A subcontractor signs an unconditional progress release while the payment is still an unconfirmed electronic transfer. Which release approach better protects it?
- ATo waive unrelated future projects
- BAfter all funds have irrevocably cleared
- Before confirmed receipt of payment
- DWhen no payment is expected
Why C is correct
The best answer is: Before confirmed receipt of payment. A conditional statutory form ties release effectiveness to actual payment. An unconditional release can extinguish stated rights even when collection problems later arise, so form and payment status must match. The new fact pattern changes the setting, not the governing rule or management control. The other choices either skip a required step, apply a different rule, or fail to address the stated risk.