Insurance & LiensQuestion 478 of 163286% of test-takers answer this correctly

On a private project, an owner who wants to shorten the time claimants have to record liens should:

a.Refuse to pay the contractor until all liens expire
b.Demand that subcontractors waive their lien rights verbally
c.Wait one full year before paying anyone
d.Record a Notice of Completion after the work is finished

Explanation

Recording a Notice of Completion shortens the lien-recording period: the direct contractor then has 60 days and subcontractors/suppliers have 30 days, instead of the 90-day period that applies when no such notice is recorded.

Law Reference: Civil Code §8170

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