Utah Contractor Practice Exam

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Prepare for the Utah Contractor Exam with comprehensive quizzes and study resources. Gain confidence by accessing multiple-choice questions designed to enhance your knowledge and skills for the licensing exam.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What is one of the primary reasons for a contractor to file for a lien?

To claim unpaid wages from the owner
To secure a loan for future projects
To protect personal assets
To enhance business credibility

The correct answer is: To claim unpaid wages from the owner

Filing for a lien primarily serves as a legal mechanism for a contractor to ensure they receive payment for work completed or materials supplied on a project. When a contractor files a lien, it effectively places a claim against the property on which the work was performed, thereby asserting their right to payment. This process is crucial in the construction industry because it provides a safeguard for contractors and subcontractors against non-payment, ensuring they have recourse to claim amounts owed directly from the property itself. In contrast, claiming unpaid wages from the owner does not directly correlate with the function of a lien, as liens pertain to the unpaid amounts for work related to the property rather than wages. The other options, such as securing loans, protecting personal assets, or enhancing business credibility, do not accurately reflect the primary purpose of filing a lien, which is aimed specifically at securing payment for services rendered.