Building Code Administrators and Inspectors Florida Principle and Practice Licensure Practice Exam

The contractor is unable to receive final payment from the owner if what condition is met?

1. Notice of Commencement was not filed

2. The contract exceeds $2,500

3. All awards are paid

4. The project is incomplete

The correct answer is: Notice of Commencement was not filed

The completion of a construction project and adherence to legal processes are crucial in determining when a contractor can receive final payment. The filing of a Notice of Commencement is a significant legal requirement in many jurisdictions, including Florida. This notice serves as a formal notification of the commencement of a project, establishing a record that protects the property owner's interest in a lien claim by contractors and subcontractors. When a Notice of Commencement is not filed, it can lead to various complications, such as disputes over payment and the inability of contractors to establish their rights to claim payment. In the context of the question, if a contractor fails to have this document filed, they may find themselves unable to receive final payment from the owner due to potential lien issues or the lack of formal recognition of the project’s initiation. While the other conditions listed may involve factors related to payment or project completion, they do not inherently prevent the contractor from receiving final payment in the same way that the absence of a Notice of Commencement does. Therefore, the critical nature of the Notice of Commencement in the payment process makes this the correct answer.