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How can we break out subcontractor costs from labor only?

Oregon state requires a labor only breakout total, but we also use subs in our work. How does this get handled when there is only one field for the labor only total and no other line items to account for subs. Considering we don't always know what part of their work is labor vs. materials, we just want to be sure we are as accurate as possible when sending liens.

1 reply

Jan 2, 2020

Oregon doesn't necessarily require that the amount of labor be broken out. However, to the extent that a mechanics lien claim represents labor done by the lien claimant, that portion of the lien claim will actually have super priority over some other rights to payment. As a result, it's generally good practice to indicate what amount of the lien, if any, represents labor done. With that being said - the breakout of labor refers to labor actually done by the lien claimant, themselves. So, a contractor is entitled to indicate the amount of labor they've personally done and then benefit from super priority on those portions. But, a contractor won't be able to receive that same benefit for the labor done by the subcontractors they hire. But, to be sure: an Oregon mechanics lien can be perfectly valid even if the specific labor amount isn't indicated on the lien.

Additional resources on Oregon mechanics liens and super priority

For a little more discussion on Oregon liens and super priority, these resources should provide some insight: - Oregon Mechanics Lien Guide and FAQs - Top Oregon Lien Mistakes | Jordan Ramis - How to File an Oregon Mechanics Lien – Step By Step Guide To Get You Paid

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