Why should an unconditional lien waiver not be given before payment clears?
Correct Answer
A) It may release lien rights even if payment is not actually received.
Unconditional waivers can release rights without a payment condition.
Why This Is the Correct Answer
Unconditional waivers can release rights without a payment condition.
Why the Other Options Are Wrong
Option B: Use unconditional lien waiver risk to increas the bid bond
In procurement and contracting, It increases the bid bond. is the wrong selection for Unconditional lien waiver risk: it shifts the question into contract administration money flow.
Option C: Use unconditional lien waiver risk to create a new allowance
The trap in C is It creates a new allowance. That selection is wrong because the choice would not get the project to It may release lien rights even if payment is not actually received. which is the Unconditional lien waiver risk result verified by the source.
Option D: Use unconditional lien waiver risk to change the specification section
Choice D gives It changes the specification section. Its specific error: the option does not produce the required Unconditional lien waiver risk outcome, It may release lien rights even if payment is not actually received.
Memory Technique
Treat unconditional lien waiver risk like a labeled shelf; only the matching condition belongs with It may release lien rights even if payment is not actually received.
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 Unconditional waivers can release rights without a payment condition.
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