Suspension of work
Contractors may claim increased costs (excluding profit) if a government-ordered suspension of work on construction or architect-engineer contracts is unreasonable.
Overview
FAR 42.1302 addresses the suspension of work in construction and architect-engineer contracts. It allows the contracting officer to order a suspension of work for a reasonable period. If the suspension extends beyond what is considered reasonable, the contractor is entitled to submit a written claim for increased costs incurred due to the delay, but cannot claim additional profit. This provision ensures that contractors are compensated for actual costs resulting from government-ordered suspensions that are deemed unreasonable, while also protecting the government from excessive claims.
Key Rules
- Suspension Authority
- The contracting officer may suspend work on construction or architect-engineer contracts for a reasonable period.
- Unreasonable Suspension Claims
- If the suspension is deemed unreasonable, contractors may submit a written claim for increased costs (excluding profit) resulting from the delay.
Responsibilities
- Contracting Officers: Must ensure suspensions are reasonable and document the suspension order. They must review and process any claims for increased costs due to unreasonable suspensions.
- Contractors: Must monitor the duration of suspensions, document increased costs, and submit written claims if the suspension is unreasonable.
- Agencies: Should oversee the process to ensure fairness and compliance with FAR requirements.
Practical Implications
- This section protects contractors from financial harm due to government-caused delays, while limiting claims to actual costs (not profit).
- Contractors should keep detailed records of costs incurred during suspensions and communicate promptly with the contracting officer.
- Disputes may arise over what constitutes a "reasonable" period, so clear documentation and communication are critical.