Washington's mechanics' lien statute provides contractors and suppliers with an option to get around those intractable owners that refuse to pay. Known as the stop-notice statute, contractors and suppliers can receive payment directly from the construction lender by following the steps below.
1
Are both you and the project eligible for stop-notice relief?
First, the project cannot have a payment bond that covers 50% or more of the construction financing. Second, payment to you must be five days or more past due. Third, you must file the stop notice with the lender within 35 days of the date that payment was due under your contract. It is important to note that this 35 days runs from the due date in the contract, not necessarily your pay application or invoice date.
2
Drafting the stop notice
The stop notice must: (1) state that you have furnished lienable labor, professional services, materials, supplies, or equipment; (2) describe the labor, professional services, materials, supplies, or equipment that you furnished; (3) name the prime contractor, common law agent, or construction agent that ordered the work; (4) describe the location of the real property being improved, such as providing the street address or legal description of the property; and (5) provide the name, address, and telephone number of your business.
3
Delivering the stop notice
You must provide the lender a written, signed stop notice with copies of the notice going to the prime contractor and the owner. The stop notice can be sent to the lender, owner, and prime contractor by either registered or certified mail, or by personally serving the parties with proof of service.
4
So you've delivered the stop notice... now what?
Once the lender has received your stop notice, the lender is obligated to withhold the claimed amount from the next and subsequent draws to the borrower-owner. Alternatively, the owner or prime contractor can post a payment bond naming you as the beneficiary. Be aware, however, that the lender is only obligated to withhold amounts from remaining funds; in other words, the lender is not required to make up for those payments it already issued, but for whatever reasons, never made it into your bank account.
Comments - add comment