What constitutes a Bonded Stop Notice?

A Bonded Stop Notice is a specific legal tool used in construction law that allows a claimant—such as a subcontractor or supplier—to ensure payment on a project by filing a notice in a particular manner. The correct choice describes a stop notice that is accompanied by a bond that is valued at 125% of the amount being claimed.

The requirement to provide a bond is crucial because it gives the contractor or property owner some assurance that, should the claim be found excessive or invalid, there will be funds available to cover potential costs they may incur. The bond amount being set at 125% is to further protect the interests of the contractor or owner by ensuring that there is a financial cushion in case the claim is disputed or deemed unwarranted.

In contrast, a typical claim against a contractor or lien against property does not carry this specific bonding requirement and does not automatically imply sufficient security or assurance for the parties involved. The distinction is important because it affects how claims are pursued and the level of security provided to those facing a potential claim on a project. Hence, the inclusion of the bond in the definition makes it a bonded stop notice, highlighting the additional layer of complexity and protection offered in this specific scenario.