Florida Contractor Practice Exam

What must a contractor provide to solidify lien rights when supplying materials to a project?

1. A notice to owner

2. Proof of payment

3. A performance bond

4. A notice of commencement

The correct answer is: A notice to owner

To solidify lien rights when supplying materials to a project, a contractor must provide a notice to owner. This notice serves as a formal communication to the property owner, informing them of the supplier's involvement in the project and asserting potential lien rights for materials provided. It is a crucial step in the process, particularly in states like Florida, where lien laws necessitate that those supplying labor or materials to a construction project take proactive steps to preserve their ability to file a lien for unpaid services or materials. Providing a notice to the owner ensures that the property owner is aware of who is supplying materials and helps to avoid disbursement of funds to contractors without accounting for all suppliers or subcontractors involved. This notification can protect the supplier and establish a clear chain of communication regarding payments and project status. In contrast, the other options relate to different aspects of contracting or project participation. Proof of payment relates to verifying that payments have been made rather than establishing lien rights. A performance bond is a security measure guaranteeing contract completion involving the contractor rather than supply liens. A notice of commencement indicates the start of construction but does not directly relate to the specific rights of material suppliers.