A subcontractor is asked to sign a final unconditional lien waiver before receiving the final payment check. What document better matches payment that has not cleared yet?
Correct Answer
B) Conditional waiver or release tied to actual receipt of payment
If payment has not been received or cleared, a conditional waiver tied to payment receipt better matches the transaction. Other choices are bidding, bonding, or submittal documents.
Why This Is the Correct Answer
If payment has not been received or cleared, a conditional waiver tied to payment receipt better matches the transaction. Other choices are bidding, bonding, or submittal documents.
Why the Other Options Are Wrong
Option A: Classify the condition as a new bid addendum
Choice A gives A new bid addendum. Its specific error: it names a financial document or payment mechanism, not the Conditional lien waiver action/result stated by Conditional waiver or release tied to actual receipt of payment.
Option C: Base the conditional lien waiver response on a performance bond rider only
In procurement and contracting, A performance bond rider only is the wrong selection for Conditional lien waiver: it leaves the work at an informal or incomplete stage, while Conditional lien waiver requires Conditional waiver or release tied to actual receipt of payment.
Option D: Classify the condition as a shop drawing stamp
The trap in D is A shop drawing stamp. That selection is wrong because it points to A shop drawing stamp, but.
Memory Technique
Tag the scene with conditional lien waiver: wrong actor or wrong timing means the fix is not Conditional waiver or release tied to actual receipt of payment.
Reference Hint
Open NASCLA Contractors Guide to Business, Law and Project Management, 14th Ed.; use the index entry or section for "Lien waiver and payment release practice" to confirm that If payment has not been received or cleared, a conditional waiver tied to payment receipt better matches the transaction.
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