Federal projects can pause for funding, technical, protest, safety, program, or Government-direction reasons. A subcontractor may receive the practical impact through the prime even though it has no direct contractual relationship with the Government.
The key pre-award issue is whether the subcontract gives the prime broad suspension power while withholding the time and cost relief the prime may seek upstream.
The federal clause requires mitigation and provides an adjustment path
FAR 52.242-15 allows the Contracting Officer to direct a temporary stop to all or part of covered work. The contractor must comply and take reasonable steps to minimize allocable costs. If the order is canceled or expires, the clause addresses resumption and potential equitable adjustment when the stoppage increases time or cost.
Official source: FAR 52.242-15 — Stop-Work Order.
The subcontract needs its own downstream mechanics
- Who can issue a stop-work direction to the subcontractor?
- Must the direction be written?
- Which costs must be minimized and documented?
- Is schedule relief automatic or discretionary?
- Can the subcontractor recover demobilization, remobilization, storage, escalation, or standby costs?
- Is recovery conditioned on the prime first receiving payment from the Government?
Separate a stop from a termination
A temporary stop-work order, suspension, and termination for convenience are different risk events. The subcontract should explain when a prolonged suspension becomes a termination right, what costs are recoverable, and whether the subcontractor can exit after a defined period.
Create a day-one stoppage protocol
When work stops, record the direction, affected scope, labor and equipment status, commitments that can and cannot be canceled, mitigation steps, schedule impact, and restart assumptions. Notice deadlines can be short, so the field team should know who must receive the written notice before a stoppage occurs.