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NASCLAProcurement and Contracting Requirementsmedium

A subcontractor's pay application includes a large stored-material amount, but the supplier has not released the equipment for shipment or assigned it to the project. What is the payment risk?

Correct Answer

B) The request may not satisfy stored-material payment controls without evidence of project allocation and availability

Stored-material payment controls need evidence that materials exist, are allocated to the project, and are protected or available as contractually required. Other choices confuse submittal approval with payment proof.

Answer Options
A
The owner must pay because the submittal was approved
B
The request may not satisfy stored-material payment controls without evidence of project allocation and availability
C
Base the missing supplier release response on stored materials never require documentation
D
The amount should be converted to liquidated damages, leaving missing supplier release unverified

Why This Is the Correct Answer

Stored-material payment controls need evidence that materials exist, are allocated to the project, and are protected or available as contractually required. Other choices confuse submittal approval with payment proof.

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