Oregon Construction Contractors (CCB) Practice Test

What triggers the process of asserting a construction lien?

1. Completing a building inspection

2. Lack of payment for services rendered

3. Filing for bankruptcy

4. Contract completion

The correct answer is: Lack of payment for services rendered

The process of asserting a construction lien is fundamentally triggered by a lack of payment for services rendered. In the construction industry, a lien serves as a legal claim against a property to secure payment for work performed or materials supplied. When a contractor, subcontractor, or supplier has not been compensated for their services, they have the right to file a lien against the property that benefited from their work. This process serves to protect the interests of those who contribute to the construction and maintenance of real estate by providing them with a mechanism to seek payment. While completing a building inspection, filing for bankruptcy, or contract completion can involve various legal and financial implications, they do not directly initiate the lien process. The pressing issue of unpaid services directly necessitates the need for a lien as a remedy to ensure that those who have not received payment can assert their rights over the property in question.