Oregon Construction Contractors (CCB) Practice Test

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What is one purpose of Oregon construction lien law?

  1. To penalize contractors for mistakes

  2. To prevent double payment for the same work

  3. To ensure contractors carry insurance

  4. To provide a ratings system for contractors

The correct answer is: To prevent double payment for the same work

One purpose of Oregon construction lien law is to prevent double payment for the same work. This legal framework is designed to protect the interests of contractors, subcontractors, and suppliers by ensuring that they can claim a lien against a property if they have not been paid for their work. It establishes a mechanism through which those who provide labor or materials can secure their payments, effectively ensuring that the owner of the property does not pay for the same labor or materials to multiple parties. The construction lien serves as a security interest in the property for the unpaid amount owed, which helps maintain a fair transaction environment within the construction industry. By preventing double payments, the lien law safeguards the rights of all parties involved and encourages prompt payment practices among property owners and contractors. This legal protection fosters trust and accountability, which are essential in construction projects.