Which document informs the owner that the work on a project will be stopped for failure to make a progress payment?

The document that informs the owner that work on a project will be stopped due to the failure to make a progress payment is the Stop Work Notice. This notice serves as an official communication to the owner, indicating that the contractor has the right to halt work until payment issues are resolved. This is an important mechanism to protect the contractor’s interests, as it allows them to take action in the face of non-payment without terminating the contract altogether.

The Stop Work Notice effectively communicates the severity of the situation, ensuring that the owner is aware of the consequences of their inaction regarding payment. It underscores the contractual agreement wherein timely payment is essential for completing the project and maintaining a working relationship.

In contrast, a Contract Change Order is used to formally modify the terms of the contract, including scope or price adjustments. Mediation refers to a process for resolving disputes that does not involve halting work on the project. A Notice to Proceed signifies that the subcontractor or contractor can start work, which is opposite in nature to a Stop Work Notice. Therefore, the Stop Work Notice is the appropriate document for notifying the owner of the work stoppage due to non-payment.