A subcontractor is working on a project where the general contractor has not paid them for work completed 45 days ago. The subcontractor wants to protect their lien rights. What document should they serve first under Florida lien law?
Correct Answer
C) Notice of Nonpayment
Under Florida Statute 713.06, a Notice of Nonpayment should be served when payment is past due but before filing a Claim of Lien. This notice preserves lien rights and may prompt payment without having to file an actual lien.
Why This Is the Correct Answer
CORRECT_ANSWER - Under Florida Statute 713.06, when a subcontractor has not been paid for work completed more than 45 days ago, they must first serve a Notice of Nonpayment to preserve their lien rights. This notice serves as a formal demand for payment and is a prerequisite before filing a Claim of Lien. The Notice of Nonpayment gives the general contractor an opportunity to resolve the payment issue without the more serious step of filing an actual lien against the property.
Why the Other Options Are Wrong
Option A: Claim of Lien
A Claim of Lien is filed after the Notice of Nonpayment if payment is still not received. Filing a Claim of Lien without first serving the Notice of Nonpayment could jeopardize the subcontractor's lien rights under Florida law.
Option B: Notice to Owner
Notice to Owner is typically served at the beginning of a project by subcontractors to preserve their right to lien, not when seeking payment for overdue invoices. This notice establishes the subcontractor's presence on the project.
Option D: Final Lien Waiver
A Final Lien Waiver is executed when final payment is received and the subcontractor is waiving all lien rights. This is the opposite of what's needed when trying to preserve lien rights for nonpayment.
Memory Technique
Remember 'NNP before CL' - Notice of Nonpayment comes before Claim of Lien. Think of it as giving a 'warning notice' before taking the more serious step of filing an actual lien.
Reference Hint
Florida Statutes Chapter 713 - Construction Liens, specifically Section 713.06 regarding Notice of Nonpayment requirements
More Contract Admin Questions
A project experiences a 30-day delay due to unusually severe weather. The contract includes a liquidated damages clause of $1,000 per day for delays. If the weather delay is excusable but not compensable, what liquidated damages apply?
A commercial project requires a total of 12 inspections. The building department charges $85 per inspection for the first 5 inspections, $65 for inspections 6-10, and $45 for any additional inspections. What is the total inspection fee?
What document must be posted at the job site before a Certificate of Occupancy can be issued for a commercial building?
A mixed-use development requires a variance for reduced setbacks. The property is located within 500 feet of a hospital. What additional consideration must be addressed?
A LEED project requires tracking of regional materials. Materials are considered regional if they are extracted, harvested, or recovered, as well as manufactured within what distance of the project site?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Project Management
60 questions · 70% to pass