52.242-14 Suspension of Work
Source: FAR 52.242-14 on acquisition.gov
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.
As prescribed in 42.1305(a), insert the following clause in solicitations and contracts when a fixed-price construction or architect-engineer contract is contemplated:
Suspension of Work (Apr 1984)
(a) The Contracting Officer may order the Contractor, in writing, to suspend, delay, or interrupt all or any part of the work of this contract for the period of time that the Contracting Officer determines appropriate for the convenience of the Government.
(b) If the performance of all or any part of the work is, for an unreasonable period of time, suspended, delayed, or interrupted (1)by an act of the Contracting Officer in the administration of this contract, or (2)by the Contracting Officer’s failure to act within the time specified in this contract (or within a reasonable time if not specified), an adjustment shall be made for any increase in the cost of performance of this contract (excluding profit) necessarily caused by the unreasonable suspension, delay, or interruption, and the contract modified in writing accordingly. However, no adjustment shall be made under this clause for any suspension, delay, or interruption to the extent that performance would have been so suspended, delayed, or interrupted by any other cause, including the fault or negligence of the Contractor, or for which an equitable adjustment is provided for or excluded under any other term or condition of this contract.
(c) A claim under this clause shall not be allowed-
(1) For any costs incurred more than 20 days before the Contractor shall have notified the Contracting Officer in writing of the act or failure to act involved (but this requirement shall not apply as to a claim resulting from a suspension order); and
(2) Unless the claim, in an amount stated, is asserted in writing as soon as practicable after the termination of the suspension, delay, or interruption, but not later than the date of final payment under the contract.
(End of clause)