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NASCLAContractsmedium27% of exam part

For a progress-payment cutoff, which waiver is appropriate when payment has not yet cleared?

Correct Answer

A) Conditional lien waiver tied to receipt of payment

Conditional lien waiver tied to receipt of payment is the controlling requirement: the distractors are related-looking contract or field terms, but they do not match the cited requirement for review item 158.

Answer Options
A
Conditional lien waiver tied to receipt of payment
B
Make unconditional final release before payment the answer for lien waiver
C
Select bid addendum for lien waiver
D
Limit lien waiver to builder's risk policy

Why This Is the Correct Answer

Conditional lien waiver tied to receipt of payment is the controlling requirement

Why the Other Options Are Wrong

Option B: Make unconditional final release before payment the answer for lien waiver

The trap in B is Unconditional final release before payment. That selection is wrong because it shifts the question into contract administration money flow.

Option C: Select bid addendum for lien waiver

Choice C gives Bid addendum. Its specific error: it names a financial document or payment mechanism, not the Lien waiver action/result stated by.

Option D: Limit lien waiver to builder's risk policy

Choice D (Builder's risk policy) is rejected because the option does not produce the required Lien waiver outcome.

Memory Technique

Make lien waiver a tabbed card: cite the exact condition, then choose Conditional lien waiver tied to receipt of payment.

Reference Hint

Open NASCLA Contractors Guide to Business, Law and Project Management, 14th Ed.; use the index entry or section for "Conditional lien waivers" to confirm that Conditional lien waiver tied to receipt of payment is the controlling requirement

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