Stop Notices and Bond Claims
You work hard within the construction industry, performing valuable services that lead to property enhancements and engineering improvements. Nothing is more frustrating than performing a service and not being paid promptly or being compensated for all that you have earned.
While a mechanic’s lien helps guarantee payment when real property is involved, in some cases, there is no real property that could be used to guarantee a contractor or subcontractor’s work. Bridges, roads, parks, and public buildings cannot be subjected to foreclosure as a method of paying the laborers that built them. In many situations, construction and engineering work is being done for a government agency rather than a private company. In the event that you have non-payment claims for work completed under any of these contingencies, stop notices and bond claims are alternative legal measures that can help ensure that you receive the full amount due to you.
A stop notice is a legal notice to withhold construction funds. Rather than a lien on property, it is a lien on the funding of a construction project, and it will freeze distribution of the construction funds until a non-payment issue is resolved. The notice simply states that work was contracted and completed, but that an amount is still owed. The stop notice requires the owner, public body, or construction fund holder to withhold in trust an amount roughly equal to the amount owed plus a certain percentage extra for legal fees.
While this seems straightforward, the protocol involved is rigorous and precise. Furthermore, the process and the timing needed for filing a stop notice is different for contractors than it is for subcontractors. Our construction attorneys can easily assist you in whichever path applies to you, and if you have received a stop notice, our construction litigation attorneys are equally equipped to handle that matter as well.
In government projects, the circumstances are very similar to those described for a stop notice. When work is performed on public property, it is impossible to use a mechanic’s lien. In a public project, government agencies usually require that the general contractor provide a surety bond, which holds the funds in trust until the project is completed, thus ensuring that all the necessary payments in a project will be made.
Our construction law firm understands the steps needed to reclaim the funds that may be due to contractors and subcontractors under these conditions. Through stop notices and bond claims, we can have the funds owed to you set aside in trust, guaranteeing that your wages and compensation are preserved. We have the experience needed to cut through the red tape involved in government projects and to claim any balance that is due to you!