Utah Contractor Practice Exam

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What should a contractor do if they become aware of potential liability for a lien?

Discuss with the owner prior to beginning the project
Address all issues after job completion
Wait for payment before discussing liens
Alert only the subcontractors about the lien

The correct answer is: Discuss with the owner prior to beginning the project

A contractor should discuss potential liability for a lien with the owner prior to beginning the project because proactive communication is essential in avoiding disputes and misunderstandings later on. Addressing potential lien issues early establishes a clear understanding of the financial responsibilities associated with the project. This discussion should cover contract terms, payment schedules, and the circumstances under which liens may be placed, ensuring both parties are aligned and there are no surprises. By engaging in this conversation before any work begins, the contractor can clarify expectations, set the foundation for a cooperative relationship, and potentially mitigate any risks associated with non-payment or disputes that could lead to lien claims. This approach fosters transparency and allows time to address any concerns before the project progresses.