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.
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.
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.
A Mechanics Lien attaches to the property itself and can lead to foreclosure. A Stop Notice attaches to construction funds held by a lender or public agency — it freezes those funds rather than the property. On public works projects, land cannot be liened, so the Stop Notice is the only available remedy against project funds.
Yes. On private works projects, you must have served a Preliminary Notice within 20 days of first furnishing to have Stop Notice rights. On public works projects, a Preliminary Notice is also required. Cover Me handles both documents and tracks the relationship between them.
The public agency or lender is legally required to withhold the claimed amount from the general contractor. If the GC posts a release bond equal to 125% of the claim, the Stop Notice can be released and funds disbursed. The dispute then shifts to a bond claim against the surety.
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