A contractor performs $50,000 worth of work but is only paid $35,000. If the contractor files a mechanics' lien for the unpaid balance, what amount can be claimed?
Correct Answer
B) $15,000
The unpaid balance is $50,000 - $35,000 = $15,000, which is the maximum amount that can be claimed in the mechanics' lien.
Why This Is the Correct Answer
The mechanics' lien can only be filed for the actual unpaid balance owed. $50,000 (total work) minus $35,000 (amount paid) = $15,000 unpaid. Georgia law limits the lien claim to the amount legitimately owed, not a punitive or inflated figure.
Why the Other Options Are Wrong
Option A: $20,000
$20,000 is incorrect. There is no basis for this figure — it does not result from any standard calculation using the numbers given ($50,000 - $35,000 = $15,000, not $20,000). A lien cannot exceed the actual unpaid amount.
Option C: $25,000
$25,000 is incorrect. This figure represents half the total contract value, not the unpaid balance. Liens are limited strictly to the amount of unpaid compensation, not a portion of the contract total.
Option D: $10,000
$10,000 is incorrect. This is less than the actual unpaid balance and has no basis in the given facts. Claimants are entitled to file for the full unpaid amount, and understating the lien would leave the contractor under-compensated.
Memory Technique
Think of a mechanics' lien like a receipt for what you haven't been paid yet. The lien = What You Did ($50,000) minus What You Got ($35,000) = What You're Owed ($15,000). No more, no less.
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