Stop Notices in California

What It Is

A Stop Notice is a remedy unique to California that freezes construction funds held by a public agency or private lender — preventing those funds from being disbursed to the general contractor until the unpaid claimant's claim is resolved. On public works projects where a Mechanics Lien cannot be filed (because the land is publicly owned), the Stop Notice is the primary payment protection tool.

When to Use It

File a Stop Notice when you are unpaid on a public works project (city, county, state, or school district), or on a private project where there is a construction lender. The deadline mirrors the Mechanics Lien window — within 90 days of project completion, or within 60 days if a Notice of Completion is recorded. Act quickly: once funds are disbursed, a Stop Notice has no effect.

How Cover Me Handles It

Cover Me prepares the Stop Payment Notice and serves it on the public agency's financial officer or the construction lender by certified mail. We verify the correct agency contact, confirm the project's public works status, and ensure the document meets California's specific certified mail requirements. A department supervisor reviews the document before it is sent, and you receive a copy with USPS tracking the same day.

What's Included

• Stop Payment Notice preparation for public works (Civil Code § 9350) and private works with lender (Civil Code § 8530)
• Served on public agency financial officer or construction lender
• Bonded Stop Notice coordination when required
• Release of Stop Payment Notice once resolved
• Certified mail with proof of service
• All interactions documented and retained for 3 years

Commonly Asked Questions