A contractor in South Carolina completes $85,000 worth of work but has not been paid. If they file a mechanics lien, what is the maximum amount they can claim?
Correct Answer
B) $85,000 plus interest and costs
Under SC mechanics lien law, contractors can claim the contract amount plus reasonable interest and costs when filing a lien.
Why This Is the Correct Answer
Under South Carolina's mechanics lien statute, a lien claimant may claim the contract amount owed plus reasonable interest that has accrued on the unpaid balance and the costs associated with filing and enforcing the lien. This broader recovery reflects the legislature's intent to make lien claimants whole — not merely recover the bare contract price.
Why the Other Options Are Wrong
Option A: $85,000 only
$85,000 only is too narrow. While the underlying contract amount is the core of the claim, SC law expressly allows interest and costs to be included. Limiting the claim to the face amount of the contract would shortchange the contractor.
Option C: $85,000 plus attorney fees
Attorney fees are generally not recoverable as part of a mechanics lien claim in South Carolina unless the contract itself provides for them or a specific statutory exception applies. Adding attorney fees as a routine component of the lien amount overstates what the statute allows.
Option D: $85,000 plus 10% penalty
A 10% penalty on top of the lien amount is not authorized by South Carolina's mechanics lien statute. Penalty provisions of that type appear in some consumer protection statutes but not in the SC lien law framework.
Memory Technique
Remember 'AIC': Amount + Interest + Costs. Those are the three components of a SC mechanics lien claim. Attorney fees and penalties are NOT part of the standard AIC formula.
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A contractor's insurance policy has a $500,000 general liability limit with a $1,000 deductible. A claim is filed for $15,000 in damages. How much will the contractor pay out of pocket?
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A contractor has 8 employees with a total weekly payroll of $12,000. Using South Carolina's workers compensation rate of $3.50 per $100 of payroll for construction, what is the weekly premium?
