I am a sub-subcontractor for a city job that was done on October 24th 2022. We have not gotten paid for this job as of yet and keep being told that they are waiting payment from the city and then they can pay us. What are our options here?
A stop work notice claimant must have served a 20-day preliminary notice within 20 days of commencing work as a condition of filing the stop notice. California Civil Code Section 8508.
The stop work notice must be served upon the public entity responsible within 30 days of recording notice of completion or cessation, or 90 days after actual completion or cessation. The stop work notice must be served personally or by certified mail on the contractor and the director of the department which gave the contract for the state/city/county.
The claimant on the stop work notice cannot sue for 10 days after service. There are specific laws about timelines, providing notice and service of documents. You should consult a lawyer so you do not miss these deadlines or violate the rules.
A payment bond is required for all public work contracts over $25,000. A claimant can file an action on the payment bond against the surety without filing a stop notice or suing the public entity. This notice must be served on the principal and surety by certified mail or personal service.
The claimant must either serve the original contractor and the public entity with a preliminary 20-day notice or must give written notice to the principal and surety within 15 days of recordation of a notice of completion or 75 days after actual completion. Again, there are specific timelines about when to file suit on a bond so you should consult a lawyer.