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.
Why the Other Options Are Wrong
Option B: Pay the amount without checking supplier claims
Choice B (Pay the amount without checking supplier claims) is rejected because it tries to bypass the Sub-tier release checkpoint.
Option C: Convert the payment to a bid alternate
In procurement and contracting, Convert the payment to a bid alternate is the wrong selection for Sub-tier release: it shifts the question into contract administration money flow.
Option D: The contractor should ignore lower-tier claim risk until warranty
The trap in D is Ignore lower-tier claim risk until warranty. That selection is wrong because the option delays or omits the controlling step.
Memory Technique
Picture a cover note on the jobsite; sub-tier release is solved by the action that leads to Request the required sub-tier release or other contract-required payment backup before approving that portion.
Reference Hint
Open NASCLA Contractors Guide to Business, Law and Project Management, 14th Ed.; use the index entry or section for "Sub-tier lien release controls" to confirm that If the subcontract requires sub-tier releases or backup, payment review should obtain that documentation before approving the covered amount.
More NASCLA Questions
Bid instructions require bid security with each sealed bid. Which purpose should the estimator associate with that requirement?
A wood deck surface has 320 sf of coverage. Boards have a 5-1/2 in. actual face width, and the order includes an 8 percent cutting allowance. What linear footage is closest?
Using the dimensions shown for the stabilized construction entrance, what is the plan area?
A reroof area requires 14,720 sf of rigid insulation. Boards are 4 ft by 8 ft, and the order includes 5 percent waste. How many boards are needed?
Two addenda revise the drawings before bid day. What must a responsive bidder normally do with those addenda?
A utility trench is 180 ft long, 3 ft wide, and 7 ft deep with vertical sides inside a trench shield. What excavation volume is required?
A 120 ft long Type C trench is cut with a 4 ft bottom width and a 6 ft depth. If side slopes are 1-1/2 horizontal to 1 vertical, what excavation volume is closest?
A storm pipe run needs 240 ft of bedding, 4 ft wide and 6 in. thick. Including a 10 percent ordering allowance, how many cubic yards of bedding aggregate are needed?
A mass excavation produces 1,180 loose cubic yards of material for off-site disposal. End-dump trucks can haul 18 loose cubic yards per trip. What truck count is required?
An asphalt-shingle roof has a slope of 3:12. Under the IBC low-slope asphalt-shingle provisions, what underlayment arrangement is required?
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 metal deck crew establishes a controlled decking zone while installing initial deck panels 24 ft above the lower level. What is the maximum CDZ size from any leading edge?
Next Question
A tenant clinic remains open next to demolition work. What project control should be coordinated?