A Reminder For Contractors Facing Stop-Work Orders During The Government Shutdown

As the government shutdown goes deeper into week two, it is still unclear when the government will reopen. As we highlighted in a prior Client Alert that we published in the days before a prior looming shutdown, contractors should be keenly aware of their obligations and note best practices regarding any stop-work orders issued by their contracting agencies. Specifically, contractors need to: (1) pay special attention to the stop-work clauses contained in their contracts; (2) upon issuance of a stop-work order, communicate clearly with their Contracting Officers (COs) (if not furloughed) and subcontractors; and (3) carefully document all measures taken to minimize the cost impacts associated with the work stoppage. This last step is critical, as certain of these costs may be recoverable, in the form of an equitable adjustment, once the stop-work order is lifted. For ease of reference, we are republishing below the substance of our Client Alert providing practical tips