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 District of Columbia
The District of Columbia has no separate stop payment notice release bond. Under the subcontractor's lien law, once a subcontractor files and serves a lien notice, the owner must hold back enough from later payments to the contractor to cover the claim. An owner can discharge the liens by giving an undertaking (bond) with sureties under D.C. Code §§ 40-303.16 and 40-303.17.
- See the District of Columbia mechanic's lien discharge bond page for the lien bond rules.
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.