Oregon Construction Contractors (CCB) Practice Test

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When must a contractor notify clients of lien filing?

Only after filing the lien
In the contract clause
Before they file a lawsuit to foreclose
At the beginning of the project

The correct answer is: Before they file a lawsuit to foreclose

A contractor must notify clients of a lien filing before they file a lawsuit to foreclose to ensure compliance with statutory requirements and protect the rights of all parties involved. This notification serves as a last warning to the property owner that the contractor intends to pursue legal action if payment issues are not resolved. It allows the client an opportunity to settle any outstanding payments or disputes before the situation escalates to legal proceedings. This process is crucial in maintaining transparency and communication between the contractor and the client. It also helps prevent surprises and potential disputes later on, promoting better working relationships within the contractual framework. Failure to provide this notification could adversely affect the contractor's legal standing should the matter require court intervention. Therefore, notifying the client before filing a lawsuit is a critical step in the lien process within the construction industry.