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Home>Levelset Community>Legal Help>we have a project that we have done a conciderable amount of extra work T&M $34-40k it is a public works project can we file a stop notice on this work? they are not wanting to pay us, it goes back to begiining of 2017?

we have a project that we have done a conciderable amount of extra work T&M $34-40k it is a public works project can we file a stop notice on this work? they are not wanting to pay us, it goes back to begiining of 2017?

CaliforniaRecovery OptionsStop Notice

see question need answer asap please? thanks Scott

1 reply

Oct 15, 2018
That's a good question. Whether or not a Stop Payment Notice may be sent will depend, in part, on your role and on whether a preliminary notice was sent at the start of the job. If the party sending notice has not contracted directly with the contractor contractor, preliminary notice is required. This notice must be sent within 20 days of the time the claimant first furnishes labor and/or material to the project. If this notice is not sent, a party who hasn't directly contracted with the prime contractor will not be entitled to make a Stop Payment Notice. Note, though, that laborers need not send preliminary notice. Anyway, if preliminary notice was sent (or not required), the following parties can make a Stop Payment Notice: subcontractors (any project tier), material suppliers, contractors performing site improvement work, and fringe benefit trust funds. General contractors and suppliers who supply other suppliers are not entitled to protection under a Stop Payment Notice. Of course, it's very important to send a Stop Payment Notice prior to the deadline - just like lien deadlines, Stop Payment deadlines are very strict. A Stop Payment Notice must be received within 30 days from the time a Notice of Completion or Cessation is filed. But, if no Notice of Completion or Cessation was filed, the Stop Payment notice must be received within 90 days of the completion or cessation of the job. Knowing exactly who should receive the Stop Payment Notice can be tricky, and you can read more about that here: California Stop Payment Notice and Bond Claim FAQ. Finally, it's also worth noting that if a preliminary notice was not sent, a claimant may still be able to file a bond claim against the project's payment bond - but the claimant has to act fast. In California, a party who was required to send preliminary notice and failed to do so can file a bond claim - but it must be made within 15 days of the Notice of Completion/Cessation. If no Notice of Completion or Cessation is filed, the bond claim deadline is extended to 75 days after the overall completion of the project. Finally, if a Stop Payment Notice or Bond Claim is unavailable, note that there are other options that could help recovery efforts (such as a Notice of Intent to Make Bond Claim, sending a demand letter, and/or filing suit under breach of contract, unjust enrichment, or prompt payment laws - to name a few).
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