When a mechanical contractor stopped getting paid on a $400,000 hospital addition, they kept working for two more months hoping payment would come.
It didn't. By the time they stopped work, they were $200,000 in the hole — and the GC argued they'd breached by abandoning the project.
Knowing when and how to properly stop work could have saved them half that loss.
When Can You Stop Work?
Your right to stop work depends on contract language, state law, and the specific circumstances. Common grounds include:
Non-Payment
If you're not getting paid according to contract terms, most contracts and state laws allow you to stop work after proper notice.
Unsafe Conditions
You have the right to refuse work that poses imminent danger to your employees, regardless of contract language.
Material Breach by GC
If the GC has fundamentally breached the contract in ways beyond non-payment, you may be able to stop work.
Contract Termination
If the contract has been properly terminated (by either party), work should stop.
Suspension Ordered
If the owner or GC orders a suspension of work, you must comply.
The Non-Payment Scenario
This is the most common reason subcontractors consider stopping work. Here's the proper process:
Step 1: Document the Non-Payment
Before anything else, confirm you have a clear payment default:
Step 2: Check Your Contract
Look for:
Step 3: Send Written Notice
Before stopping work, send a written stop work notice that includes:
Send by certified mail and email. Keep copies.
Step 4: Wait the Required Period
If your contract or state law requires a notice period (often 7-10 days), wait it out. Don't jump the gun.
Step 5: Stop Work
If payment isn't received by the deadline, you may stop work. Document the date and circumstances.
State Law Variations
Many states have statutes protecting subcontractors' right to stop work for non-payment:
California
Subcontractors can stop work if payment is not received within 7 days after it's due, provided they've given written notice.
Texas
Similar protections exist, with specific notice requirements.
Florida
Prompt payment statutes provide grounds for stopping work after proper notice.
Other States
Requirements vary. Check your specific state's construction statutes.
Risks of Stopping Work
Stopping work is not risk-free:
Breach of Contract Claims
If you stop work without proper grounds or without following required procedures, you may be liable for breach.
Lost Future Payments
Stopping work escalates the dispute, making it harder to collect what you're owed.
Relationship Damage
Even if you're legally right, the relationship with the GC is likely over.
Project Damage Claims
If your stoppage causes project delays or other damages, the GC may claim those against you.
Bonding Implications
Work stoppages can affect your bonding history and capacity.
Alternatives to Stopping Work
Before stopping work, consider:
Escalation to Owner
Sometimes the owner doesn't know subcontractors aren't being paid. Notifying the owner may trigger action.
Lien Notices
Sending a notice of intent to lien often gets attention without stopping work.
Mediation
Some disputes can be resolved through quick mediation without work stoppage.
Reducing Scope
Instead of stopping entirely, you might reduce crew size or slow the pace of work while preserving the contract relationship.
Legal Demand Letter
An attorney's demand letter sometimes motivates payment without work stoppage.
The Safety Exception
You always have the right to stop work when there's imminent danger to workers:
OSHA Protections
Federal law protects workers who refuse to work in conditions that pose imminent danger of death or serious physical harm.
Documentation Required
If you stop work for safety reasons:
No Notice Required
For imminent safety hazards, you don't need to give the notice required for payment-related stoppages.
What Happens After You Stop Work
Once you've stopped work:
Document Everything
Note the date, circumstances, and your reason for stopping. Photograph the state of your work.
Secure Your Property
Make arrangements for your tools, equipment, and materials on site.
Preserve Lien Rights
Send any required lien notices. Don't miss deadlines while waiting for the dispute to resolve.
Prepare for Litigation
Organize your documentation. You may need it if the dispute goes to court or arbitration.
Consider Bond Claims
If there's a payment bond, prepare your bond claim.
Resuming Work
If the GC cures the default and you want to resume:
Get Payment First
Don't resume based on promises. Get actual payment for past-due amounts.
Update Terms
Consider negotiating improved payment terms going forward.
Document the Resolution
Put the cure in writing and reset the relationship clearly.
Rebuild Trust Carefully
The relationship has been damaged. Proceed cautiously.
Using SubPaid to Avoid Stop Work Situations
The best way to handle stop work situations is to avoid them. SubPaid helps by:
When our users do need to consider stopping work, they have complete payment history and documentation ready.
Frequently Asked Questions
Can I stop work immediately if I'm not paid?
Usually no. Most contracts and states require written notice and a cure period before you can stop work.
What if the GC says I'm in breach for stopping work?
If you followed proper procedures and had legitimate grounds, you should be protected. Document everything and consult an attorney if threatened.
Can I remove my materials from the site when I stop work?
Depends on your contract. Some contracts give the GC rights to materials on site. Read the fine print.
Should I stop work if payment is late but the GC promises it's coming?
Be cautious with promises. Set a firm deadline and be prepared to follow through if payment doesn't arrive.
What if I'm the only trade stopping work?
Your right to stop work is independent of what others do. If you have grounds, you have grounds — regardless of whether others continue.