A subcontractor performs $45,000 worth of electrical work on a commercial project in Charleston. The general contractor fails to pay. What is the required bond amount to contest the mechanics lien?
Correct Answer
C) $67,500
South Carolina requires a bond of 150% of the lien amount to contest. $45,000 × 1.5 = $67,500.
Why This Is the Correct Answer
South Carolina law requires that a bond to discharge or contest a mechanics lien must equal 150% of the lien amount. Calculation: $45,000 × 1.50 = $67,500. This 150% requirement protects the lien claimant — if the owner or GC substitutes a bond for the lien on the property, the claimant still has adequate security including a buffer for potential interest and costs.
Why the Other Options Are Wrong
Option A: $90,000
$90,000 represents 200% of the lien amount. While some states require a higher bond multiplier, South Carolina's statute specifies 150%, making $90,000 too high.
Option B: $45,000
$45,000 is exactly the lien amount (100%). A 1:1 bond would provide no additional cushion for interest, costs, or enforcement expenses, which is why South Carolina requires the 150% multiplier.
Option D: $54,000
$54,000 represents 120% of the lien amount. This is an invented figure that does not match the South Carolina statutory requirement of 150%.
Memory Technique
SC Bond = Lien × 1.5. Think '150 percent protection' — for every dollar of the lien, the bond must cover a dollar and fifty cents. $45,000 + half of $45,000 ($22,500) = $67,500.
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