PRACTICE EXAM 2026 CORE QUESTIONS
AND ACCURATE ANSWERS PROJECT
MANAGEMENT TRAINING PACK
◉ How can the owner shorten the lien period for an incomplete
contract?
Answer: By filing a *Notice of Cessation*, which legally terminates
the contract, and shortens the lien period to 30 days for a
subcontractor and 60 days for a contractor. The clock starts on the
filing date of the Notice.
◉ How soon can a *Notice of Cessation* be filed after work
stoppage?
Answer: 30 days
◉ Preliminary Notice
Answer: Provides notice to all moneyed parties that a particular
contractor is working on the project and has the right to file a
mechanics' lien if he is not paid properly.
◉ What happens if a contractor does not provide a preliminary
notice within 20 days of work commencing?
,Answer: He forfeits his right to file any mechanics' liens or stop
notices.
◉ Can a contractor file a mechanics' lien on public property?
Answer: No, but he can file a stop notice.
◉ How soon must a *preliminary notice* be provided?
Answer: Within 20 days of the contractor commencing work,
irrespective of the project's completion date.
◉ How soon must the owner file a Notice of Completion if he wants
to shorten the period of a mechanic's lien?
Answer: Within 10 days of the completion of the contract
◉ What's the time limit for filing a lawsuit to enforce a mechanic's
lien?
Answer: 90 days following the filing of the lien
◉ Describe the differences between small claims court and
arbitration
Answer: (1) A small claims court ruling can be appealed while an
arbitrator's ruling cannot be appealed unless he committed fraud.
, (2) Attorneys aren't allowed in small claims court.
(3) Small claims courts have a $7500 limit.
(4) Arbitration is more expensive.
◉ When may an unlicensed contractor be charged with a felony?
Answer: If he contracts for a project covered by a state of emergency
or disaster proclaimed by a governor or POTUS.
◉ What's the dollar limit for small claims courts?
Answer: $7,500
◉ List two types of contracts that require the *Mechanics Lien
Warning*
Answer: (1) Home Improvement Contracts
(2) Swimming Pool Contracts
◉ Home solicitation contract
Answer: A contract negotiated at any place other than the
contractor's normal business location.