.

Notice of Right to Lien

The Notice of Right to Lien should be served on the owner, the mortgagee, and any other party with a recorded security interest in the property.

Information Notice to Owner

The Information Notice must be in the form provided by the Oregon Construction Contractor Board and signed by both the contractor and the owner. It should also include the contractor’s license number.

→ Download a free Oregon Information Notice to Owner form here

Notice of Right to Lien

A Notice of Right to Lien should be in substantially the same form as provided under Or. Rev. Stat. §87.023, and include the following information:

• Date of mailing (if applicable);

• Owner’s name & address;

• Claimant’s name, address, & phone number;

• Hiring party’s name;

• Brief description of labor and/or materials provided;

• Property description; &

• Statutory information regarding liens.

→ Download a free Oregon Notice of Right to Lien form here.

Information Notice to Owner

The Information Notice to Owner may be served by either personal delivery, by registered or certified mail, return receipt requested, or first-class mail as long as a certificate of mailing is provided.

Notice of Right to Lien

A Notice of Right to Lien may be served personally, or by registered/certified mail, return receipt requested.

There is some confusion here. Generally, the preliminary notice is considered delivered when sent, if sent by certified or registered mail, return receipt requested. It is considered delivered when actually received if personally delivered.

It is unclear in the Oregon statutes if there is any consequence if the notice is refused. Therefore, it is best practice to confirm actual receipt.

Information Notice to Owner

The failure to serve a timely Information Notice to Owner forfeits the party’s lien rights and may result in the suspension of the contractor’s license and a civil penalty of up to $5K.

Notice of Right to Lien

If the Notice of Right to Lien is given late, it will still be valid, but it relates back 8 days from the date on which the notice is given. If the notice is never given, the lien claimant may only claim a lien for the cost of his or her labor (and only if the labor and materials are segregated).

A preliminary notice is not required on Oregon public works projects to secure the right to make a claim against the payment bond. However, any party may send notice to promote visibility and communication on a project.

• See: Why to Send a Preliminary Notice Even If Not Required

Additionally, parties will want to get a copy of the payment bond to determine if there are any additional notice requirements contained therein.