Oregon Construction Contractors (CCB) Practice Test

Which of the following is NOT a reason for needing a Notice of Right to Lien?

1. To ensure payment

2. To notify property owners

3. To halt construction

4. To preserve lien rights

The correct answer is: To halt construction

The reason a Notice of Right to Lien is not associated with halting construction is grounded in its primary purpose, which focuses on preserving the rights of contractors, subcontractors, and material suppliers to collect payment for their services and materials. The Notice is a legal document that informs property owners about the potential for a lien being placed on their property if payments are not made. While ensuring payment, notifying property owners, and preserving lien rights are crucial components of the construction process, the act of halting construction usually involves separate legal processes, such as obtaining a court injunction or an order. A Notice of Right to Lien itself does not have the authority to stop work on a project; rather, it serves as a warning that a lien may be pursued if financial disputes arise. Thus, the connection with payment and communication with property owners is strong, while the concept of stopping construction falls outside the notice's intended function.