A Stop Notice tells the owner and lender that you’re not getting paid – stopping payment to the person who owes you money.
A Stop Notice can be filed on both public and private projects. A notice to withhold funds, is sent to the owner or company that is financing or funding the construction funds for a project. Once that company receives the Stop Notice they will withhold sufficient money to satisfy the stop notice claim. The purpose of the Stop Notice is to provide the lender, financiers or funders of the construction project notice that there is money owed to a contractor, subcontractor or supplier so that an inquiry can be made as to why that money is not being paid. Usually, the funder will stop payment until the non-payment issue is resolved.