Late Fees on Invoices in Oregon
What Oregon contractors and small businesses need to know about charging late fees, interest rates, prompt payment laws, and mechanics lien deadlines.
Max Interest Rate
9% per annum (default legal rate); 12% maximum for non-exempt transactions
Small Claims Limit
$10,000
Small Claims Department (Justice Court or Circuit Court)
Mechanics Lien Deadline
75 days from the date the construction lien is perfected (completion or cessation of work)
Oregon Prompt Payment Act
Oregon Prompt Payment Act, ORS § 279C.570 et seq.
Oregon requires public bodies to pay within 30 days. The Prompt Payment Act applies to both public and private construction, with interest on late payments.
Late fee rules for Oregon invoices
Oregon allows reasonable contractual late fees. The Prompt Payment Act provides statutory remedies including interest and attorney fees for construction payments.
Oregon's default legal interest rate is 9% per annum. The maximum rate for most transactions is 12% per annum. Business-to-business contracts may specify higher rates.
Important disclaimer
This page provides general information about Oregon late fee rules. It is not legal advice. Laws change, and your specific situation may have unique factors. For disputes involving significant amounts, consult a licensed attorney in Oregon.
Demand letters and mechanics liens in Oregon
Oregon requires an Information Notice to the property owner within 8 working days of first furnishing. A demand letter is recommended before filing the lien.
Mechanics lien deadline: 75 days from the date the construction lien is perfected (completion or cessation of work). An Information Notice to Owner must be given within 8 working days.
Sample late fee clause for Oregon invoices
“Payment is due within the terms specified above. A late fee of 1.5% per month (9% per annum (default legal rate); 12% maximum for non-exempt transactions maximum per Oregon law) will be applied to all balances remaining unpaid after the due date. Pursuant to Oregon Revised Statutes § 87.010 et seq. (Construction Liens), the undersigned reserves all rights to pursue collection including but not limited to mechanics lien filing, small claims action (up to $10,000 in Small Claims Department (Justice Court or Circuit Court)), and referral to collections.”
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Start Free TrialFrequently asked questions — Oregon
What is the maximum late fee I can charge on an invoice in Oregon?▾
In Oregon, Oregon's default legal interest rate is 9% per annum. The maximum rate for most transactions is 12% per annum. Business-to-business contracts may specify higher rates. Always disclose late fee terms in your contract or invoice before work begins.
Does Oregon have a prompt payment act?▾
Yes. Oregon requires public bodies to pay within 30 days. The Prompt Payment Act applies to both public and private construction, with interest on late payments.
What is the small claims court limit in Oregon?▾
The small claims court limit in Oregon is $10,000. Claims are filed in Small Claims Department (Justice Court or Circuit Court). You generally do not need an attorney for small claims.
How long do I have to file a mechanics lien in Oregon?▾
In Oregon, 75 days from the date the construction lien is perfected (completion or cessation of work). An Information Notice to Owner must be given within 8 working days.
Do I need to send a demand letter before filing a lien in Oregon?▾
Oregon requires an Information Notice to the property owner within 8 working days of first furnishing. A demand letter is recommended before filing the lien.