Contracts & ExecutionQuestion 66 of 690
A contractor must provide an owner with a "Notice to Owner" (preliminary notice) primarily to:
a.Inform the owner that work has begun
b.Comply with building permit requirements
c.Preserve the right to file a mechanics' lien if not paid
d.Register the contract with the local court
Explanation
The preliminary notice is not a demand for payment — it preserves the right to file a mechanics' lien later if the contractor or supplier is not paid. Without it, lien rights may be lost.
Law Reference: Civil Code §8200Practice all 690 questions free — no signup required.
Related questions on this topic
- Who is primarily responsible for obtaining building permits on a construction project?
- A contract clause that shifts responsibility for delays outside the contractor's control to the owner is called:
- An owner includes a liquidated damages clause of $500 per day for late completion. This clause is enforceable if:
- Under a "time and materials" (T&M) contract, the owner pays:
- Which contract type places the MOST financial risk on the contractor?
- A subcontractor fails to complete their scope of work on a project. The prime contractor's primary recourse is:
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against California CSLB Contractor License Law & Business Exam · How we review