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Business With FSD | Stop Payment Notices

Stop Payment Notice Processing

A subcontractor seeking payment for materials and labor provided to a non-paying contractor typically initiates a stop payment notice. Stop Payment Notice processing will require the following:
  1. Submittal of a Preliminary Notice (Civil Code § 9300)
  2. Subcontractor ("claimant") serves the District with a stop payment notice (Civil Code § 8044)
  3. Original document should contain:
    • Name of contractor to whom labor and materials were provided.
    • Value of labor and materials provided.
    • Total value of labor and materials agreed to be furnished in contract.
    • Value of unpaid labor and materials furnished.
    • Claimant's name and address.
    • Project identification (either by contract or project number, or by school name and description of project).
  4. Original signatures
  5. Verification - penalty of perjury page or notarized letter authenticating statements. (Civil Code § 9352)
A stop payment notice for a formal, competitively bid LAUSD project should be submitted to:
    Facilities Contracts - Post-Award Unit
    333 South Beaudry Ave - 28th Floor
    Los Angeles, CA 90017
A properly executed stop payment notice will require the District to withhold payment (the specified claim amount plus 25% for possible cost of litigation) from the general contractor (Civil Code §§ 9350-9510). Facilities Construction Contracts (FCC) will issue a Notice of Withhold against the specific project's contract.

Stop Payment Notices filed 30 days after recordation of the Notice of Completion of the project cannot be honored and will be rejected.

Upon payment or settlement of the withheld amount, claimant should send a Release of Stop Payment Notice to FCC and FCC will issue a Release of Withhold.
 
Facilities Services Division • 333 South Beaudry Ave. • Los Angeles, CA 90017
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