Construction Payment & Contractor’s Lien Calculator

Construction Payment & Contractor’s Lien Calculator helps estimate Korea-related debt, insolvency, workout, bankruptcy, late interest, and recovery assumptions in English.

Legal scenario inputs

Enter Korea-related court, traffic, debt, family, civil, medical-dispute, criminal, or real-estate dispute assumptions. Results are simplified planning estimates.

Interest or recovery cost

₩63,333,333

Settlement target

₩143,333,333

Monthly payment estimate

₩754,386

Relief or exempt ratio

0%

190 month plan

This calculator is based on Korean Civil Act rules for construction (contract-for-work) agreements. A contractor may claim the unpaid construction payment (principal after progress-rate, prior-payment, defect, and delay-penalty deductions) plus delay interest — 5% per year under the Civil Act (6% for commercial transactions), rising to 12% per year after a lawsuit complaint is served (Act on Special Cases Concerning Expedition of Legal Proceedings). It also screens the five requirements of a possessory lien (yuchigwon, Civil Act art. 320) and warns of the 3-year statute of limitations for construction claims (art. 163(3)). Korea-based 2026 rules; an estimate, not legal advice.

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What is the Construction Payment & Contractor’s Lien Calculator?

This calculator helps a contractor who finished (or stopped) construction work but has not been paid by the owner recover the amount owed.
It reflects the progress rate, additional/change work, amounts already paid, and any defect-repair deduction to compute the actual unpaid principal, then adds the delay interest that accrues from the due date to show the total claimable amount.

It also screens whether a possessory lien (yuchigwon) under Article 320 of the Korean Civil Act is established through five requirements, and it flags the 3-year statute of limitations for construction claims (Civil Act art. 163(3)) and the contractor’s right to demand a mortgage (art. 666).
Calculations follow the 2026 Korean Civil Act, Commercial Act, and Act on Special Cases Concerning Expedition of Legal Proceedings.

Korea-specific disclaimer: This calculator is based entirely on Korean law — the Civil Act provisions on contracts for work (arts. 664–667), possessory liens (arts. 320–328), the 3-year short-term limitation for construction claims (art. 163(3)), and delay-interest rates under the Civil Act (5%), Commercial Act (6%), and the Act on Special Cases Concerning Expedition of Legal Proceedings (12%).
It is a reference estimate only and does not replace advice from a Korean attorney. Laws may change; verify the current rules before acting.

Who is this for?

  • • General or specialty contractors unpaid after completing a building
  • • Interior/remodeling contractors who have not received their payment
  • • Contractors settling a progress-rate balance after work was suspended or terminated
  • • Creditors deciding whether to exercise a possessory lien while occupying the building
  • • Contractors countering a defect-repair deduction with an accurate claim figure
  • • Owners who need to defend against a lien or construction-payment claim

How the Claim Amount Is Calculated

1. Unpaid principal

First, the calculator finds the unpaid construction payment you can actually claim.
The formula is as follows.

Completed payment = (contract + additional work) × progress rate
Unpaid principal = completed payment − prior payments − defect deduction − delay-penalty deduction

If the work is complete, the progress rate is 100%; if it was suspended or terminated, apply the appraised progress rate.
When the owner claims a price reduction for defects, enter that amount as the defect deduction to reflect the simultaneous-performance defense (Civil Act art. 667(3), applying art. 536).

2. Due date and delay interest

The construction payment is due, in principle, upon delivery of the completed object (Civil Act art. 665(1)).
Once the due date passes, delay interest accrues, and the rate depends on the nature of the transaction.

  • • Civil Act art. 379: 5% per year for ordinary claims absent an agreement
  • • Commercial Act art. 54: 6% per year for commercial obligations (e.g., between merchants)
  • • Act on Special Cases Concerning Expedition of Legal Proceedings art. 3: 12% per year from the day after the complaint is served

Delay interest = unpaid principal × annual rate × (delay days ÷ 365)

The calculator applies the Civil Act 5% (or Commercial Act 6%) from the due date until a lawsuit is filed, and 12% from the date the complaint is served onward, summing the two segments.
Leave the service date blank if you have not filed a lawsuit yet.

3. Right to demand a mortgage (Civil Act art. 666)

A contractor for real-property construction may demand that a mortgage be created on that property to secure the payment claim.
Because this is separate from a possessory lien, you can still secure the claim by demanding a mortgage even when you cannot secure possession.

The Five Requirements of a Possessory Lien (Civil Act art. 320)

A possessory lien lets a person who possesses another’s property refuse to deliver it until a claim arising from that property is paid.
A construction-payment claim has the required connection to the object, so if all five requirements below are met, you may exercise the lien.

Requirement 1: Possession of the object (essential)

You must currently possess (physically control) the completed building or land.
If you lose possession, the lien is immediately extinguished (Civil Act art. 328).

Requirement 2: Connection between the claim and the object

The claim must be a construction-payment claim that arose from the very object you possess.
Payment for new construction or an extension is recognized as connected to that building.

Requirement 3: The claim is due

The construction payment must already be due.
The due date is, in principle, delivery of the object (Civil Act art. 665); if it has not yet arrived, you cannot assert a lien.

