In the construction industry, stop work orders are fairly common. It is a method that is used to suspend work until a decision or agreement can be reached. Stop work orders are typically used in any lump sum contracts, but they can also be seen in service contracts. As Florida construction attorneys, we know that a stop work order can be received for several different reasons, and when a contractor receives one, they will need to be prepared to defend themselves, and if the contract allows it, charge for the downtime and incurred costs that pile up during the time period that the stop work order is in effect. To view the second half of this article, please visit Part 2.
Stop Work Order Items
- Any employee downtime that occurs during the stop work order
- Costs that are revealed as part of the process to stop all work that is related to the construction project
- Payments that are required by law or employee compensation while the stop work order is imposed during an extensive time period
- Stop work orders to subcontractors, including demobilization costs
- Any extra expenses for materials as consequences of stop work orders if the order is extended
- Any expenses needed to re-negotiate contracts, as well as possible terms and conditions from subcontractors and vendors
- Start-up, speed up and mobilization when the work is resumed
Who Is In Charge During A Stop Work Order?
Once a stop work order is issued, it’s up to the contractor to contact the contracting officer, as the authorized representative that should be dealing with these claims. After a contractor’s claims have either been approved or denied, they will form part of the contract.
After a contractor receives a stop work order, they can resume construction activities or the contract may be terminated by convenience. A stop work order is not allowed to be used as a way to reduce a contractor’s scope of work, and should only be used when the customer will no longer be able to complete the contracted work due to lack of funding.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.