Oregon Construction Contractors (CCB) Practice Test

What is the main purpose of a valid construction lien?

1. To secure the right to receive payment

2. To provide insurance for construction work

3. To define contractor obligations

4. To create a contract amendment

The correct answer is: To secure the right to receive payment

The main purpose of a valid construction lien is to secure the right to receive payment for construction work performed or materials supplied. When a contractor, subcontractor, or supplier files a lien, it establishes a legal claim against the property where the work was completed. This claim serves as a guarantee that if payment is not made for the services rendered or materials provided, the lien holder has a right to seek compensation through the property itself, which can include foreclosure proceedings. The construction lien thus acts as a powerful tool for ensuring that parties involved in construction projects are compensated for their contributions. In contrast, options related to providing insurance, defining contractor obligations, or creating contract amendments do not encapsulate the primary function of a construction lien, as these concepts pertain to different aspects of construction law and project management. A construction lien is specifically a mechanism to ensure payment, distinguishing it from those other functions.