A subcontractor payment package includes releases from the subcontractor but not from its noticed supplier. What should be checked?
Correct Answer
D) Lower-tier release.
Payment controls should account for noticed lower-tier claimants before final funds are released.
Why This Is the Correct Answer
Payment controls should account for noticed lower-tier claimants before final funds are released.
Why the Other Options Are Wrong
Option A: Release payment based only on the contractor's assurance where a subcontractor payment package includes releases from the subcontractor but not from its noticed supplier, without checking whether the required release supports the payment.
Release payment based only on the contractor's assurance where a subcontractor payment package includes releases from the subcontractor but not from its noticed supplier, without checking whether the required release supports the payment. puts the item in the wrong financial bucket, timing, base, or comparison for lien release controls.
Option B: Accept an informal payment memo where a subcontractor payment package includes releases from the subcontractor but not from its noticed supplier, instead of matching the paperwork to the payment being made.
Accept an informal payment memo where a subcontractor payment package includes releases from the subcontractor but not from its noticed supplier, instead of matching the paperwork to the payment being made. puts the item in the wrong financial bucket, timing, base, or comparison for lien release controls.
Option C: Wait until final closeout to review claimant or insurance paperwork where a subcontractor payment package includes releases from the subcontractor but not from its noticed supplier.
Wait until final closeout to review claimant or insurance paperwork where a subcontractor payment package includes releases from the subcontractor but not from its noticed supplier. puts the item in the wrong financial bucket, timing, base, or comparison for lien release controls.
Memory Technique
Payment and account point to different ledger roads for Closing Out.
Reference Hint
Study anchor (closed-book): memorize Lien release controls from CSLB conditional and unconditional waiver/release forms guidance. / California Civil Code waiver and release forms; know the rule or calculation trigger without relying on exam-room lookup.
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