Who can file a Stop Payment Notice in California?

Any claimant who has provided labor, services, equipment, or materials on a California construction project and has not been paid can serve a Stop Payment Notice — including subcontractors, material suppliers, equipment lessors, and laborers.

What is the bond requirement for lender Stop Payment Notices?

When serving a Stop Payment Notice on a construction lender, you must also post a bond equal to 125% of the claimed amount (Civil Code §8532). This bond protects the lender from frivolous claims. For example, a $50,000 claim requires a $62,500 bond. NoLiens calculates this automatically.

Free Tool · §8500 Private Works

California Stop
Payment Notice

Q: Do I need to have served a preliminary notice first?

Yes — for lender-financed private works, a California Preliminary Notice (Civil Code §8200) is required before serving a Stop Payment Notice on the construction lender. For notices served on the owner only (no lender), a preliminary notice is still required to protect your position. You must serve the prelim within 20 days of first furnishing work.

Haven't been paid? A Stop Payment Notice freezes the funds held by the owner or lender — legally requiring them to withhold from the GC until your claim is resolved. This is one of the most powerful tools in California lien law.

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Freeze Construction Funds

Upon receipt, the owner or lender is legally required to withhold a sufficient amount to cover your claim. Failure to withhold creates personal liability for them under Civil Code §8522.

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Works Without Recording a Lien

Unlike a mechanics lien, a Stop Payment Notice targets the construction funds — not the property title. It works even if the project is on a public work or the property can't be liened.

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Complete Package with Exhibits

The full NoLiens account gives you the complete package — Proof of Service (Exhibit A), Open Invoice Accounting (Exhibit B), and Lien Waiver History (Exhibit C). The free tool generates the notice. The account generates everything you need to walk into court.

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Preliminary Notice Required

A Stop Payment Notice on a construction lender requires a prior preliminary notice served within 20 days of first furnishing. Make sure you have it on file.

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§8500

CA Civil Code

125%

Lender bond amount

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Generate Your Stop Payment Notice

Fill in the information below. Your notice downloads instantly as a PDF. For the full exhibit package (invoice accounting, proof of service, lien waiver history), create a free account.

Not legal advice. This tool generates a statutory notice document. Serving a Stop Payment Notice has significant legal consequences. Consult a licensed California construction attorney before serving this notice, especially for lender-financed projects.

Your Information (Claimant)

Your Company Name *

Your Role *

Your Address *

Property Owner

Owner Name *

Owner Address *

Direct Contractor (GC)

GC Name *

GC Address *

Construction Lender (Optional)

Lender Name

Lender Address

Project

Project Name

Project Address *

Claim Details

Total Contract Amount ($)

Total Invoiced to Date ($)

Total Paid to Date ($)

Amount Due & Unpaid ($) *

Bond required for lender notice (125%): $0.00

Notice Served On *

Preliminary Notice Date

Description of Work / Materials *

Verification (Signature Block)

Your Name (Declarant) *

Your Title *

Notice Date *

Frequently Asked Questions

What is a California Stop Payment Notice?

A Stop Payment Notice (California Civil Code §8500) is a legal demand that requires the property owner or construction lender to withhold funds from the general contractor until your unpaid claim is resolved. It is one of the most powerful payment protection tools available to California subcontractors, suppliers, and laborers.

Who can serve a Stop Payment Notice?

Any claimant who has provided labor, services, equipment, or materials on a California construction project can serve a Stop Payment Notice — including subcontractors, material suppliers, equipment lessors, and laborers. You must have an unpaid balance and must have served a preliminary notice (for lender notices on private works).

Do I need to have served a preliminary notice first?

Yes — for private works financed by a construction lender, a California Preliminary Notice (Civil Code §8200) must be served within 20 days of first furnishing as a condition of serving a Stop Payment Notice on the lender. For notices served on the owner only, a preliminary notice is still required to protect your position. Use our free preliminary notice tools to get started.

What is the bond requirement?

When serving a Stop Payment Notice on a construction lender, Civil Code §8532 requires you to post a bond equal to 125% of the claimed amount. This protects the lender from frivolous claims. For example, a $47,000 claim requires a $58,750 bond. NoLiens calculates this automatically and shows it on the notice.

What happens after I serve the Stop Payment Notice?

The owner or lender is legally required to withhold funds from the GC. If they fail to withhold after receiving notice, they become personally liable for your claim. The GC may post a release bond (150% of claim) to release the withheld funds while the dispute continues. If the claim is not resolved, you may enforce the notice through a court action under Civil Code §8550.

How is this different from a mechanics lien?

A mechanics lien attaches to the property title and must be recorded with the county recorder. A Stop Payment Notice targets the construction loan funds directly — it is faster, doesn't require recording, and works even on properties that can't be liened (e.g., public works, exempt properties). Many experienced contractors use both tools together for maximum protection.

California StopPayment Notice