Mechanics Lien Exposure Calculator

Unpaid trades file mechanics liens. This calculator sizes total exposure.

Unpaid invoices

Disputed retainage

Potential sub claims

Lien bond %

Total lien exposure

$485,000

Lien bonding cost

$9,700

Settlement estimate (60%)

$291,000

How the math works

Exposure = unpaid invoices + disputed retainage + potential sub claims.

Budget 2-5% of contract value as lien contingency. Proactive conditional waiver workflow reduces liens by 70-80%. Reactive lien clearance often costs 15-25% of face on legal and bonds.

How to Use

Enter unpaid invoices to date.
Enter disputed retainage.
Enter potential subcontractor claims.
Enter lien bond cost %.
Read mechanics lien exposure.

Frequently Asked Questions

Filing deadlines?

90-120 days after last work (state-dependent). Some states require preliminary notice within 20-60 days. Missed notice = no lien rights. Track notice calendar for all trades.

Clearing liens?

Payment (clears immediately). Lien bond (1-3% premium, releases lien from property). Litigation (6-24 months, expensive). Settlement at 40-70% of claim often fastest.

Owner protections?

Require waiver with each payment (unconditional for paid scope, conditional for pending). Never pay 100% of invoice — retain 10% minimum. Hold final 5% until all subs signed off.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.