Lien times hit construction

| Print |  Email
Archives - November 2008
Saturday, November 01, 2008

SeymourCourt Sophia’s View on Seymour Court: an ambitious project hit by construction liens.

STATEWIDE The steep hillside overlooking the Willamette River is a Portland residential community without residents. On one side of Seymour Court, all of the newly built homes are either for sale or for rent. On the other side of the street, seven townhouses and eight condominiums stand not quite finished, an ambitious project swamped by construction liens.

It’s an increasingly common scene in once-hot real estate markets from Eugene to Portland to Bend. Construction liens have doubled in Multnomah County and tripled in Washington County, and while other major metro counties throughout Oregon do not track those pleas for payment specifically, the anecdotal evidence suggests that the love affair between banks, developers, builders, suppliers and subcontractors is officially over.

“It’s not good when you don’t get your money,” says Mike Reed, a project manager for Pagh Custom Woodworking in Sandy. “Nobody likes to work for free.”

Pagh is one of a dozen or so subcontractors to file liens over the restoration of Block 90 of Portland’s Pearl District. The four-person shop is owed $47,120 and Reed is worried that the company may end up eating it. The point of a construction lien is to give debtors an incentive to pay the bills in order to complete the project. But in the case of Block 90, work was already finished by the time Pagh, Cascade Plumbing, Herinck Painting and other subcontractors filed their liens.

Even if a lien halts a project, there is no guarantee the money will follow. Milwaukie-based Trinity Carpet Brokers learned that the hard way, going bankrupt earlier this year after performing $1 million of unpaid work for Renaissance Homes. Renaissance has followed Trinity into bankruptcy, along with Legend Homes, formerly one of the largest homebuilders in Oregon.

Smaller subcontractors and suppliers hoping to avoid similar fates are growing increasingly aggressive in filing liens. Wilsonville Concrete Products recently filed six in a single day. “It’s our only way to protect our interests,” says general manager George Adams.

Canby-based Roth Heating and Cooling has filed “so many I can’t keep track,” says owner Kory MacGregor, who has had to lay off 60 employees over the past year.

And then there is the granddaddy of all Oregon construction liens: the $15.8 million owed to Hoffman Construction by the developers of Portland’s 194-condo Waterfront Pearl. Hoffman vice president Bart Eberwein says it is by far the largest lien the company has filed. If the bill is not paid, Hoffman could end up owning the entire development. “We try to avoid situations like this,” says Eberwein, “because the whole thing just trickles down and people get hurt.”

Hoffman is also ensnared in another high-profile project being torpedoed by liens, The Nines hotel above Macy’s in downtown Portland. Two subcontractors filed liens for a combined $6.5 million just days after invitations went out to the high-priced hotel’s grand opening in late October.                                           

BEN JACKLET


Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

 

More Articles

Nine lives

Linda Baker
Friday, May 22, 2015
0f4f7bfBY LINDA BAKER | EDITOR

Roy Kaufmann always lands on his feet.


Read more...

An uncertain future

Guest Blog
Thursday, May 21, 2015
norristhumbBY JASON NORRIS | GUEST BLOGGER

Uncertainty is a part of doing business, whether in through the lens of investment opportunities and risks or the business of running an enterprise.


Read more...

100 Best Green Workplaces in Oregon

June 2015
Friday, May 22, 2015
BY KIM MOORE

As momentum grows at the state level to introduce far-reaching environmental regulations, such as carbon pricing and the Clean Fuels Program, Oregon employers continue to go the extra mile to create green workplaces for their employees.


Read more...

The Backstory: Portland Youth Builders

The Latest
Wednesday, June 03, 2015
blog002 1BY JASON E. KAPLAN | STAFF PHOTOGRAPHER

As part of our green workplaces story, Oregon Business checked out a community service project undertaken by Portland Youth Builders, a nonprofit alternative high school. In partnership with Whole Foods, PYB built garden boxes for a Home Forward  housing site. Home Forward is a government agency that provides housing for low income residents and people with disabilities.


Read more...

The ancient fish that stops bullets

The Latest
Friday, May 08, 2015
hagfishthumbBY CHRIS NOBLE | PHOTOS BY JASON E. KAPLAN

Hagfish may not have evolved much over the last 300 million years, but their protein-heavy slime promises advances in super-materials.


Read more...

Stemming the tide of money in politics

Linda Baker
Wednesday, June 10, 2015
 jeff-lang-2012-thumbBY LINDA BAKER

Jeff Lang and his wife Rae used to dole out campaign checks like candy.  “We were like alcoholics,” Lang says. ”We couldn’t just give a little.”


Read more...

5 things to know about veterans in the workforce

The Latest
Wednesday, July 01, 2015
070215-vetsthumbBY JACOB PALMER | DIGITAL NEWS EDITOR

There are more than 10 million former military members working in the United States.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS