Posted on July 1, 2009 by Marcus Eyth

The Construction Contractors Board: A Viable Option

No doubt, the economic downturn has affected the construction industry in many ways.

One problem is that some overstretched contractors are not paying their subs from the money they receive from building owners.  Not surprisingly, subcontractors have been busy filing liens, and usually recovering on them.  

What can owners do who are forced to pay twice (to the sub and the contractor) other than engaging in lengthy and expensive litigation?

Try filing a Complaint with Construction Contractors Board (CCB), which offers attractive benefits, including:

  • limited filing fees
  • possible recovery of attorneys fees and costs
  • quicker resolution (no protracted litigation)
  • simpler and less formal hearing procedures (hearsay evidence admissible)
  • $20,000 recovery through contractor's bond if successful

Yes, there IS a pot of money  if you win, even if the overstretched contractor is on the brink of going belly-up.  In Oregon, succesful CCB claimants simply submit the CCB decision to the surety and get paid.

Not a bad option, at least when your claim is not too far in excess of  the $20,000 bond requirement. 

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Posted on June 26, 2009 by Marcus Eyth

Owner Payment To Contractor Still No Defense To Subcontractor Lien Claim

Lien laws in most jurisdictions provide the Building Owner with a defense to a subcontractor lien if the Owner has paid the contractor for that subcontractor's work.  But not in Oregon.  Here, Owners may end up paying twice if the general contractor fails to pay its sub from funds the Owner has already paid to the general contractor.

Not fair?  Certainly not from an Owner's perspective.

A bill amending Oregon lien law circulated in the legislature over the last couple of months addressing this issue.  The new law would require a court to:

dissallow the lien if the owner proves that the owner paid the contractor for materials, equipment, labor, or services that are the basis for the lien

(See page 4). 

But subcontractors breathed a big sigh of relief when the bill died in the Oregon Senate.   The status quo remains: Owners continue to have no legal defense to subcontractor liens even if the Owner has already paid the general contractor.

Reminder of the day for Owners:  get proper lien and claim waivers from general contractors and subcontractors for all payments.

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