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How can we amend a stop notice

Is there a way that we can amend a stop payment notice or send in a new one for the difference owed? We sent a stop notice for a portion of our work, the general says they have our money but wont release it until we come to their office with a signed release. Can they do that? From my understanding, you don't sign a release until money has cleared the bank. (Just like in Conditional Waivers) So we now have completed our contracted work so the full amount of the contract is now owed. So that is why I am asking if we can amend the original for the full amount of what is now owed? Please advise.

4 replies

Feb 14, 2020

As long as the time for serving stop payment notices has not expired (30 days from recordation of a Notice of Completion or 90 days from actual completion), you can serve a new/updated/amended stop payment notice

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Feb 14, 2020

Okay. But would we have to sign a release for the first one and then send in a new one? Or are to send in a new for the difference?

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Feb 14, 2020

No need to amend your stop notice. Simply submit a new stop notice for outstanding balance not included in your first stop notice. This will require the owner and/or lender to withhold the additional amount owed as well. Conditional Waivers are signed in anticipation of receipt of funds and are conditioned on receipt of payment. It is unconditional waivers that should only be signed after payment is received. The general will not be able to get the money from the owner until the stop notice is released. So it really depends on how concerned you are with the risk that a check might bounce if you execute the release in exchange for the check. If you are concerned, insist that the owner agree to issue a joint check in exchange for release of the stop notice. And don't forget to watch your stop notice deadlines!

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Feb 14, 2020

Okay. Thanks! I have one more question. We somehow forgot to send stop notice to their bonding company the first time. Can we now send one with the total amount due even though the total wont match the notice that we will be sending for the difference?

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