Insurance & LiensQuestion 78 of 1605
What is the purpose of a "stop payment notice" on a private construction project?
a.To require the owner or lender to withhold funds from the contractor
b.To halt all work on the project
c.To record a lien on the property
d.To notify the building department of a payment dispute
Explanation
A stop payment notice (formerly "stop notice") requires the owner, lender, or public entity to withhold sufficient funds from the prime contractor to satisfy the claimant's unpaid claim.
Law Reference: Civil Code §8500Practice all 1605 questions free — no signup required.
Related questions on this topic
- After completion of a private project, a claimant has how many days to record a mechanics' lien if no Notice of Completion is filed?
- If the owner records a Notice of Completion, subcontractors and suppliers must record their mechanics' lien within:
- After recording a mechanics' lien, the claimant must file a lawsuit to enforce the lien within:
- An owner can release a recorded mechanics' lien by obtaining a lien release bond equal to:
- Which of the following is NOT required to be included in a mechanics' lien?
- On a public works project, a claimant who did not serve a preliminary notice can still file a:
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)