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.
Description of Guam Stop Payment Notice By Subcontractor to the Holder of Construction Project Funds: A Guam Stop Payment Notice is a legal document used by subcontractors in the construction industry to protect their rights to payment for work or materials provided on a construction project. It is a notice sent by a subcontractor to the party holding the construction project funds, typically the project owner or the prime contractor, to inform them of the subcontractor's claim for unpaid amounts. In Guam, subcontractors have the right to file a Stop Payment Notice when they are not paid by the prime contractor for the work they have completed or the materials they have supplied on a construction project. This notice is an essential tool for subcontractors to take action and ensure they receive payment for their services. The Guam Stop Payment Notice by a subcontractor includes detailed information such as the subcontractor's name, address, and contact information, as well as the name and address of the party holding the construction project funds. The notice will also detail the amount owed to the subcontractor, the specific work or materials provided, and the dates of the services rendered. Different types of Guam Stop Payment Notices by subcontractors can be categorized based on the stage of construction project funds they are targeting. These types may include: 1. Preliminary Notice to Owner: This notice is sent at the beginning of a construction project to formally notify the project owner that the subcontractor is involved and may file a Stop Payment Notice if payment issues arise. 2. Interim Stop Payment Notice: This type of notice is sent during the progress of the project when the subcontractor has not been paid for a specific phase or milestone. It notifies the holder of the funds that the subcontractor intends to stop payment if the outstanding amount is not paid. 3. Final Stop Payment Notice: This notice is sent upon completion of the project when the subcontractor has outstanding payment due. It serves as a final warning to the holder of the funds that legal action may be taken if the subcontractor is not paid promptly. Guam Stop Payment Notices by subcontractors are crucial tools to protect their rights and ensure proper compensation for their work or materials provided on construction projects. These notices can initiate payment discussions and negotiations between subcontractors and the project stakeholders, preventing potential payment disputes or delays.
