A subcontractor bills for off-site stored millwork but provides no invoice, storage location, insurance evidence, or proof the material is reserved for the project. What should the payment review do?
Correct Answer
B) Withhold stored-material payment until the required documentation is provided
Stored-material payments require documentation that the materials exist, are protected, and are allocated to the project. Other choices pay without controls or misclassify the request.
Why This Is the Correct Answer
Stored-material payments require documentation that the materials exist, are protected, and are allocated to the project. Other choices pay without controls or misclassify the request.
Why the Other Options Are Wrong
Option A: Pay it because the subcontractor plans to order soon
Choice A (Pay it because the subcontractor plans to order soon) is rejected because the option answers a paperwork, payment, or bonding issue.
Option C: Resolve stored material payment after choosing to move the amount to retainage
The trap in C is Move the amount to retainage only. That selection is wrong because it tries to bypass the Stored material payment checkpoint.
Option D: The contractor should approve the full amount as a bid alternate
Choice D gives Approve the full amount as a bid alternate. Its specific error: the option answers a paperwork, payment, or bonding issue.
Memory Technique
Tag the scene with stored material payment: wrong actor or wrong timing means the fix is not Withhold stored-material payment until the required documentation is provided.
Reference Hint
Open NASCLA Contractors Guide to Business, Law and Project Management, 14th Ed.; use the index entry or section for "Stored-material payment controls" to confirm that Stored-material payments require documentation that the materials exist, are protected, and are allocated to the project.
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