Negotiate and sign the GC contract

The procedure in three parts

Oregon's construction-lien procedure under ORS Chapter 87 has three working parts that operate together:

1. A 75-day filing window measured from completion of the construction or the claimant's last labor or materials.
2. A pre-claim notice that material suppliers and certain subs (not the prime GC) have to deliver early in their work.
3. A waiver procedure — conditional waivers at each progress payment, unconditional final waivers at completion — that releases lien rights as payments flow through.

Anyone who furnishes labor or materials to an improvement on your property — GC, sub, supplier — has lien rights under ORS Chapter 87. Liens are recorded with the Multnomah County recorder and stay on title until released. The waiver procedure is how lien rights get released as payments flow through.

The 75-day clock

Under ORS 87.035, a claimant has 75 days to perfect a construction lien — measured from the earliest of:

• The date construction is completed.
• The date the claimant ceased to provide labor or materials.
• The date the owner files a Notice of Completion (which the owner can record under ORS 87.045 to start a 75-day clock).

After 75 days with no recording, the lien right expires.

For a Portland addition: substantial completion isn't the all-clear. Title is fully clear 75 days after the last sub leaves the site — usually the landscape, paving, or punch-list crew, not the GC. Filing a Notice of Completion is the owner's tool to start that clock predictably.

Pre-claim notice (ORS 87.021)

Under ORS 87.021, most material suppliers and certain subs (not the GC you contracted with directly) must deliver a Notice of Right to Lien to the owner within 8 business days of first delivering labor or materials. Without timely delivery, the supplier or sub loses lien rights against your property for those deliveries.

Getting one of these during construction is routine — it's a procedural protection, not a dispute. Treat it as a signal that the sender is on the property and add them to the waiver list for upcoming draws. The notice typically arrives by certified mail or hand-delivered.

The Information Notice to Owner — separate but related

Don't confuse the Notice of Right to Lien (from a sub or supplier, ORS 87.021) with the Information Notice to Owner (from the GC at contract signing, ORS 87.018). Both are statutory and both protect homeowners. The first tells you a specific sub or supplier is on the project; the second is a general explanation of lien procedure that the GC delivers to you once.

The lien waiver schedule

Two waivers, two stages:

Waiver type	When	Who signs	What it does
Conditional waiver upon progress payment	At each progress payment	GC + every sub/supplier on that draw	Releases lien rights conditional on the check clearing. Standard practice.
Unconditional waiver upon final payment	At final payment	GC + every sub/supplier who worked the project	Releases lien rights absolutely. Get this from everyone before final disbursement.

Oregon doesn't have statutory waiver forms the way California or Washington do — but courts recognize industry-standard waiver language. Your attorney can supply forms; the AGC publishes a commonly-used set.

How to operate the schedule

1. In the GC contract, require a current sub list with each progress draw.
2. For each progress draw, the GC delivers (a) signed conditional waivers from every sub/supplier on that draw plus (b) a signed conditional from the GC for their own scope. The bank/lender disbursement is conditioned on receipt.
3. At final payment, switch to unconditional final waivers from every sub and supplier who appeared on any draw, plus unconditional final from the GC. Hold final retainage until all are received.
4. File a Notice of Completion under ORS 87.045 to start the 75-day clock predictably. Then run the clock anyway — even with full waivers, monitor the Multnomah County recorder for liens for 75 days from the last on-site work. Recording a lien against a fully-waived project is rare but happens.

Why this matters more on additions

Additions tend to have more discovered-condition subs (abatement, knob-and-tube remediation, foundation specialists) than new-construction projects. More subs means more pre-claim notices to track and more waivers to collect. Build the schedule into the GC contract from the start.

When this matters most

• Cost-plus contracts without a tight waiver schedule. You pay the GC, the GC pays subs late, subs record liens. You've paid in full and still have clouded title.
• Refinancing or selling within a year of completion. Title companies ask about pending or recently-released liens. A clean waiver file at handoff makes it a 10-minute conversation.
• Bankruptcy of the GC during the project. Subs paid through the GC may not have been paid; their lien rights are against your property, not the GC's bankruptcy estate.

Informational framing

This is general information about Oregon construction-lien procedure. It's not legal advice and doesn't establish an attorney-client relationship. For waiver language specific to your contract, or if you receive a recorded lien, consult an attorney licensed in Oregon — verify via the Oregon State Bar member directory.