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What To Do When Served With A Stop-Work Order

What To Do When Served With A Stop-Work Order: A Guide For Federal Contractors

What To Do When Served With A Stop-Work Order: A Guide For Federal Contractors

As a contractor under a federal Government Contract, being served with a stop-work order under FAR 52.242-15 can present significant operational challenges. Understanding your rights and obligations, as well as how to protect your interests, is crucial to maintaining compliance and minimizing potential disruptions. Here is a quick guide on the necessary steps to take when faced with a stop-work order.

1. Acknowledge The Order And Communicate

The first step is to acknowledge receipt of the stop-work order to the contracting officer (CO). Ensure this acknowledgment is in writing to establish a clear record of communication. Next, notify your subcontractors, suppliers, and relevant employees about the order and direct them to halt any related work immediately.

2. Review The Order Carefully

Examine the specifics of the stop-work order, paying attention to:

  • The scope of the suspension (which work is affected)
  • The duration of the stop-work period
  • Any special instructions for compliance

Understanding these elements will guide your next steps.

3. Safeguard Work In Progress

During the stop-work period, it is crucial to secure any ongoing work. Protect materials, tools, and documents to prevent loss or damage. Track and document any costs incurred due to the suspension, including storage fees and labor costs related to demobilization.

4. Track Costs And Seek Adjustments

As the stop-work order may result in unforeseen costs, maintain detailed records to support an eventual request for an equitable adjustment (REA). If the stop-work order has a significant impact on the schedule or cost, you are entitled to recover these additional costs.

Maintain detailed and up-to-date records of technical progress, costs, key employees, and communications both before and after the stop-work order is issued, as these may support future REA claims. Submit your REA within the required timeframe, typically 30 days, unless an extension is granted by the CO.

5. Stay In Communication With The Contracting Officer

Ongoing communication with the CO is essential. Request clarifications if needed and stay updated on the status of the stop-work order. Should the CO issue instructions to resume work or modify the contract, promptly comply and adjust your operations accordingly.

6. Prepare For Termination (If Applicable)

If the stop-work order leads to a termination for convenience, the contract may be formally ended by the government. In such cases, you will need to follow the procedures outlined under FAR Part 49 to prepare a termination settlement proposal, including all allowable costs.

7. Legal Guidance And Support

Given the complexities and potential financial impacts of a stop-work order, it’s often advisable to consult with an attorney who specializes in government contracts. We can assist in ensuring that you comply with all requirements, help prepare your REA, and guide you through the termination process if necessary. Legal costs are generally allowable as part of the termination settlement expenses.

ADDITIONAL INFORMATION

A stop-work order is a serious event for any contractor, but by staying proactive, maintaining detailed records, and seeking legal advice when needed, you can manage the situation effectively while minimizing its impact.

If you’ve been served with a stop-work order, contact us today at Williamson Law Group at
(301) 788-8198, or by e-mail at info@williamsonlawgroup.com to discuss your next steps and ensure your rights are protected.

This Contract Compliance Update is to keep readers current on government contract matters and is not intended to be legal advice. If you have any questions, please contact Williamson Law Group for legal advice regarding your particular case.