The California Stop Payment form is a legal document used to notify parties involved in a construction project to withhold payment due to unpaid claims for labor, services, equipment, or materials. This form is essential for contractors and subcontractors seeking to protect their rights and ensure they receive compensation for their contributions. If you need to fill out this form, please click the button below.
The California Stop Payment form serves as a crucial tool for individuals and entities involved in construction projects, providing a mechanism to protect their financial interests. This form is utilized by claimants—such as contractors, subcontractors, or suppliers—who have provided labor, services, equipment, or materials for a specific improvement but have not been fully compensated. By submitting a Stop Payment Notice, the claimant formally requests that the responsible party withhold sufficient funds to cover the amount owed, including any applicable interest and legal costs. The form outlines essential details, including the names of the involved parties, a description of the work performed, and the total value of the labor or materials provided. It also includes sections for verifying the information presented and making a formal declaration under penalty of perjury. For private jobs, a bond may be required, while public jobs have different filing requirements. Understanding the intricacies of this form is vital for anyone looking to ensure their rights are protected in the often-complex landscape of construction financing.
Stop Payment Notice
CALIFORNIA CIVIL CODE SECTION 8044
NOTICE TO: ________________________________________________________________________________________________
(If Private Job - File with responsible officer or person at office or branch of construction lender administering the construction funds or with the owner - CIVIL CODE SECTIONS 8500 - 8560)
(If Public Job - file with office of controller, auditor, or other public disbursing officer whose duty it is to make payments under provisions of the contract - CIVIL CODE SECTIONS 9350 - 9510)
'LUHFW Contractor: _____________________________________________________________________________________________
Sub Contractor (If Any): _______________________________________________________________________________________
Owner or Public Body: _________________________________________________________________________________________
_________________________________________________________________________________________
Improvement known as_________________________________________________________________________________________
County of _____________________________ , State of California.
________________________________________________________________Claimant, a __________________________________
furnished certain labor, service, equipment or materials used in the above described work of improvement. The name of the person or company by whom claimant was employed or to whom claimant furnished labor, service, equipment, or materials is
__________________________________________________________________________________________________________
The kind of labor, service, equipment, or materials furnished or agreed to be furnished by claimant was:
____________________________________________________________________________________________________________
Total value of labor, service, equipment, or materials agreed to be furnished………….… $___________________________
Total value of labor, service, equipment, or materials actually furnished is……………… $___________________________
Credit for materials returned, if any………………………………………………………. $___________________________
Amount paid on account, if any…………………………………………………………… $___________________________
Amount due after deducting all just credits and offsets…………………………………… $___________________________
YOU ARE HEREBY NOTIFIED to withhold sufficient monies held by you on the above described project to satisfy claimant's demand in the amount of $___________________________ and in addition thereto sums sufficient to cover interest, court costs and
reasonable costs of litigation, as provided by law.
A bond (CIVIL CODE SECTION 8532) ___________________________ attached. (Bond required with Stop Payment Notice
served on construction lender on private jobs - bond not required on public jobs or on Stop Payment Notice served on owner on private jobs)
Date: ___________________________ Name of Claimant: ____________________________________________________________
By: ________________________________________________BBBB ________
VERIFICATION
I, the undersigned, state: I am the _____________________________ of the claimant named in the foregoing Stop Payment
Notice; I have read said claim of Stop Payment Notice and know the contents thereof, and I certify that the same is true of my own knowledge. I certify (or declare) under penalty of perjury under the laws of the State of California that the foregoing is true and correct.
Executed on _______________________________, at _________________________________, State of California.
___________________________________________________________
REQUEST FOR NOTICE OF ELECTION
(Private Works Only)
If an election is made not to withhold funds pursuant to this Stop Payment Notice by reason of a payment bond having been recorded in accordance with Sections 8600, 8536 or 8542, please send notice of such election and a copy of the bond within 30 days of such election in the enclosed preaddressed stamped envelope to the address of the claimant shown above. This information must be provided by you under Civil Code Section 8538.
Signed: _________________________________________________________________
Filling out the California Stop Payment form requires careful attention to detail. Once completed, the form should be submitted to the appropriate party, ensuring that all necessary information is accurately provided. This will help facilitate the processing of your request.
What is the purpose of the California Stop Payment form?
