North Carolina General Contractors Practice Exam 2025 - Free Contractors Practice Questions and Study Guide

A mechanic's lien is a legal claim against a property that a contractor can file to ensure they receive payment for work they have performed. This mechanism serves as a security interest in the property, giving contractors a means to collect payment when it is due.

The correct answer indicates that a contractor can place a mechanic's lien when they have not been paid for work performed. This situation typically arises when a contractor completes work or provides materials for a project but does not receive compensation as agreed. By filing a mechanic's lien, the contractor protects their right to payment and can potentially compel the property owner to settle the debt. This lien remains attached to the property until the owner pays the contractor or the lien is otherwise resolved.

The other options do not accurately reflect the conditions under which a mechanic's lien can be placed. For example, securing a construction loan is not directly related to unpaid work performed, and neither is completing a project or merely being requested to perform additional work without payment issues arising first. Each of these scenarios lacks the fundamental condition that triggers the need for a mechanic's lien: the contractor’s lack of payment for previously completed work.