North Carolina General Contractor Exam — All Questions

Which set of elements is generally required for a contract to be legally valid and enforceable?

• a.A written document, a notary stamp, and two witnesses
• b.A signed proposal, a building permit, and a surety bond
• c.Offer, acceptance, consideration, legal capacity, and a lawful purpose✓
• d.Offer, acceptance, and a signature by both parties

A valid contract requires an offer, acceptance of that offer (mutual assent), consideration (something of value exchanged by each side), parties with legal capacity to contract, and a lawful purpose. If any element is missing — for example, no consideration or an illegal objective — the agreement may be void or unenforceable. Notaries, permits, and bonds are sometimes useful but are not the core elements of contract formation.

A construction contract states that the contractor will pay the owner $500 for each day the project finishes late, agreed in advance as a reasonable estimate of the owner's loss. This clause is best described as:

• a.A performance bond
• b.A liquidated damages clause✓
• c.A mechanic's lien
• d.A punitive penalty that courts always strike down

Liquidated damages are a dollar amount the parties agree to IN ADVANCE as compensation for a breach (commonly late completion) when the actual loss would be hard to calculate. To be enforceable the amount must be a reasonable pre-estimate of the harm, not a punishment. A performance bond is a surety guarantee, and a mechanic's lien secures payment for labor and materials — different tools entirely.

The owner asks the contractor to add a bathroom that was not in the original signed contract. What is the correct way to authorize and price this added work?

• a.A written change order signed by both parties✓
• b.A verbal go-ahead confirmed by a follow-up email
• c.An adjustment made quietly on the final invoice
• d.An entirely new contract for the whole project

A change order is a written amendment that documents a modification to the scope, price, or schedule and is signed by both parties. Handling changes in writing before performing the work protects the contractor's right to be paid for the extra work and prevents disputes about what was authorized. Relying on verbal approvals is a leading cause of payment disputes.

Under the Statute of Frauds, which of the following is generally required to be in writing to be enforceable?

• a.A one-hour verbal agreement to sweep a job site
• b.A casual promise to lend a friend a hammer
• c.An agreement to buy lunch for the crew
• d.A contract for the sale of land✓

The Statute of Frauds requires certain categories of contracts to be in writing and signed to be enforceable — most notably contracts for the sale of land or interests in real property, and agreements that cannot be performed within one year. This is why construction and real-property agreements are documented in writing. Minor, short, everyday arrangements are not covered.

What is 'consideration' in contract law?

• a.The politeness the parties show one another during negotiations
• b.Something of value exchanged by each party✓
• c.The amount of time the parties take to think before signing
• d.The signatures of both parties on the document

Consideration is the bargained-for exchange of value that makes a promise legally binding — for example, the contractor promises to build, and the owner promises to pay money. Each side must give something of value. Without consideration, a promise is generally just a gift and is not an enforceable contract. It is a core element required for a valid contract.

A subcontractor supplied labor and materials but has not been paid. What legal tool lets them make a claim against the improved property to secure payment?

• a.A certificate of occupancy
• b.A performance bond
• c.A liquidated damages clause
• d.A mechanic's lien✓

A mechanic's lien (also called a construction or materialman's lien) is a legal claim that contractors, subcontractors, and suppliers can place against a property they improved when they have not been paid for labor or materials. It encumbers the title, giving the unpaid party security and leverage to collect. Specific filing deadlines and notice requirements vary by state, but the tool exists nationwide.

As a contractor receives progress payments, they sign documents giving up future lien rights for the work already paid. These documents are called:

• a.Lien waivers✓
• b.Change orders
• c.Progress submittals
• d.Notices to proceed

A lien waiver (or lien release) is a document in which a contractor, subcontractor, or supplier gives up the right to file a mechanic's lien for work or materials already paid for. Owners and lenders commonly require signed lien waivers before releasing each payment to confirm that the paid parties will not later lien the property. Conditional waivers take effect only once payment actually clears.

In a construction contract, what is a 'scope of work'?

• a.The total dollar amount the owner will pay
• b.The deadline by which the project must finish
• c.What work the contractor will perform✓
• d.The sequence in which the work will be performed

The scope of work defines precisely what the contractor is responsible for building or providing — and, by implication, what is excluded. A clear, detailed scope is one of the best defenses against disputes, because it prevents disagreements over whether a task was included in the price. Vague scopes lead to arguments over 'extras' and change orders. Price and schedule are separate contract terms.

