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Oregon Preliminary Notice FAQs

Fact-checked by the Levelset Legal Team
Last updated November 19, 2024
Sending an Oregon preliminary notice is an effective way to speed up payment on a construction project. A preliminary notice is an informational document typically sent to the property owner near the beginning of a construction project. Here's what you need to know about the rules and requirements for sending preliminary notice in Oregon.

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Oregon preliminary notice requirements for:

  • Prime contractors

Private projects

General contractors must send information notices to owner.

  • Notice must be sent at time of contract
  • Information notice may NOT be sent late
  • Notice is sent to owner, mortgagee, and others with interest.

If the project is valued over $2,000, the informational notice must be sent at the time of the contract's execution. If it starts under $2,000 but rises over $2,000 after the contract starts, the notice must be sent within 5 days after finding out about the increased contract value.

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Public projects

GCs aren't required to send notice on public projects.

Since GCs will not make a claim against their own bond for non-payment, they do not have bond claim rights, and have no preliminary notice requirement.

Private projects

Subcontractors and suppliers are required to send a notice of right to lien on private projects.

  • Notice must be sent within 8 days
  • Notice CAN be sent late
  • Notice is sent to owner, mortgagee, or other interested party

While only some material suppliers are required to send notice on commercial projects, it is best practice for all suppliers to send the preliminary notice of right to lien on all commercial projects, as well.

Send a Notice

Public projects

Subs and suppliers do not need to send a preliminary notice on public projects.

However, sending preliminary notice even when not required is generally beneficial to promote visibility, open channels for communication, and streamline payment.

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Preliminary Notice Frequently Asked Questions

If you're working on projects Oregon, you may need to send preliminary notice. And if you need to send preliminary notice in Oregon you need to have all the details down because those notices must be sent quickly. If you're receiving prelims, it's important to know what you're looking at and know what to do in followup. Since prelims are subject to a lot of complex rules and requirements, in Oregon, and the deadlines are so quick, this can all be difficult. Here are some frequently asked questions (and answers) about the Oregon preliminary notice process.

Prelim FAQs on Private Projects

Who needs to send an Oregon preliminary notice on private projects?

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.

What’s the deadline to send an Oregon preliminary notice?

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.

Who do I need to send an Oregon preliminary notice to?

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.

What information is required on a preliminary notice in Oregon?

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.

How should a preliminary notice be sent in Oregon?

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.

Is the Oregon preliminary notice considered served when sent or when received?

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.

What if I send a preliminary notice late on private projects in Oregon?

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).

Public Jobs

Who needs to send an Oregon preliminary notice on public projects?

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.

People are asking Oregon construction attorneys:

Are Notices of Right to Lien a common and standard practice in Oregon?

Sending a Notice of Right to Lien in Oregon is a relatively common practice. This notice is required by law to be sent by subcontractors and suppliers on most residential projects to secure the right to file a lien; if and when a payment problem that arises on the project. 

I agree that seeing the term "lien" on any legal document can be unsettling. But keep in mind that a preliminary notice is not any indication of any payment issues or perceived financial problems. Consider it a proactive means to ensure that the company is going to get paid on the project. Some companies generate them for every project, others send them only on projects over a predetermined dollar amount, and some don't send them at all. But as a property owner, there is no cause for concern when a preliminary notice is received.

In fact, besides securing the ability to file a lien if unpaid, it also offers valuable information and points of contact to property owners and general contractors about who is involved on the project, and what they are providing. That way both the owner and GC can ensure that they are getting paid, and requesting a lien waiver when they're paid to ensure that no claims are filed against the property.

Here are some other resources that may help:

Can I still file a lien

Assuming this is a residential project, contractors hired directly by the property owner will need to provide an Information Notice to Owner if the project exceeds $2,000. That notice is given at the time the contract is signed. If the notice is not given, mechanics lien rights won't be available. For commercial jobs, contractors hired directly by the owner won't need to send preliminary notices in order to preserve the right to file a mechanics lien. You can learn the finer details of these notice requirements here: Oregon Preliminary Notice FAQs.

Still, even if mechanics lien rights aren't on the table, other options could lead to payment - like sending invoice reminders or demand letters. Further actions can be useful, too - like the ones discussed here: Can’t File a Lien? Here Are Some Other Options For Recovery.

