What a stop payment notice release bond is
In a few states, an unpaid subcontractor or supplier can serve a stop payment notice (also called a stop notice) on the owner or construction lender, which then holds back money owed on the job. A release bond lets that money be paid out; the claimant then claims against the bond instead.
In Connecticut
Connecticut does not have a stop payment notice procedure. Unpaid contractors and suppliers use mechanic's liens on private projects (Conn. Gen. Stat. § 49-33 and following) and payment bonds on public works (§ 49-41).
- A mechanic's lien can be replaced by a bond with court approval under Conn. Gen. Stat. § 49-37 (see the lien discharge bond page).
You need this bond if you're
- A general contractor whose payments are being held
- A property owner or public agency holding funds
- A construction lender holding loan funds
What the surety looks at
The claim, the dispute behind it and your finances.