CSLB Contract and Lien Laws

Question 1

Under California's Mechanics' Lien Law, what is the deadline for a direct contractor to record a mechanics' lien after a Notice of Completion is filed?

Accepted Answer

60 days

Answer

30 days

Answer

90 days

Answer

180 days

Question 2

What is the purpose of a 'Preliminary Notice' (20-day preliminary notice) in California construction?

Accepted Answer

To preserve a subcontractor's or material supplier's right to later file a mechanics' lien

Answer

To notify the owner that work will begin in 20 days

Answer

To satisfy the building permit requirement

Answer

To waive lien rights in exchange for payment

Question 3

In California, which party is responsible for recording a Notice of Completion after a construction project is finished?

Accepted Answer

The property owner

Answer

The general contractor

Answer

The project architect

Answer

The CSLB

Question 4

What is the maximum retention percentage that an owner may withhold from a contractor on a private California construction project?

Accepted Answer

10%

Answer

5%

Answer

15%

Answer

20%

Question 5

Under California law, a mechanics' lien must be enforced by filing a lawsuit within how many days of recording the lien?

Accepted Answer

90 days

Answer

60 days

Answer

180 days

Answer

365 days

Question 6

What is a 'Conditional Waiver and Release on Final Payment' used for in California construction?

Accepted Answer

To release lien rights upon receiving final payment, contingent on the check clearing

Answer

To certify that all subcontractors are licensed

Answer

To transfer project ownership to the general contractor

Answer

To extend the warranty period on completed work