The California Stop Payment form serves as a legal notice that a contractor, subcontractor, or supplier has not been paid for labor, services, equipment, or materials provided for a construction project. By filing this notice, the claimant alerts the party responsible for payment, such as the construction lender or owner, to withhold sufficient funds to cover the unpaid amount. This is crucial for protecting the claimant's right to receive payment and ensuring that they are not left without recourse in the event of non-payment.
Who should file the Stop Payment Notice?
Any contractor, subcontractor, or supplier who has provided labor, services, equipment, or materials for a construction project can file the Stop Payment Notice. If the project is private, the notice must be filed with the responsible officer or person at the office or branch of the construction lender managing the funds or with the owner. In public projects, the notice should be filed with the office of the controller, auditor, or another public disbursing officer responsible for payments under the contract. This ensures that the correct parties are informed about the claim for payment.
What information is required to complete the Stop Payment Notice?
To complete the Stop Payment Notice, the claimant must provide detailed information about the project and the unpaid claim. This includes the names of the contractor, subcontractor (if applicable), and owner or public body involved in the project. Additionally, the claimant must specify the nature of the work performed, the total value of the labor or materials provided, any payments received, and the amount still owed. Accurate completion of this form is essential for the notice to be legally effective.
Are there any requirements for filing the Stop Payment Notice on public jobs?
Yes, when filing a Stop Payment Notice for public jobs, specific legal requirements must be followed. Unlike private jobs, where a bond may be required, public jobs do not necessitate a bond. The notice must be filed with the appropriate public officer responsible for disbursing payments. It is important to adhere to the deadlines and procedures outlined in the California Civil Code to ensure that the notice is valid and enforceable. Failure to comply with these requirements may jeopardize the claimant's ability to recover the owed amounts.
Filling out the California Stop Payment form can be straightforward, but many people make common mistakes that can lead to complications. One frequent error is failing to provide complete information. Each section of the form requires specific details, including the names of the contractor, subcontractor, and owner or public body. Omitting any of this information can delay the processing of your notice and may even render it invalid.
Another mistake is incorrect or incomplete financial details. The form asks for the total value of labor, services, equipment, or materials both agreed upon and actually furnished. It is essential to ensure these amounts are accurate. If the figures do not match, it can create confusion and undermine your claim.
Many individuals also neglect to sign the form. A signature is a crucial part of the verification process, confirming that the information provided is true and accurate. Without a signature, the form may not be considered valid, and your stop payment request could be dismissed.
Additionally, some people overlook the requirement to attach a bond when necessary. If you are filing a Stop Payment Notice on a private job, a bond is required. Failing to include this bond can lead to rejection of your notice. On public jobs, however, this requirement does not apply, so it’s important to know which rules pertain to your specific situation.
Another common issue is not filing the notice with the correct party. Depending on whether the job is private or public, the Stop Payment Notice must be filed with the appropriate officer or disbursing officer. Misfiling can result in delays or loss of your right to claim the payment.
Lastly, many individuals forget to keep a copy of the completed form for their records. Having a copy can be invaluable if there are any disputes or if you need to reference the details later. Always ensure you have a copy for your files before submitting the form.
The California Stop Payment form is a crucial document for contractors and claimants involved in construction projects. It serves to notify responsible parties to withhold payment due to disputes regarding labor, services, or materials. Alongside this form, several other documents are commonly used to ensure proper communication and compliance with California laws. Below is a list of these documents, each briefly described.
These documents play a vital role in the construction process, helping to protect the rights of all parties involved. Proper use and understanding of each document can prevent disputes and ensure timely payments.
When filling out the California Stop Payment form, it’s important to follow certain guidelines to ensure your submission is correct and effective. Here’s a helpful list of things you should and shouldn’t do:
By following these guidelines, you can help ensure that your Stop Payment Notice is processed smoothly and effectively. Taking the time to double-check your form can save you from potential issues down the line.
Misconceptions about the California Stop Payment form can lead to confusion. Here are seven common misunderstandings:
Understanding these misconceptions can help you navigate the process more effectively. If you have further questions, it’s wise to seek guidance from a knowledgeable professional.
When dealing with the California Stop Payment form, it's essential to understand how to fill it out correctly and use it effectively. Here are some key takeaways to keep in mind:
By following these takeaways, you can navigate the Stop Payment process more confidently and protect your rights as a claimant in California.