FAR 52.242-15 Stop-Work Orders: A Contractor Comparison Guide
When the government halts performance on a project, understanding your contractual rights and obligations under 52.242-15 Stop-Work Order. | Acquisition.GOV is critical. A stop-work order is not a casual request; it is a formal directive that imposes immediate legal duties on the contractor while establishing specific mechanisms for cost recovery and schedule relief. Contractors must understand how immediate compliance balances against cost mitigation, how cancellation compares to contract termination, and how adjustment timelines govern financial recovery.
Immediate Compliance vs. Cost Mitigation Duties
Under paragraph (a) of the clause, the contracting officer may require the contractor to stop all, or any part, of the work called for by the contract. The order must be delivered in writing and specifically identified as a stop-work order issued under the clause. Upon receipt, the contractor faces two simultaneous responsibilities that must be balanced carefully:
- Immediate compliance: The contractor shall immediately comply with the terms of the order and cease work on the designated portions of the contract.
- Cost mitigation: The contractor shall take all reasonable steps to minimize the incurrence of costs allocable to the covered work during the period of work stoppage.
Halting field installation prevents unapproved expenditures, but contractors must actively manage jobsite operations. This includes reassigning crews, pausing deliveries, and controlling jobsite overhead to avoid unallowable costs. Estimators and project managers tracking project delays must account for continuing standby expenses and general conditions while demonstrating active mitigation efforts.
Comparing Outcomes: Cancellation vs. Convenience vs. Default Termination
Under FAR 52.242-15, a stop-work order lasts for a period of 90 days after delivery to the contractor, or for any further period to which the parties agree. Within that 90-day window, or agreed extension, the contracting officer must choose one of two distinct paths: cancel the order or terminate the covered work. The contractor's recovery rights depend directly on which outcome occurs:
1. The Order Is Canceled or Expires: If the stop-work order is canceled or if the period of the order (or any extension) expires, the contractor shall resume work. The contracting officer shall make an equitable adjustment in the delivery schedule, the contract price, or both. The contract shall be modified in writing accordingly if the stoppage increases performance time or properly allocable costs.
2. Termination for Convenience: If the order is not canceled and the government terminates the covered work for convenience, the contracting officer shall allow reasonable costs resulting from the stop-work order in arriving at the termination settlement.
3. Termination for Default: Even if the stop-work order is not canceled and the work is terminated for default, paragraph (d) explicitly mandates that the contracting officer shall allow, by equitable adjustment or otherwise, reasonable costs resulting from the stop-work order.
Fixed-Price vs. Cost-Reimbursement Adjustments Under Alternate I
The standard text of the clause applies to fixed-price arrangements, providing an equitable adjustment in the delivery schedule, contract price, or both. However, when the clause is used in cost-reimbursement contracts, Alternate I applies and adjusts the language in two specific areas:
First, under Alternate I, if work covered by the order is terminated, the clause substitutes the phrasing "the Termination clause of this contract" in place of the separate references to default or convenience terminations.
Second, when work resumes after cancellation or expiration, Alternate I provides for an equitable adjustment in the delivery schedule, the estimated cost, the fee, or a combination thereof, and in any other terms of the contract that may be affected. Contractors evaluating compensation adjustments must verify which version of the clause is in their contract before submitting documentation for pricing change orders.
Comparing Claim Timelines: The 30-Day Rule vs. Contracting Officer Discretion
To secure an equitable adjustment after a stop-work order is canceled or expires, contractors must act within strict procedural windows:
Under paragraph (b), the contractor must assert its right to the adjustment within 30 days after the end of the period of work stoppage. Failing to assert the claim within this 30-day timeframe can put cost recovery at risk.
The clause does provide an exception: if the contracting officer decides that the facts justify the action, they may receive and act upon a claim submitted at any time before final payment under the contract. Even with this discretionary provision, contractors should never rely on contracting officer discretion. Submitting the adjustment claim within the standard 30 days protects your recovery rights on both schedule and price.
Duration Rules and Stoppage Scope Under 42.1305(b)
As prescribed in 42.1305(b), the baseline duration for a stop-work order is 90 days. However, the clause notes that this 90-day period stated in the contract may be reduced to less than 90 days. Any stoppage extending beyond 90 days requires mutual agreement between the contractor and the government for any further period.
Before responding to an order, confirm that the directive explicitly cites the clause, verify whether the standard 90 days was modified to a shorter window, and ensure all allocable costs during the stoppage are cleanly tracked in separate accounting cost codes.
Sources
52.242-15 Stop-Work Order. | Acquisition.GOV
Published October 30, 2026. No affiliate links on this page. Facts come from the sources linked above; check them for updates.