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

What happens if a contractor fails to submit an affidavit of payment?

1. The contractor may face criminal charges

2. The owner is not liable for unpaid claims

3. The lien process may be initiated by unpaid workers

4. The contractor will automatically lose their license

The correct answer is: The lien process may be initiated by unpaid workers

When a contractor does not submit an affidavit of payment, it implies that they have not provided proof that they have paid their subcontractors, laborers, or suppliers. This situation can prompt unpaid workers to initiate the lien process against the property. A lien is a legal right or interest that a lender or creditor has in the borrower's property, granted until the debt obligation is satisfied. By failing to provide evidence of payment, the contractor exposes the property owner and the project to potential lien claims, which can complicate property transactions or distribution of title. This knowledge is critical for both contractors and property owners as it underscores the importance of maintaining proper documentation and ensuring all payments are made to avoid legal complications. The initiation of the lien process reflects the system's mechanism to protect the rights of workers and suppliers who have not been compensated for their contributions to a project.