A stop notice is a lien on money. If your project is a private work the lien would attach to the funding source, provided that the stop notice is accompanied by a bond. If your project is a public works project, the lien would attach to the funding source without the need for a bond. Below is a summary of the steps that must be taken to protect stop notice rights.

Step	Private Works	Public Works
Preliminary 20-day notice	Most claimants should serve the notice within 20 days of their work beginning	Most claimants must serve a notice within 20 days of beginning work.
Who must serve the notice?	Most claimants unless they have a direct contract with the owner of the land. One court has held the lender must receive the notice.	Most claimants unless they have a direct contract with the prime contractor.
Who must be served?	Owner or Reputed Owner, Contractor, Lender	The public agency concerned
Serving the Stop Notice	If a notice of cessation or completion was properly recorded, within 60 days for prime contractors, within 30 days for others.	If a notice of completion or acceptance, within 30 days
When?	If no notice of cessation or completion is recorded, 90 days after completion or 150 days after a continuous cessation of labor	If no notice of completion or acceptance, within 120 days after work ceases.
Is a bond required?	Yes	No.
Is a lawsuit required to perfect the Stop Notice?	Yes	No
When must the lawsuit be filed?	Within 90 days of the end of the stop notice filing period.	Ten days after service of the stop notice and no later than 90 days after the end of the stop notice filing period.
After filing suit what other steps are required?	It is good practice for the claimant to record a lis pendens	The stop notice claimant must notify the public entity of the filing of the lawsuit within 5 days of the filing.

This is, by no means, a complete discussion of the stop notice remedy. Many other factors affect a claimant’s right to recover with the stop notice. Generally, it is our policy to have our clients take these basic steps at the earliest opportunity. Please consult counsel if you have questions.