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Need some advise on the pros & cons of filing a stop notice

Contractor is not paying for supplies they used to repair and resurface tennis courts for two high schools. I have filed a prelim & an intent to lien notice. The school district required the contractor to be bonded and I have filed a claim with surety company. The surety company recommended I file a stop notice as well. Is this worth the $280.00?

1 reply

Oct 17, 2017

On public projects in California, there are two potential types of protection: a bond claim against a contractor’s bond, and a stop notice claim against the contract funds. California law makes no distinction between the parties who are allowed to file a bond claim or stop notice, and the claims may potentially be asserted in the same document. These are complimentary documents - they just work in slightly different ways.

A bond claim is the claim made with the surety company to recover against the project's bond.

A stop notice is a claim made to halt the further payment of project funds from the contracting entity to the GC until the underlying claim is paid.

Both have utility to prompt payment. If you sent your claim through zlien, the standard document template for public projects in California includes both a Bond Claim and a Stop Notice - if you didn't use zlien, you just need to determine whether you want to add a different avenue to recovery as well s the claim you made against the bond.

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