An indemnification (hold harmless) clause in a construction contract primarily does what?

• a.Caps the contractor's total dollar liability under the contract
• b.Shifts specified losses or claims to the other party✓
• c.Establishes the daily penalty for finishing late
• d.Requires the contractor to carry named insurance limits

An indemnification, or hold-harmless, clause allocates risk by having one party agree to cover specified losses, damages, or third-party claims that the other party might otherwise bear. For example, a subcontractor may indemnify the general contractor against claims arising from the sub's work. Because these clauses can transfer significant liability, contractors should read them carefully and match them with appropriate insurance.

Which alternative dispute resolution method uses a neutral third party whose decision is typically binding on the parties, avoiding a court trial?

• a.Negotiation
• b.Litigation in civil court
• c.Mediation
• d.Arbitration✓

Arbitration submits a dispute to a neutral arbitrator (or panel) who hears both sides and renders a decision that is usually binding and enforceable, much like a private trial. It differs from mediation, in which a neutral only helps the parties negotiate their own voluntary settlement and cannot impose a decision. Many construction contracts require arbitration because it is generally faster and less costly than litigation.

A 'material breach' of a construction contract is best described as:

• a.A failure serious enough to defeat the purpose of the contract✓
• b.Any tiny, technical deviation that causes no real harm
• c.Any deviation from the specifications, however small
• d.Any breach that the parties later resolve by agreement

A material breach is a serious failure to perform that goes to the heart of the contract — for example, abandoning the job or failing to pay — and it can excuse the non-breaching party from further performance and give rise to remedies such as damages or termination. A minor (immaterial) breach, by contrast, causes little harm and generally entitles the injured party only to damages, not to walk away from the deal.

An owner offers a contractor $50,000 to build a detached garage. The contractor replies, 'I will do it for $58,000.' What is the legal effect of that reply?

• a.It accepts the original offer and merely asks the owner for a voluntary price increase
• b.It keeps the original offer alive while the contractor shops the job for better terms
• c.It rejects the original offer and becomes a new offer the owner may accept or refuse✓
• d.It creates a binding contract at the midpoint of the two prices the parties named

A counteroffer is a rejection of the original offer combined with a new offer. Once the contractor names a different price, the owner's $50,000 offer is terminated and the contractor can no longer 'accept' it later. The roles reverse: the owner now holds the power to accept, reject, or counter again. Courts do not split the difference between two proposed prices for the parties.

A supplier makes a written offer to sell materials, then telephones the next morning and withdraws it before the contractor has responded. What is the general result?

• a.The revocation is effective, because an ordinary offer may be withdrawn before acceptance✓
• b.The offer stands for a reasonable time, since a written offer cannot be withdrawn orally
• c.The contractor may still accept, because the supplier was paid to hold the offer open
• d.A contract formed when the offer was written, so the supplier must deliver the materials

An ordinary offer may be revoked at any time before it is accepted, and the revocation takes effect when it is communicated to the offeree. An offer becomes irrevocable only in limited situations, such as an option contract supported by its own consideration or a merchant's firm offer in a signed writing. Nothing binds a party merely because the offer happened to be put in writing.

A homeowner posts a notice reading, 'I will pay $500 to anyone who repairs my leaking roof valve today.' A roofer sees it and completes the repair. This is best described as:

• a.A bilateral contract, because both sides exchanged promises before any work began
• b.An unenforceable arrangement, because a public posting can never create a contract
• c.An implied warranty, because the posting guaranteed the quality of the finished repair
• d.A unilateral contract, accepted by performing the requested act rather than by promising✓

In a unilateral contract one party offers to pay in exchange for an act, and acceptance happens by completing the act rather than by giving a return promise. A bilateral contract, the ordinary form in construction, is a promise exchanged for a promise: the contractor promises to build and the owner promises to pay. A general offer made to the public can be accepted by whoever performs.

A contractor performs extra excavation after the owner silently points to the area and nods, then watches the work proceed without objecting. This is most likely:

• a.A contract implied in fact from the parties' conduct and the circumstances✓
• b.A void agreement, because construction work requires a signed written document
• c.A gift to the owner, since the work went beyond the written scope of the job
• d.An express contract, because the owner stated the terms of the added work

A contract implied in fact arises from conduct rather than words: the parties' actions show they intended an exchange, and the law supplies the agreement. An express contract is one whose terms are actually stated, in writing or orally, which did not happen here. Work knowingly requested and accepted is rarely treated as a gift, and no general rule makes an unsigned construction agreement void. The safe practice is still a written change order.

