A stop payment notice on a public works project could be used to what action?

A stop payment notice on a public works project could be used to what action?

• A. Withhold Funds From Prime Contractor to Pay Subcontractor
• B. Cancel the Project
• C. File a Criminal Complaint
• D. Withhold Taxes

Answer: (A)

On public works, a stop payment notice is a tool to protect those who worked or supplied materials by directing the paying authority to withhold funds from the prime contractor so the claimant can be paid. Since public projects aren’t tied to liens on government property, stop notices provide a way to secure payment for subcontractors and suppliers. That’s why the correct action is to withhold funds from the prime contractor to pay the subcontractor. It isn’t used to cancel the project, file criminal charges, or withhold taxes.

On public works, a stop payment notice is a tool to protect those who worked or supplied materials by directing the paying authority to withhold funds from the prime contractor so the claimant can be paid. Since public projects aren’t tied to liens on government property, stop notices provide a way to secure payment for subcontractors and suppliers. That’s why the correct action is to withhold funds from the prime contractor to pay the subcontractor. It isn’t used to cancel the project, file criminal charges, or withhold taxes.