Preliminary Notice timeline on Emergency Services

It sounds like you might be referring to either Oregon's Information Notice to Owner or the Notice of Right to Lien. Though, it's worth clarifying the timeline for sending those notices. If these weren't the notices you were referring to, feel free to contact one of these Oregon construction lawyers for additional clarity: Find a Oregon Construction Lawyer. Or, you can post additional information below. For the basics on Oregon's preliminary notice requirements: Oregon Preliminary Notice Guide and FAQs.

Oregon Information Notice to Owner

If you're hired directly by the property owner, an Information Notice to Owner will be required on owner-occupied residential projects exceeding $2,000. The notice should generally either be included right in the contract itself, or sent within 10 days of signing the contract. If the project was originally supposed to be less than $2,000, but then exceeds that threshold - notice must be given within 5 days. But, to avoid that issue, it's better to simply provide the notice on all owner-occupied residential jobs.

Oregon Notice of Right to Lien

A Notice of Right to Lien is required for parties hired by someone other than the owner on an owner-occupied residential project. The notice is also required for suppliers & specialty material manufacturers on commercial jobs. This notice must be sent within 8 days of beginning work.

What to do when notice timelines are tight

First, note that neither notice is required days before the project begins. Still, the timelines are tight. For the Information Notice to Owner, it might be wise to either make that a part of the form contract being used, or to carry blank copies of the notice to execute along with the contract, separately. Still, even if that's not done, there are a few days to get that sent. For the Notice of Right to Lien, there's a little more flexibility since it isn't sent until after work begins. Still, having the notice ready to go right when work begins could avoid potential pitfalls. In any event, here are free, downloadable templates for both notices which might come in handy: - Oregon Information Notice to Owner Form - Oregon Notice of Right to Lien Form

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About Oregon Preliminary Notices

Oregon has the distinction of having extremely quick preliminary notice deadlines. Other than situations in which preliminary notice must be contained within a contract (Oregon has this, too), or delivered prior to furnishing labor or materials, Oregon takes the cake for short deadlines.

It’s imperative to get preliminary notice out quickly. As noted above, Oregon has the shortest preliminary notice deadline in the country. For any project participants other than parties who contracted directly with the property owner, preliminary notice (also known as a Notice of Right to Lien, in Oregon) on a residential project, must be sent within 8 days of first furnishing to the project. This is very, very quick, and a project participant who doesn’t have all their duck in a row can see that deadline fly by before they know it.

On commercial projects, the only parties specifically required to provide preliminary notice are material suppliers (including specially fabricated materials) who did contract directly with the property owner and who did not also install the materials delivered. 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. The deadline to deliver this notice is also 8 days from first furnishing labor or materials to the project.

For parties that do contract directly with the property owner, the only preliminary notice requirement is for residential projects. When working on a residential project exceeding $2,000, general contractors must deliver an Information Notice to Owner at the time of signing the contract with the owner, or within 5 days of the date of when the contractor knows that the contract will exceed $2000. The form of this notice is specifically set out by the contractor’s board, and the template must be used.

How to send preliminary notice in Oregon (DIY)

1

Read the guide

Read the guide
Construction payment Oregon

First, read the guide to preliminary notices in Oregon. The guide leads you through the form itself, showing you which information you need to include and how the information should be presented. You can also use the guide to find out which form you must send and when it needs to be sent.

2

Download the right form

Download the right form
Preliminary notice form download

There are two preliminary notice forms in Oregon. For owner-occupied residential projects, contractors generally must send a Notice of Right to Lien as well as an Information Notice to Owner.

The notice of right to lien is sent by all parties, and the information notice is sent by parties who contracted directly with the owner. Therefore, the type of form you send depends on who you’re contracted with.

Levelset’s free forms are written by construction attorneys to meet the strict requirements under Oregon statutes. Download the form you need for free.

3

Fill the form out

Be careful! Accuracy is important.
Filling out a preliminary notice

Make sure you get this part right! Mistakes when preparing your preliminary notice in Oregon could eliminate your right to file a mechanics lien if needed down the line. Include all the required information and make sure everything is 100% correct and accurate.

4

Deliver the notice

Send a preliminary notice

Both the notice of right to lien and the information notice may be sent by certified mail return receipt requested, registered mail, or personal service.

Make sure you retain proof that the notice was mailed.

How to send a Preliminary Notice with Levelset
1

Select Preliminary Notice document.

2

Provide basic job information.

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