A 17-year-old signs a contract for remodeling work on a property they own. Under general contract law, the agreement is best described as:

• a.Void from the beginning, so neither side ever held any rights under it
• b.Voidable by the minor, who may disaffirm it, while the adult party stays bound✓
• c.Fully enforceable against both sides once work has actually begun on the site
• d.Unenforceable by anyone, because a minor cannot be sued in a court at all

A minor lacks full contractual capacity, so a contract with a minor is generally voidable at the minor's option: the minor may disaffirm it, but the adult party cannot escape on that ground. A void agreement has no legal effect from the start, as with a contract for an illegal purpose. An unenforceable contract is valid but barred from enforcement for some other reason, such as a lapsed limitations period.

A subcontractor is handed a standard-form agreement by a large general contractor and told the printed terms are not open to negotiation. This is best described as:

• a.A quasi-contract, because the subcontractor had no chance to bargain over price
• b.An illegal contract, since offering non-negotiable terms is barred by contract law
• c.A contract of adhesion, drafted by the stronger party on take-it-or-leave-it terms✓
• d.An option contract, because the subcontractor holds a paid right to accept later

A contract of adhesion is a standardized form prepared by the party with greater bargaining power and presented on a take-it-or-leave-it basis. Adhesion contracts are generally enforceable and are not illegal, but courts scrutinize them more closely and may refuse to enforce terms that are unconscionable or buried. Ambiguities in such a form are usually read against the party that wrote it.

In a payment dispute, an owner tries to prove the parties orally agreed before signing that landscaping was included in the price. The parol evidence rule generally:

• a.Bars that earlier oral term from contradicting the complete written contract✓
• b.Admits any oral statement, because spoken promises outweigh a printed form
• c.Requires the court to hear every person who was present at the signing
• d.Applies only to contracts a notary public has acknowledged and stamped

The parol evidence rule keeps prior or contemporaneous oral agreements from being used to contradict or add to a written contract the parties intended as their complete and final expression. Its practical lesson is blunt: if a promise matters, put it in the document before signing. The rule does not depend on notarization, and courts do not treat side promises as superior to the signed writing.

A construction agreement states that the document 'contains the entire agreement of the parties and supersedes all prior discussions.' This provision is called:

• a.A severability clause, keeping the rest of the contract alive if one part fails
• b.A liquidated damages clause, fixing in advance the sum owed for late completion
• c.A subordination clause, ranking one party's claim behind another party's claim
• d.An integration or merger clause, declaring the writing to be the complete agreement✓

An integration (merger) clause states that the signed document is the entire and final agreement, which reinforces the parol evidence rule by signaling that nothing outside the writing was meant to survive. Any promise made in a meeting, an email, or a sales pitch must therefore be written into the contract itself. Severability, liquidated damages, and subordination clauses each address entirely different risks.

A specification section is genuinely ambiguous and both readings are reasonable. Under the doctrine of contra proferentem, a court will generally:

• a.Void the entire contract and return both parties to their pre-contract positions
• b.Construe the ambiguous language against the party that drafted the document✓
• c.Choose whichever reading costs the owner the least amount of money overall
• d.Order the two parties to split the disputed cost evenly between themselves

Contra proferentem means an ambiguity is construed against the drafter, on the theory that the party who chose the words could have made them clear. In construction, the owner and its design team usually prepare the contract documents, so a genuine ambiguity often favors the contractor's reasonable interpretation. Courts do not void the contract or invent a compromise simply because a clause can be read two ways.

Apart from contracts involving an interest in land, which agreement generally falls within the Statute of Frauds and must be in writing to be enforced?

• a.Any oral agreement the parties expect to finish in less than one month of work
• b.Every agreement between a general contractor and a subcontractor on a project
• c.Any agreement the parties negotiated across more than one meeting before signing
• d.A promise to answer for another's debt, such as guaranteeing the sub's account✓

The Statute of Frauds covers several categories, including suretyship promises (a promise to pay another person's debt, such as guaranteeing a supplier account) and agreements that by their terms cannot be performed within one year. Not every construction agreement is covered by it. Neither the number of negotiating sessions nor the expected length of a short job determines whether a writing is required.

