A contractor completes foundation work worth $18,000 on June 1st. The general contractor stops payment on June 20th due to a dispute with the owner. When must the contractor record a mechanics lien to preserve lien rights?
Correct Answer
C) August 30th
The 90-day mechanics lien deadline runs from completion of the work of improvement (June 1st), making the deadline August 30th.
Why This Is the Correct Answer
Under California Civil Code Section 8412, a claimant who is not the direct contractor (i.e., a subcontractor) must record a mechanics lien within 90 days after completion of the work of improvement. The work was completed June 1st, and 90 days later is August 30th. The payment dispute on June 20th does not restart the clock — the deadline runs from completion of work.
Why the Other Options Are Wrong
Option A: November 17th
November 17th is far beyond the 90-day statutory deadline and would result in loss of lien rights. This date may reflect a miscalculation using a different starting point or a longer timeframe.
Option B: September 19th
September 19th exceeds the 90-day window from June 1st. It may reflect a 110-day calculation or confusion with the direct contractor's deadline. Subcontractors have 90 days from completion of work — not 109 or 110 days.
Option D: August 19th
August 19th would be 79 days from June 1st — short of the 90-day window. While filing earlier is always safer, this date reflects a miscalculation of the actual deadline.
Memory Technique
The lien clock starts when the WORK ends, not when the MONEY stops. Count 90 days from June 1st: June has 30 days (29 remaining after June 1st) + July (31) + August (31) = 91 — land on August 30th.
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