When is a conditional lien waiver commonly used?
Correct Answer
D) When the waiver is tied to receipt or clearance of payment.
A conditional waiver is effective on payment conditions, unlike an unconditional waiver.
Why This Is the Correct Answer
A conditional waiver is effective on payment conditions, unlike an unconditional waiver.
Why the Other Options Are Wrong
Option A: Make after no payment is expected the answer for conditional lien waiver
Choice A gives After no payment is expected. Its specific error: it shifts the question into contract administration money flow.
Option B: As a substitute for a performance bond
Choice B (As a substitute for a performance bond.) is rejected because it treats Conditional lien waiver as optional.
Option C: Limit conditional lien waiver to before a bid is opened only
In procurement and contracting, Only before a bid is opened. is the wrong selection for Conditional lien waiver: the action skips the timing, documentation, or field-control step needed for Conditional lien waiver.
Memory Technique
Use a pay line memory cue for conditional lien waiver: the stem's condition unlocks When the waiver is tied to receipt or clearance of payment.
Reference Hint
Open NASCLA Contractors Guide to Business, Law and Project Management, 14th Ed.; use the index entry or section for "Lien waivers" to confirm that A conditional waiver is effective on payment conditions, unlike an unconditional waiver.
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