A Hawaii contractor completes $85,000 worth of work but is not paid. Under HRS 507, what is the maximum mechanics lien amount that can be filed?
Correct Answer
A) $85,000
Under HRS 507, a mechanics lien can be filed for the full amount of work performed and materials furnished, which is $85,000.
Why This Is the Correct Answer
Under Hawaii Revised Statutes Chapter 507, a mechanics lien may be filed for the full contract value of labor performed and materials furnished. Since the contractor completed $85,000 worth of work, the lien amount equals exactly $85,000 — the full unpaid sum.
Why the Other Options Are Wrong
Option B: $68,000
$68,000 represents 80% of $85,000. There is no statutory reduction to 80% under HRS 507. This distractor may suggest a retention holdback concept, but that does not reduce the lien ceiling.
Option C: $76,500
$76,500 represents 90% of $85,000. Again, no 10% reduction applies to the maximum lien amount under HRS 507. This figure has no legal basis under the statute.
Option D: $93,500
$93,500 exceeds the work performed. A mechanics lien cannot exceed the value of work actually completed and materials furnished. Claiming more than the contract value would be invalid and subject to penalties.
Memory Technique
Mechanics lien = what you did, what you're owed. No haircut, no percentage — the lien mirrors the unpaid contract value. If you did $85k of work and got $0, you can lien for $85k.
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