You are the general contractor on a project where a subcontractor has not been paid and threatens to file a lien. Under Florida Statute Chapter 713, what document should you request from the subcontractor before making final payment to avoid lien liability?
Correct Answer
A) Waiver of lien upon final payment
A waiver of lien upon final payment should be obtained before making final payment to protect against future lien claims. This document waives the right to file a lien for all work performed and materials supplied through the final payment date.
Why This Is the Correct Answer
Under Florida Statute Chapter 713, a waiver of lien upon final payment is the appropriate document to request before making final payment to a subcontractor. This waiver protects the general contractor from future lien claims by having the subcontractor waive their right to file a lien for all work performed and materials supplied through the final payment date. It provides comprehensive protection against lien liability when the contractor-subcontractor relationship is concluding.
Why the Other Options Are Wrong
Option B: Waiver of lien upon progress payment
A waiver of lien upon progress payment is used for interim payments during the project, not for final payment. This type of waiver only covers work performed and materials supplied through a specific progress payment date, leaving potential exposure for subsequent work.
Option D: Notice to owner
A claim of lien is the actual lien document filed against the property when payment disputes occur. Requesting this would be counterproductive as it represents the very thing the contractor is trying to avoid.
Memory Technique
Think 'FINAL payment = FINAL waiver' - the waiver should match the payment stage to provide complete protection.
Reference Hint
Florida Statutes Chapter 713 - Mechanics' Liens, specifically sections dealing with lien waivers and releases
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