Utah Contractor Practice Exam

What does it mean when a subcontractor signs a waiver and release form on a public works project?

1. The subcontractor gives up the right to lien the real property

2. The subcontractor gives up the right to lien the construction funds

3. The subcontractor waives the right to lien both real property and construction funds

4. The subcontractor is no longer responsible for correcting defective work

The correct answer is: The subcontractor gives up the right to lien the construction funds

When a subcontractor signs a waiver and release form on a public works project, it specifically means that the subcontractor gives up the right to lien the construction funds. In construction contracts, particularly in public works projects, lien rights are governed by specific laws that protect the flow of funds to ensure that all parties are paid for their work. By signing a waiver and release for the construction funds, the subcontractor relinquishes their claim to those funds in exchange for payment received or to be received. This is important in maintaining cash flow within the project and protecting the interests of the project owner and general contractor. This context is essential when considering the other options. The option that refers to the right to lien real property or both real property and construction funds expands beyond what is typically covered in a waiver specific to public works. Additionally, waiving responsibility for correcting defective work does not relate to lien rights at all; instead, it pertains to the quality and accountability of work completed.