California Public Works Remedies.pptVIP

California Public Works Remedies 1. Payment Bond 2. Stop Notice Claim Stop Notices – California Public Works What is it… A stop notice on public works is a notice to the public agency to withhold construction funds to satisfy the claim Stop Notices –California Public Works All subcontractors to the job, and their material suppliers and equipment suppliers Stop Notices – California Public Works - No general/original contractors, supplier to supplier or unlicensed contractors Stop Notices – California Public Works --Preliminary 20 day notice a) Required of claimants who have no contractual relationship with prime contractor Within 20 days after claimant first furnishes labor/services or material to the site. Certified Mail, return receipt requested Registered mail First-class mail Who Must The 20-day Preliminary Notice Be Served upon? Public Agency Original contractor/reputed original contractor When Should The Stop Notice Be Served? - It can be served at any time Service is Made By: Registered mail Certified Mail Personal delivery Stop Notices – California Public Works Who Should The Stop Notice Be Served On? - Served on the director of the department which let the contract Who Should The Stop Notice Be Served On? - Served on the Officer/Controller/ Auditor who has the duty to make payments Other Issues for Stop Notices on Public Works 1. When suit must be filed 2. Priority 3. Notice of Commencement Shortening the Stop Notice Period Stop Notice Release Bonds Stop Notice Release Bonds Summary Proceeding Summary Proceeding Summary Proceeding Summary Proceeding Summary Proceeding Summary Proceeding California Public Works Remedies Payment Bond - Who can make a claim? Subcontractors of any tier Their suppliers Procedural Requirements For Making a Payment Bond Claim 20 Day Notice: Any claimant who has no direct contractual relationship with original contractor must give a 20-Day preliminary notice - Nee