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A stop notice allows subcontractors to freeze project funds in the hands of the lender or owner until payment disputes are resolved. Mechanic’s liens (B) attach to property, but stop notices (C) directly target funds. Both protect subcontractors under California law.

A Competent Person can recognize and immediately correct workplace hazards. This ensures quick responses to unsafe conditions. They do not manage bids (A) or taxes (D).

Working capital equals current assets minus current liabilities. It measures a contractor’s short-term liquidity and ability to cover obligations such as payroll, suppliers, and subcontractors. Healthy working capital demonstrates financial stability, a key requirement for contractor licensing. Revenue (A) and total assets (B) are broader measures, while change orders (D) are project-specific. Regulators in Virginia and California both stress adequate working capital as a sign of financial responsibility.

A contingency is an allowance in estimates for unforeseen conditions such as material price increases or hidden site problems. It is not guaranteed profit (A) or a penalty (C).

The California Labor Commissioner requires contractors to post the “Notice to Employees” detailing wage and hour rights. OSHA (A) is safety-related, not wage-specific. CSLB and building posters (C, D) are unrelated.