Suspension of Work
Contractors must promptly notify and submit claims for cost adjustments when work is unreasonably suspended by the Contracting Officer, or risk losing compensation rights.
Overview
FAR 52.242-14, Suspension of Work, is a mandatory clause for fixed-price construction and architect-engineer contracts. It allows the Contracting Officer to order the contractor to suspend, delay, or interrupt work for the Government's convenience. If such a suspension or delay is unreasonable and caused by the Contracting Officer's actions or inaction, the contractor is entitled to an adjustment for increased costs (excluding profit), provided certain conditions are met. The clause outlines strict notification and claim submission requirements, including deadlines for notifying the Contracting Officer and for asserting claims. It also specifies exclusions, such as delays caused by the contractor's own fault or those covered by other contract provisions. This clause is designed to protect both parties by providing a clear process for handling work suspensions and associated cost adjustments.
Key Rules
- Suspension Authority
- The Contracting Officer can order suspension, delay, or interruption of work in writing for any period deemed appropriate.
- Entitlement to Adjustment
- Contractors may receive an adjustment (excluding profit) for unreasonable suspensions or delays caused by the Contracting Officer, but not for delays due to the contractor's fault or covered elsewhere in the contract.
- Notification and Claim Requirements
- Contractors must notify the Contracting Officer in writing within 20 days of the act or failure to act (except for direct suspension orders) and must submit claims as soon as practicable, but no later than final payment.
Responsibilities
- Contracting Officers: Issue written suspension orders, evaluate claims for cost adjustments, and modify contracts as necessary.
- Contractors: Comply with suspension orders, provide timely written notifications, and submit claims within specified timeframes.
- Agencies: Oversee compliance and ensure proper documentation and contract modifications.
Practical Implications
- This clause ensures a fair process for handling work stoppages and cost impacts in construction and architect-engineer contracts.
- Contractors must be diligent in documenting delays and promptly notifying the Contracting Officer to preserve their rights to compensation.
- Failure to follow notification and claim procedures can result in forfeiture of cost adjustments, making compliance critical.