Contractor License Practice Exam

What is required from a contractor at the time of project closeout?

1. A signed contract with the owner

2. A release of lien from each material provider and subcontractor

3. Completion of an inspection checklist

4. A final payment receipt

The correct answer is: A release of lien from each material provider and subcontractor

At the time of project closeout, it is essential for a contractor to present a release of lien from each material provider and subcontractor. This document is crucial as it serves to confirm that all parties involved in the project have been compensated for their work and materials, thus protecting the owner from potential future claims or liens against the property. By obtaining these releases, the contractor demonstrates that they have fulfilled their financial commitments, which is a key component of closing out the project responsibly and legally. While having a signed contract with the owner is important for the overall project, it doesn't directly pertain to the closeout phase, as it was established at the beginning of the project. Completion of an inspection checklist is certainly a critical step, but it generally relates more to ensuring that the work is up to code rather than fulfilling financial obligations. A final payment receipt, while important, is not sufficient on its own to ensure that all potential claims have been settled. Thus, the release of lien from each material provider and subcontractor is the most comprehensive requirement for a contractor at project closeout.