Obras PúblicasPregunta 1628 de 1632

An unpaid supplier on a school district job learns that the district recorded a notice of completion on April 10. By when must the stop payment notice be given, and what must the district do when it arrives?

a.By May 10, 30 days after recordation, and the district must then withhold funds due the prime
b.By July 9, 90 days after recordation, and the district must then withhold funds due the prime
c.By May 10, 30 days after recordation, and the district may withhold funds but is not obliged to
d.By October 10, six months after recordation, which is the window for suing on the payment bond

Explicación

Civil Code §9356 gives 30 days after recordation of a notice of completion, acceptance or cessation. Recording such a notice SHORTENS the window from 90 days to 30; it never extends it, so April 10 plus 30 days is May 10. Section 9358(a) then makes the duty mandatory rather than discretionary: on receipt the public entity SHALL withhold sufficient funds due or to become due the direct contractor to pay the claim stated in the notice, plus its reasonable cost of any litigation. Six months after the stop-notice period closes is the separate deadline for an action on the payment bond.

Referencia Legal: Civil Code §9356; §9358(a)

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