Arizona Sample Letter concerning Stop Payment Notice
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How to fill out Sample Letter Concerning Stop Payment Notice?
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FAQ
While a payment bond is required for all public work contracts over $25,000, a claimant can file an action on the payment bond against the surety without filing a stop notice or suing the public entity. This notice must be served on the principal and surety by certified mail or personal service.
?Stop work notice? means notice given under this article by a direct contractor to an owner that the contractor will stop work if the amount owed the contractor is not paid within 10 days after notice is given.
A Stop payment notice, is a verified written notice signed by the claimant which formally notifies the property owner that the claimant has not been paid for their labor, services, equipments, or materials provided to the construction project.
If you are not paid, you can both record a lien and serve a ?stop notice.? Arizona's stop notice law gives contractors, subs and suppliers a second collection remedy: a demand that the owner or construction lender immediately withhold amounts out of the undisbursed construction funds to satisfy the claim.
Filing a Notice of Completion with the county recorder's office after work is completed reduces the amount of time a contractor, subcontractor, laborer, or materials supplier has to record a claim. Homeowners have 15 days from the date of completion to do so.
The Stop Notice must be signed and verified by the claimant or his agent, and contain all of the following information: The type of labor, services, equipment or materials furnished or agreed to be furnished; The name of the person to or for whom the labor, services, equipment or materials were furnished;
