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.
Oregon Stop Payment Notice By Subcontractor to the Holder of Construction Project Funds is a legal document used in Oregon to protect the rights of subcontractors who have not been paid for their work on a construction project. This notice allows subcontractors to stop the payment process to the holder of construction project funds until they receive the payment they are due. By providing this notice, subcontractors can ensure that their unpaid invoices are addressed promptly and that they are not left without compensation for their services. Different types of Oregon Stop Payment Notices may include: 1. Original Stop Payment Notice: This type of notice is sent by a subcontractor to the holder of construction project funds when they have not received payment for their work. It alerts the holder that the subcontractor has not been paid and requests that any future disbursements be stopped until the payment issue is resolved. 2. Amended Stop Payment Notice: If the subcontractor discovers additional unpaid invoices after sending the original notice, they may choose to send an amended stop payment notice. This updated notice includes the new information and further emphasizes the subcontractor's claim for payment. 3. Joint Stop Payment Notice: In cases where multiple subcontractors are experiencing payment issues on the same construction project, they may choose to submit a joint stop payment notice. This notice lists all the subcontractors involved and collectively demands payment from the holder of construction project funds. 4. Termination of Stop Payment Notice: Once a subcontractor receives payment for their outstanding invoices, they can issue a termination of stop payment notice. This notice formally informs the holder of construction project funds that the payment dispute has been resolved, and they can resume normal disbursements. 5. Disputed Stop Payment Notice: If the holder of the construction project funds refuses to acknowledge the subcontractor's claim or disagrees with the validity of the outstanding invoice, the subcontractor may file a disputed stop payment notice. This notice initiates a formal process to resolve the payment dispute, involving negotiations or legal action if necessary. Subcontractors need to follow specific guidelines and deadlines when serving stop payment notices in Oregon to ensure their efficacy and legality. It is recommended to consult with a legal professional experienced in construction law to navigate the intricacies of the process successfully.
