A contractor performs $85,000 worth of work on a residential project in Honolulu. Under HRS 507, what is the maximum mechanics lien amount that can be filed if the contractor is not paid?
Correct Answer
A) $85,000
Under HRS 507, a contractor can file a mechanics lien for the full amount of unpaid work performed, which in this case would be the entire $85,000.
Why This Is the Correct Answer
Under HRS Chapter 507, a contractor who performs work and is not paid is entitled to file a mechanics lien for the full value of the labor and materials provided — in this case the entire $85,000.
Why the Other Options Are Wrong
Option B: $25,500
$25,500 represents 30% of $85,000. There is no such percentage cap under HRS 507 for the prime contractor's own unpaid work.
Option C: $42,500
$42,500 represents 50% of $85,000. HRS 507 does not limit a prime contractor to half the work's value.
Option D: $17,000
$17,000 represents 20% of $85,000. This figure has no basis in Hawaii mechanics lien law.
Memory Technique
Think: 'You did the work, you deserve the full amount.' Under HRS 507, the lien equals what you're owed — dollar for dollar, no haircut for a prime contractor.
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