Oregon Construction Contractors (CCB) Practice Test

What is the purpose of Oregon's lien law?

1. To provide tax incentives for contractors

2. To ensure people adding value to real property are compensated

3. To enforce safety regulations on job sites

4. To standardize building codes across Oregon

The correct answer is: To ensure people adding value to real property are compensated

The purpose of Oregon's lien law is to ensure that individuals or entities who provide labor or materials in the improvement of real property are compensated for their efforts. This law establishes a legal framework that allows these parties to file a lien against the property if they are not paid, creating a security interest in the property for the amount owed. This mechanism serves to protect the rights of contractors, subcontractors, suppliers, and laborers by giving them recourse to seek payment, thereby encouraging a fair and just payment structure in the construction industry. The other options do not accurately reflect the core purpose of the lien law. Tax incentives are unrelated to the lien mechanisms; safety regulations pertain to the health and safety standards required on job sites; and standardized building codes address construction quality and methods rather than payment protections. This distinction highlights the primary role of lien laws in promoting fair compensation and protecting those who contribute to property improvements.