A joint check is used to pay a supplier through the direct contractor. How should the payee line be handled?
Correct Answer
D) Make it payable to both the contractor and the supplier or subcontractor.
CSLB describes a joint check as a check made payable to both the contractor and the supplier or subcontractor so both endorse it.
Why This Is the Correct Answer
CSLB describes a joint check as a check made payable to both the contractor and the supplier or subcontractor so both endorse it.
Why the Other Options Are Wrong
Option A: Make the check payable to the contractor and rely on the contractor to pay the listed claimant.
Make the check payable to the contractor and rely on the contractor to pay the listed claimant. puts the item in the wrong financial bucket, timing, base, or comparison for joint checks and lien prevention.
Option B: Certificate holder match.
Certificate holder match. puts the item in the wrong financial bucket, timing, base, or comparison for joint checks and lien prevention.
Option C: Issue separate checks without tying payment to the claimant named in the notice.
Issue separate checks without tying payment to the claimant named in the notice. puts the item in the wrong financial bucket, timing, base, or comparison for joint checks and lien prevention.
Memory Technique
An unlabeled Preparing Joint-Check dollar tells the wrong story.
Reference Hint
Study anchor (closed-book): memorize Joint checks and lien prevention from CSLB Mechanics Lien guidance; California Civil Code / California Civil Code mechanics lien payment controls; know the rule or calculation trigger without relying on exam-room lookup.
More Law & Business Questions
A Fresno homeowner wants a $725 cabinet repair and trim adjustment. Which contract step best matches CA home improvement requirements?
A project has $6,500 retainage withheld. The owner releases 60 percent of retainage at substantial completion. How much cash is released?
Cash is $52,500 and monthly burn is $17,500. How many months of runway are available?
A supplier offers 1.5 percent early-pay discount on a $22,000 invoice. What is the discount?
A balance sheet lists assets of $310,000 and liabilities of $185,000. What is owner's equity?
A job is estimated to cost $135,000. What price gives a 25 percent gross margin?
A customer invoice of $4,000 has a stated late charge of 1.5 percent. What late charge is added?
A bid has direct labor of $18,000, materials of $12,500, and equipment rental of $3,500. If the contractor adds 20 percent markup on direct cost, what is the bid price?
A contractor wants a 25 percent gross margin on a job with estimated cost of $60,000. What selling price gives that margin?
A completed project sold for $150,000 and had total cost of $126,000. What gross margin percentage did the project earn?