A subcontractor's pay application includes major equipment from a sub-tier supplier, but no sub-tier release is provided as required by the subcontract. What payment control is appropriate?
Correct Answer
A) Request the required sub-tier release or other contract-required payment backup before approving that portion
If the subcontract requires sub-tier releases or backup, payment review should obtain that documentation before approving the covered amount. Other choices ignore claim risk or misclassify payment.
Why This Is the Correct Answer
If the subcontract requires sub-tier releases or backup, payment review should obtain that documentation before approving the covered amount. Other choices ignore claim risk or misclassify payment.
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