Stop Payment Notice – Bonded & Unbonded

A private works stop payment notice helps secure payment for subcontractors and materials suppliers of private construction projects in California. In cases where the contractor or subcontractor fails to pay for goods or services provided, a stop payment notice requires the owner, bank, or other holder of the funds to withhold 125% of the stop payment notice claim amount from the direct contractor’s payment in order to satisfy the debt to the claimant. Some Stop Payment Notices must be accompanied by a bond, others do not.