A subcontractor performs electrical work valued at $8,500 on a residential project. The general contractor fails to pay. Under Arizona lien law, what is the maximum amount the subcontractor can claim in their mechanic's lien?
Correct Answer
D) $8,500 plus interest and attorney fees
Under A.R.S. 33-981, a mechanic's lien can include the amount due plus reasonable interest and attorney fees incurred in collection.
Why This Is the Correct Answer
Under A.R.S. 33-981, a mechanic's lien may include the contract amount owed plus reasonable interest accrued and attorney fees incurred in pursuing collection. This means the subcontractor is not limited to the flat $8,500 but is entitled to the full cost of enforcing their right to payment, making option D the most complete and legally accurate answer.
Why the Other Options Are Wrong
Option A: $8,500 plus statutory penalties
While the lien includes fees, 'statutory penalties' is not the correct terminology under Arizona lien law. A.R.S. 33-981 specifies interest and attorney fees — not penalties. This option uses imprecise language that does not match the statute.
Option B: The full contract amount between owner and general contractor
A subcontractor's lien is limited to the amount owed to that subcontractor, not the full contract amount between the owner and the general contractor. Claiming the full owner-GC contract value would allow a sub to lien for work they did not perform, which is not permitted.
Option C: $8,500 only
$8,500 only is too narrow. While the base amount is correct, Arizona law explicitly allows the lienholder to recover interest and attorney fees in addition to the contract amount. Limiting the lien to the flat contract price ignores the statutory provisions for collection costs.
Memory Technique
Mechanic's lien = What you're OWED + Interest + Attorney Fees. Remember 'IAF' — Interest And Fees are always included under Arizona lien law. The lien covers the full cost of getting paid, not just the original invoice.
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