On a private works project, if the owner fails to pay by the due date and there is no dispute, which statement is correct?

On a private works project, if the owner fails to pay by the due date and there is no dispute, which statement is correct?

• A. The prime contractor may terminate the contract immediately
• B. The prime contractor may serve the owner with a stop work order stating that work will stop if payment is not made within ten days from the date of service of the order
• C. The project may be placed on hold indefinitely
• D. The subcontractors may file a lien immediately

Answer: (B)

When payment is due on a private project and there’s no dispute, the practical remedy is for the prime contractor to issue a stop-work order. This notice explains that work will stop if payment isn’t made within ten days from the date the order is served. It gives the owner a defined window to cure the nonpayment while preserving the contractor’s leverage and keeping the project timeline on track. It’s a targeted, time-bound action, not an instantaneous termination or an indefinite hold. Subcontractors’ liens involve their own timing and procedures and aren’t something that can be applied immediately without following those rules. So the ten-day stop-work deadline is the appropriate, enforceable step in this situation.

When payment is due on a private project and there’s no dispute, the practical remedy is for the prime contractor to issue a stop-work order. This notice explains that work will stop if payment isn’t made within ten days from the date the order is served. It gives the owner a defined window to cure the nonpayment while preserving the contractor’s leverage and keeping the project timeline on track. It’s a targeted, time-bound action, not an instantaneous termination or an indefinite hold. Subcontractors’ liens involve their own timing and procedures and aren’t something that can be applied immediately without following those rules. So the ten-day stop-work deadline is the appropriate, enforceable step in this situation.