What is a stop notice and how does it help on public projects?

• A. Notice to withhold payment to ensure subcontractors are paid; used on public works.
• B. A document that speeds up payments.
• C. A permit to modify drawings.
• D. A request to stop project due to safety concerns.

Answer: (A)

The concept being tested is how a stop notice functions on public projects. A stop notice is a formal request served on the project owner or public agency telling them to withhold a portion of the money due to the general contractor. The withheld funds are allocated to pay subcontractors and suppliers who have provided labor or materials but haven’t been paid. On public works, this mechanism protects those who worked on the project by ensuring they have a financial claim that the owner must respect, even if the main contractor is behind on payments.

This is not about speeding up payments; it actually creates a hold on funds to guarantee payment to those lower in the payment chain. It’s also not a permit to modify drawings, nor a directive to pause the project for safety reasons. Those relate to change orders and stop-work orders, respectively. In short, a stop notice secures payment for subs on public projects by instructing the owner to withhold funds until the claim is resolved.