Contractor who presents a bill substantially larger than the orally presented estimate.

The short answer is, yes, paying the $2k claim gives you the right to a release of the contractor's lien claim (RCW 60.04.071). But it is important to keep in mind that Washington's lien statutes (RCW ch. 60.04) only secure the lien claim; the statutory scheme exists separate and apart from the contractor ultimately proving the validity of the underlying breach of contract claim. Your question suggests you don't agree with the billing, but are considering paying the lien amount to avoid any further hassle. If so, be sure to make the $2k payment in exchange for the contractor's release of all claims--including lien and contract claims. Also, you may want to speak with a lawyer before capitulating to the contractor's lien claim. You have options to challenging the reasonableness of the lien claim. Further, the contractor has strict time requirements for recording and foreclosing on the lien--if the contractor fails to meet these deadlines, the contractor loses its lien rights and would be left to pursuing its payment without the advantage of holding your property for ransom.

Mr. Berger provides good advice. Another way to approach it might be to get the contractor to agree (in writing) to not file the lien if you deposit the $2,000 in some type of an account that would be disbursed upon resolving the amount due. Then, give yourselves 30 days to try to resolve it on your own, and if you cannot, you file a small claim action with your local district court to have the matter resolved. (I recommend YOU file because if the contractor files you might have to explain away the small claims suit when applying for future credit) The small claims court might offer a mediation hearing in advance of trial. No lawyers, no extra expense. If both sides are reasonable and prepared then it might get resolved in fairly short order. Good luck.