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A subcontractor payment package includes releases from the subcontractor but not from its noticed supplier. What should be checked?

Correct Answer

D) The supplier’s payment status and appropriate claimant-signed release.

Check the noticed supplier’s own payment and release evidence. The subcontractor’s release does not show that its supplier was paid. Source: https://www.cslb.ca.gov/Consumers/Legal_Issues_For_Consumers/Mechanics_Lien/Conditional_And_Unconditional_Waiver_Release_Form.aspx

Answer Options
A
Only the subcontractor’s verbal assurance.
B
Only an informal payment memo from the subcontractor.
C
Nothing further because one release always covers all lower tiers.
D
The supplier’s payment status and appropriate claimant-signed release.

Why This Is the Correct Answer

Check the noticed supplier’s own payment and release evidence. The subcontractor’s release does not show that its supplier was paid. Source: https://www.cslb.ca.gov/Consumers/Legal_Issues_For_Consumers/Mechanics_Lien/Conditional_And_Unconditional_Waiver_Release_Form.aspx

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