An order-of-precedence clause in a construction contract is used when:

• a.The owner must choose which subcontractor is awarded a particular trade package
• b.Two contract documents conflict and one must be given controlling authority✓
• c.The schedule must be resequenced after a supplier misses its delivery date
• d.Payments run late and the contractor must rank which of its bills to pay first

Construction contracts typically rank the agreement, the general and supplementary conditions, the specifications, the drawings, and any addenda, so that when two documents say different things the higher-ranked one governs. Standard forms differ on how a specification-versus-drawing conflict is resolved, so the contractor should read the clause rather than assume. Without such a clause, every conflict becomes a negotiation or a claim.

A subcontract states that the subcontractor assumes toward the general contractor all obligations the general contractor owes the owner. This provision is a:

• a.Flow-down clause, binding the sub to the terms of the prime contract✓
• b.Waiver of subrogation, barring an insurer from suing the party that caused a loss
• c.Retainage clause, letting a percentage of each payment be held until completion
• d.Cardinal change, altering the fundamental nature of the bargain the parties struck

A flow-down (conduit) clause passes the prime contract's obligations down to the subcontractor, so the sub is bound by schedule, notice, quality, and dispute terms it may never have read. Before signing, a subcontractor should request a copy of the prime contract, because those terms become enforceable against it. The other items listed govern insurance recovery, payment withholding, and scope changes.

In jurisdictions that enforce them, what is the key difference between a pay-if-paid clause and a pay-when-paid clause?

• a.Pay-if-paid applies only to suppliers, while pay-when-paid applies only to subs
• b.Pay-when-paid shifts the risk of owner nonpayment to the sub; pay-if-paid delays it
• c.Pay-if-paid makes owner payment a condition of paying the sub; pay-when-paid times it✓
• d.The two clauses are identical in effect, and the names are used interchangeably

A pay-if-paid clause makes the owner's payment a true condition precedent, shifting the risk of owner nonpayment onto the subcontractor. A pay-when-paid clause addresses only timing: it gives the general contractor a reasonable period to pay but does not excuse payment forever. The two are not interchangeable, and states differ sharply in how far they will enforce a pay-if-paid condition.

A no-damages-for-delay clause in a construction contract generally provides that a delayed contractor:

• a.May recover all delay costs but forfeits any extension of the contract time
• b.May obtain additional time but not money for the delays the clause covers✓
• c.Must still finish on the original date despite any delay the owner caused
• d.Is entitled to double its documented overhead for each day the project runs long

A no-damages-for-delay clause limits the contractor's remedy for covered delays to an extension of time, cutting off recovery of extended overhead and other delay costs. Courts in many states recognize exceptions, such as delays caused by bad faith, active interference, or delays never contemplated by the parties, and some legislatures restrict the clause, so its reach varies. The contractor should price this risk before signing.

Excavation for footings uncovers buried concrete debris shown nowhere in the contract documents. A differing site conditions clause is designed to:

• a.Bar any claim, because a contractor always takes the site exactly as it is found
• b.Shift the entire cost of the discovery to the engineer who drew up the plans
• c.Require the contractor to stop work until the owner rebids the whole project
• d.Give the contractor a route to added time or money after timely written notice✓

A differing site conditions clause covers subsurface or latent physical conditions that differ materially from what the documents indicated (a Type I condition) or from what is ordinarily encountered in such work (a Type II condition). It gives the owner more accurate bids by removing guesswork contingencies while giving the contractor a path to an equitable adjustment. These clauses nearly always require prompt written notice before the condition is disturbed, and late notice can forfeit the claim.

A force majeure clause in a construction contract most typically addresses:

• a.Excusing performance delayed by events beyond either party's reasonable control✓
• b.The maximum profit percentage a contractor may add to a change order's cost
• c.The order in which unpaid trades may claim against the improved property
• d.The qualifications required of the inspector who performs the final walkthrough

Force majeure clauses excuse or extend performance when extraordinary events outside the parties' control prevent performance, such as war, a government shutdown of the site, or weather far beyond the norm. Whether an event qualifies depends on the words the parties actually chose, and most such clauses grant added time rather than added money. Ordinary market price increases and predictable seasonal weather usually do not qualify.

