Insurance & LiensQuestion 81 of 163255% of test-takers get this one wrong

On a public works project, a claimant who did not serve a preliminary notice can still file a:

a.Mechanics' lien
b.Stop payment notice against the public entity
c.Both a lien and stop payment notice
d.Neither; preliminary notice is mandatory on public works

Explanation

Mechanics' liens cannot be recorded against public property. However, on public works, unpaid claimants can serve a stop payment notice on the public entity to hold project funds.

Law Reference: Civil Code §9350

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