NCARB Project-Management Exam - Topic 2 Question 7 Discussion

Actual exam question for NCARB's Project-Management exam

Question #: 7
Topic #: 2

On a private project, which of the following actions by a subcontractor who had not been paid by the contractor is most likely to be an effective collection measure?

AHiring a collection agency

BDemanding payment from the surety

CDemanding payment from the owner

DPlacing a mechanic's lien on the owner's property

Show Suggested Answer

Suggested Answer: D

Verified Answer

On private projects, if a subcontractor is not paid, they may file a mechanic's lien against the owner's property. This legal tool can delay or block sale or refinancing until the debt is settled. It is often the most effective method for securing payment on private projects.

* A mechanic's lien attaches to the property, putting legal and financial pressure on the owner to resolve the issue.

* This is more effective than a collection agency or contacting the surety (which applies only if there is a payment bond, usually on public projects).

* Reference: AIA A201 9.6.5

* NCARB ARE 5.0 Handbook -- PjM Content Area 5: Construction Phase Responsibilities

by Vallie at Nov 21, 2025, 12:28 AM

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Nicolette

9 hours ago

Wait, can you really place a lien if you haven't been paid? Sounds risky!

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Lynsey

6 days ago

Demanding payment from the owner (C) could backfire, though.

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Chantell

11 days ago

Really? I thought hiring a collection agency might be better.

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Georgeanna

16 days ago

Totally agree, D is the way to go!

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Kenneth

21 days ago

Haha, hiring a collection agency? That's like bringing a water gun to a sword fight. Definitely go with the lien option.

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Leanora

26 days ago

Hmm, I'm not sure. Demanding payment from the surety or the owner could also work, depending on the situation. This is a tricky one.

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Aimee

1 month ago

I agree with John. Putting a lien on the property is the way to go. The other options might not be as effective.

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Apolonia

1 month ago

Demanding payment from the owner seems risky; I feel like it could damage relationships.

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Nichelle

1 month ago

I remember a practice question where placing a mechanic's lien was the best option, so I might lean towards that here.

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Janae

2 months ago

Hiring a collection agency could work, but I'm worried that might damage the relationship with the contractor. I'll have to weigh the pros and cons carefully.

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Nickolas

2 months ago

I'm leaning towards the mechanic's lien, but I want to make sure I understand the potential consequences and risks before selecting that answer.

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Alline

2 months ago

I'm a bit confused about the difference between demanding payment from the surety versus the owner. I'll need to review the details on those options.

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Simona

2 months ago

I think D is the best option. Mechanic's liens are powerful.

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Lakeesha

2 months ago

I think hiring a collection agency could be effective, but I'm not sure how much they actually help in construction cases.

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Norah

2 months ago

Option D seems like the best choice here. Placing a mechanic's lien on the owner's property is a common and effective way for subcontractors to get paid.

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Nickolas

3 months ago

The lien is the way to go, no doubt. Though I do wonder if the subcontractor has tried politely asking the contractor for payment first. You know, the old-fashioned way.

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