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NASCLAContractsmedium27% of exam part

A claims log entry raises this question: which waiver is appropriate when payment has not yet cleared?

Correct Answer

C) 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 244.

Answer Options
A
Unconditional final release before payment; under a different bidding requirement
B
Bid addendum
C
Conditional lien waiver tied to receipt of payment
D
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 A: Unconditional final release before payment; under a different bidding requirement

The trap in A is Unconditional final release before payment; under a different bidding requirement. That selection is wrong because it names a financial document or payment mechanism, not the Lien waiver action/result stated by.

Option B: Bid addendum

Choice B gives Bid addendum. Its specific error: the option answers a paperwork, payment, or bonding issue.

Option D: Builder's risk policy

In procurement and contracting, Builder's risk policy is the wrong selection for Lien waiver: the choice would not get the project.

Memory Technique

Link lien waiver to its book condition; a different condition means a different answer than 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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