A subcontractor completes $15,000 worth of electrical work on a residential project in Georgia. The general contractor fails to pay. Within how many days must the subcontractor serve a Notice to Owner to preserve lien rights?
Correct Answer
A) 90 days
Under Georgia lien law, subcontractors must serve a Notice to Owner within 90 days of first furnishing labor or materials to preserve their lien rights.
Why This Is the Correct Answer
Under Georgia's lien statute (O.C.G.A. § 44-14-361.5), subcontractors and suppliers who do not have a direct contract with the property owner must serve a written Notice to Owner (also called a preliminary notice) within 90 days of first furnishing labor or materials on the project. This notice is a prerequisite to filing a valid lien — without it, the subcontractor loses lien rights entirely.
Why the Other Options Are Wrong
Option B: 120 days
120 days exceeds Georgia's statutory deadline for serving a Notice to Owner. A subcontractor who waits 120 days will have already missed the 90-day window and will have forfeited their lien rights. This is a critical timing error that cannot be undone.
Option C: 60 days
60 days is shorter than Georgia's actual 90-day deadline. While serving notice earlier is always advisable, the statutory maximum is 90 days — not 60. A subcontractor who knows this correctly has up to 90 days to serve the notice, though waiting until day 90 is risky.
Option D: 30 days
30 days is far too short. No Georgia statute requires the Notice to Owner within 30 days of first furnishing. This may reflect confusion with other notice periods (such as stop-payment notices or notice periods in other states), but Georgia's lien law provides 90 days for this notice.
Memory Technique
In Georgia, the number 90 is king for lien notices: '90 days to notice, 90 days to lien.' Both the Notice to Owner deadline (from first furnishing) and the lien filing deadline (from last furnishing/completion) involve 90-day windows. If you remember '90 for Georgia liens,' you cover both steps.
More Georgia Questions
A contractor discovers that a building permit was issued in error and the project violates setback requirements. According to Georgia regulations, what is the contractor's primary obligation?
A contractor employs workers in both construction and office roles. The construction rate is 11.2 per $100 and office rate is 0.8 per $100. Construction payroll is $85,000 and office payroll is $45,000. What is the total workers compensation premium?
Which situation would require a Georgia contractor to obtain workers' compensation insurance?
A contractor receives a stop work order from the local building official. The contractor continues working despite the order. What is the typical penalty range?
A contractor's license expires on June 30th. They submit a renewal application on July 15th. What additional requirement must they meet?
A Georgia contractor completes work valued at $15,000 on March 1st. The property owner fails to pay. What is the deadline for filing a materialman's lien?
A contractor fails to pay workers' compensation premiums and coverage lapses. An employee is injured the next day. What is the contractor's liability?
A contractor discovers that the local building official is interpreting a code provision differently than expected. What is the proper appeal process in Georgia?
A contractor's annual payroll is $450,000. If the workers compensation rate is 8.5 per $100 of payroll, what is the annual premium?
What is the threshold amount above which a contractor must be licensed in Georgia?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Contract Administration
60 questions · 70% to pass
Project Management
60 questions · 70% to pass
Related Study Resources
Previous Question
A contractor files a lien for $15,000 on a residential property. What is the maximum amount the contractor can recover in attorney fees if successful?
Next Question
A contractor has 8 employees with a total weekly payroll of $12,000. If the workers' compensation rate is $3.50 per $100 of payroll, what is the weekly workers' compensation premium?