An owner ends the contract of a fully performing contractor under the agreement's termination for convenience clause. The contractor is generally entitled to:

• a.Nothing further, since a convenience termination ends every obligation on both sides
• b.The entire remaining contract balance, exactly as if it had completed the work
• c.Payment for work performed plus the close-out costs the clause defines✓
• d.Reinstatement to the project, because only a default justifies removing a contractor

A termination for convenience lets the owner end the contract with no fault by the contractor, and in exchange the contractor is paid for work performed plus defined close-out costs, with anticipated profit on unperformed work often excluded. A termination for cause requires a default such as abandonment or persistent failure to perform, and it normally requires written notice and an opportunity to cure first. Wrongly labeling a termination 'for cause' can itself be a breach by the owner.

Even when a residential construction contract says nothing at all about quality, most courts hold the builder to:

• a.An implied warranty of good workmanship and, for new homes, of habitability✓
• b.No standard at all, since silence in the writing means the parties agreed to none
• c.The strictest standard published by any trade association anywhere in the country
• d.Whatever quality level the owner later says it expected at the time of signing

Courts commonly imply a warranty that work will be performed in a good and workmanlike manner, and for the sale of a new home many states also imply a warranty of habitability. These implied warranties exist alongside any express warranty the contract grants. Their exact scope, and whether they can be disclaimed, varies by state, but silence in the contract does not mean the builder owes no quality standard.

A one-year contractual warranty period on a completed project has expired. What does that generally mean for the owner's ability to sue over a latent defect?

• a.All claims are permanently barred the moment that the warranty period ends
• b.The owner may still have claims for breach or negligence within the limitations period✓
• c.The owner must wait for a new warranty period to begin before filing anything
• d.The contractor becomes liable for double damages once the warranty has expired

A contractual warranty period is the window in which the contractor promises to return and correct defective work. It is not the same as the statute of limitations, which sets the time to file suit after a claim accrues, or the statute of repose, which cuts off claims a fixed number of years after completion regardless of discovery. Those periods are set by each state's law and typically run well beyond a one-year callback warranty.

A contract sets damages of $10,000 per day for late completion of a small project on which the owner's actual daily loss would be trivial. A court is MOST likely to:

• a.Enforce the amount, because both parties freely signed the agreement containing it
• b.Enforce it against the owner only, and not against the contractor who agreed to it
• c.Double the figure to deter the contractor from finishing the project behind schedule
• d.Refuse to enforce it as a penalty and leave the owner to its actual proven damages✓

Liquidated damages are enforceable only when the stipulated sum is a reasonable forecast of harm that would be difficult to measure when the contract was made. A figure grossly out of proportion to any plausible loss operates as a punishment, and contract law does not let private parties punish one another. When the clause fails as a penalty, the injured party is left to prove its actual damages.

A construction contract states that 'time is of the essence.' The practical effect of that phrase is that:

• a.The contractor may finish at any reasonable time as long as quality is not reduced
• b.The owner waives all scheduling requirements in exchange for a lower contract price
• c.The stated dates are material, so missing one can be treated as a serious breach✓
• d.The project schedule becomes advisory and cannot be enforced by either of the parties

Saying that time is of the essence signals that the completion dates are material terms rather than approximate targets, so a failure to meet them can amount to a material breach instead of a minor one. Without the phrase, courts often allow performance within a reasonable time. A party can waive the requirement by repeatedly accepting late performance without objection, which is why consistent written notice matters.

A contractor finishes a house but installs a different brand of pipe than specified, with no effect on function or value. Under the doctrine of substantial performance, the contractor may generally:

• a.Recover nothing at all, because any deviation from the specifications defeats recovery
• b.Demand a bonus, since the substituted material performs the same as the one specified
• c.Recover the contract price less the small diminution in value from the deviation✓
• d.Force the owner to accept the change with no adjustment to the contract price at all

Substantial performance means the contractor has performed enough that the owner received essentially what it bargained for, with only minor and unintentional deviations. The contractor may recover the contract price minus an allowance for the defect, usually the diminished value, where tearing out and redoing the work would be grossly disproportionate to the benefit gained. A willful or material departure from the specifications does not qualify.

A contractor builds exactly according to the owner's drawings, and the completed system fails because the design itself was inadequate. Under the Spearin doctrine, the owner:

• a.Impliedly warranted the adequacy of the plans it furnished and bears the design risk✓
• b.May charge the failure to the contractor, which should have redesigned the system
• c.Owes nothing unless the contractor carried professional liability insurance for the job
• d.May recover only if the building official approved the drawings before the permit issued

Under the Spearin doctrine, an owner that furnishes design documents impliedly warrants that they are adequate for their intended purpose, so a contractor that follows them is not liable for the resulting design failure. The contractor still owes a duty to build in a workmanlike manner and to report errors it actually discovers. Contract language shifting design responsibility, as in design-build delivery, can change this allocation.

