A subcontractor seeking payment for materials and labor provided to a non-paying contractor typically initiates a stop payment notice. Stop Payment Notice processing will require the following:

1. Subcontractor ("claimant") serves LAUSD with a stop payment notice (Civil Code § 8044)
2. Original document should contain:
• Name of contractor to whom labor and materials were provided.
• Value of labor and materials provided.
• Total value of labor and materials agreed to be furnished in contract.
• Value of unpaid labor and materials furnished.
• Claimant's name and address.
• Project identification (either by contract or project number, or by school name and description of project).
3. Original signatures
4. Verification - penalty of perjury page or notarized letter authenticating statements. (Civil Code § 9352)

A properly executed stop payment notice will require LAUSD to withhold payment (the specified claim amount plus 25% for possible cost of litigation) from the general contractor (Civil Code §§ 9350-9510). Facilities Contracts (FC) will issue a Notice of Withhold against the specific project's contract.

Upon payment or settlement of the withheld amount, claimant should send a Release of Stop Payment Notice to Facilities Contracts (FC) and FC will issue a Release of Withhold.