A subcontractor served a proper preliminary notice but the owner never paid. Before recording a mechanics' lien, the subcontractor should make sure the lien claim states an amount that is:

Explanation

§8430(a) makes the lien a direct lien for the lesser of two amounts: the reasonable value of the work the claimant provided, and the price agreed with whoever contracted for that work. §8430(c) adds that where the contract was rescinded, abandoned or breached the lien may not exceed reasonable value. So the ceiling is the unpaid value of what was actually furnished, which is what (b) ignores — money already received has to come off the claim. (a) treats interest and fees as if they were principal, and they are not part of the lien amount. (d) confuses the security with the debt: the lien attaches to the property, but its size is measured by the work. The sanction behind all of this is §8422(c) — a claimant who willfully includes labour, services, equipment or materials never furnished for that property forfeits the lien entirely — while §8422(a) forgives an honest error in the demand. The preliminary notice this subcontractor served matters separately: §8410 lets a claimant enforce a lien only if that notice was given and proof of it made.