The right to execute and deliver a stop notice or a notice to withhold funds is a remedy closely related to a mechanic's lien. When a stop notice or a notice to withhold funds is received by an individual or a firm holding the construction funds for a project, the individual or firm must withhold from its disbursements sufficient money to satisfy the stop notice claim. In jurisdictions that provide for stop notices, the notice constitutes a remedy in addition to a mechanic's lien.
This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
In the state of Arizona, a Stop Payment Notice by a Subcontractor to the Holder of Construction Project Funds is a legal document that allows a subcontractor to protect their rights and assert a claim for unpaid funds on a construction project. This notice is governed by the Arizona Revised Statutes Section 33-1004. A Stop Payment Notice is typically issued by a subcontractor when they have not received payment for the work or materials they have provided on a construction project. By sending this notice, the subcontractor is informing the holder of construction project funds, often the project's lender or owner, that they have a valid claim for payment and are asserting their right to be paid. The purpose of the Stop Payment Notice is to prevent the holder of construction project funds from disbursing any money to the general contractor or any other party until the subcontractor's claim is resolved. This serves as a form of protection for the subcontractor, ensuring they have recourse to recover payment for their work. There are different types of Stop Payment Notices that can be issued in Arizona, depending on the specific circumstances and parties involved. Some common types include: 1. Preliminary 20-day Stop Payment Notice: This notice is typically issued by a subcontractor within 20 days of first furnishing labor or materials to the project. It informs the holder of construction project funds of the subcontractor's intent to assert a claim for payment and puts them on notice of the potential stop payment actions that may be taken if payment is not received. 2. Final Stop Payment Notice: If a subcontractor has not received payment after issuing the preliminary notice, they may proceed with a final stop payment notice. This notice provides a detailed account of the labor, materials, and other expenses incurred by the subcontractor and specifies the amount owed. It is a more formal and legally enforceable document that puts additional pressure on the holder of construction project funds to resolve the payment dispute promptly. 3. Stop Payment Bond Notice: In some cases, a subcontractor may need to file a stop payment bond notice. This occurs when the project owner or general contractor has secured a payment bond to protect against nonpayment claims. By issuing this notice, the subcontractor is asserting their rights under the payment bond and informing the bond's issuer of their claim for payment. It is important for subcontractors to understand the specific requirements and deadlines associated with issuing a Stop Payment Notice in Arizona. Failure to comply with the statutory requirements may limit their ability to recover unpaid funds. Consulting with a construction attorney or legal professional experienced in Arizona construction law can ensure that the Stop Payment Notice is prepared accurately and in a timely manner to protect the subcontractor's rights.In the state of Arizona, a Stop Payment Notice by a Subcontractor to the Holder of Construction Project Funds is a legal document that allows a subcontractor to protect their rights and assert a claim for unpaid funds on a construction project. This notice is governed by the Arizona Revised Statutes Section 33-1004. A Stop Payment Notice is typically issued by a subcontractor when they have not received payment for the work or materials they have provided on a construction project. By sending this notice, the subcontractor is informing the holder of construction project funds, often the project's lender or owner, that they have a valid claim for payment and are asserting their right to be paid. The purpose of the Stop Payment Notice is to prevent the holder of construction project funds from disbursing any money to the general contractor or any other party until the subcontractor's claim is resolved. This serves as a form of protection for the subcontractor, ensuring they have recourse to recover payment for their work. There are different types of Stop Payment Notices that can be issued in Arizona, depending on the specific circumstances and parties involved. Some common types include: 1. Preliminary 20-day Stop Payment Notice: This notice is typically issued by a subcontractor within 20 days of first furnishing labor or materials to the project. It informs the holder of construction project funds of the subcontractor's intent to assert a claim for payment and puts them on notice of the potential stop payment actions that may be taken if payment is not received. 2. Final Stop Payment Notice: If a subcontractor has not received payment after issuing the preliminary notice, they may proceed with a final stop payment notice. This notice provides a detailed account of the labor, materials, and other expenses incurred by the subcontractor and specifies the amount owed. It is a more formal and legally enforceable document that puts additional pressure on the holder of construction project funds to resolve the payment dispute promptly. 3. Stop Payment Bond Notice: In some cases, a subcontractor may need to file a stop payment bond notice. This occurs when the project owner or general contractor has secured a payment bond to protect against nonpayment claims. By issuing this notice, the subcontractor is asserting their rights under the payment bond and informing the bond's issuer of their claim for payment. It is important for subcontractors to understand the specific requirements and deadlines associated with issuing a Stop Payment Notice in Arizona. Failure to comply with the statutory requirements may limit their ability to recover unpaid funds. Consulting with a construction attorney or legal professional experienced in Arizona construction law can ensure that the Stop Payment Notice is prepared accurately and in a timely manner to protect the subcontractor's rights.