An owner needs added work started immediately, but the parties cannot agree on its price. Which document lets the work proceed while the cost is settled later?

• a.A certificate of substantial completion, recording that the owner may use the work
• b.A conditional lien waiver, which takes effect only when the payment actually clears
• c.A notice to proceed, which fixes the date the original contract time begins to run
• d.A construction change directive, a written order to proceed pending price agreement✓

A construction change directive is a written instruction, signed by the owner and typically the architect, directing a change in the work before the parties have agreed on the adjustment to price or time. The contractor must proceed, and the cost is determined afterward and converted into a change order. The other documents mark completion, release lien rights, or start the contract clock.

An owner's representative repeatedly rejects conforming work and demands a standard higher than the specifications require, adding cost. This is best analyzed as:

• a.A cardinal change, which so alters the work that it falls outside the contract entirely
• b.A constructive change, entitling the contractor to an adjustment though none was ordered✓
• c.A liquidated damage, which fixes the sum owed for the contractor's own late performance
• d.A quantum meruit claim, available only where no enforceable contract exists at all

A constructive change occurs when the owner's conduct effectively changes the work without a written change order, through over-inspection, an erroneous interpretation of the specifications, or informal acceleration demands. The contractor may be entitled to an equitable adjustment, but it must document the direction and give whatever notice the contract requires. A cardinal change is a far more drastic alteration, and quantum meruit applies only where no enforceable contract governs.

Midway through a single-story warehouse project, the owner directs changes that turn it into a multi-story office building. This is MOST likely to be treated as:

• a.A routine change order that the changes clause obligates the contractor to perform
• b.An excusable delay, which extends the contract time but grants no additional money
• c.A differing site condition, since the physical work at the site has now been altered
• d.A cardinal change, so far outside the original scope that it breaches the contract✓

A cardinal change is a change so drastic that it goes beyond the scope the changes clause was written to cover, effectively demanding work the contractor never agreed to perform. Treated as a breach by the owner, it can allow the contractor to stop work and sue rather than be forced to perform at contract rates. Ordinary additions and deletions of work remain within the changes clause.

Unusually severe weather, caused by neither party, halts work for a week. Under a typical construction contract, the contractor is usually entitled to:

• a.Both an extension of time and full reimbursement of its extended overhead costs
• b.Neither an extension nor money, because weather risk always rests on the contractor
• c.An extension of the contract time, but no compensation for the delay costs✓
• d.Termination of the contract, because the interruption made performance impossible

Delays are sorted into excusable and inexcusable, and excusable delays are further divided into compensable and non-compensable. Unusually severe weather is the classic excusable but non-compensable delay: no party caused it, so the contractor gets more time but absorbs its own costs. Owner-caused delays are typically both excusable and compensable, while the contractor's own poor planning is inexcusable and supports neither remedy.

An owner's late design decision and the contractor's own late material order each independently delay the same two weeks of work. This situation is called:

• a.A concurrent delay, which commonly yields added time but not delay damages✓
• b.An acceleration, in which the contractor is directed to recover lost schedule time
• c.A constructive change, in which conduct alters the work without a written order
• d.A cardinal change, in which the revised work far exceeds the original contract scope

Concurrent delay occurs when two independent causes, one the owner's and one the contractor's, delay the same period of work. Because neither party can show that it alone caused the loss, the usual outcome is that the contractor receives an extension of time but no delay damages, and the owner recovers no liquidated damages for that period. Daily reports and updated schedules are what make these arguments winnable.

An unpaid subcontractor on a federal construction project cannot record a mechanic's lien against the building. Its usual remedy is to:

• a.Record the lien anyway, since federal property is treated like any private parcel
• b.Make a claim against the prime contractor's payment bond required on such work✓
• c.Stop all work permanently and refuse to return the materials already delivered
• d.File a claim with the local building department that issued the project's permits

Public property generally cannot be encumbered by a mechanic's lien, so legislatures substitute a bond remedy. On federal projects the Miller Act requires the prime contractor to furnish payment and performance bonds, and unpaid subcontractors and suppliers assert claims against the payment bond. States have their own analogous bond statutes for public work, each with its own notice and timing requirements.