Contracts, cancellation, guarantees, and liens

Key Takeaways

  • Written construction contracts are required at $2,000 or more under the aggregation rule.

  • Change agreements must be written and mutual; signatures are not required on change orders.

  • Cancellation generally uses three business days excluding Saturdays, Sundays, and holidays.

  • Lien recording generally uses 75 days from the earlier statutory trigger.

Last updated: October 2026

Note

Written contracts are required at $2,000 or more, including aggregated construction for the same owner and job site over twelve months. Use the current LCB contract checklist and cancellation notice. Contract, cancellation, board-claim, and construction-lien requirements have distinct thresholds and deadlines.

The written contract threshold

Oregon requires a written landscape construction contract at $2,000 or more. Aggregate construction at the same job site for the same owner over twelve months rather than divide one job into invoices to avoid the threshold. A $1,400 planting installation followed by an $800 addition reaches $2,200. The contractor should put the complete agreement in writing when the threshold is reached, and written terms are sound practice even below it.

Identify what is included, excluded, and assumed. A price for “new lawn” does not establish whether it includes removing contaminated fill, irrigation repair, sod disposal, or the first month's watering. Scope language should identify materials and responsibilities sufficiently for the customer and crew to understand the promised work. Keep the customer's accepted version, attachments, plans, and subsequent changes together.

Required terms and change agreements

LCB's contract checklist includes the business name, business license number, physical and mailing addresses, telephone number, customer information, job-site address, general description of work and materials, estimated completion, total price and payment schedule, guarantees or a statement that none are provided, both parties' signatures, and LCB's current address and phone number. It also requires the applicable subcontracting notice and an arbitration statement explaining the effect on board claims and bond recovery.

A change to scope must be documented and agreed to by both parties. Signatures on change orders are not required by LCB; an email or text agreement can meet the written-agreement requirement. Identify the revised work, price, and time effects, record the customer's agreement, and make the approved revision available to the crew. A contractor's unilateral note saying “add $500” is not mutual agreement.

For example, replacing a specified five-gallon shrub with a larger stock size affects material cost, handling, hole size, and possibly establishment care. Obtain agreement on the substitution before buying it. If unexpected rock prevents the proposed trench depth, explain the physical finding and obtain an approved design and price change rather than silently reducing burial depth. LCB contract requirements.

Three-business-day cancellation and consumer notices

Since January 2, 2024, required landscape construction contracts must have LCB's Notice of Right to Cancel attached. The consumer may cancel within three business days; Saturdays, Sundays, and holidays are excluded. This is an LCB contract rule, not merely a rule for a door-to-door sale. Cancellation can be delivered using the methods on the notice, including electronic communication or physical delivery. Use the current form and supplied business contact information.

The right can be waived by the consumer under the notice's waiver provision. Do not tell the customer that it can never be waived, or count Saturday as a business day. For a contract signed on Monday with no intervening holiday, Tuesday, Wednesday, and Thursday are the three business days. Starting work earlier requires the appropriate waiver rather than the contractor assuming that a requested start date eliminates the right.

Residential lien notices serve a separate purpose. The Information Notice to Owner about Construction Liens explains potential lien exposure and must be delivered when required. A cancellation notice does not substitute for a lien notice, and the signed contract does not automatically prove that every required notice was delivered. Preserve copies and delivery evidence.

Guarantees and establishment responsibilities

The contract must state applicable guarantees or state that none are provided. Oregon does not turn every planting contract into a universal one-year survival guarantee. Express warranties should define what is covered, duration, claim procedure, exclusions, and customer care responsibilities. A disclaimer does not authorize negligent work or waive rights that cannot lawfully be waived.

Distinguish a workmanship promise from a plant-replacement promise. A workmanship warranty might cover a defective irrigation splice, while a survival warranty might require documented watering and exclude a later mower injury. Give practical establishment instructions: where to check root-ball moisture, how to operate the controller, and whom to contact when water is not reaching a newly planted tree. Instructions should match actual site conditions; a fixed daily timer setting can drown plants in winter or fail during summer heat.

Document the handoff with controller settings, photographs, product information, and the customer's maintenance responsibilities. A clear closeout record helps evaluate whether a later problem arose from installation, inadequate irrigation, a supply interruption, animal damage, or a changed landscape condition.

Construction liens: notices and distinct clocks

A construction lien is a claim against improved real property for qualifying unpaid labor, material, or equipment. It is different from a claim filed with LCB. Licensure, notice requirements, the claimant's contractual relationship, and recording deadlines affect lien rights. Direct residential contractors must deliver the Information Notice to Owner about Construction Liens when required, including contracts over $2,000 or when charges exceed that amount. Note the difference from LCB's written-contract threshold of $2,000 or more.

Claimants without a direct owner contract generally use a Notice of Right to a Lien. Delivery within eight working days of first furnishing preserves the full period of covered work, subject to statutory exceptions. Later delivery can limit what is protected; it is not safe to assume every unpaid worker has identical notice duties. The LRB guide directs contractors to the official forms and ORS Chapter 87.

Record a lien in the county where the property is located within 75 days after the claimant last furnished labor/materials or substantial completion, whichever occurs first. Do not start this clock from the invoice due date. The 20-day post-recording owner notice protects the ability to recover specified attorney fees and costs; it is not the original lien-recording deadline. A foreclosure action generally must begin within 120 days after recording. The separate pre-suit notice has its own requirements. Legal descriptions, delivery methods, exceptions, and extension provisions matter, so use current forms and obtain legal help before relying on a lien.

Consider a supplier whose last delivery precedes project substantial completion. The earlier delivery date governs its 75-day recording clock. A prime contractor whose last work occurs after substantial completion may instead be governed by the earlier completion date. Track each claimant and trigger separately; a single “project day zero” timeline obscures these distinctions. Oregon construction lien statutes.

Reference table

RequirementImportant distinction
Written landscape contractAt 2,000 dollars or more under aggregation
Change agreementWritten and mutual; signature not required
CancellationThree business days; weekends and holidays excluded
Lien recording75 days from the earlier statutory trigger
Test Your Knowledge

A construction job totals exactly $2,000. Which statement matches LCB's current contract requirements?

A

A written contract is required only above $2,000

B

A written contract is required, and changes need written mutual agreement

C

A change order is valid only with handwritten signatures

D

Saturday counts toward the three-business-day cancellation period

Sections you finish are checked off in the contents.