New Hampshire Stop Payment Notice By Subcontractor to the Holder of Construction Project Funds

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Multi-State
Control #:
US-01033BG
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Word; 
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Description

The right to execute and deliver a stop notice or a notice to withhold funds is a remedy closely related to a mechanic's lien. When a stop notice or a notice to withhold funds is received by an individual or a firm holding the construction funds for a project, the individual or firm must withhold from its disbursements sufficient money to satisfy the stop notice claim. In jurisdictions that provide for stop notices, the notice constitutes a remedy in addition to a mechanic's lien.


This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.

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FAQ

A stop notice is a document given for the purpose of stopping, intercepting, or freezing funds that have not yet been paid on a construction project in an attempt to ensure payment.

When Can Contractors Withhold Payment From Subcontractors? The main contractor is able to withhold payment if the work or goods supplied by a subcontractor are deemed unsuitable. Evidence of this should always be provided along with the option to rectify any shortcomings.

The Stop Notice procedures involve three basic steps:First: If you are not the general contractor, serving a preliminary 20-day notice;Second: Serving the Stop Notice; and.Third: Filing a lawsuit to enforce the Stop Notice.

A stop payment notice, also known as a stop notice, is given to notify the property owner, general contractor, and/or lender that the claimant has not been paid for their services, materials, or equipment in a construction project.

The Stop Notice must be signed and verified by the claimant or his agent, and contain all of the following information:The type of labor, services, equipment or materials furnished or agreed to be furnished;The name of the person to or for whom the labor, services, equipment or materials were furnished;More items...

Bond Requirements and Online Application The California Stop Notice Release Bond states that the Claimant in the matter should receive judgement in any action brought on said Claim. The bond holder should pay said judgement and costs to Claimant in an amount not exceeding the sum specified in this undertaking.

A stop notice can be issued by anyone that has mechanics lien rights. So if a subcontractor or material supplier has the legal right to issue a mechanics or material man's lien, that entity or that person has a right to issue a stop notice.

The courts recognize the subcontractor's right to sue the owner directly for the payment of its claim to the extent that the master contract creates an express obligation on the owner's part (must) as opposed to a mere option (may) to make payment to the general contractor conditional upon the latter's having

A stop payment notice, also known as a stop notice, is given to notify the property owner, general contractor, and/or lender that the claimant has not been paid for their services, materials, or equipment in a construction project.

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New Hampshire Stop Payment Notice By Subcontractor to the Holder of Construction Project Funds