Home Back Issues November 2008 Lien times hit construction

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

The short list: 5 hot coffee shops for entrepreneurs

Contributed Blogs
Friday, November 14, 2014

CupojoeBY JESSICA RIDGWAY

Oregon entrepreneurs reveal their favorite caffeine hangouts.


Read more...

The 100 Best Companies survey is open

News
Friday, October 24, 2014

100-best-logo-2015 500pxw-1How does your workplace stack up against competitors? How can you improve workplace practices to help recruit and retain employees? Find out by taking our 100 Best Companies to Work for in Oregon survey!


Read more...

Measure 91: What Oregon Businesses Need to Know

Contributed Blogs
Wednesday, October 15, 2014
91 thumbBY DIANE BUISMAN

Some common misconceptions employers have about marijuana.


Read more...

Gone Girl

News
Monday, September 29, 2014
roundup-logo-thumb-14BY LINDA BAKER | OB EDITOR

Wehby disappears, Kitzhaber fails to disclose and Seattle gets bike share before Portland.


Read more...

The Bookseller

November/December 2014
Wednesday, October 22, 2014
BY AMY MILSHTEIN

Everyone knows college is expensive, but a look at the numbers brings that into sharp — and painful — focus.


Read more...

Political Clout

November/December 2014
Wednesday, October 22, 2014
BY KIM MOORE

Businesses spend billions of dollars each year trying to influence political decision makers by piling money into campaigns.


Read more...

Two Sides of the Coin

Contributed Blogs
Wednesday, October 22, 2014
22 twosidesBY JASON NORRIS

Historically, when the leaves fall, so do the markets. This year, earnings, Europe, energy and Ebola have in common? Beyond alliteration, they are four factors that the investors are pointing to for this year’s seasonal volatility.


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