If you release a stop payment notice on a public project do you give up the right to file one in the future on the same project?

Asked over 1 year ago - Huntington Beach, CA

A general contractor wants me to release a stop payment notice so they can get paid on contract work. The stop payment notice I filed includes mostly change orders that are awaiting approval by the owner. They have not filed notice of completion yet so i still have time to re-file the Stop payment notice if this is possible. The General Contractor is threatning to backcharge us for the cost to go through their bonding company if the Stop Payment Norice isn't released.

Attorney answers (2)

  1. Scott Aron Thompson Kron

    Contributor Level 9

    1

    Lawyer agrees

    1

    Answered . Yes, you can file another stop notice so long as you (1) timely served a Preliminary Notice; (2) File the stop notice within 30 days if a notice of completion (many times referred to as a notice of acceptance on public works) or notice of cessation is recorded. If there is no notice of completion or cessation recorded, then within 90 days of completion.

    I would not file a complete release of stop notice, I would file a partial release only covering those amounts the General Contractor is going to be paying you on. Otherwise, there is an argument that you have acknowledged satisfaction of the original stop notice and could be precluded from re-filing a new stop notice covering those amounts the General Contractor has not paid you on.

    You can get a Partial Release of Stop Notice from my website: www.kronandcard.com/forms. Feel free to contact me with any questions or concerns.

    Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each... more
  2. Nicholas Basil Spirtos

    Contributor Level 20

    Answered . Mr. Kron gave you good, accurate advice regarding stop notices.

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