Requirement 4: Lawful possession

Possession must not have begun through a tort (Civil Act art. 320(2)).
Possession started for construction with the owner’s consent is lawful, but possession seized by trespass does not support a lien.

Requirement 5: No lien-waiver agreement (essential)

There must be no contract or special term waiving or excluding the lien.
Courts treat lien-waiver agreements as valid, so if one exists you cannot assert the lien even if all other requirements are met.

💡 If the lien is established, you may refuse delivery until paid (art. 320) and auction the object for practical priority if unpaid (art. 322).
However, exercising the lien does not interrupt the 3-year limitation of the construction-payment claim (art. 326), so separate steps such as a certified letter or lawsuit are essential.

How to Use

Step 1: Enter the construction payment details

Enter the contract and additional work amounts and choose full completion or a progress rate.
Add prior payments and any defect or delay-penalty deductions to compute the unpaid principal automatically.

Step 2: Set the delay-interest basis

Choose the transaction type (ordinary 5% or commercial 6%) and enter the due date and the reference date.
If you filed a lawsuit, enter the service date to apply 12% for the later segment.

Step 3: Screen the lien requirements

On the lien tab, check the five requirements — possession, connection, due date, lawful possession, and no waiver.
You immediately see how many are met, whether the lien can be established, and which requirements are missing.

Step 4: Review the action steps

On the action tab, check the limitation D-day and the recovery sequence: certified letter, payment order, lawsuit, and auction.
Use the share button to save or send the result to the other party or your attorney.

Worked Scenarios

Unpaid balance after completion + lien

The new building is ready for delivery, but the owner will not pay the balance.
Hold possession to exercise the lien and refuse delivery until paid, while computing the unpaid principal and delay interest to prepare a payment order or lawsuit.

Progress-rate settlement after suspension

When the work is suspended or terminated at the owner’s instance, you settle only the completed portion by progress rate.
Enter the progress rate and prior payments to derive the unpaid principal to be settled.

Defect-deduction dispute

The owner refuses payment or claims a reduction citing defects.
Enter the defect-repair amount to see the disputed figure, and compare the claim when the defect is minor or over-claimed.

The 3-Year Statute of Limitations and Mortgage Demand

Construction claims expire in 3 years

A contractor’s claim relating to construction is extinguished if not exercised for 3 years (Civil Act art. 163(3)).
The starting point is the due date (delivery date or progress-payment date), and the calculator shows the expiry date three years later and the days remaining.

If expiry is near, interrupt the limitation with a certified letter (file suit within 6 months of the demand), a payment order, a lawsuit, or a provisional attachment.
Note that the limitation runs separately even while you exercise the lien.

Even if you cannot secure possession to use a lien, for real-property construction you can secure the claim by demanding a mortgage (Civil Act art. 666).
Once a mortgage is created, you take priority over junior right-holders, improving your chance of recovery.

Frequently Asked Questions

Q. What is the delay-interest rate on construction payments?

A. Absent an agreement, ordinary claims accrue 5% per year under the Civil Act, and commercial obligations accrue 6% per year under the Commercial Act.
Once a lawsuit complaint is served, 12% per year applies from the following day under the Act on Special Cases Concerning Expedition of Legal Proceedings.

Q. Does exercising a lien remove limitation worries?

A. No.
Exercising a lien does not interrupt the 3-year limitation of the construction-payment claim itself (Civil Act art. 326), so you must interrupt it with a certified letter, payment order, or lawsuit.

Q. The owner withholds payment citing defects.

A. The owner may claim defect repair, or damages in lieu of or together with repair, and raise a simultaneous-performance defense for that amount (Civil Act art. 667).
However, if the defect is not important and repair costs are excessive, the repair claim is limited, so deduct only the reasonable repair amount to see the real claim.

Q. What if I briefly release possession?

A. The lien is immediately extinguished upon loss of possession (Civil Act art. 328).
If you vacate the building or the owner regains possession, you lose the lien, so continued possession and management are critical.

Q. How does this differ from the subcontract-payment calculator?

A. The subcontract calculator covers the Subcontracting Act between a prime contractor and a subcontractor (15.5% delay interest).
This calculator covers the Civil Act contract-for-work relationship between an owner and a contractor and the possessory lien, applying 5% (Civil Act), 6% (Commercial Act), and 12% (litigation) rates instead.

Tips and Cautions

  • Preserve evidence: keep the construction contract, additional-work agreements, progress certificates, tax invoices, and delivery/possession photos to prove the due date and non-payment.
  • Progress appraisal: when work is suspended, the progress rate is set by appraisal, so document the completed portion with photos and itemized statements.
  • Check for a waiver: first confirm whether the contract contains a lien-waiver clause. If it does, you cannot use the lien.
  • Manage the limitation: construction claims expire in 3 years, so check the time remaining from the last due date and interrupt the limitation in advance.
  • Consult a professional: for large amounts or complex defect/progress disputes, consult a Korean attorney or the Korea Legal Aid Corporation (132).

Calculate your construction claim now

See the unpaid principal after progress and defect deductions, the delay interest, and whether a lien is established — all at once.

Use the result as the basis for a certified letter, a payment order, or the claim amount in a construction-payment lawsuit.