A material supplier delivers $45,000 worth of materials to a Nevada construction project. The general contractor fails to pay. What is the maximum lien amount the supplier can claim?
Correct Answer
D) $45,000 (full amount)
Under NRS 108, a material supplier can claim a lien for the full amount of materials furnished to the project, which is $45,000.
Why This Is the Correct Answer
NRS 108 entitles a material supplier to file a mechanic's lien for the exact value of materials furnished to the project — no more, no less. The supplier delivered $45,000 in materials, so the maximum lien is $45,000. Nevada lien law is compensatory, not punitive: it restores what was owed, not a penalty amount.
Why the Other Options Are Wrong
Option A: $54,000 (materials plus 20% penalty)
A 20% penalty on top of the materials value ($54,000) has no basis in NRS 108. Mechanic's lien statutes are compensatory, not punitive — they allow recovery of the amount owed for goods furnished, not an inflated penalty figure.
Option B: $49,500 (materials plus 10% interest)
$49,500 adds a 10% interest component to the principal. While interest may be recoverable through a separate legal action, it is not included in the lien amount itself under NRS 108. The lien is limited to the value of materials delivered.
Option C: $40,500 (90% of materials)
$40,500 (90% of materials) has no legal basis. There is no statutory reduction applied to lien claims for material suppliers under NRS 108. This distractor likely preys on confusion with retainage provisions, which apply to contract payments, not lien calculations.
Memory Technique
The lien is a mirror of what you're owed. '$45,000 delivered = $45,000 lien.' Think of it as a legal receipt — you can only claim what the receipt says.
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